As filed with the Securities and Exchange Commission on April 29, 2011

Commission File Nos.  333-108433

811-09933

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM N-6

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

	Pre-Effective Amendment No.	[  ]
	Post-Effective Amendment No.  23	[X]
and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No.   37 [X]

JACKSON NATIONAL SEPARATE ACCOUNT IV

(Exact Name of Registrant)

JACKSON NATIONAL LIFE INSURANCE COMPANY

(Name of Depositor)

1 Corporate Way, Lansing, Michigan 48951

(Address of Depositor's Principal Executive Offices)

Depositor's Telephone Number, including Area Code: (517) 381-5500

Thomas J. Meyer, Esq., Senior Vice President, Secretary and General Counsel

Jackson National Life Insurance Company, 1 Corporate Way, Lansing, MI 48951

(Name and Address of Agent for Service)

Copy to:

Frank J. Julian, Esq., Associate General Counsel

Jackson National Life Insurance Company, 1 Corporate Way, Lansing, MI 48951

(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering:
It is proposed that this filing will become effective (check appropriate box)
[   ]	immediately upon filing pursuant to paragraph (b)
[X]	on April 29, 2011 pursuant to paragraph (b)
[   ]	60 days after filing pursuant to paragraph (a)(1)
[   ]	on (date) pursuant to paragraph (a)(1).
If appropriate, check the following box:
[  ]	this post-effective amendment designates a new effective date for a previously filed post-effective amendment
Title of Securities Being Registered: the variable portion of Flexible Premium Variable Life Insurance contracts

SEC 2125 (7-09)

PERSPECTIVE INVESTOR®

INDIVIDUAL FLEXIBLE PREMIUM ADJUSTABLE VARIABLE LIFE INSURANCE POLICY

issued by

JACKSON NATIONAL LIFE INSURANCE COMPANY®

in connection with its

JACKSON NATIONAL SEPARATE ACCOUNT IV

1 Corporate Way

Lansing, Michigan 48951

Jackson® Service Center

P.O. Box 30502

Lansing, Michigan 48909-8002

1-800-766-4683

IMG Service Center

P.O. Box 30386

Lansing, Michigan 48909-7886

1-800-777-7779

Jackson National Life Insurance Company (the “Company” or “Jackson®”) is offering the individual flexible premium adjustable variable life insurance policies described in this prospectus.  The policies provide insurance coverage on the life of one Insured.  Please read this prospectus carefully before investing and keep it for future reference.

The policies currently offer 8 1 allocation options, including 80 variable investment options, each of which is an Investment Division of Jackson National Separate Account IV , and our Fixed Account.  Each Investment Division invests exclusively in shares of one of the Underlying Mutual Funds of JNL® Series Trust or JNL Variable Fund LLC.

We do not guarantee a minimum Accumulated Value on amounts allocated to the Investment Divisions and, therefore, the policies do not have a guaranteed minimum Accumulated Value.  The portion of your Accumulated Value in the Separate Account will vary depending on the investment performance of the Underlying Mutual Funds underlying the Investment Divisions to which you allocate your premium.  You bear the entire investment risk on amounts allocated to the Investment Divisions.  The investment policies and risks of each Underlying Mutual Fund are described in the accompanying prospectuses for the JNL® Series Trust and JNL Variable Fund LLC and its Underlying Mutual Funds.  The Accumulated Value will also reflect premiums paid, amounts withdrawn, and cost of insurance and other charges.

Individual flexible premium adjustable variable life insurance policies involve risks, including possible loss of principal.  They are not deposits of any bank or insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.

It may not be advantageous for you to purchase variable life insurance to replace your existing insurance coverage or to purchase additional variable life insurance if you already own a variable life insurance policy.

This prospectus does not constitute an offering in any jurisdiction in which such offering may not be lawfully made.  Jackson does not authorize any information or representations regarding the offering described in this prospectus other than as based in this prospectus.

The Securities and Exchange Commission has not approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus.  Any representation to the contrary is a criminal offense.

Jackson is relying on SEC Rule 12h-7, which exempts insurance companies from filing periodic reports under the Securities Exchange Act of 1934 with respect to variable annuity contracts that are registered under the Securities Act of 1933 and regulated as insurance under state law.

Not FDIC/NCUA insured • Not Bank/CU guaranteed • May lose value • Not a deposit • Not insured by any federal agency

The date of this prospectus is May 1, 2011 .

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TABLE OF CONTENTS

FEE TABLE	1
Transaction Fees	1
Periodic Charges	2
Optional Rider Charges	3
Charges Assessed Against the Underlying Mutual Funds	4
Individual Underlying Mutual Fund Company Annual Expenses	7
SUMMARY	10
Description of the Policy and Policy Benefits	10
Risks of the Policy	13
The Underlying Mutual Funds and Associated Risks	14
PURCHASING A POLICY AND ALLOCATING PREMIUM	15
Applying for a Policy	15
Premiums	15
Planned Premium	16
Premium Limits	16
Guaranteed Minimum Death Benefit	17
Modified Endowment Contracts	17
Allocation of Premium	17
Accumulated Value	18
Accumulation Unit Value	18
Transfer of Accumulated Value	18
Restrictions on Transfers	19
Transfers Authorized by Telephone or the Internet	19
Dollar Cost Averaging	20
Rebalancing	20
THE SEPARATE ACCOUNT	21
The Underlying Mutual Funds	21
Voting Privileges	32
Additions, Deletions, and Substitutions of Securities	32
THE FIXED ACCOUNT	32
POLICY BENEFITS AND RIGHTS	33
Death Benefit	33
Death Benefit Options	33
Changes in Death Benefit Option	34
Changes in Specified Death Benefit	35
Optional Insurance Benefits	35
Policy Loans	39
Surrenders	41
Partial Surrenders	41
Status of Policy at Attained Age 121	43
Termination and Grace Period	43
Reinstatement	43
Right to Examine the Policy	44
Postponement of Payment	44
CHARGES AND DEDUCTIONS	44
Premium Charges	44
Asset Based Risk Charge	45
Monthly Deduction	45
Cost of Insurance Charge	45
Monthly Policy Fee	46
Monthly Administrative Charge	46
Surrender Charge	46
Transfer Charge	49
Illustration Charge	49
Re-Underwriting Charge	49
Rider Charges	49
Additional Policy Charges	49
Underlying Mutual Fund Expenses	49
Special Provisions for Group or Sponsored Arrangements	50
Purpose and Amount of Charges	50
GENERAL POLICY PROVISIONS	50
Statements to Owners	50
Limit on Right to Contest	50
Suicide	50
Misstatement as to Age and Sex	50
Beneficiary	50
Assignment	51
Creditors' Claims	51
Dividends	51
Notice and Elections	51
Modification	51
Conversion	51
FEDERAL TAX CONSIDERATIONS	51
Taxation of Jackson and the Separate Account	51
Jackson Taxation	52
Tax Status of the Policy	52
Diversification Requirements	52
Owner Control	52
Tax Treatment of Life Insurance Death Benefit Proceeds	53
Tax Deferral During Accumulation Period	53
Distributions	53
Policies Which are MECs	53
Policies Which are Not MECs	54
Treatment Beyond Attained Age 121	54
Actions to Ensure Compliance with the Tax Law	54
Federal Income Tax Withholding	54
Tax Advice	54
DESCRIPTION OF JACKSON AND THE SEPARATE ACCOUNT	55
Jackson National Life Insurance Company	55
The Separate Account	55
Safekeeping of the Separate Account's Assets	55
State Regulation of Jackson	55
DISTRIBUTION OF POLICIES	55
LEGAL PROCEEDINGS	57
FINANCIAL STATEMENTS	57
PRIVACY POLICY	57
GLOSSARY OF TERMS	59
APPENDIX A	62
APPENDIX B	64
APPENDIX C	66
WHERE YOU CAN FIND MORE INFORMATION	72

Capitalized terms used in this prospectus are defined where first used or in the Glossary of Terms beginning on page 59 of this prospectus.

FEE TABLE

The following tables describe the fees and expenses that you will pay when buying, owning and surrendering the policy.  The first table (and footnotes) describes the fees and expenses that you pay at the time that you buy or surrender the policy or transfer cash value between investment options.

TRANSACTION FEES

Charge	When Charge is Deducted	Amount Deducted 1
Sales Charge	When premium is allocated	6% of each premium in all years 2
Premium Tax Charge	When premium is allocated	2.5% of each premium 3
Federal (DAC) Tax Charge	When premium is allocated	1.5% of each premium
Surrender Charge (per $1,000 of Specified Death Benefit) 4	When you surrender your policy or take a partial surrender, during the first nine Policy Years or nine years after an increase in the Specified Death Benefit
Maximum and Minimum Initial Surrender Charge		Maximum:  $56.36 per $1,000 5 Minimum:   $2.49 per $1,000
Initial Surrender Charge for a 45 year old Male Preferred Nonsmoker		$15.88 per $1,000
Transfer Charge	Each transfer in excess of 15 in any Policy Year	$25 per transfer
Illustration Charge 6	Each in-force illustration in excess of one in any Policy Year	$25 per illustration
Re-Underwriting Fee 7	If a transaction under your policy requires underwriting approval after the Commencement Date	$25
Partial Surrender Fee	When you make a partial surrender	$25 per partial surrender
Expedited Delivery Charge 8	When you request expedited delivery of surrender, partial surrender or loan proceeds	Current:   $20 for wire transfers $10 for overnight delivery $22.50 for Saturday delivery

1	The table shows the maximum guaranteed charges, except as otherwise indicated.  See “Charges and Deductions” on page 44 for more information about these charges and our current charges.
2	This is the maximum guaranteed Sales Charge.  For information regarding our current charges, see “Premium Charges” on page 44 .
3	We reserve the right to increase or decrease this charge due to any change in tax law or premium taxes we expect to pay.
4	This charge applies to all surrenders and partial surrenders.  The initial amount of the surrender charge generally equals the Specified Death Benefit of your policy multiplied by the applicable rate per thousand dollars of Specified Death Benefit divided by 1000.  The applicable rate depends on the Insured's age, sex and underwriting risk classification.  The surrender charge declines over a nine-year period, in accordance with a table shown in your policy.  For example, the table below shows the nine-year surrender charge schedule for a 45-year-old Male Preferred Nonsmoker.

		Policy Year	Surrender Charge per $1,000
		1	$15.88
		2	$14.12
		3	$12.35
		4	$10.59
		5	$  8.82
		6	$  7.06
		7	$  5.29
		8	$  3.53
		9	$  1.76
		10+	$0
	Any surrender or partial surrender within nine years after you increase your Specified Death Benefit also will be subject to a separate surrender charge schedule as if the increase had been issued as a new policy.  The surrender charge on partial surrenders generally is approximately proportionate to the reduction in Accumulated Value resulting from partial surrender.  For more information, see “Surrender Charge” at page 46 below.
	The surrender charge shown in the table above may not be representative of the charge you would pay.  For more information about the surrender charge that would apply to your policy, please contact us at the address or telephone number shown on the first page of this prospectus, or contact your sales representative.
5	This is the maximum guaranteed Initial Surrender Charge.  For information regarding our current charges see “Surrender Charge” on page 46 .
6	This charge is not deducted from your Accumulated Value, but must be paid separately by you with each request for an in-force illustration in excess of one per Policy Year.
7	For example, you will be subject to this charge if you request an increase in the Specified Death Benefit, which would require you to provide us with satisfactory evidence of insurability.  See “Changes in Specified Death Benefit” on page 35 .
8	This charge reflects the expenses we expect to incur for providing expedited delivery of surrender, partial surrender or loan proceeds.  We may increase this charge upon prior notice to you to reflect any increase in the expenses we expect to incur for providing this service.

The second table (and footnotes) describes the fees and expenses that you will pay periodically during the time that you own the policy, not including the Underlying Mutual Fund fees and expenses.

PERIODIC CHARGES

Charge	When Charge is Deducted	Amount Deducted 9
Cost of Insurance Charge (per $1,000 Net Amount at Risk) 10	Monthly
Maximum and Minimum COI Charge:		Maximum: $83.33 per $1,000 Minimum: $0.015 per $1,000 ($0.06 per $1,000 for policies applied for before October 6, 2008)
COI Charge for a 45 year old Male Preferred Nonsmoker		$0.1944 per $1,000 ($0.38 per $1,000 for policies applied for before October 6, 2008)
Policy Fee	Monthly	$15 per month for Policy Years 1-3 $7.50 per month thereafter
Administrative Charge	Monthly	$0.07 per month per $1,000 of initial Specified Death Benefit (or increase in Specified Death Benefit) for 10 years from the date of issue or increase, as applicable; $0.01 per month per $1,000 of initial Specified Death Benefit (or increase in Specified Death Benefit) thereafter
Asset Based Risk Charge 11	Daily	1.00% (on an annual basis) in all years
Policy Loan Interest Rate 12	Annually (accrues daily)	4%
Tax Charge 13	Daily	Currently:  None

9	The table shows the maximum guaranteed charges, except as otherwise indicated.  See “Charges and Deductions” on page 44 for more information about these charges and our current charges.
10	The cost of insurance varies based on individual characteristics such as the sex, underwriting risk classification and age of the Insured and length of time the policy has been in force.  We determine the current cost of insurance rates, but we guarantee that we will never charge you a higher cost of insurance rates tha n the guaranteed rates shown in your policy.  Our current cost of insurance charges also vary depending on the Specified Death Benefit of the Policy.  We calculate a separate cost of insurance charge for any increase in the Specified Death Benefit based on the Insured's circumstances at the time of the increase (including age and underwriting risk classification).  For more information about the calculation of the cost of insurance charges, see “Cost of Insurance Charge” on page 45 .
	See “Cost of Insurance Charge” on page 45 for a description of how the Net Amount at Risk is determined.
	The cost of insurance charge shown in the table above may not be representative of the charge you would pay.  For more information about the cost of insurance charge that would apply to your policy, please contact us at the address or telephone number shown on the first page of this prospectus or contact your sales representative.
11	This is the maximum guaranteed Asset Based Risk Charge.  For information regarding our current charges, see “Asset Based Risk Charge” on page 45 .  Policies applied for before October 6, 2008 referred to this charge as the mortality and expense risk charge.
12	A loan against your policy accrues interest daily at an annual simple interest rate of 4% during your first through fifth Policy Years (first through tenth Policy Years for policies applied for before October 6, 2008) and no greater than 3.25% thereafter.  To secure a loan’s repayment, we automatically transfer a corresponding amount of Accumulated Value to the Loan Account.  On the Loan Account balance, we will credit interest that compounds daily at an annual effective interest rate of 3%.  (At the same time, however, you forgo the performance of the Investment Divisions and the amount of interest we credit to the Fixed Account while your loan remains outstanding.)
13	We currently do not deduct a separate charge against the Separate Account for income taxes.  In the future, however, we may impose such a charge if, in our sole discretion, we determine that we will incur a tax from the operation of the Separate Account.

Currently, we are offering the following optional riders.  The charges for the rider you select are deducted monthly from your Accumulated Value as part of the Monthly Deduction.  You may not be eligible for all optional Riders shown below.  The benefits provided under each rider are summarized in "Optional Insurance Benefits" beginning on page 35 .

OPTIONAL RIDER CHARGES

Optional Benefit	When Charge is Deducted	Amount Deducted 14
Accelerated Living Benefit Rider 15	No Charge	None
Terminal Illness Benefit Rider 15	No Charge	None
Overloan Protection Benefit Rider 15	No Charge	None
Guaranteed Death Benefit Rider (Not available to policies applied for prior to October 6, 2008) 15	No Charge	None
Scheduled Term Insurance Rider  (Available only to policies applied for prior to October 6, 2008) 16 Maximum and Minimum Cost of Insurance Charge (per $1,000 of Rider Death Benefit Coverage) 17	Monthly	Maximum: $83.33 per $1,000 Minimum: $0.07 per $1,000
Cost of Insurance Charge for a 45 year old Male Preferred Nonsmoker 17		$0.48 per $1,000
Monthly Administrative Charge	Monthly	$0.07 per $1,000 of the excess of the Target Death Benefit over the Specified Death Benefit for years 1-10; $0.01 per $1,000 of the excess of the Target Death Benefit over the Specified Death Benefit thereafter
Waiver of Monthly Deductions	Monthly	Maximum: $36.00 per $100 of Monthly Deduction Minimum: $3.00 per $100 of Monthly Deduction
Waiver of Specified Premium	Monthly	Maximum: $0.11 per $1 of Monthly Specified Premium Minimum: $0.03 per $1 of Monthly Specified Premium
Guaranteed Minimum Death Benefit (Available only to policies applied for prior to October 6, 2008)	Monthly	$0.005 per $1,000 of the Specified Death Benefit
Other Insured Term Insurance Rider Maximum and Minimum Cost of Insurance Charge (per $1,000 of Rider Coverage) 17	Monthly	Maximum: $83.33 per $1,000 Minimum: $0.015 per $1,000 ($0.06 per $1,000 for policies applied for before October 6, 2008)
Cost of Insurance Charge for a 45 year old Male Preferred Nonsmoker17		$0.1944 per $1,000 ($0.38 per $1,000 for policies applied for before October 6, 2008)
Monthly Administrative Charge	Monthly	$0.07 per $1,000 of Death Benefit (charged only in year 1)
Protector Term Insurance Rider (No longer offered as of November 3, 2008) Maximum and Minimum Cost of Insurance Charge (per $1,000 of Rider Coverage) 17	Monthly	Maximum: $71.86 per $1,000 Minimum: $0.04 per $1,000
Cost of Insurance Charge for a 45 year old Male Preferred Nonsmoker (30 year term) 17		$0.31 per $1,000
Child Insurance Rider	Monthly	$2.08 per $5,000 of coverage  ($25 on an annual basis)

14	The table shows the maximum guaranteed charges, except as otherwise indicated.  See “Charges and Deductions” on page 44 for more information about these charges and our current charges.
15	There is no additional cost for these riders, which are added automatically to all eligible policies (in states where available).
16	The death benefit coverage under this rider equals the Total Death Benefit minus the Base Death Benefit, but not less than zero.
17	The cost of insurance varies based on individual characteristics such as the sex, underwriting risk classification and age of the Insured and length of time the policy has been in force.  We determine the current cost of insurance rates, but we guarantee that we will never charge you higher cost of insurance rates than the guaranteed rates shown in your policy.  Our current cost of insurance charges also vary depending on the rider death benefit.

The cost of insurance charge shown in the table above may not be representative of the charge you would pay.  For more information about the cost of insurance charge that would apply to your policy, please contact us at the address or telephone number shown on the first page of this prospectus or contact your sales representative.

The following table describes Underlying Mutual Fund fees and expenses that you will pay periodically during the time that you own the policy.  The table shows the minimum and maximum fees and expenses charged by any of the Underlying Mutual Funds.  More detail concerning each Underlying Mutual Fund's fees and expenses is contained in the prospectus for each Underlying Mutual Fund.

CHARGES ASSESSED

AGAINST THE UNDERLYING MUTUAL FUNDS

	Maximum	Minimum
Total Annual Underlying Mutual Fund Operating Expenses 18 (expenses that are deducted from Underlying Mutual Fund assets, including management and administrative fees, 12b-1 service fees and other expenses)	2.25 %	0.37%

18 The fees and expenses reflected in this table are expressed as a percentage of average net assets for the year ended December 31, 20 10 for the Underlying Mutual Funds in which the Separate Account invests.

The Underlying Mutual Funds' expenses are assessed at the Underlying Mutual Fund level and are not direct charges against the Investment Division or the Accumulated Value.  These expenses are taken into account in computing each Underlying Mutual Fund's per share net asset value, which in turn is used to compute the corresponding Investment Division's Accumulated Value.

Each Investment Division purchases shares of the corresponding Underlying Mutual Fund at net asset value.  The net asset value reflects the investment advisory fees and other expenses that are deducted from the assets of the Underlying Mutual Fund.  The advisory fees and other expenses are not fixed or specified under the terms of the policy and they may vary from year to year.  Each Investment Division invests in Class B shares of the Underlying Mutual Fund.  For each Investment Division, the fees and expenses of the Underlying Mutual Fund shown in this prospectus reflect the fees and expenses of the class of shares in which the Investment Division invests.

The figures in the following table show expense ratios for the individual Underlying Mutual Funds for the year ended December 31, 20 10 , except where otherwise noted.

Individual Underlying Mutual Fund Company Annual Expenses (as a percentage of average net assets) Fund Name	Management and Admin Fee   A	Distribution and/or Service (12b-1) Fees	Other Expenses   B	Acquired   Fund Fees and   Expenses   C	Total Annual Underlying Mutual Fund Expenses	Contractual Fee Waiver and/or Expense Reimbursement	Net Total Annual  Underlying Mutual Fund Expenses
JNL/American Funds ® Blue Chip Income and Growth	1.27% D	0.00%	0.02% D	0.00%	1.29% D	0.45% E	0.84% D,E
JNL/American Funds Global Bond	1.39% D	0.00%	0.03% D	0.00%	1.42% D	0.55% E	0.87% D,E
JNL/American Funds Global Small Capitalization	1.61% D	0.00%	0.04% D	0.00%	1.65% D	0.60% E	1.05% D,E
JNL/American Funds Growth-Income	1.12% D	0.00%	0.02% D	0.00%	1.14% D	0.40% E	0.74% D,E
JNL/American Funds International	1.49% D	0.00%	0.04% D	0.00%	1.53% D	0.55% E	0.98% D,E
JNL/American Funds New World	1.94% D	0.00%	0.06% D	0.00%	2.00% D	0.80% E	1.20% D,E
JNL/BlackRock Global Allocation H	1.40% G	0.00%	0.13% G	0.02% G	1.55% G	0.66% E	0.89% G,E
JNL/WMC Money Market	0.37%	0.00%	0.00%	0.00%	0.37%	0.10%	0.27%

Individual Underlying Mutual Fund Company Annual Expenses (as a percentage of average net assets) Fund Name	Management and Admin Fee   A	Distribution and/or Service   (12 b-1) Fees	Other   Expenses   B	Acquired Fund Fees and Expenses C	Total Annual Fund Operating Expenses
JNL/BlackRock Commodity Securities	0.79%	0.00%	0.01%	0.01%	0.81%
JNL/Capital Guardian Global Balanced	0.80%	0.00%	0.01%	0.01%	0.82%
JNL/Capital Guardian Global Diversified Research	0.87%	0.00%	0.01%	0.01%	0.89%
JNL/Capital Guardian U.S. Growth Equity	0.75%	0.00%	0.00%	0.01%	0.76%
JNL/Eagle Core Equity	0.73%	0.00%	0.00%	0.02%	0.75%
JNL/Eagle SmallCap Equity	0.81%	0.00%	0.01%	0.00%	0.82%
JNL/Franklin Templeton Global Growth	0.87%	0.00%	0.01%	0.01%	0.89%
JNL/Franklin Templeton Income	0.76%	0.00%	0.00%	0.01%	0.77%
JNL/Franklin Templeton International Small Cap Growth	1.10%	0.00%	0.00%	0.02%	1.12%
JNL/Franklin Templeton Mutual Shares	0.85%	0.00%	0.01% F	0.02%	0.88%
JNL/Franklin Templeton Small Cap Value	0.94%	0.00%	0.00%	0.02%	0.96%
JNL/Goldman Sachs Core Plus Bond	0.68%	0.00%	0.00%	0.04%	0.72%
JNL/Goldman Sachs Emerging Markets Debt	0.87%	0.00%	0.01%	0.03%	0.91%
JNL/Goldman Sachs Mid Cap Value	0.81%	0.00%	0.01%	0.01%	0.83%
JNL/Goldman Sachs U.S. Equity Flex	0.95%	0.00%	0.73% F	0.01%	1.69%
JNL/Invesco Global Real Estate	0.86%	0.00%	0.00%	0.00%	0.86%
JNL/Invesco International Growth	0.81%	0.00%	0.01%	0.01%	0.83%
JNL/Invesco Large Cap Growth	0.76%	0.00%	0.00%	0.01%	0.77%
JNL/Invesco Small Cap Growth	0.95%	0.00%	0.00%	0.01%	0.96%
JNL/Ivy Asset Strategy	1.04%	0.00%	0.01%	0.02%	1.07%
JNL/JPMorgan International Value	0.81%	0.00%	0.01%	0.00%	0.82%
JNL/JPMorgan MidCap Growth	0.80%	0.00%	0.01%	0.00%	0.81%
JNL/JPMorgan U.S. Government & Quality Bond	0.51%	0.00%	0.00%	0.01%	0.52%
JNL/Lazard Emerging Markets	1.02%	0.00%	0.01%	0.01%	1.04%
JNL/Lazard Mid Cap Equity	0.81%	0.00%	0.01%	0.01%	0.83%
JNL/M&G Global Basics	1.00%	0.00%	0.02%	0.01%	1.03%
JNL/M&G Global Leaders	1.00%	0.00%	0.04%	0.00%	1.04%
JNL/Mellon Capital Management European 30	0.57%	0.00%	0.01%	0.00%	0.58%
JNL/Mellon Capital Management Pacific Rim 30	0.57%	0.00%	0.01%	0.00%	0.58%
JNL/Mellon Capital Management S&P 500 Index	0.36%	0.00%	0.01%	0.00%	0.37%
JNL/Mellon Capital Management S&P 400 MidCap Index	0.39%	0.00%	0.01%	0.00%	0.40%
JNL/Mellon Capital Management Small Cap Index	0.38%	0.00%	0.02%	0.01%	0.41%
JNL/Mellon Capital Management International Index	0.43%	0.00%	0.04%	0.00%	0.47%
JNL/Mellon Capital Management Bond Index	0.37%	0.00%	0.00%	0.01%	0.38%
JNL/Mellon Capital Management Global Alpha	1.15%	0.00%	0.01%	0.01%	1.17%
JNL/Oppenheimer Global Growth	0.84%	0.00%	0.02%	0.00%	0.86%
JNL/PAM Asia ex-Japan	1.05%	0.00%	0.06%	0.00%	1.11%
JNL/PAM China-India	1.10%	0.00%	0.03%	0.01%	1.14%
JNL/PIMCO Real Return	0.59%	0.00%	0.03%	0.00%	0.62%
JNL/PIMCO Total Return Bond	0.60%	0.00%	0.01%	0.00%	0.61%
JNL/PPM America High Yield Bond	0.55%	0.00%	0.01%	0.02%	0.58%
JNL/PPM America Mid Cap Value	0.85%	0.00%	0.01%	0.00%	0.86%
JNL/PPM America Small Cap Value	0.85%	0.00%	0.01%	0.00%	0.86%
JNL/PPM America Value Equity	0.65%	0.00%	0.01%	0.00%	0.66%
JNL/Red Rocks Listed Private Equity	0.98%	0.00%	0.00%	1.27%	2.25%
JNL/T. Rowe Price Established Growth	0.68%	0.00%	0.00%	0.00%	0.68%
JNL/T. Rowe Price Mid-Cap Growth	0.81%	0.00%	0.00%	0.00%	0.81%
JNL/T. Rowe Price Short-Term Bond	0.52%	0.00%	0.00%	0.05%	0.57%
JNL/T. Rowe Price Value	0.74%	0.00%	0.00%	0.00%	0.74%
JNL/WMC Balanced	0.55%	0.00%	0.01%	0.02%	0.58%
JNL/WMC Value	0.59%	0.00%	0.01%	0.00%	0.60%
JNL/S&P Competitive Advantage	0.50%	0.00%	0.01%	0.00%	0.51%
JNL/S&P Dividend Income & Growth	0.50%	0.00%	0.00%	0.00%	0.50%
JNL/S&P Intrinsic Value	0.50%	0.00%	0.01%	0.00%	0.51%
JNL/S&P Total Yield	0.50%	0.00%	0.01%	0.00%	0.51%
JNL/Mellon Capital Management Nasdaq ® 25	0.46%	0.00%	0.04%	0.00%	0.50%
JNL/Mellon Capital Management Value Line ® 30	0.44%	0.00%	0.10%	0.00%	0.54%
JNL/Mellon Capital Management Dow SM Dividend	0.45%	0.00%	0.03%	0.00%	0.48%
JNL/Mellon Capital Management S&P ® 24	0.45%	0.00%	0.01%	0.00%	0.46%
JNL/Mellon Capital Management 25	0.44%	0.00%	0.01%	0.00%	0.45%
JNL/Mellon Capital Management Select Small-Cap	0.45%	0.00%	0.00%	0.00%	0.45%
JNL/Mellon Capital Management JNL 5	0.42%	0.00%	0.02%	0.00%	0.44%
JNL/Mellon Capital Management VIP	0.45%	0.00%	0.03%	0.00%	0.48%
JNL/Mellon Capital Management JNL Optimized 5	0.44%	0.00%	0.04%	0.00%	0.48%
JNL/Mellon Capital Management S&P ® SMid 60	0.45%	0.00%	0.01%	0.00%	0.46%
JNL/Mellon Capital Management NYSE ® International 25	0.53%	0.00%	0.04%	0.00%	0.57%
JNL/Mellon Capital Management Communications Sector	0.49%	0.00%	0.03%	0.00%	0.52%
JNL/Mellon Capital Management Consumer Brands Sector	0.49%	0.00%	0.02%	0.00%	0.51%
JNL/Mellon Capital Management Financial Sector	0.46%	0.00%	0.03%	0.00%	0.49%
JNL/Mellon Capital Management Healthcare Sector	0.46%	0.00%	0.03%	0.00%	0.49%
JNL/Mellon Capital Management Oil & Gas Sector	0.44%	0.00%	0.03%	0.00%	0.47%
JNL/Mellon Capital Management Technology Sector	0.45%	0.00%	0.03%	0.00%	0.48%

A	Certain Funds pay Jackson National Asset Management, LLC, the Investment Adviser and Administrator, an administrative fee for certain services provided to each Fund. The JNL/American Funds ® Blue Chip Income and Growth Fund, JNL/American Funds Global Bond Fund, JNL/American Funds Global Small Capitalization Fund, JNL/American Funds Growth-Income Fund, JNL/American Funds International Fund, JNL/American Funds New World Fund,  JNL/BlackRock Commodity Securities Fund, JNL/BlackRock Global Allocation Fund, JNL/Capital Guardian Global Diversified Research Fund, JNL/Capital Guardian Global Balanced Fund, JNL/Franklin Templeton Global Growth Fund, JNL/Franklin Templeton International Small Cap Growth Fund, JNL/Goldman Sachs Emerging Markets Debt Fund, JNL/Goldman Sachs U.S. Equity Flex Fund, JNL/Invesco Global Real Estate Fund, JNL/Invesco International Growth Fund, JNL/Ivy Asset Strategy Fund, JNL/JPMorgan International Value Fund, JNL/Lazard Emerging Markets Fund, JNL/M&G Global Basics Fund, JNL/M&G Global Leaders Fund, JNL/Oppenheimer Global Growth Fund, JNL/PAM Asia Ex-Japan Fund, JNL/Red Rocks Listed Private Equity Fund, and all of the JNL/Mellon Capital Management Funds, except the JNL/Mellon Capital Management S&P 500 Index Fund, JNL/Mellon Capital Management S&P 400 MidCap Index Fund, JNL/Mellon Capital Management Small Cap Index Fund, JNL/Mellon Capital Management Bond Index Fund,  JNL/Mellon Capital Management NYSE ® International 25 Fund, JNL/Mellon Capital Management European 30 Fund, and JNL/Mellon Capital Management Pacific Rim 30 Fund, each pay an administrative fee of 0.15%. The JNL/Mellon Capital Management NYSE International 25 Fund, JNL/Mellon Capital Management European 30 Fund, JNL/Mellon Capital Management Pacific Rim 30 Fund, and JNL/PAM China-India Fund each pay an administrative fee of 0.20%. All other Funds each pay an administrative fee of 0.10%. The Management and Admin Fee and the Total Annual Underlying Mutual Fund Expenses columns in this table reflect the inclusion of the applicable administrative fee.
B	Other expenses include registration fees, licensing costs, a portion of the Chief Compliance Officer costs, directors and officers insurance, certain professional fees, fees and expenses of the disinterested Trustees/Managers, independent legal counsel to the disinterested Trustees/Managers fees, and other operating expenses not otherwise covered by the administrative fee.
C	Acquired fund fees and expenses represent each Fund’s pro rata share of fees and expenses of investing in securities deemed “investment companies”, including money market funds used for purposes of investing available cash balances.
D	Fees and expenses at the Master Fund level for Class 1 shares of each respective Fund are as follows: JNL/American Funds Blue Chip Income and Growth Fund: Management Fee: 0.42%; Distribution and/or Service (12b-1) Fee: 0%; Other Expenses: 0.02%; Total Annual Portfolio Operating Expenses: 0.44%. JNL/American Funds Global Bond Fund: Management Fee: 0.54%; Distribution and/or Service (12b-1) Fee: 0%; Other Expenses: 0.03%; Total Annual Portfolio Operating Expenses: 0.57%. JNL/American Funds Global Small Capitalization Fund: Management Fee: 0.71%; Distribution and/or Service (12b-1) Fee: 0%; Other Expenses: 0.04%; Total Annual Portfolio Operating Expenses: 0.75%. JNL/American Funds Growth-Income Fund: Management Fee: 0.27%; Distribution and/or Service (12b-1) Fee: 0%; Other Expenses: 0.02%; Total Annual Portfolio Operating Expenses: 0.29%. JNL/American Funds International Fund: Management Fee: 0.49%; Distribution and/or Service (12b-1) Fee: 0%; Other Expenses: 0.04%; Total Annual Portfolio Operating Expenses: 0.53%. JNL/American Funds New World Fund: Management Fee: 0.74%; Distribution and/or Service (12b-1) Fee: 0%; Other Expenses: 0.06%; Total Annual Portfolio Operating Expenses: 0.80%.
E	JNAM has entered into a contractual agreement with the Fund under which it will waive a portion of its advisory fee for such time as the Fund is operated as a Feeder Fund, because during that time it will not be providing the portfolio management portion of the investment advisory and management services.  This fee waiver will generally continue as long as the Fund is part of a master-feeder fund structure, but in any event, the fee waiver will continue for at least one year from the date of the current Prospectus, unless the Board of Trustees approves a change in or elimination of the waiver.  This fee waiver is subject to yearly review and approval by the Board of Trustees. The Management and Admin Fee and the Annual Operating Expense columns in this table reflect the inclusion of the contractual fee waivers.
F	Amount includes the costs associated with the Fund's short sales on equity securities.  When a cash dividend is declared on a security for which the Fund holds a short position, the Fund incurs the obligation to pay an amount equal to that dividend to the lender of the security sold short.  In addition, the Fund incurs fees in connection with the borrowing of securities related to short sale transactions.  For the period ended December 31, 2010, the total cost of short sales transactions to the JNL/Goldman Sachs U.S. Equity Flex Fund was 0.72%
G  H	Fees and expenses at the Master Fund level for Class I shares of the Fund are as follows:  Management Fee: 0.35%; Other Expenses: 0.13%; Acquired Fund Fees and Expenses:  0.02%; Total Annual Portfolio Operating Expenses: 0.50%. The Investment Division that invests in the JNL/BlackRock Global Allocation Fund currently is not accepting any additional allocations or transfers.  Please see “The Separate Account” on Page 21 for more information.

Summary

Description of the Policy and Policy Benefits

1.   What is an Individual Flexible Premium Adjustable Variable Life Insurance Policy?

Your policy is designed to be flexible to meet your specific life insurance needs.  Your policy has a Death Benefit, Accumulated Value and other features of life insurance providing fixed benefits.  Your policy is a “flexible premium” policy because you have a great amount of flexibility in determining when and how much premium you want to pay.  Your policy is a “variable” policy because the Accumulated Value varies according to the investment performance of the Investment Divisions to which you have allocated your premiums.  The policy provides you with an opportunity to take advantage of any increase in your Accumulated Value but you also bear the risk of any decrease.

2.   What are the Premiums for this Policy?

You have considerable flexibility as to the timing and amount of your premiums.  You must pay an initial premium to place the policy in force.  Thereafter, you may pay additional premiums when and in such amounts as you choose, subject to certain restrictions.  However, your policy may lapse and terminate without value if you do not pay sufficient premiums to keep the policy in force.The minimum initial premium generally is equal to 3 times the monthly Minimum Premium specified in your policy.  The monthly Minimum Premium is based on your policy's Specified Death Benefit and the Insured's age, sex and underwriting risk classification.  See “Purchasing a Policy and Allocating Premium” on page 15 for further details concerning the Minimum Premium.

Premiums may be paid at any time.  You may pay any level of premium, subject to certain limits.  However, during the first five years, paying the monthly Minimum Premium may help keep your policy in force.  See “Can my Policy Lapse?” on page 13.  (However, for policies applied for before October 6, 2008, this period is three years, rather than five.)

In addition, to take advantage of the Guaranteed Death Benefit Rider that we automatically add to all new policies that qualify for it, you must pay at least the cumulative Qualifying Monthly Premium Amount due.  This premium amount is shown on the policy data page.  It varies by Specified Death Benefit, the policy’s Death Benefit option, the Insured’s age, sex and underwriting risk class.  (The Guaranteed Death Benefit Rider is not available on policies applied for before October 6, 2008, although a similar benefit - the Guaranteed Minimum Death Benefit Rider - is applicable to some of those older policies.  To take advantage of that feature, if you elected it, you must pay at least the Required Monthly Premium Amount due.)

We will not accept any premium that would increase our Net Amount at Risk under your policy, unless you provide us with evidence of insurability satisfactory to us.  In addition, we will not accept any premium that would cause your policy to lose its status as a life insurance contract under the Internal Revenue Code of 1986, as amended (the “Code”), unless you also request an increase in the Specified Death Benefit that we approve.  We also will not accept any premium that would cause your policy to be deemed a “modified endowment contract” under the Code, without your written consent or acknowledgement.

3.   What is the Guaranteed Death Benefit Rider?

Under this rider, we agree to keep the policy (excluding certain riders) in force for the duration of the rider, regardless of the investment performance of the Investment Divisions, as long as your total premiums paid, less Debt and less partial surrenders, are greater than or equal to the cumulative Qualifying Monthly Premium Amount.  (This rider will in no event remain in force beyond the 20th Policy Year or the Insured’s Attained Age 65, whichever is later.)We automatically add this rider at issue to all eligible policies in states where permitted. However, this rider is available only with Death Benefit Options A and B.  For more information about this benefit, see “Guaranteed Death Benefit Rider” on page 37 .  (Although the Guaranteed Death Benefit Rider is not available under policies applied for before October 6, 2008, a similar benefit - the Guaranteed Minimum Death Benefit Rider - is applicable to certain of those older policies. For more information about that benefit, see “Guaranteed Minimum Death Benefit” on page 17.)

4.  How is my Accumulated Value Determined?

Your Accumulated Value is the sum of the values of your interests in the Investment Divisions of the Separate Account, plus the values in the Fixed Account and Loan Account.  Your Accumulated Value depends on the investment performance of the Investment Divisions and the amount of interest we credit to the Fixed Account and Loan Account, as well as the Net Premiums paid, partial surrenders, and charges assessed.  We have summarized the charges imposed under the policy in “Fee Table” and described them in more detail in “Charges and Deductions” on page 44 .  We do not guarantee a minimum Accumulated Value on amounts allocated to the Separate Account.  For more information about your Accumulated Value, see “Accumulated Value” on page 18.

5.   What are the Investment Choices for this Policy?

The policy currently offers 72 investment options, each of which is an Investment Division.  Each Investment Division invests in a single Underlying Mutual Fund.  See “The Underlying Mutual Funds” on page 21 for a listing of the available Investment Divisions.  We also offer a Fixed Account option.  See “The Fixed Account” on page 32 for more information.  You may transfer amounts among your investment choices, subject to certain restrictions.  See “Risks of the Policy” on page 13 and “Transfer of Accumulated Value” on page 18.

6.   How are my Premiums Allocated?

Before your premiums are allocated to the Accumulated Value, we deduct a Sales Charge, a Premium Tax Charge, and a Federal (DAC) Tax Charge (collectively “Premium Charges”).  For more detail, see the Fee Table on page 1 and “Charges and Deductions” on page 44 .  The amount remaining after the deduction of the Premium Charges is called the Net Premium.

When you apply for the policy, you specify in your application how to allocate your Net Premiums.  You may change your allocation instructions at any time by writing to us at the address on the first page of this prospectus.

We will generally allocate your initial Net Premiums to the Fixed Account on the Commencement Date.  Following the Commencement Date, amounts designated for the Fixed Account will remain in the Fixed Account until otherwise instructed by you, while amounts designated for the Investment Divisions will be reallocated in accordance with your then current allocation instructions on the Allocation Date.  The Allocation Date is generally the first business day on or after the fifth day following the Right to Examine Period for your policy.  Thus, for example, if the Right to Examine Period is 10 days, the Allocation Date is generally 15 days after the Commencement Date.  See “Right to Examine the Policy” on page 44 for more information about the Right to Examine Period.  For amounts allocated to the Fixed Account prior to the Allocation Date, we may credit a different interest rate on amounts designated for the Fixed Account than on amounts designated for the Investment Divisions.  We do not credit any interest or earnings on premiums we receive before the Commencement Date.

After the Allocation Date, we generally allocate your Net Premiums to the Investment Divisions and the Fixed Account as of the date we receive your premiums at our Service Center.  However, we reserve the right to delay the allocation of any Net Premium that requires underwriting.  We allocate any subsequent Net Premium to the allocation options most recently elected by you and on file with us.  See “Allocation of Premium” on page 17 for more information about how your premiums are allocated.

7.   May I Transfer Accumulated Value Among the Investment Divisions and the Fixed Account?

You may transfer Accumulated Value among Investment Divisions and to the Fixed Account at any time, subject to certain restrictions.  To make a transfer, you may write to us or call us at the phone number shown on the front page, if you have provided telephone transfer authorization.  Only one transfer from the Fixed Account during any Policy Year is permitted, and the amount you may transfer is limited.

In addition, you may use our automatic dollar cost averaging and rebalancing programs.  For additional information, please see “Dollar Cost Averaging” on page 20 and “Rebalancing” on page 20 .

Each transfer in excess of 15 in a Policy Year will incur a charge of $25.  Allocation Date transfers and transfers due to dollar cost averaging or rebalancing programs will not incur a $25 charge or count toward the 15 transfers per Policy Year.

8.   What are the Death Benefit Options?

We will pay the Death Benefit Proceeds to the beneficiary upon the death of the Insured.  The policy provides for three Death Benefit options.  Under Option A, the Death Benefit is equal to the greater of the Specified Death Benefit and the Minimum Death Benefit.  Under Option B, the Death Benefit equals the greater of the Specified Death Benefit plus the Accumulated Value, and the Minimum Death Benefit.  Under Option C, the Death Benefit equals the greater of (a) the Specified Death Benefit plus the greater of (i) the cumulative amount of all premiums paid minus total partial surrenders and (ii) zero and (b) the Minimum Death Benefit.

Policies applied for from October 6, 2008 through November 2, 2008 may have elected an optional Protector Term Insurance Rider that provides additional coverage on the policy’s Insured.  The costs and terms of the coverage under this rider are significantly different than the coverage that is provided under the base policy.   If your policy has such a rider, please refer to “Protector Term Insurance Rider” on page 39 for further information.

Policies applied for prior to October 6, 2008 may have elected an optional benefit (the Scheduled Term Insurance Rider) that significantly modifies the amount of the Death Benefit.  If your policy has such a rider, please refer to “Scheduled Term Insurance Rider” on page 38 for further information.

You must choose one of the Death Benefit options when you apply for a policy.  You may change your policy's Death Benefit option while the Insured is alive, subject to our approval and certain restrictions.  We reserve the right to limit or refuse changes to the Death Benefit options.  For additional information, please see “Death Benefit Options” on page 33 .

9.   How is the Death Benefit Paid?

If the Insured dies while the policy is in force, we pay the Death Benefit Proceeds to your beneficiary.  The Death Benefit Proceeds equal the Death Benefit (based on the Death Benefit option then in effect), plus any additional rider benefits payable upon the Insured's death, less any amounts you owe us (including any outstanding Debt and unpaid policy charges).  We determine the amount of the Death Benefit Proceeds as of the end of the Valuation Period during which we receive due proof of death.  We usually pay the Death Benefit Proceeds within seven days after we have received due proof of death and all other requirements we deem necessary have been satisfied.  Until due proof of death is received, any amount in the Separate Account will be subject to investment risk.  For additional information, please see “Death Benefit” on page 33 .

10.   Can I Increase or Decrease my Policy's Specified Death Benefit?

Yes, you have considerable flexibility to increase or decrease your policy's Specified Death Benefit.  You may request an increase after the first Policy Year and/or a decrease after the seventh Policy Year (third Policy Year if you applied for your policy before October 6, 2008) by writing to us.  You are permitted only one change per Policy Year.  Your requested increase or decrease must be at least $10,000.  If you request an increase, you must provide evidence of insurability satisfactory to us.  An increase in the Specified Death Benefit increases the charges deducted from your Accumulated Value and surrender charge.  You may not decrease the Specified Death Benefit of your policy below the minimum Specified Death Benefit shown in your policy.  The minimum is $100,000 for all policies.  We reserve the right to limit or refuse changes in the Specified Death Benefit.  Some examples of the bases on which a requested change could be refused are: (i) the results of underwriting on a request for an increase indicate that the insured is no longer insurable, (ii) the change would cause the policy to violate Section 7702 of the Code, (iii) the policy owner is currently on claim for the Waiver of Monthly Deductions rider, (iv) a decrease would reduce the Specified Death Benefit below the $100,000 minimum, or (v) increases are not contractually allowed in the first year and decreases are not contractually allowed in the first seven years (three years if you applied for your policy before October 6, 2008).  For more detail, see “Changes in Specified Death Benefit” on page 35 .  In addition, modifying your policy's Specified Death Benefit might have tax ramifications.  For additional information, please see “Federal Tax Considerations” on page 51 .

11.   Do I have Access to the Value of my Policy?

Yes.  You may surrender your policy at any time for the Cash Surrender Value.  If you request a full surrender between the expiration of the Right to Examine Period and the Allocation Date, we will refund the premium less any partial surrenders or policy loans, if that amount is greater than the Cash Surrender Value.

We currently permit you to take up to twelve partial surrenders per Policy Year (six partial surrenders per Policy Year in Maryland), after the first Policy Year.  The total partial surrender amount deducted from your Accumulated Value will consist of the amount payable to you, a flat fee not to exceed $25 and any applicable surrender charge and taxes.  The total partial surrender amount must be at least $500.  Other restrictions may apply.  For more information, see “What are the Limitations on Partial Surrender?” on page 13 and “Partial Surrenders” on page 41 .  A full or partial surrender may have tax consequences.  For more information, see “Federal Tax Considerations” beginning on page 51 .

12.   May I Take out a Policy Loan?

Yes, you may borrow money from us using the policy as the only security for your loan, subject to limitations.  To secure a loan's repayment, we automatically transfer a corresponding amount of Accumulated Value to the Loan Account.  Day 1 Loans are also available.  For more information, see “Policy Loans” on page 39 .  Policy loans may have tax consequences if your policy is deemed to be a “modified endowment contract” for federal income tax purposes.  For more information, see “Modified Endowment Contracts” on page 17.

13.   Can I Cancel my Policy?

In most states, you may cancel your policy by returning it to us within ten days after you receive it.  The Right to Examine Period may be longer (i) in some states, (ii) if you acquire your policy as a replacement for another insurance policy, or (iii) if you are a senior citizen.  If you return your policy during the Right to Examine Period, the policy terminates and we will refund your premium, less any partial surrender and any policy loans.  In some states, however, we will return the Accumulated Value plus fees and charges.  For more information, see “Right to Examine the Policy,” on page 44 .  In some states, we are required to hold the premiums of a senior citizen in the Fixed Account during the right to examine the policy period, unless we are specifically directed to allocate the premiums to the Investment Divisions.  If the policy’s Cash Surrender Value is higher than the amount otherwise described in this paragraph as being payable upon return of the policy pursuant to the right to examine, we will pay that higher amount instead.

Risks of the Policy

1.   Is my Accumulated Value Guaranteed?

Your Accumulated Value is not guaranteed.  However, the payment of the Death Benefit may be guaranteed under the Guaranteed Death Benefit Rider (or, for policies applied for before October 6, 2008, the Guaranteed Minimum Death Benefit Rider), assuming that you meet certain conditions.  The value of your policy fluctuates with the performance of the allocation options you choose.  Your allocation options may not perform to your expectations.  Your Accumulated Values in the Investment Divisions may rise or fall depending on the performance of the Underlying Mutual Funds in which the Investment Divisions invest and the charges under your policy.  For more detail, please see “The Underlying Mutual Funds and Associated Risks” on page 14 and “The Separate Account” on page 21.  In addition, a guarantee with respect to interest rate applies only to the Fixed Account allocation option.

2.   Is this Policy Suitable for Short-Term Savings?

The policy is designed for long term financial planning.  Although the surrender charge decreases over time, while it is in effect it may be a substantial portion of or even exceed your Policy's Value.  Accordingly, you should not purchase the policy if you may need to access the Accumulated Value within a short time.  Because the policy is designed to provide benefits on a long-term basis, before purchasing a policy for a specialized purpose, you should consider whether the long-term nature of the policy is consistent with the purpose for which it is being considered.

3.   Can my Policy Lapse?

Your policy could lapse and terminate without value if your policy's Cash Surrender Value becomes too low to support the policy's monthly charges, unless: (a) during the first five Policy Years, you have paid the cumulative Minimum Premiums and your policy's Net Accumulated Value is greater than zero; or (b) the Guaranteed Death Benefit Rider is in effect.  (Please note, however, that, for policies applied for before October 6, 2008, the relevant period is three years, rather than five years, and the Guaranteed Minimum Death Benefit Rider would be the potentially applicable feature, rather than the Guaranteed Death Benefit Rider.)

If your Accumulated Value is too low to keep your policy in force you will have at least a 61-day Grace Period to pay additional amounts to prevent your policy from terminating.  We will notify you in writing.  See “Termination and Grace Period” on page 43 .  If you have any outstanding Debt when your policy lapses, you may have taxable income as a result.  See “Federal Tax Considerations” on page 51 .  Poor investment performance may cause your policy to lapse.  Policy loans or partial surrenders also increase the risk that your policy may lapse because they have the effect of reducing your policy's Cash Surrender Value.

4.   Are There Risks Involved with Specialized Uses of the Policy?

Because the policy provides for an Accumulated Value as well as a Death Benefit, you may wish to use it for various individual and business planning purposes.  Purchasing the policy in part for such purposes may involve certain risks.  For example, if the investment performance of the Investment Divisions is poorer than expected or if sufficient premiums are not paid, the policy may lapse or may not accumulate sufficient Accumulated Value to fund the purpose for which you purchased the policy.  Partial surrenders and policy loans may significantly affect current and future Accumulated Value, Cash Surrender Values or Death Benefit Proceeds.  The policy is designed to provide benefits on a long-term basis.  Before purchasing a policy for a specialized purpose, you should consider whether the long-term nature of the policy is consistent with the purpose for which it is being considered.  In addition, using a policy for a specialized purpose may have tax consequences.  See “Federal Tax Considerations” on page 51 .

5.   What are the Limitations on Partial Surrender?

You may not take a partial surrender in the first Policy Year.  After the first Policy Year, you may take no more than twelve partial surrenders per Policy Year (six partial surrenders per Policy Year in Maryland).  We reserve the right to increase or decrease the number of partial surrenders you may take in a Policy Year.  The minimum total partial surrender amount is $500, including a partial surrender fee not to exceed $25 and any applicable surrender charge or taxes.  The surrender charge on a partial surrender is approximately proportional to the resulting decrease in the Accumulated Value.  A partial surrender will reduce your Cash Surrender Value and may reduce your Specified Death Benefit.  A partial surrender also will terminate the Guaranteed Minimum Death Benefit feature, if you have chosen that optional rider.  We will not permit a partial surrender that would reduce the Cash Surrender Value to an amount less than or equal to the amount needed for the next three Monthly Deductions or if it would reduce the Specified Death Benefit below the minimum Specified Death Benefit shown in your policy.  If your partial surrender request would reduce your Cash Surrender Value below that limit, we will either reject the request or allow you to surrender your policy, thereby ending your coverage.  Please note that partial surrenders reduce your policy's Death Benefit.  See “Partial Surrenders” on page 41 .  In addition, partial surrenders may have tax consequences.  See “Federal Tax Considerations” on page 51 .

6.   What are the Limitations on Transfer?

Each transfer in excess of 15 in a Policy Year will incur a transfer charge of $25, excluding Allocation Date transfers and transfers due to dollar cost averaging or rebalancing programs.  We reserve the right to limit the size of transfers and remaining balances, and to limit the number and frequency of transfers among your investment options and the Fixed Account.  We reserve the right to further limit transfers in any Policy Year, or to refuse any transfer request for an Owner or certain Owners.  For example, we reserve the right to limit excessive trading and transfers that would disadvantage Owners or have a detrimental effect on Accumulation Unit Values or the share price of any Underlying Mutual Fund.  See “Transfer of Accumulated Value” on page 18.

7.   What are the Limitations or Charges on Surrender of the Policy?

You may surrender your policy at any time.  We deduct a surrender charge from the surrender proceeds.  The surrender charge is calculated as described in “Surrender Charge” on page 46 .  While the amount of the surrender charge decreases over time, it may be a substantial portion or even exceed your Accumulated Value.  We also deduct any outstanding Debt.  In addition, the surrender of your policy may have tax consequences.  See “Federal Tax Considerations” on page 51 .

8.   What are the Risks of Taking a Policy Loan?

Taking a loan from your policy may increase the risk that your policy will lapse.  The loan will have a permanent effect on your Accumulated Value and will reduce the Death Benefit Proceeds.  In addition, if your policy is a modified endowment contract for federal income tax purposes, taking a policy loan may have tax consequences.  See “Policies Which are MECs” on page 53 .

9.   What are the Tax Consequences of Buying this Policy?

Your policy is structured to meet the definition of a life insurance contract under the Code.  We may need to limit the amount of premiums you pay under the policy to ensure that your policy continues to meet that definition.  We will not accept any premium that would cause your policy not to qualify as a life insurance contract under the Code.

Current federal tax law generally excludes all Death Benefits from the gross income of the beneficiary of a life insurance policy.  In addition, you generally are not subject to taxation on any increase in the Accumulated Value until it is withdrawn.  Generally, you are taxed on surrender proceeds and the proceeds of any partial surrenders only if those amounts, when added to all previous distributions, exceed the total premiums paid.  Amounts received upon surrender or partial surrender in excess of premiums paid are treated as ordinary income.  The benefits under a policy may also be subject to taxes other than income taxes, including estate taxes.

Special rules govern the tax treatment of life insurance policies that meet the federal definition of a “modified endowment contract.”  Depending on the amount and timing of your premiums, your policy may meet that definition.  Under current tax law, Death Benefit payments under modified endowment contracts, like Death Benefit payments under other life insurance contracts, generally are excluded from the gross income of the beneficiary.  Partial surrenders and policy loans, however, are treated differently.  Amounts withdrawn and policy loans are treated first as income, to the extent of any gain in the policy, and then as a return of premium.  The income portion of the distribution is includable in your taxable income.  In addition, an additional 10% federal penalty tax is generally imposed on the taxable portion of amounts received before age 59 1/2.  For more information on the tax treatment of the policy, see “Federal Tax Considerations” on page 51 .

The Underlying Mutual Funds and Associated Risks

1.   What is an Underlying Mutual Fund?

Each of the Investment Divisions invests in shares of one of the Underlying Mutual Funds.  Each Underlying Mutual Fund is a separate investment series of an open-end management investment company registered under the Investment Company Act of 1940 (the “1940 Act”).  Each Underlying Mutual Fund holds its assets separate from the assets of the other Underlying Mutual Funds, and each Underlying Mutual Fund has its own distinct investment objective and policies, which are described in the accompanying prospectuses for the Underlying Mutual Funds.  Each Underlying Mutual Fund operates as a separate investment fund, and the income, gains and losses of one Underlying Mutual Fund generally have no effect on the investment performance of any other.  The Underlying Mutual Funds in which the Investment Divisions currently invest are set forth in this prospectus.  Some of the Investment Divisions described in this prospectus may not be available under your policy.  For more information about the Underlying Mutual Funds, please see “The Underlying Mutual Funds” on page 21.

2.   What are the Risks of the Underlying Mutual Funds?

We do not promise that the Underlying Mutual Funds will meet their investment objectives.  Amounts you have allocated to the Investment Divisions may grow in value, decline in value or grow less than you expect, depending on the investment performance of the Underlying Mutual Funds in which those Investment Divisions invest.  You bear the investment risk that those Underlying Mutual Funds possibly will not meet their investment objectives.  A description of each Underlying Mutual Fund's investment policies and a comprehensive statement of each Underlying Mutual Fund's risks may be found in its prospectus.  For additional information, please see “The Underlying Mutual Funds” on page 21.

3.   How can I Learn More about the Underlying Mutual Funds?

You should read the Underlying Mutual Funds' current prospectuses for detailed information concerning their investment objectives and strategies, and their investment risks before allocating amounts to the Investment Divisions.  If you do not have a prospectus for an Underlying Mutual Fund, please contact us at our Service Center at the number listed on the first page of this prospectus and we will send you a copy.

PURCHASING A POLICY AND ALLOCATING PREMIUM

Applying for a Policy.  You may apply to purchase a policy by submitting a written application to us through an authorized sales representative.  We will not issue a policy to insure people who are older than age 90.  The minimum Specified Death Benefit is $100,000.  Before we issue a policy, we require you to submit evidence of insurability satisfactory to us.  Acceptance of your application is subject to our underwriting rules.  We reserve the right to reject your application for any reason.  Your policy may differ from the general description in this prospectus because we need to comply with differences in applicable state law.  Variations from the information appearing in this prospectus due to individual state requirements are described in supplements that are attached to this prospectus or in endorsements to the policy, as appropriate.

In general, we will issue your policy when we have determined that your application meets our underwriting requirements.  We apply our customary underwriting standards to the proposed Insured.  If on the Issue Date there are outstanding requirements that prevent us from placing your policy in force, coverage under your policy will not commence until all requirements are met.  An example of an outstanding requirement is an amendment to your policy that requires your signature.  We commence coverage of the Insured under the policy on the Policy Date, which generally is the later of (i) the Issue Date, (ii) the date on which we receive your first premium or (iii) the date that all requirements have been met or a date mutually agreed upon by us and the Owner.  We will permit you to backdate the Policy Date of your policy up to six months before the Issue Date to save age.  Backdating to save age can be advantageous, by reducing the charges under your policy although it also will reduce the units initially allocated to the investment options.  You should consult your sales representative for more information as to whether backdating to save age would be appropriate for you.  The Policy Date determines Monthly Deduction days, Policy Months and Policy Years.  If your Monthly Anniversary date is not a business day, the Monthly Deduction will occur on the next business day and will have an effective date equal to the Monthly Anniversary date.

If you pay a premium with your application, and your requested Specified Death Benefit is less than $500,000, we provide the Insured with temporary conditional insurance only if you meet all of the terms of a conditional receipt.  The temporary conditional insurance provides coverage during the underwriting of your application, but only if all conditions within the Temporary Insurance Agreement are met and first Minimum Premium is submitted.  Some of the conditions include the following:  all answers in materials submitted must be true, complete and accurate and you must never have been treated for, diagnosed with, or tested positive for a number of conditions.  This temporary conditional coverage is limited to $500,000 ($25,000 in Kansas) or the Specified Death Benefit applied for, whichever is less.

If we approve your application, we begin to deduct policy charges as of the Policy Date.  If we reject your application, we will not issue you a policy.  We will return any premium you have paid, adding interest if, as, and at the rate, required in your state.  We will not subtract any policy charges from the amount we refund to you.

Premiums.  To place your policy in force, you generally must pay an initial premium at least equal to three monthly Minimum Premium payments.  As described in “Planned Premium” below, we send a notice prior to the planned premium date if you tell us that you plan to pay quarterly, semi-annually or annually.  You may also pay premiums, including your initial premium through EFT (Electronic Fund Transfers).

In general, you may pay additional premium at any time, and in any amount, as long as your premium would not cause your policy to lose its life insurance status under the Code, as explained in “Federal Tax Considerations” beginning on page 51 .  Premiums must be sent to us at the address on the first page.  Unless you request otherwise in writing, while your policy has an outstanding loan, we treat all payments received as new premium, except those received after interest is billed and before the Policy Anniversary.  We may require satisfactory evidence of insurability before accepting any premiums that would increase the Net Amount at Risk.

Paying the Minimum Premium during the first five Policy Years (three Policy Years for policies applied for before October 6, 2008) can help keep your policy in force.  During the first five (or three) Policy Years, if your total premium payments (less partial surrenders and Debt) exceeds the monthly Minimum Premium amount times the number of months since the Policy Date, we will not take the surrender charge into consideration in determining whether your Accumulated Value is sufficient to keep your Policy in force.  Instead, your Policy will not enter the Grace Period provided that the Net Accumulated Value is greater than zero.  After the first five years (three Policy Years for policies applied for before October 6, 2008) or if your total premiums (less partial surrenders and Debt) do not at least equal the necessary Minimum Premiums, the Cash Surrender Value (which is reduced by the then current surrender charge) is used for lapse testing.  The Minimum Premium is shown on the policy data page of your Policy and varies by age, sex, underwriting classification, Specified Death Benefit, and optional benefits you have selected.  We may change the monthly Minimum Premium amount to reflect changes you make to your policy.  If so, the new monthly Minimum Payment amount begins to apply when the change becomes effective.

We reserve the right to refuse any premium payment less than $25 or limit the amount of premium payments.

Premium received 15 days or less in advance of the Policy Anniversary will be considered premium for the next Policy Year for purposes of calculating Sales Charges.  There is currently no Sales Charge on premiums in excess of the Target Premium for a given Policy Year.  See “Premium Charges” on page 44 .  As a result, the Sales Charge on a premium that is received 15 day or less in advance of the Policy Anniversary will be higher than if it otherwise would have been treated as premium in excess of the Target Premium.  In addition, subject to your consent, if that premium in whole or part would exceed Guideline Premium or cause your policy to be a Modified Endowment Contract, we will temporarily hold the entire premium and apply it to your Policy on the next Policy Anniversary.

We will monitor your premium payments and other policy transactions and notify you if a payment or other transaction might cause your policy to become a MEC.  Unless you so elect, we will not process any premium or portion of a premium or any policy change that would cause your policy to become a MEC.  If we receive such a premium, we will notify you and if you elect to have your policy become a MEC contract, we will apply the premium on the business day we receive your election.  Otherwise we will return the premium to you.  The premium will be placed in a non-interest bearing account until we apply it to your Policy.  If we hold the premium for this reason, it will be deemed paid into your Policy on the next Policy Anniversary for all calculations under the Policy.

Planned Premium.  In your policy application, you will be asked to establish a schedule of “planned premium” payments by specifying the amount and frequency of such payments.  You are not required to pay any planned premium.  We will send you reminder notices prior to each planned payment date (except for those payments made in accordance with an EFT payment plan), which may be quarterly, semi-annually or annually, as specified by you.  We reserve the right to stop sending such notices if no planned premiums are paid within any two Policy Years.  You may change the amount or frequency of your planned premiums at any time by writing to us, subject to our consent.

Payment of planned premiums does not guarantee that your policy will remain in force, even if you pay all planned premiums as scheduled.  If the value of your policy is not sufficient to keep your Policy in force, you may need to change your planned payment schedule or make additional payments in order to keep your Policy in force.

Paying planned premiums generally provides greater benefits than paying a lower amount of premium.  In addition, you may use the planned premium to help remind you to pay at least the Minimum Premium during the first five Policy Years (three Policy Years for policies applied for before October 6, 2008).  Paying planned premiums also can help to keep your policy in force if your planned premium payments are at least as great as the premium necessary to keep the Guaranteed Death Benefit (or, for policies applied for before October 6, 2008, the Guaranteed Minimum Death Benefit) in force.  See “Guaranteed Death Benefit Rider” on page   37 and “Guaranteed Minimum Death Benefit” on page 17.

Premium Limits.  Before we accept any premium that would require an increase in the Net Amount at Risk under your policy, you first must provide us with evidence of insurability.  Also, the Code imposes limits on the amount of premium that can be contributed under a life insurance contract (“Guideline Premium limits”).  If you exceed this limit, your policy would lose its favorable federal income tax treatment under the Code's definition of life insurance.  Accordingly, we will not accept any premium that would cause your policy to exceed this limit, unless you make an appropriate increase in (1) your Specified Death Benefit or (2) other coverage on the Insured, pursuant to a Protector Term Insurance Rider (for policies applied for from October 6, 2008 through November 2, 2008) (or, for certain policies applied for before October 6, 2008, a Scheduled Term Insurance Rider).  To obtain such an increase, you must submit a Written Request or application and satisfactory evidence of insurability meeting our then current underwriting standards.  Otherwise we will accept only the portion of your premium that does not exceed the maximum permitted amount and we will refund the excess.  In addition, we will not accept any additional premium from you until we can do so without exceeding the limit set by the Code.  See “Federal Tax Considerations” on page 51 for more information.  For premium received 15 days or less in advance of the Policy Anniversary, if we have your consent to hold the premium until the next Policy Anniversary, the premium limits will be applied when the premium is applied to your policy on the Policy Anniversary.  See “Premiums” on page 15 for more information.

Paying too much premium also could cause your policy to be treated as a “modified endowment contract” for federal income tax purposes.  See “Modified Endowment Contracts” at page 17 for more information.

Guaranteed Minimum Death Benefit (“GMDB”).  (Please note that this feature is not applicable to any policy applied for on or after October 6, 2008.  Instead, a similar benefit - the Guaranteed Death Benefit - may be available under those newer policies.)  The Guaranteed Minimum Death Benefit (“GMDB”) feature can enable you to keep your policy's Specified Death Benefit in force for the life of the Insured regardless of changes in the Accumulated Value.  You have this optional feature only if you chose it when you applied for your policy.  We charge an additional charge for the rider, as described in the Fee Table on page 1 of this prospectus.

Under this feature, we guarantee that the policy will remain in force, regardless of declines in Accumulated Value, if you meet the premium requirement under the rider.  The premium requirement is met if, on each Monthly Anniversary, (a) the total premiums paid less Debt exceed (b) the sum of the Required Monthly Premium Amounts for the period from the Policy Date to the relevant Monthly Anniversary or the Insured's Attained Age 100, if earlier.  For policies with Day 1 Loans, “total premiums” include the actual premium received plus the amount of the loan.

If you fail the premium requirement, we will send you a notice giving you an opportunity to correct the deficiency by paying more premium.  At the end of that period, if you have not paid the required additional premium, then the GMDB benefit will end.  Once ended, this benefit cannot be reinstated, and the policy will stay in force only as long as the Accumulated Value is sufficient to keep the policy in force.  The GMDB does not prevent the policy from entering the Grace Period, but an active GMDB will extend the Specified Death Benefit coverage for the life of the Insured even if the policy would otherwise lapse at the expiration of the Grace Period.  For more information about the circumstances in which the policy might lapse, see “Termination and Grace Period” on page 43 .

The GMDB does not cover riders, including the Scheduled Term Insurance Rider.  If the Net Accumulated Valueis insufficient to pay charges as they come due, only the GMDB and base policy coverage amount is guaranteed to stay in force.

If the Net Accumulated Value is insufficient to pay the base coverage and the GMDB rider charges as they come due, these charges are waived.  Deduction of charges will resume once there is sufficient Net Accumulated Value.

If you take any partial surrenders, this rider will terminate.  Only Death Benefit Option A is available with this rider.  Changes to the policy's Death Benefit option are not allowed while this rider is in force.

Modified Endowment Contracts.  In certain circumstances your policy might be deemed a “modified endowment contract,” which is a category of life insurance contract defined in the Code.  If your policy were to become a modified endowment contract, distributions and loans from the policy would result in current taxable income for you, as well as other adverse tax consequences.  These tax consequences are described in more detail in “Policies Which Are MECs” on page 53 .  Your policy could be deemed a modified endowment contract if, among other things, you pay too much premium or the Death Benefit is reduced.  We monitor the status of your policy and advise you if you need to take action to prevent your policy from being deemed a modified endowment contract.  If you pay a premium that would result in this classification, we notify you and allow you to request a refund of the excess premium, or other action, to avoid having your policy being deemed a modified endowment contract.  If, however, you do choose to have your policy deemed a modified endowment contract, we do not refund the premium.  We will require acknowledgment that the policy will be deemed a modified endowment contract.

Your policy also is deemed a modified endowment contract if you replace a modified endowment contract issued by another insurer with a policy.  Payment of additional premium in connection with a replacement also could cause your policy to be deemed a modified endowment contract.  For more information, please consult your tax adviser.

Allocation of Premium.  Your Net Premiums are generally allocated to the Investment Divisions and the Fixed Account in the proportions that you have selected.  We deduct the Premium Charges from your premium before we allocate the Net Premium.

You must specify your allocation percentages in your application.  Percentages must be in whole numbers and the total allocation must equal 100%.  The minimum allocation percentage per allocation option is 1%.  We allocate any additional premiums according to those percentages until you give us new allocation instructions.  You may add or delete Investment Divisions and/or the Fixed Account from your allocation instructions.

We will generally allocate your initial Net Premiums to the Fixed Account on the Commencement Date.  The Commencement Date is the date we place your policy in force after we have received: underwriting approval, any requirements outstanding after the Issue Date, and premium in an amount equal to or exceeding the minimum initial requirement.  If outstanding requirements prevent us from placing your policy in force, the Commencement Date is postponed and your Net Premiums are not allocated until you satisfy those requirements.We do not credit any interest or earnings on premiums we receive before the Commencement Date.

Following the Commencement Date, amounts designated for the Fixed Account will remain in the Fixed Account until otherwise instructed by you, while amounts designated for the Investment Divisions will be reallocated in accordance with your then current allocation instructions on the Allocation Date.  Any additional Net Premium we receive before the Allocation Date will also be allocated to the Fixed Account until the Allocation Date.  The Allocation Date is generally the first business day on or after the fifth day following the Right to Examine Period for your policy.  In most cases, the Right to Examine Period is 10 days, but is longer in some cases.  See “Right to Examine the Policy” on page 44 for more information about the Right to Return Period.  Thus, for example, if the Right to Return Period is 10 days, the Allocation Date is generally 15 days after the Commencement Date.On the Allocation Date, we will transfer any amounts designated for the Investment Divisions (plus any interest credited thereto while held in the Fixed Account) to the applicable Investment Divisions.  For amounts allocated to the Fixed Account prior to the Allocation Date, we may credit a different interest rate on amounts designated for the Fixed Account than on amounts designated for the Investment Divisions, but the rate will not be lower than 3%.  Any transfers on the Allocation Date will not count against the annual limit under your policy.

After the Allocation Date, we generally allocate your additional Net Premium to the Investment Divisions and the Fixed Account as of the date your premium is received at our Service Center.  If an additional premium would result in an increase in the Net Amount at Risk and thus requires underwriting, we may delay allocation until we have completed underwriting.  At that time, we will follow the allocation instructions in our file unless you send us new allocation instructions with your payment.

Accumulated Value.  Your Accumulated Value is the sum of the value of your interests in the Separate Account, the Fixed Account, and the Loan Account.  Your Accumulated Value may increase or decrease daily to reflect the performance of the Investment Divisions you have chosen, the addition of interest credited to the Fixed Account and the Loan Account, the addition of Net Premium, and the subtraction of partial surrenders and charges assessed.  There is no minimum guaranteed Accumulated Value.

Valuations for initial premiums and premiums requiring underwriting are made on the date your Net Premium is allocated to the Investment Divisions and the Fixed Account, as described in “Allocation of Premiums” above.  We make all other valuations in connection with the policy on the day the premium or your transaction request is received at our Service Center, if that day is a Valuation Day.  Otherwise, we make that determination on the next succeeding day that is a Valuation Day.

Accumulation Unit Value.  We measure your Accumulated Value in the Separate Account by determining the value of the Accumulation Units that we credit to your policy.  When you invest in an Investment Division, we credit your policy with Accumulation Units in that Investment Division.  The number of Accumulation Units we credit equals the amount invested in the Investment Division divided by the value of the Investment Division's Accumulation Units on the Valuation Day that the allocation is made.  The number of Accumulation Units we credit increases when premium is allocated to the Investment Division and amounts are transferred to the Investment Division, and loan repayments are transferred from the Loan Account to the Investment Divisions.  The number decreases when certain charges are deducted from the Investment Division (for example, the cost of insurance charge, policy fee, administrative charge, partial surrender fee, and surrender charge), a loan is taken from the Investment Division, a transfer is made to another allocation option, or a partial surrender is made.  However, these adjustments do not affect the value of an Accumulation Unit.

The value of an Accumulation Unit for each Investment Division varies to reflect the investment experience of the corresponding Underlying Mutual Fund and the deduction of certain charges and expenses.  We set the value of an Accumulation Unit at $10 when each Investment Division is established.  Thereafter, on each Valuation Day, we determine the value of an Accumulation Unit for each of the Investment Divisions as follows:

(1) Determine the total value of assets in the Investment Division;

(2) Subtract from that amount the applicable Asset Based Risk Charge and the tax charge (if any); and

(3) Divide the result by the number of outstanding Accumulation Units.

You should refer to the prospectuses for the Underlying Mutual Funds for a description of how the assets of each Underlying Mutual Fund are valued since that determination directly affects the investment experience of the corresponding Investment Division and, therefore, your Accumulated Value.

Transfer of Accumulated Value.  You may request a transfer of Accumulated Value among the Investment Divisions and the Fixed Account in writing or by telephone after the Allocation Date.  You may transfer all or a portion of your value from one Investment Division to another Investment Division or to the Fixed Account.  You may make one transfer from the Fixed Account to any Investment Division each Policy Year.  This amount transferred from the Fixed Account may not exceed the greater of $1,000 (or the Fixed Account value, if less), the amount transferred out of the Fixed Account in the prior year, or 25% of your value in the Fixed Account.  However, transfers under our rebalancing program are not subject to these limits.  See “Rebalancing” on page 20 .

As a general rule, we only make transfers on Valuation Days.  If we receive your request in Good Order before the close of the New York Stock Exchange (usually 4:00 p.m. Eastern time) on a Valuation Day, we generally make the transfer that day.  Otherwise, we make the transfer on the next day that is a Valuation Day.  We process transfers at the price next computed after we receive your transfer request.

Restrictions on Transfers.  The policy is not designed for frequent transfers by anyone.  Frequent transfers between and among Investment Divisions may disrupt the Underlying Mutual Fund and could negatively impact performance, by interfering with efficient management and reducing long-term returns, and increasing administrative costs.Frequent transfers may also dilute the value of shares of an Underlying Mutual Fund.  Neither the policies nor the Underlying Mutual Funds are meant to promote any active trading strategy, like market timing.  Allowing frequent transfers by one or some Owners could be at the expense of other Owners of the policy.  To protect Owners and the Underlying Mutual Funds, we have policies and procedures to deter frequent transfers between and among the Investment Divisions.

Under these policies and procedures, there is a $25 charge per transfer after 15 in a Policy Year, and no round trip transfers are allowed within 15 calendar days.  Also, we could restrict your ability to make transfers to or from one or more of the Investment Divisions, which possible restrictions may include, but are not limited to:

· limiting the number of transfers over a period of time;

· requiring a minimum time period between each transfer;

· limiting transfer requests from an agent acting on behalf of one or more Owners or under a power of attorney on behalf of one or more Owners; or

· limiting the dollar amount that you may transfer at any one time.

To the extent permitted by applicable law, we reserve the right to restrict the number of transfers per year that you can request, and to restrict you from making transfers on consecutive business days.  In addition, your right to make transfers between and among Investment Divisions may be modified if we determine that the exercise by one or more Owners is, or would be, to the disadvantage of other Owners.

We continuously monitor transfers under the policy for disruptive activity based on frequency, pattern and size.  We will more closely monitor policies with disruptive activity, placing them on a watch list, and if the disruptive activity continues, we will restrict the availability of electronic or telephonic means to make a transfer, instead requiring that transfer instructions be mailed through regular U.S. postal service, and/or terminate the ability to make transfers completely, as necessary.  If we terminate your ability to make transfers, you may need to make a partial surrender to access the Accumulated Value in the Investment Division(s) from which you sought a transfer.  We will notify you and your representative in writing within five days of placing the policy on a watch list.

Regarding round trip transfers, we will allow redemptions from an Investment Division; however, once a complete or partial redemption has been made from an Investment Division through an Investment Division transfer, you will not be permitted to transfer any value back into that Investment Division within 15 calendar days of the redemption.  We will treat as short-term trading activity any transfer that is requested into an Investment Division that was previously redeemed within the previous 15 calendar days, whether the transfer was requested by you or a third party.

Our policies and procedures do not apply to the money market Investment Division, the Fixed Account, Dollar Cost Averaging or the Automatic Rebalancing program.  We may also make exceptions that involve an administrative error, or a personal unanticipated financial emergency of an Owner resulting from an identified health, employment, or other financial or personal event that makes the existing allocation imprudent or a hardship.  These limited exceptions will be granted by an oversight team pursuant to procedures designed to result in their consistent application.  Please contact the Service Center if you believe your transfer request entails a financial emergency.

Otherwise, we do not exempt any person or class of persons from our policies and procedures.  We have agreements allowing for asset allocation and investment advisory services that are not only subject to our policies and procedures, but also to additional conditions and limitations, intended to limit the potential adverse impact of these activities on other Owners of the policy.  We expect to apply our policies and procedures uniformly, but because detection and deterrence involves judgments that are inherently subjective, we cannot guarantee that we will detect and deter every policy engaging in frequent transfers every time.  If these policies and procedures are ineffective, the adverse consequences described above could occur.  We also expect to apply our policies and procedures in a manner reasonably designed to prevent transfers that we consider to be to the disadvantage of other Owners, and we may take whatever action we deem appropriate, without prior notice, to comply with or take advantage of any state or federal regulatory requirement.

Transfers Authorized by Telephone or the Internet.  You can request certain transactions by telephone or at www.jackson.com, our Internet website, subject to our right to terminate electronic or telephone transfer privileges, as described above.  Our Customer Service representatives are available during business hours to provide you with information about your account.  We require that you provide proper identification before performing transactions over the telephone or through our Internet website.  For Internet transactions, this will include a Personal Identification Number (PIN).  You may establish or change your PIN at www.jackson.com.

You may make transfers by telephone or through the Internet unless you elect not to have this privilege.  Any authorization you provide to us in an application, at our website, or through other means will authorize us to accept transaction instructions, including Investment Division transfers/allocations, by you and your financial representative unless you notify us to the contrary.  To notify us, please call us at the Service Center number listed on the first page.

When authorizing a transfer, you must complete your transfer request by the close of the New York Stock Exchange (usually 4:00 p.m. Eastern time) in order to receive that day's accumulation unit value for an Investment Division.

Transfer instructions you send electronically are considered to be received by us at the time and date stated on the electronic acknowledgement we return to you.  If the time and date indicated on the acknowledgement is before the close of the New York Stock Exchange, the instructions will be carried out that day.  Otherwise the instructions will be carried out the next business day.  We will retain records of all web-based transactions by confirmation number.  If you do not receive an electronic acknowledgement, you should telephone our Service Center immediately.

Telephone or Internet transfer requests may currently only be cancelled by calling the Service Center before the close of the New York Stock Exchange on the day the transaction will be processed.  Our procedures are designed to provide reasonable assurance that telephone or any other electronic authorizations are genuine.  Our procedures include requesting identifying information and tape-recording telephone communications and other specific details.  We and our affiliates disclaim all liability for any claim, loss or expense resulting from any alleged error or mistake in connection with a transaction requested by telephone or other electronic means that you did not authorize.  However, if we fail to employ reasonable procedures to ensure that all requested transactions are properly authorized, we may be held liable for such losses.

You may only cancel an earlier telephonic or electronic transfer request made on the same day by calling the Service Center before the New York Stock Exchange closes.  Otherwise, your cancellation instruction will not be allowed because of the round trip transfer restriction.  We do not guarantee access to telephonic and electronic information or that we will be able to accept transaction instructions via the telephone or electronic means at all times.  We also reserve the right to modify, limit, restrict, or discontinue at any time and without notice the acceptance of instructions from someone other than you and/or this telephonic and electronic transaction privilege.  Elections of any optional benefit or program must be in writing and will be effective on the next Monthly Anniversary upon receipt of the request in good order.  Some optional benefits may require underwriting and will be effective on the next Monthly Anniversary following underwriting approval.

Upon notification of the Owner's death, any telephone transfer authorization, other than by the surviving joint Owners, designated by the Owner ceases and we will not allow such transactions unless the executor/representative provides written authorization for a person or persons to act on the executor's/representative's behalf.

Dollar Cost Averaging.  Under our dollar cost averaging program, you may authorize periodic transfers of a fixed dollar amount between or among the Investment Divisions and the Fixed Account.  The minimum transfer amount of the dollar cost averaging program is $100, and transfers may occur monthly, quarterly, semi-annually, or annually.  The minimum initial balance of your allocation option from which transfers will be made is $5,000.

The theory of dollar cost averaging is that by spreading your investment over time, you may be able to reduce the effect of transitory market conditions on your investment.  In addition, because a given dollar amount purchases more units when the unit prices are relatively low rather than when the prices are higher, in a fluctuating market, the average cost per unit may be less than the average of the unit prices on the purchase dates.  However, participation in this program does not assure you of a greater profit from your purchases under the program, nor will it prevent or necessarily reduce losses in a declining market.  Moreover, while we refer to this program of periodic transfers generally as dollar cost averaging, periodic transfers from an Investment Division with more volatile performance experience is unlikely to produce the desired effects of dollar cost averaging as would transfers from a less volatile Investment Division.

Your request to participate in this program will be effective when we receive your completed request form at our Service Center.  Call or write us for a copy of the request form and additional information concerning the program.  We may change, terminate, limit, or suspend dollar cost averaging at any time.

Rebalancing.  Rebalancing allows you to readjust the percentage of your Accumulated Value allocated to each Investment Division to maintain a pre-set level of investment in various market segments.  Over time, the variations in each Investment Division's investment results will shift the balance of your Accumulated Value allocations.  Under the rebalancing program, we automatically transfer your Accumulated Value, back to the percentages you specify in accordance with procedures and requirements that we establish.  Restrictions on transfers from the Fixed Account will not apply to rebalancing.

You may request rebalancing when you apply for your policy or by submitting a completed Written Request to us at our Service Center.  Please call or write us for a copy of the request form and additional information concerning rebalancing.

Rebalancing is consistent with maintaining your allocation of investments among market segments, although it is accomplished by reducing your Accumulated Value allocated to the better performing segments.  Other investment programs, such as the dollar cost averaging program, may not work in concert with rebalancing.  Therefore, you should monitor your use of these programs, as well as other transfers or partial surrenders, while rebalancing is being used.  We may change, terminate, limit, or suspend rebalancing at any time.

THE SEPARATE ACCOUNT

The Underlying Mutual Funds.  The Separate Account is divided into Investment Divisions.  Each Investment Division invests in shares of one of the Underlying Mutual Funds.  Each Underlying Mutual Fund is a separate investment series of JNL® Series Trust or JNL Variable Fund LLC, each an open-end management investment company registered under the 1940 Act.  We briefly describe the Underlying Mutual Funds below.  You should read the current prospectuses for the Underlying Mutual Funds for more detailed and complete information concerning the Underlying Mutual Funds, their investment objectives and strategies, and the investment risks associated with the Underlying Mutual Funds.  If you do not have a prospectus for an Underlying Mutual Fund, contact us and we will send you a copy.

Each Underlying Mutual Fund holds its assets separate from the assets of the other Underlying Mutual Funds and each Underlying Mutual Fund has its own distinct investment objective and policies.  Each Underlying Mutual Fund operates as a separate investment fund and the income, gains, and losses of one Underlying Mutual Fund generally have no effect on the investment performance of any other Underlying Mutual Fund.

Important information regarding the Investment Division investing in the JNL/BlackRock Global Allocation Fund (the “JNL/BlackRock Global Allocation Investment Division”):   Beginning February 22, 2011, the JNL/BlackRock Global Allocation Investment Division temporarily stopped accepting any additional allocations or transfers.  If you have an automatic program, such as Dollar Cost Averaging and Rebalancing, that had an allocation to the JNL/Black Rock Global Allocation Investment Division, you were requested to choose a replacement Investment Division by April 22, 2011.  In the absence of new allocation instructions, your allocations were and will continue to be made to the JNL/WMC Money Market Investment Division ( formerly, JNL/Select Money Market Investment Division ).  You may reallocate the Policy value in the JNL/WMC Money Market Investment Division to any other Investment Division.  Current amounts allocated to the JNL/BlackRock Global Allocation Investment Division will remain invested unless we receive instruction from you.  You may continue to make transfers and withdrawals out of the JNL/BlackRock Global Allocation Investment Division in connection with the usual transactions under a Policy, such as partial surrenders .  However, if you transfer out of the JNL/BlackRock Global Allocation Investment Division you will not be able to transfer back in until after such time as it may be reopened.  We will notify you regarding the future availability of the JNL/BlackRock Global Allocation Investment Division.

Underscored are the Underlying Mutual Funds that are newly available or recently underwent name changes, as may be explained in the accompanying parenthetical.  The Underlying Mutual Funds are not the same mutual funds that you would buy through your stockbroker or a retail mutual fund.  The prospectuses for the Underlying Mutual Funds are attached to this prospectus.

JNL Series Trust

JNL/American Funds ® Blue Chip Income and Growth Fund (“Feeder Fund”)

Jackson National Asset Management, LLC, investment adviser to the Feeder Fund (and Capital Research and Management Company SM , investment adviser to the Master Fund )

Seeks both income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing through exclusive investment in the Class 1 shares of the Blue Chip Income and Growth Fund (“Master Blue Chip Income and Growth Fund” or “Master Fund”), a series of the American Funds Insurance Series. The Master Fund invests primarily in dividend-paying common stocks of larger, more established companies domiciled in the United States with market capitalizations of $4 billion and above. The Master Fund also will ordinarily invest at least 90% of its equity assets in the stock of companies whose debt securities are rated at least investment grade. The Master Fund may invest up to 10% of its assets in equity securities of larger companies domiciled outside the United States, so long as they are listed or traded in the United States.

JNL/American Funds Global Bond Fund (“Feeder Fund”)

Jackson National Asset Management, LLC, investment adviser to the Feeder Fund (and Capital Research and Management Company SM , investment adviser to the Master Fund )

Seeks a high level of total return through exclusive investment in the Class 1 shares of the Global Bond Fund (“Master Global Bond Fund” or “Master Fund”), a series of the American Funds Insurance Series. The Master Fund is designed for investors seeking returns through a portfolio of debt securities issued by companies based around the world. The Master Fund seeks to provide, over the long term, with as high a level of total return as is consistent with prudent management, by investing at least 80% of its assets in bonds. The Master Fund invests primarily in debt securities of governmental, supranational and corporate issuers denominated in various currencies, including U.S. dollars. The Master Fund may also invest a portion of its assets in lower quality, higher yielding debt securities (rated Ba1 or below and BB+ or below by NRSRO or determined to be of equivalent quality by the Master Fund’s investment adviser).  Such securities are sometimes referred to as “junk bonds.” The total return of the Master Fund will be the result of interest income, changes in the market value of the Master Fund’s investments and changes in the value of other currencies relative to the U.S. dollar.

JNL/American Funds Global Small Capitalization Fund (“Feeder Fund”)

Jackson National Asset Management, LLC, investment adviser to the Feeder Fund (and Capital Research and Management Company SM , investment adviser to the Master Fund )

Seeks growth of capital over time through exclusive investment in the Class 1 shares of the Global Small Capitalization Fund (“Master Global Small Capitalization Fund” or “Master Fund”), a series of the American Funds Insurance Series. The Master Global Small Capitalization Fund invests at least 80% of its net assets in growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) of companies with small market capitalizations, measured at the time of purchase. The Master Global Small Capitalization Fund is designed for investors seeking capital appreciation through stocks. Investors in the Master Global Capitalization Fund should have a long-term perspective and, for example, be able to tolerate potentially sharp, short-term declines in value.

JNL/American Funds Growth-Income Fund (“Feeder Fund”)

Jackson National Asset Management, LLC, investment adviser to the Feeder Fund (and Capital Research and Management Company SM , investment adviser to the Master Fund )

Seeks long-term growth of capital and income through exclusive investment in the Class 1 shares of the Growth-Income Fund (“Master Growth-Income Fund” or “Master Fund”), a series of the American Funds Insurance Series. The Master Growth-Income Fund seeks to make the investment grow and provide income over time by investing primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends. Normally, the Master Growth-Income Fund invests up to 15% of its assets, at the time of purchase, in securities of issuers domiciled outside the United States.

JNL/American Funds International Fund (“Feeder Fund”)

Jackson National Asset Management, LLC, investment adviser to the Feeder Fund (and Capital Research and Management Company SM , investment adviser to the Master Fund )

Seeks long-term growth of capital through exclusive investment in the Class 1 shares of the International Fund (“Master International Fund” or “Master Fund”), a series of the American Funds Insurance Series. The Master International Fund seeks to make the investment grow over time by investing primarily in common stocks of companies located outside the United States. The Master Fund is designed for investors seeking capital appreciation through stocks. Investors in the Master Fund should have a long-term perspective and, for example, be able to tolerate potentially sharp, short-term declines in value.

JNL/American Funds New World Fund (“Feeder Fund”)

Jackson National Asset Management, LLC, investment adviser to the Feeder Fund (and Capital Research and Management Company SM , investment adviser to the Master Fund )

Seeks long-term capital appreciation through exclusive investment in the Class 1 shares of the New World Fund (“Master New World Fund” or “Master Fund”), a series of the American Funds Insurance Series. The Master Fund is designed for investors seeking capital appreciation over time.  Investors in the Master Fund should have a long-term perspective and, for example, be able to tolerate potentially sharp, short-term declines in value. Under normal market conditions, the Master Fund will invest at least 35% of its assets in equity and debt securities of issuers primarily based in qualified countries that have developing economies and/or markets.

JNL/BlackRock Global Allocation Fund (“Feeder Fund”) (Please Note:  The Investment Division that invests in the JNL/BlackRock Global Allocation Fund Currently is not accepting any additional allocations or transfers.)

Jackson National Asset Management, LLC, investment adviser to the Feeder Fund (and BlackRock Advisors, LLC , investment adviser to the Master Fund)

Seeks high total investment return through exclusive investment in BlackRock Global Allocation Portfolio (the “Master Global Allocation Fund” or “Master Fund”), a series of BlackRock Series Fund, Inc. The Master Fund invests in a portfolio of equity, debt and money market securities and other short-term securities or instruments, of issuers located around the world . Generally, the Master Fund’s portfolio will invest in both equity and debt securities. Equity securities include common stock, preferred stock, securities convertible into common stock, or securities or other instruments whose price is linked to the value of common stock.  The Master Fund uses derivatives as a means of managing exposure to foreign currencies and other adverse market movements, as well as to increase returns. The Master Fund may also invest in corporate loans.

JNL/BlackRock Commodity Securities Fund

Jackson National Asset Management, LLC (and BlackRock Investment Management, LLC)

Seeks long-term capital growth by investing in equity securities and commodity-linked derivative instruments that provide exposure to the natural resources sector, as well as fixed income securities.  The Fund may invest in securities of any market capitalization.

Under normal market conditions, the Fund will utilize two strategies and will invest approximately 50% of its total assets in each strategy. The “Natural Resources Strategy” will focus on companies active in the extraction, production, and processing of commodities and raw materials. The “Commodities Strategy” will focus on investments in commodity securities.

JNL/Capital Guardian Global Balanced Fund

Jackson National Asset Management, LLC (and Capital Guardian Trust Company)

Seeks income and capital growth, consistent with reasonable risk through investments in stocks and fixed-income securities of U.S. and non-U.S. issuers.  The Fund's neutral position is a 65%/35% blend of equities and fixed-income, but may allocate 55% to 75% of the Fund’s assets to equities and 25% to 45% of the Fund’s assets to fixed-income.

JNL/Capital Guardian Global Diversified Research Fund

Jackson National Asset Management, LLC (and Capital Guardian Trust Company)

Seeks long-term growth of capital and income by investing at least 80% of its assets in a portfolio consisting of equity securities of U.S. and non-U.S. issuers.  The Fund normally will invest in common stocks, preferred shares and convertible securities of companies with market capitalization greater than $1 billion at the time of purchase.

JNL/Capital Guardian U.S. Growth Equity Fund

Jackson National Asset Management, LLC (and Capital Guardian Trust Company)

Seeks long-term growth of capital and income by investing at least 80% of its assets in a portfolio consisting primarily of equity securities of U.S. issuers and securities whose principal markets are in the U.S. (including American Depositary Receipts and other U.S. registered foreign securities that are tied economically to the U.S.).  The Fund normally will invest in common stocks and convertible securities of companies with market capitalization greater than $1.5 billion at the time of purchase.

JNL/Eagle Core Equity Fund

Jackson National Asset Management, LLC (and Eagle Asset Management, Inc.)

Seeks long-term growth through capital appreciation and, secondarily, current income by investing under normal circumstances at least 80% of its net assets in equity securities consisting primarily of common stocks of large U.S. companies.

JNL/Eagle SmallCap Equity Fund

Jackson National Asset Management, LLC (and Eagle Asset Management, Inc.)

Seeks long-term capital appreciation by investing under normal circumstances at least 80% of its assets in equity securities of U.S. companies with market capitalizations in the range of the companies represented by the Russell 2000 ®

JNL/Franklin Templeton Global Growth Fund

Jackson National Asset Management, LLC (and Templeton Global Advisors Limited)

Seeks long-term capital growth by investing primarily in the equity securities of companies located anywhere in the world, including emerging markets (under normal market conditions).

JNL/Franklin Templeton Income Fund

Jackson National Asset Management, LLC (and Franklin Advisers, Inc.)

Seeks to maximize income while maintaining prospects for capital appreciation by investing in a diversified portfolio of debt and equity securities (under normal market conditions).

JNL/Franklin Templeton International Small Cap Growth Fund

Jackson National Asset Management, LLC (and Franklin Templeton Institutional, LLC)

Seeks long-term capital appreciation by investing at least 80% of its assets in a diversified portfolio of marketable equity and equity-related securities of smaller international companies with a market capitalization of less than $5 billion (under normal market conditions). The Fund invests predominately in securities listed or traded on recognized international markets in developed countries included in MSCI EAFE Small Cap Index.   The Fund may invest in emerging market countries.

JNL/Franklin Templeton Mutual Shares Fund

Jackson National Asset Management, LLC (and Franklin Mutual Advisers, LLC)

Seeks capital appreciation, which may occasionally be short-term, and secondarily, income by investing mainly in equity securities (including securities convertible into, or that the sub-adviser expects to be exchanged for, common or preferred stock) of companies in any nationthat the sub-adviser believes are available at market prices less than their value based on certain recognized or objective criteria (intrinsic value).  The Fund currently invests the equity portion of its portfolio primarily to predominately in companies with market capitalizations greater than $5 billion, with a portion or a significant amount in smaller companies.

JNL/Franklin Templeton Small Cap Value Fund

Jackson National Asset Management, LLC (and Franklin Advisory Services, LLC)

Seeks long-term total return by investing, normally, at least 80% of its assets in investments of small-capitalization companies.

JNL/Goldman Sachs Core Plus Bond Fund

Jackson National Asset Management, LLC (and Goldman Sachs Asset Management, L.P. and sub-sub-adviser: Goldman Sachs Asset Management International)

Seeks a high level of current income, with capital appreciation as a secondary objective, by investing, under normal circumstances, at least 80% of its assets in a globally diverse portfolio of bonds and other fixed-income securities and related investments.

JNL/Goldman Sachs Emerging Markets Debt Fund

Jackson National Asset Management, LLC (and Goldman Sachs Asset Management, L.P. and sub-sub-adviser: Goldman Sachs Asset Management International)

Seeks a high level of total return consisting of income and capital appreciation by investing, under normal circumstances, at least 80% of its assets  in sovereign and corporate debt of issuers located in emerging countries denominated in the local currency of such emerging countries, sovereign and corporate debt of issuers located in emerging countries denominated in U.S. dollars, and/or in currencies of such emerging countries, which may be represented by forwards or other derivatives that may have interest rate exposure.

JNL/Goldman Sachs Mid Cap Value Fund

Jackson National Asset Management, LLC (and Goldman Sachs Asset Management, L.P.)

Seeks long-term capital appreciation by investing, under normal circumstances, at least 80% of its assets in a diversified portfolio of equity investments in mid-cap issuers with public stock market capitalizations within the range of market capitalization of companies constituting the Russell Midcap® Value Index at the time of the investment.

JNL/Goldman Sachs U.S. Equity Flex Fund

Jackson National Asset Management, LLC (Goldman Sachs Asset Management, L.P.)

Seeks long-term capital appreciation by investing in a broad mix of equity securities that aims to produce long-term capital appreciation and target attractive risk adjusted returns compared to the S&P 500 Index.

JNL/Invesco Global Real Estate Fund

Jackson National Asset Management, LLC (and Invesco Advisers, Inc. and sub-sub-adviser: Invesco Asset Management Ltd.)

Seeks high total return by investing, normally, at least 80% of its assets in the equity and debt securities of real estate and real estate-related companies located in at least three different countries, including the United States.

JNL/Invesco International Growth Fund

Jackson National Asset Management, LLC (and Invesco Advisers, Inc.)

Seeks long-term growth of capital by investing in a diversified portfolio of reasonably priced, quality international equity securities of companies located in at least three countries outside of the U.S., emphasizing investment in companies in the developed markets of Western Europe and the Pacific Basin.

JNL/Invesco Large Cap Growth Fund

Jackson National Asset Management, LLC (and Invesco Advisers, Inc.)

Seeks long-term growth of capital by investing, normally, at least 80% of its assets in securities of large-capitalization companies.

JNL/Invesco Small Cap Growth Fund

Jackson National Asset Management, LLC (and Invesco Advisers, Inc.)

Seeks long-term growth of capital by investing, normally, at least 80% of its assets in equity securities of small-capitalization companies.

JNL/Ivy Asset Strategy Fund

Jackson National Asset Management, LLC (and Ivy Investment Management Company)

Seeks high total return over the long term by allocating its assets among primarily stocks, bonds, commodities, and short-term instruments of issuers located around the world.

JNL/JPMorgan International Value Fund

Jackson National Asset Management, LLC (and J.P. Morgan Investment Management Inc.)

Seeks high total return from a portfolio of equity securities of foreign companies in developed and, to a lesser extent, developing markets by investing, under normal circumstances, at least 80% of its assets in a diversified portfolio consisting primarily of value common stocks of non-U.S. companies; the Fund seeks to invest mainly in, but is not limited to, securities included in the MSCI EAFE Value Index.

JNL/JPMorgan MidCap Growth Fund

Jackson National Asset Management, LLC (and J.P. Morgan Investment Management Inc.)

Seeks capital growth over the long-term by investing, under normal circumstances, at least 80% of its assets in a broad portfolio of common stocks of companies with market capitalizations equal to those within the universe of Russell Midcap Growth Index stocks at the time of purchase.

JNL/JPMorgan U.S. Government & Quality Bond Fund

Jackson National Asset Management, LLC (and J.P. Morgan Investment Management Inc.)

Seeks to obtain a high level of current income by investing, under normal circumstances, at least 80% of its assets in US Treasury securities, obligations issued by agencies or instrumentalities of the U.S. government (which may not be backed by the U.S. government) and mortgage-backed securities, that are supported either by the full faith and credit of the U.S. government or their own credit, collateralized mortgage obligations issued by private issuers, repurchase agreements and derivatives related to the principal investments.

JNL/Lazard Emerging Markets Fund

Jackson National Asset Management, LLC (and Lazard Asset Management LLC)

Seeks long-term capital appreciation by investing, under normal circumstances, 80% of its assets in equity securities of companies whose principal business activities are located in emerging market countries and that the sub-adviser believes are undervalued based on their earnings, cash flow or asset values.

JNL/Lazard Mid Cap Equity Fund

Jackson National Asset Management, LLC (and Lazard Asset Management LLC)

Seeks long-term capital appreciation by investing at least 80% of its assets in a non-diversified portfolio of equity securities of U.S. companies with market capitalizations in the range of companies represented in the Russell Mid Cap Index and that the sub-adviser believes are undervalued.

JNL/M&G Global Basics Fund

Jackson National Asset Management, LLC (and M&G Investment Management Limited)

Seeks to maximize long-term capital growth by investing in companies operating in basic industries (“primary” and “secondary” industries), and also in companies that service these industries.  The Fund focuses on the “building blocks of the global economy.”  The Fund invests in companies that produce raw materials or turn them into products for consumers.  Such companies can be found either in primary industries (raw materials) or in secondary industries (products and services, such as manufacturing, food production, construction, and energy).  The Fund may also invest in other global equities.

JNL/M&G Global Leaders Fund

Jackson National Asset Management, LLC (and M&G Investment Management Limited)

Seeks to maximize long-term total return (the combination of income and growth of capital) by investing in stocks selected from the full spectrum of leading companies world-wide (leading companies is defined as those companies that are at the forefront of creating value for shareholders) either directly or as a result of a rise in its stock or bond price or dividends, or stock splits, or indirectly by its participation in activities or markets providing for future enhanced profitability.  The Fund aims to achieve consistent returns in the global equity funds sector.

JNL/Mellon Capital Management European 30 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to provide capital appreciation by investing at least 80% of its assets in the common stock of 30 companies selected from the MSCI Europe Index.

JNL/Mellon Capital Management Pacific Rim 30 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to provide capital appreciation by investing under normal circumstances at least 80% of its assets in the common stock of 30 companies selected from the MSCI Pacific Index.

JNL/Mellon Capital Management S&P 500 Index Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to match the performance of the S&P 500® Index.  The Fund seeks to invest under normal circumstances at least 80% of its assets in the stocks in the S&P 500 Index in proportion to their market capitalization weighting in the S&P 500 Index in order to provide long-term capital growth.

JNL/Mellon Capital Management S&P 400 MidCap Index Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to match the performance of the S&P MidCap 400 Index.  The Fund invests in equity securities of medium capitalization-weighted domestic corporations; under normal circumstances the Fund invests at least 80% of its assets in the stocks in the S&P MidCap 400 Index in proportion to their market capitalization weighting in the S&P MidCap 400 Index in order to provide long-term capital growth.

JNL/Mellon Capital Management Small Cap Index Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to match the performance of the Russell 2000® Index.  The Fund invests in equity securities of small- to mid-size domestic companies; under normal circumstances the Fund invests at least 80% of its assets in a portfolio of securities, which seeks to match performance and characteristics of the Russell 2000 Index through replicating a majority of the Russell 2000 index and sampling from the remaining securities.

JNL/Mellon Capital Management International Index Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to match the performance of the Morgan Stanley Capital International (“MSCI”) Europe Australia Far East (“EAFE”) Index .  The Fund invests in international equity securities attempting to match the characteristics of each country within the index; under normal circumstances the Fund invests at least 80% of its assets in the stocks included in the MCSI EAFE Index or derivative securities economically related to the MSCI EAFE Index.

JNL/Mellon Capital Management Bond Index Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to match the performance of the Barclays Capital U.S. Aggregate Bond Index by investing under normal circumstances at least 80% of its assets in fixed-income securities.  The Fund seeks to provide a moderate rate of income by investing in domestic fixed-income investments.

JNL/Mellon Capital Management Global Alpha Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return by investing in instruments that provide investment exposure to global equity, bond and currency markets, and in fixed-income securities.  The Fund ordinarily invests in at least three countries, focusing on the major developed capital markets of the world, such as the United States, Canada, Japan, Australia, and Western Europe.

JNL/Oppenheimer Global Growth Fund

Jackson National Asset Management, LLC (and OppenheimerFunds, Inc.)

Seeks capital appreciation by investing primarily in common stocks of companies in the U.S. and foreign countries.  The Fund can invest without limit in foreign securities and can invest in any country, including countries with developed or emerging markets.

JNL/PAM Asia ex-Japan Fund

Jackson National Asset Management, LLC (and Prudential Asset Management (Singapore) Limited)

Seeks long-term total return and further seeks to achieve long-term capital appreciation by investing under normal circumstances at least 80% of its assets in equity and equity-related securities (such as depositary receipts, convertible bonds and warrants) of companies, which are listed, incorporated, or have their area of primary activity in the Asia ex-Japan region , under certain circumstances .

JNL/PAM China-India Fund

Jackson National Asset Management, LLC (and Prudential Asset Management (Singapore) Limited)

Seeks long-term total return by investing normally, 80% of its assets in equity and equity-related securities (such as depositary receipts, convertible bonds and warrants) of corporations, which are incorporated in, or listed in, or have their area of primary activity in the People’s Republic of China and India , under certain circumstances .

JNL/PIMCO Real Return Fund

Jackson National Asset Management, LLC (and Pacific Investment Management Company LLC)

Seeks maximum real return, consistent with preservation of real capital and prudent investment management by investing under normal circumstances at least 80% of its assets 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. Assets not invested in inflation-indexed bonds may be invested in other types of Fixed Income Instruments, which include bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

JNL/PIMCO Total Return Bond Fund

Jackson National Asset Management, LLC (and Pacific Investment Management Company LLC)

Seeks to realize maximum total return, consistent with the preservation of capital and prudent investment management, by investing under normal circumstances at least 80% of its 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.

JNL/PPM America High Yield Bond Fund

Jackson National Asset Management, LLC (and PPM America, Inc.)

Seeks to maximize current income, with capital appreciation as a secondary objective, by investing under normal circumstances at least 80% of its assets in high-yield, high-risk debt securities commonly referred to as “junk bonds” and related investments. The Fund may also invest in derivative instruments that have economic characteristics similar to the fixed income instruments, and in derivative instruments (such as options, futures contracts or swap agreements, including credit default swaps), and the Fund may also invest in securities of foreign issuers.

JNL/PPM America Mid Cap Value Fund

Jackson National Asset Management, LLC (and PPM America, Inc.)

Seeks long-term growth of capital by investing, primarily, at least 80% of its assets in a diversified portfolio of equity securities of U.S. companies with market capitalizations within the range of companies, constituting the Russell Midcap Index at the time of the initial purchase.  If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities.

JNL/PPM America Small Cap Value Fund

Jackson National Asset Management, LLC (and PPM America, Inc.)

Seeks long-term growth of capital by investing, primarily, at least 80% of its assets in a diversified portfolio of equity securities of U.S. companies within the range of securities of the S&P SmallCap 600 Index under normal market conditions at the time of initial purchase.  The range will vary with market conditions over time.  If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the securities.

JNL/PPM America Value Equity Fund

Jackson National Asset Management, LLC (and PPM America, Inc.)

Seeks long-term growth of capital by investing primarily in a diversified portfolio of equity securities of domestic companies with market capitalizations within the range of companies constituting the S&P 500 Index.  At least 80% of its assets will be invested, under normal circumstances, in equity securities.

JNL/Red Rocks Listed Private Equity Fund

Jackson National Asset Management, LLC (andRed Rocks Capital LLC)

Seeks maximum total return by investing at least 80% of its assets in (i) securities of U.S. and non-U.S. companies listed on a national securities exchange, or foreign equivalent, that have a majority of their assets invested in or exposed to private companies or have as its stated intention to have a majority of its assets invested in or exposed to private companies  (“Listed Private Equity Companies”), and (ii) derivatives that otherwise have the economic characteristics of Listed Private Equity Companies.

JNL/T. Rowe Price Established Growth Fund

Jackson National Asset Management, LLC (and T. Rowe Price Associates, Inc.)

Seeks long-term growth of capital and increasing dividend income by investing primarily in common stocks, concentrating its investments in well-established growth companies. The sub-adviser seeks investments in companies that have the ability to pay increasing dividends through strong cash flow.  While the Fund invests principally in U.S. common stocks, other securities may also be purchased, including foreign stocks, futures and options.   The Fund may invest up to 30% of its total assets (excluding reserves) in foreign securities, including emerging markets.

JNL/T. Rowe Price Mid-Cap Growth Fund

Jackson National Asset Management, LLC (and T. Rowe Price Associates, Inc.)

Seeks long-term growth of capital by investing at least 80% of its assets, under normal market circumstances, in a broadly diversified portfolio of common stocks of medium-sized (mid-capitalization) companies whose earnings the sub-adviser expects to grow at a faster rate than the average company.

JNL/T. Rowe Price Short-Term Bond Fund

Jackson National Asset Management, LLC (and T. Rowe Price Associates, Inc.)

Seeks a high level of income consistent with minimal fluctuation in principal value and liquidity by investing in a diversified portfolio of short- and intermediate-term investment-grade corporate, government, and mortgage-backed securities.  The Fund may also invest in money market securities, bank obligations, collateralized mortgage obligations, and foreign securities. Normally, the Fund will invest at least 80% of its net assets in bonds.  The Fund’s average effective maturity will not exceed three years.  The Fund will only purchase securities that are rated within the four highest credit categories (e.g. AAA, AA, A, BBB, or equivalent) by at least one nationally recognized credit rating agency or, if unrated, deemed to be of comparable quality by the sub-adviser.

JNL/T. Rowe Price Value Fund

Jackson National Asset Management, LLC (and T. Rowe Price Associates, Inc.)

Seeks long-term capital appreciation by investing, via a value approach investment selection process, at least 65% of total assets in common stocks believed to be undervalued.   Stock holdings are expected to consist primarily of large-company issues, but may also include mid-cap and small-cap companies. The Fund may invest up to 25% of its total assets (excluding reserves) in foreign securities.   Income is a secondary objective.

JNL/WMC Balanced Fund   (formerly, JNL/Select Balanced Fund)

Jackson National Asset Management, LLC (and Wellington Management Company, LLP)

Seeks reasonable income and long-term capital growth by investing primarily in a diversified portfolio of common stock and investment grade fixed-income securities.  The Fund may invest in any type or class of security. The anticipated mix of the Fund’s holdings is typically 60-70% of its assets in equities and 30-40% in fixed-income securities, including cash and cash equivalents.

JNL/WMC Money Market Fund   (formerly, JNL/Select Money Market Fund)

Jackson National Asset Management, LLC (and Wellington Management Company, LLP)

Seeks a high level of current income as is consistent with the preservation of capital and maintenance of liquidity by investing in high quality, U.S. dollar-denominated short-term money market instruments.

JNL/WMC Value Fund   (formerly, JNL/Select Value Fund)

Jackson National Asset Management, LLC (and Wellington Management Company, LLP)

Seeks long-term growth of capital by investing under normal circumstances at least 65% of its total assets in common stocks of domestic companies, focusing on companies with large market capitalizations (generally above $3 billion).

JNL/S&P Competitive Advantage Fund

Jackson National Asset Management, LLC (and Standard & Poor's Investment Advisory Services LLC and Mellon Capital Management Corporation)

Seeks capital appreciation by investing approximately equal amounts in the common stock of 30 companies included in the S&P 500 that are, in the opinion of Standard & Poor's Investment Advisory Services LLC (“SPIAS”), profitable and predominantly higher-quality companies.

JNL/S&P Dividend Income & Growth Fund

Jackson National Asset Management, LLC (and Standard & Poor's Investment Advisory Services LLC and Mellon Capital Management Corporation)

Seeks primarily capital appreciation with a secondary focus on current income by investing approximately equal amounts in the common stock of the 30 companies included in the S&P 500 that have the highest indicated annual dividend yields (“Dividend Yield”) within their sector.  The three stocks with the highest Dividend Yield, are selected from each of 10 economic sectors in the S&P 500.

JNL/S&P Intrinsic Value Fund

Jackson National Asset Management, LLC (and Standard & Poor's Investment Advisory Services LLC and Mellon Capital Management Corporation)

Seeks capital appreciation by investing approximately equal amounts in the common stock of 30 companies included in the S&P 500, excluding financial companies, that are, in the opinion of Standard & Poor's Investment Advisory Services LLC (“SPIAS”), companies with positive free cash flows and low external financing needs.

JNL/S&P Total Yield Fund

Jackson National Asset Management, LLC (and Standard & Poor's Investment Advisory Services LLC and Mellon Capital Management Corporation)

Seeks capital appreciation by investing approximately equal amounts in the common stock of the 30 companies included in the S&P 500 that have the highest S&P Total Yield (a broad measure of cash returned to shareholders and bondholders).  Standard & Poor's Investment Advisory Services LLC (“SPIAS”) seeks companies that are significantly reducing their debt burden and/or increasing their equity distributions.

JNL Variable Fund LLC

JNL/Mellon Capital Management Nasdaq® 25 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return by investing in the common stocks of companies that are expected to have a potential for capital appreciation.  The Nasdaq 25 Strategy selects a portfolio of common stocks of 25 companies are selected from stocks included in the Nasdaq-100 Index®.

JNL/Mellon Capital Management Value Line® 30 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks capital appreciation by investing in 30 of the 100 common stocks that Value Line® gives a #1 ranking for TimelinessTM.  The 30 stocks are selected each year by the sub-adviser based on certain positive financial attributes.

JNL/Mellon Capital Management DowSM Dividend Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks to provide the potential for an above-average total return by investing approximately equal amounts in the common stock of the 25 companies included in the Dow Jones Select Dividend IndexSM which have the best overall ranking on both the change in return on assets of the last year compared to the prior year and price-to-book on each Stock Selection Date.

JNL/Mellon Capital Management S&P® 24 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation by investing approximately equal amounts in the common stocks of 24 companies that have the potential for capital appreciation, on each Stock Selection Date.

JNL/Mellon Capital Management S&P® SMid 60 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks capital appreciation by investing in the common stock of 30 companies included in the Standard & Poor's MidCap 400 Index and 30 companies in the Standard & Poor's SmallCap 600 Index.  The 60 companies are selected on each Stock Selection Date.  The Fund seeks to achieve its objective by identifying small and mid-capitalization companies with improving fundamental performance and sentiment.   The Sub-Adviser follows a process that attempts to select small and mid-cap companies that are likely to be in an earlier stage of their economic life cycle than mature large-cap companies.     

JNL/Mellon Capital Management NYSE® International 25 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks capital appreciation by investing in foreign companies that trade on the New York Stock Exchange (“NYSE”) .  The 25 companies are selected on each Stock Selection Date by ranking the stocks on the NYSE International IndexSM based on two factors: price to book and price to cash flow. The sub-adviser then selects an equally-weighted portfolio of the 25 stocks with the highest overall ranking on the two factors.

JNL/Mellon Capital Management 25 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through a combination of capital appreciation and dividend income by investing the common stocks of 25 companies selected from a pre-screened subset of the stocks listed on the New York Stock Exchange (“NYSE”). The stocks are selected by selecting all of the dividend-paying stocks listed on the NYSE. Next, the 400 highest market capitalization stocks are selected which are then ranked by dividend yield and 75 of the highest dividend yielding stocks are selected. From the remaining 75 stocks, the 50 highest dividend yielding stocks are eliminated and the remaining 25 companies are selected only once annually on each Stock Selection Date.

JNL/Mellon Capital Management Select Small-Cap Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation by investing at least 80% of its assets in a portfolio of common stocks of 100 small capitalization companies selected from a pre-screened subset of the common stocks listed on the New York Stock Exchange or The Nasdaq Stock Market, on each Stock Selection Date.

JNL/Mellon Capital Management JNL 5 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation and dividend income by investing in the common stocks of companies that are identified by a model based on 5 different specialized strategies:

Ø   20% in the DowSM 10 Strategy, a dividend yielding strategy;

Ø20% in the S&P® 10 Strategy, a blended valuation-momentum strategy;

Ø20% in the Global 15 Strategy, a dividend yielding strategy;

Ø20% in the 25 Strategy, a dividend yielding strategy; and

Ø20% in the Select Small-Cap Strategy, a small capitalization strategy.

JNL/Mellon Capital Management JNL Optimized 5 Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks capital appreciation by investing in the common stocks of companies that are identified by a model based on five separate specialized strategies:

Ø   25% in the Nasdaq® 25 Strategy;

Ø   25% in the Value Line® 30 Strategy;

Ø   24% in the European 20 Strategy;

Ø   14% in the Global 15 Strategy; and

Ø   12% in the 25 Strategy.

JNL/Mellon Capital Management VIP Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return by investing in the common stocks of companies that are identified by a model based on six separate specialized strategies. The Fund invests approximately 1/6 (approximately 17%) of its net assets in each of the following strategies:

Ø   The DowSM Dividend Strategy;

Ø   The European 20 Strategy;

Ø   The Nasdaq® 25 Strategy;

Ø   The S&P 24 Strategy;

Ø   The Select Small-Cap Strategy; and

Ø   The Value Line® 30 Strategy.

JNL/Mellon Capital Management Communications Sector Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation and dividend income by investing under normal circumstances at least 80% of its assets in the stocks in the Dow Jones U.S. Telecommunications Index in proportion to their market capitalization weighting in the Dow Jones U.S. Telecommunications Index.

JNL/Mellon Capital Management Consumer Brands Sector Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation and dividend income by investing under normal circumstances at least 80% of its assets in the stocks in the Dow Jones U.S. Consumer Services Index in proportion to their market capitalization weighting in the Dow Jones U.S. Consumer Services Index.

JNL/Mellon Capital Management Financial Sector Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation and dividend income by investing under normal circumstances at least 80% of its assets in the stocks in the Dow Jones U.S. Financial Index in proportion to their market capitalization weighting in the Dow Jones U.S. Financials Index.

JNL/Mellon Capital Management Healthcare Sector Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation and dividend income by investing under normal circumstances at least 80% of its assets in the stocks in the Dow Jones U.S. Health Care Index in proportion to their market capitalization weighting in the Dow Jones U.S. Health Care Index.

JNL/Mellon Capital Management Oil & Gas Sector Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation and dividend income by investing under normal circumstances at least 80% of its assets in the stocks in the Dow Jones U.S. Oil & Gas Index in proportion to their market capitalization weighting in the Dow Jones U.S. Oil & Gas Index.

JNL/Mellon Capital Management Technology Sector Fund

Jackson National Asset Management, LLC (and Mellon Capital Management Corporation)

Seeks total return through capital appreciation and dividend income by investing under normal circumstances at least 80% of its assets in the stocks in the Dow Jones U.S. Technology Index in proportion to their market capitalization weighting in the Dow Jones U.S. Technology Index.

The investment objectives and policies of certain of the Underlying Mutual Funds are similar to the investment objectives and policies of other mutual funds that the Underlying Mutual Fund's investment sub-advisers also manage.  Although the objectives and policies may be similar, the investment results of the Underlying Mutual Funds may be higher or lower than the investment results of those other mutual funds.  We cannot guarantee, and make no representation, that the investment results of similar Underlying Mutual Funds will be comparable even though the Underlying Mutual Funds have the same investment sub-advisers.  The Underlying Mutual Funds described are available only through variable annuity and variable life Contracts issued by Jackson.  Shares of the Underlying Mutual Funds may also be sold directly to qualified retirement plans.  They are NOT offered or made available to the general public directly.

An Underlying Mutual Fund's performance may be affected by risks specific to certain types of investments, such as foreign securities, derivative investments, non-investment grade debt securities, initial public offerings (IPOs) or companies with relatively small market capitalizations.  IPOs and other investment techniques may have a magnified performance impact on an Underlying Mutual Fund with a small asset base.  An Underlying Mutual Fund may not experience similar performance as its assets grow.

You should read the prospectuses for the JNL Series Trust and JNL Variable Fund LLC carefully before investing.  Additional Underlying Mutual Funds and Investment Divisions may be available in the future.

We automatically reinvest all dividends and capital gains distributions from an Underlying Mutual Fund in shares of that Underlying Mutual Fund at net asset value.  The income and realized and unrealized gains or losses on the assets of each Investment Division are separate and are credited to or charged against the particular Investment Division without regard to income, gains or losses from any other Investment Division or from any other part of our business.  We use the Net Premium you allocate to an Investment Division to purchase shares in the corresponding Underlying Mutual Fund and redeem shares in the Underlying Mutual Funds to meet policy obligations.  The Underlying Mutual Funds are required to redeem their shares at net asset value and to make payment within seven days.

Certain Underlying Mutual Funds sell their shares to separate accounts underlying both variable life insurance and variable annuity contracts.  It is conceivable that in the future it may be unfavorable for variable life insurance separate accounts and variable annuity separate accounts to invest in the same Underlying Mutual Fund.  Although neither we nor any of the Underlying Mutual Funds currently foresee any such disadvantages either to variable life insurance or variable annuity contract owners, each Underlying Mutual Fund's board of directors intends to monitor events in order to identify any material conflicts between variable life and variable annuity contract owners and to determine what action, if any, should be taken in response thereto.  If a board of directors were to conclude that separate investment funds should be established for variable life and variable annuity separate accounts, Owners will not bear the related expenses.

Voting Privileges.  As a general matter, you do not have a direct right to vote the shares of the Underlying Mutual Funds held by the Investment Divisions to which you have allocated your Accumulated Value.  Under current interpretations, however, you are entitled to give us instructions on how to vote those shares with respect to certain matters.  We notify you when your instructions are needed and will provide proxy materials or other information to assist you in understanding the issues.  We determine the number of votes for which you may give voting instructions as of the record date set by the relevant Underlying Mutual Fund for the shareholder meeting at which the vote will occur.

As a general rule, you are the person entitled to give voting instructions.  However, if you assign your policy, the assignee may be entitled to give voting instructions.  Retirement plans may have different rules for voting by plan participants.  If you send us written voting instructions, we follow your instructions in voting the Underlying Mutual Fund shares attributable to your policy.  If you do not send us written instructions, we vote the shares attributable to your policy in the same proportion as we vote the shares for which we have received instructions from other Owners.  We vote shares that we hold in the same proportion as we vote the shares for which we have received instructions from Owners.  There is no requirement that we receive voting instructions from any minimum percentage of Owners before we can vote uninstructed shares in proportion to the instructions that we do receive.  Where only a relatively small percentage of owners have submitted instructions, however, we may solicit instructions from more Owners, in order to reduce the possibility that the instructions received are not reasonably representative.

We may, when required by state insurance regulatory authorities, disregard Owner voting instructions if the instructions require that the shares be voted so as to cause a change in the sub-classification or investment objective of one or more of the Underlying Mutual Funds or to approve or disapprove an investment advisory contract for one or more of the Underlying Mutual Funds.

In addition, we may disregard voting instructions in favor of changes initiated by Owners to the investment objectives or the investment adviser of the Underlying Mutual Funds if we reasonably disapprove of the proposed change.  We would disapprove a proposed change only if the proposed change is contrary to state law or prohibited by state regulatory authorities or we reasonably conclude that the proposed change would not be consistent with the investment objectives of the Underlying Mutual Fund or would result in the purchase of securities for the Underlying Mutual Fund that vary from the general quality and nature of investments and investment techniques utilized by the Underlying Mutual Fund.  If we disregard voting instructions, we will include a summary of that action and our reasons for that action in the next semi-annual financial report to you.

This description reflects our view of currently applicable law.  If the law changes or our interpretation of the law changes, we may decide that we are permitted to vote the Underlying Mutual Fund shares without obtaining instructions from our Owners and we may choose to do so.

Additions, Deletions, and Substitutions of Securities.  If the shares of any of the Underlying Mutual Funds are no longer available for investment by the Separate Account or if, in our judgment, further investment in the shares of a Underlying Mutual Fund is no longer preferred, we may add or substitute shares of another Underlying Mutual Fund or mutual fund for Underlying Mutual Fund shares already purchased or to be purchased in the future.  Any substitution will comply with the requirements of the 1940 Act.

We also reserve the right to make the following changes in the operation of the Separate Account and the Investment Divisions:

(a) to operate the Separate Account in any form permitted by law;

(b) to take any action necessary to comply with applicable law or obtain and continue any exemption from applicable laws;

(c) to transfer assets from one Investment Division to another, or from any Investment Division to our general account;

(d)     to add, combine, or remove Investment Divisions in the Separate Account;

(e) to change the way in which we assess charges, as long as the charges do not exceed the maximum guaranteed charges under the policies; and

(f) to assess a charge for taxes attributable to the operations of the Separate Account or for other taxes.

If we take any of these actions, we will comply with the then applicable legal requirements.

THE FIXED ACCOUNT

If you select the Fixed Account, your money will be placed with Jackson's other assets.  The Fixed Account is not registered with the SEC and the SEC does not review the information we provide to you about the Fixed Account.  Your policy contains a more complete description of the Fixed Accounts.

The portion of the policy relating to the Fixed Account is not registered under the Securities Act of 1933 (“1933 Act”) and the Fixed Account is not registered as an investment company under the 1940 Act.  Accordingly, neither the Fixed Account nor any interests in the Fixed Account are subject to the provisions or restrictions of the 1933 Act or the 1940 Act, and the disclosure regarding the Fixed Account has not been reviewed by the staff of the Securities and Exchange Commission.  The statements about the Fixed Account in this prospectus may be subject to generally applicable provisions of the federal securities laws regarding accuracy and completeness.

You may allocate part or all of your premium to the Fixed Account.  Under this option, we guarantee the amount allocated to the Fixed Account and a minimum rate of interest of 3% that will be credited to the amount in the Fixed Account.  From time to time and at our sole discretion, we may set a higher current interest rate applicable to premium and transfers allocated to the Fixed Account during a Policy Year.  We may declare different rates for amounts that are allocated to the Fixed Account at different times.  The rate will be re-set on the Policy Anniversary.  All of a policy's amounts in the Fixed Account will be re-set to the same rate on the Policy Anniversary.  We determine interest rates in accordance with a variety of factors.  The Asset Based Risk Charge and Underlying Mutual Fund Expenses do not apply to amounts allocated to the Fixed Account.  All other charges and deductions under a policy apply to amounts allocated to the Fixed Account to the same extent as they apply to amounts allocated to the variable investment options.  Therefore, the amount of your Fixed Account allocation (and interest thereon) that we guarantee is net of any such charges and deductions that are applicable under the terms of the policy.

Amounts allocated to the Fixed Account are part of the general account of Jackson.  We invest the assets of the general account in accordance with applicable laws governing the investments of insurance company general accounts.

We may delay payment of partial surrenders from the Fixed Account for up to 6 months from the date we receive your written partial surrender request.  We pay interest on the deferred amount at such rate as may be required by the applicable state or jurisdiction.

POLICY BENEFITS AND RIGHTS

Death Benefit.  While your policy is in force, we will pay the Death Benefit Proceeds upon the death of the Insured.  We will pay the Death Benefit Proceeds to the named beneficiary(ies) or, if none survives, to the contingent beneficiary(ies).  We will pay the Death Benefit Proceeds in a lump sum or according to one of the optional payment plans, if available.

The Death Benefit Proceeds payable to the beneficiary equal the applicable Death Benefit, less any Debt and less any due and unpaid charges.  The amount of Death Benefit is based on the Death Benefit option you have selected, any increases or decreases in the Specified Death Benefit (or Target Death Benefit, if a Scheduled Term Insurance Rider applies to your policy), and in some instances your Accumulated Value.  The Death Benefit Proceeds may be increased, if you have added a rider that provides an additional benefit.  Please see “Optional Insurance Benefits” beginning on page 35 .

The Death Benefit Proceeds are determined as of the end of the Valuation Period during which we receive due proof of death from the beneficiary of record (if there are multiple beneficiaries, we will calculate the Death Benefit Proceeds when we receive due proof of death from the first beneficiary).  We usually pay the Death Benefit Proceeds within seven days after we have received due proof of death and all other requirements we deem necessary have been satisfied.

In most cases, when the Death Benefit Proceeds are paid in a lump sum, we will pay the Death Benefit Proceeds by establishing an interest bearing account, called the “Beneficiary Access Account,” for the beneficiary, in the amount of the Death Benefit Proceeds.  We will send the beneficiary a checkbook, and the beneficiary will have access to the account simply by writing a check for all or any part of the amount of the Death Benefit Proceeds.  The Beneficiary Access Account is part of our general account.  It is not a bank account and it is not insured by the FDIC or any other government agency.  As part of our general account, it is subject to the claims of our creditors.  We receive a benefit from all amounts left in the Beneficiary Access Account.  As an alternative to establishing a Beneficiary Access Account, the beneficiary may request to receive a check for the Death Benefit Proceeds directly from the Company.

We may in our sole discretion make available payment options to which the beneficiary may apply the Death Benefit Proceeds in order to receive a stream of periodic payments.  If your beneficiary chooses an available payment option, we will offer a supplemental agreement setting forth the terms of the payment option.  For information concerning the payment options we currently offer, speak to your sales representative or contact us at the address or telephone number on the first page of this prospectus.  At any time in our sole discretion we may change the selection or the terms of the payment options we then offer (if any) or discontinue offering payment options.  Before choosing to apply Death Benefit Proceeds to a payment option, your beneficiary should consult a qualified tax adviser.

Death Benefit Options.  You may choose one of three Death Benefit options, each of which depends in part on the amount of the Specified Death Benefit.  (For this purpose, however, you would use the Target Death Benefit rather than the Specified Death Benefit, if you applied for your policy before October 6, 2008, and have elected the Scheduled Term Insurance Rider.  See “Scheduled Term Insurance Rider” on page 38 .)  The three Death Benefit options are:

Option A:  the Death Benefit is the greater of:  (a) the Specified Death Benefit of the policy; or (b) the Minimum Death Benefit.  Option A is designed to provide a specific amount of Death Benefit that generally does not vary with changes in the Accumulated Value.  As your Accumulated Value increases, the Net Amount at Risk under your policy generally decreases, unless your Accumulated Value is sufficiently large to require that the Death Benefit be determined using the Minimum Death Benefit.

Option B:  the Death Benefit is the greater of (a) the Specified Death Benefit plus the Accumulated Value; or (b) the Minimum Death Benefit.  Under Option B, the amount of the Death Benefit generally increases to reflect increases in the Accumulated Value.  Under this option your policy generally involves a constant Net Amount at Risk.

Option C:  the Death Benefit is the greater of:  (a) the Specified Death Benefit plus the greater of (i) the sum of all premiums paid minus all prior partial surrenders (including any applicable charges) or (ii) zero, or (b) the Minimum Death Benefit.  Under this Option, your Death Benefit generally varies as you pay premiums and take partial surrenders.

The Minimum Death Benefit used in the Death Benefit formulas under the policy equals the Accumulated Value multiplied by the applicable corridor percentage.  We have set forth the applicable corridor percentages in the policy.  The corridor percentages are based upon the age of the Insured.  The applicable corridor percentage decreases from 250% at age 40 or less to 100% at age 121 or above (age 95 or above for policies applied for before October 6, 2008).  While your policy is in force, we guarantee that the Death Benefit will not be less than the greater of the current Specified Death Benefit or the Minimum Death Benefit.

Since the cost of insurance charge is based upon the Net Amount at Risk, it generally is less under a policy with an Option A Death Benefit than an otherwise comparable policy with an Option B Death Benefit.  As a result, if the Sub-Accounts you select experience favorable investment results, your Accumulated Value tends to increase faster under Option A than under Option B, but the Death Benefit under Option B increases or decreases directly with changes in the Accumulated Value.  Thus, you may prefer Option A if you are more interested in the possibility of increasing your Accumulated Value based upon favorable investment experience, while you may prefer Option B if your are seeking to increase Death Benefits.  Option C may be preferable if you want a Death Benefit that would include a return of premium paid (less partial surrenders).

You choose a Death Benefit option in your application to purchase a policy.  If you do not choose a Death Benefit option, we will not issue a policy to you.

Example of Applicable Corridor Percentage.  The corridor percentages used in calculating the Minimum Death Benefit are set so as to seek to ensure that the policies qualify as life insurance for federal income tax purposes.  Accordingly, the policy provides that under all Death Benefit options, the Death Benefit will at least equal the Minimum Death Benefit.  For example, under an Option A policy, an increase in the Accumulated Value due to favorable investment experience may increase the Death Benefit above the Specified Death Benefit (or Target Death Benefit, if you applied for your policy before October 6, 2008, and have elected the Scheduled Term Insurance rider).  Similarly, a decrease in Accumulated Value due to unfavorable investment experience may decrease the Death Benefit (but not below the Specified Death Benefit (or any Target Death Benefit)).

	A	B
Specified Death Benefit	$200,000	$200,000
Death Benefit Option	A	A
Insured's Age	50	50
Accumulated Value	$115,000	$95,000
Applicable Corridor Percentage	185%	185%
Death Benefit	$212,750	$200,000

Under column A, the Death Benefit equals $212,750, i.e., the greater of $200,000 (the Specified Death Benefit) and $212,750 (the Accumulated Value of $115, 000, multiplied by the corridor percentage of 185%).  This amount, less any Debt and unpaid charges, constitutes the Death Benefit Proceeds that we would pay to the beneficiary.

Under column B, the Death Benefit is $200,000, i.e., the greater of $200,000 (the Specified Death Benefit) and $175,750 (the Accumulated Value of $95,000 multiplied by the corridor percentage of 185%).

Changes in Death Benefit Option.  Subject to our consent, after the first Policy Year, you may change the Death Benefit option once each Policy Year by writing to us at the address given on the first page of this prospectus.  If you ask to change from Option A to Option B, we reduce the Specified Death Benefit (and any Target Death Benefit, if you applied for your policy before October 6, 2008, and have elected the Scheduled Term Insurance rider) of your Policy by the amount of the Accumulated Value.  If you ask to change from Option B to Option A, we increase the Specified Death Benefit (and any Target Death Benefit) of your policy by the amount of the Accumulated Value.  If you ask to change from Option C to Option A, we increase the Specified Death Benefit (and any Target Death Benefit) by the greater of the sum of all your premiums paid, less all prior partial surrenders or zero.  You may not change from Option C to Option B or from Option A or B to Option C.  The change takes effect on the first Monthly Anniversary following our approval at least one business day after we approve your Written Request.  If less than one business day remains before the Monthly Anniversary, the change will be effective on the second following Monthly Anniversary.  We may require evidence of insurability satisfactory to us for a change from Option A to Option B.  We do not currently require you to prove insurability for other changes in Death Benefit option.

You may not change the Death Benefit option under your policy if afterward the Specified Death Benefit remaining in force would be less than the minimum Specified Death Benefit.

Changes in Specified Death Benefit.  Subject to our consent, you may request an increase in the Specified Death Benefit after the first Policy Year, and a decrease in the Specified Death Benefit after the seventh Policy Year (third Policy Year if you applied for your policy before October 6, 2008).  You may change the Specified Death Benefit one time per Policy Year.  You may request the change by writing to us at the address shown on the first page of this prospectus.  You should be aware that a change in the Specified Death Benefit changes the Net Amount at Risk and, therefore, changes the cost of insurance charges on your policy.  In addition, approved increases will be subject to an additional surrender charge (based on the amount of the increase, the Insured's Attained Age and underwriting risk classification).  The change generally will take effect on the first Monthly Anniversary after we approve the request.  However, if less than one business day remains between our approval and the Monthly Anniversary, the change will be effective on the second following Monthly Anniversary.  We do not permit a Specified Death Benefit change if the policy is in the Grace Period.

When the Specified Death Benefit of a policy is increased after issue, a new segment of coverage is created to which cost of insurance rates that differ from the original coverage cost of insurance rates are applied.  This is done to reflect the additional underwriting and a higher attained age.  If you request a decrease in Specified Death Benefit, we first apply it to coverage provided by the most recent segment of Specified Death Benefit then to the next most recent segment successively and finally to the coverage under the original application.  The minimum decrease amount is $10,000.  We do not permit a decrease in the Specified Death Benefit of your policy if afterward the Specified Death Benefit remaining in force would be less than the minimum Specified Death Benefit or cause your policy to lose its status as a contract of life insurance under the Code.  If you applied for your policy before October 6, 2008, and have elected the Scheduled Term Insurance Rider, any approved decrease will apply first to the Target Death Benefit, and then to the Specified Death Benefit.  The existence of these segments necessitates that any decrease be applied in reverse order to the segments.  For more information, see “Death Benefit Options” beginning on page 33 .

To apply for an increase in the Specified Death Benefit, you must submit to us a supplemental application, accompanied by satisfactory evidence that the Insured is insurable.  The increased coverage amount may be in a different rate class from your base coverage.  We do not permit any increase in Specified Death Benefit after the Insured's 90th birthday.  The minimum amount of a Specified Death Benefit increase is $10,000.

You should be aware that an increase in the Specified Death Benefit of your policy affects the cost of insurance charges applicable to your policy.  As noted above, we deduct a larger amount of cost insurance charges, because an increase in the Specified Death Benefit also increases the Net Amount at Risk under your policy.  We will not approve a request for a Specified Death Benefit increase if the Cash Surrender Value is too small to pay the Monthly Deduction through the end of the Policy Year.  As described in “Surrender Charge” on page 46 , if you increase the Specified Death Benefit under the policy a new surrender charge will apply.  Modifying the policy's Specified Death Benefit may have tax ramifications.  For additional information, please see “Federal Tax Considerations” on page 51 .

Optional Insurance Benefits.  You may ask to add one or more riders to your policy to provide additional optional insurance benefits; or in some cases we may add these riders to your policy automatically at no cost.  We may require evidence of insurability before we issue a rider to you.  If we impose any charge for a rider, we will deduct the charge as part of the Monthly Deduction.  For more information concerning what riders are available and their operation and costs, please ask your sales representative or contact us at our Service Center.  At our sole discretion we may offer riders or stop offering any rider at any time.

Not all of these riders may be available in your state, and the terms of these benefits may differ in some states.  The below-listed riders are currently available as to some or all policies.  We add the Accelerated Living Benefit Rider, Terminal Illness Benefit Rider, Overloan Protection Benefit Rider and Guaranteed Death Benefit Rider automatically to all eligible policies (in states where they are available) and at no cost to you.

Accelerated Living Benefit Rider - The rider waives surrender charges on a partial surrender of up to 25% of the Accumulated Value if the Insured is diagnosed with one of certain specified conditions.  As with all partial surrenders, the Death Benefit is decreased by an amount related to the decrease in the Accumulated Value.  The partial surrender will be taken from the Fixed Account and the Investment Divisions in proportion to their then current value, unless you request otherwise.  There is no expiry date.

Terminal Illness Benefit Rider - The rider provides an accelerated payment of life insurance proceeds if the Insured is terminally ill, as defined in the rider.  You may request an accelerated benefit of between 25% and 100% of the Death Benefit (or $250,000, if less).  The amount of the benefit is calculated as the amount requested less the following:  a discount for 12 months' interest as specified in the rider, a pro rata portion of any outstanding Debt, an administrative expense charge fee as determined by the Company (not to exceed $100), and any unpaid policy charges.  The Death Benefit will be reduced by the dollar amount requested.  All other values under the policy will be reduced proportionately.  There is no expiry date for the base Insured.  This rider terminates upon payment of any benefit under the rider.  The expiry date for a rider Insured is at the expiry of the Other Insured Term Insurance Rider.

Overloan Protection Benefit Rider – Upon exercise, the rider provides a guarantee that the policy will not lapse due to the policy Debt exceeding the Accumulated Value less any applicable surrender charge or due to the Cash Surrender Value being insufficient to pay any Monthly Deduction.  This rider may help you keep your policy in force and avoid tax consequences resulting from your policy lapsing with a loan outstanding.  However, effects of exercising the rider include transferring any Accumulated Value in the Separate Account to the Fixed Account and setting the Specified Death Benefit (or Target Death Benefit, if applicable) equal to the Minimum Death Benefit.  (The Target Death Benefit would be applicable only if you applied for your policy before October 6, 2008, and have elected the Scheduled Term Insurance Rider.)

Although there is no cost for the rider, the following exercise qualifications must be met before the rider may be exercised:

(1) The Insured's Attained Age must be at least 75;

(2)     A minimum of 15 Policy Years must have elapsed since your Policy Date;

(3) Exercising this rider must not cause the policy to exceed Guideline Premium limits (see “Premium Limits” on page 16);

(4) The policy must not be a MEC and exercising this rider must not cause the policy to become a MEC (see “Policies Which Are MECs” on page 53 );

(5) Total partial surrenders, less any fees and charges deducted in connection with such partial surrenders, must equal or exceed total premium paid; and

(6) Debt must exceed the current Specified Death Benefit (or Target Death Benefit, if the policy has the Scheduled Term Insurance Rider).

At the time all of the above exercise qualifications are first met and the ratio of Debt to Accumulated Value is equal to or greater than 95%, we will send a letter to you, the policy owner, notifying you of the policy's eligibility to exercise the rider.  You may submit a Written Request to exercise the rider any time after the notification letter is sent and before the policy enters the Grace Period (see “Termination and Grace Period” on page 43 ).  If the exercise qualifications are met, the benefit will be exercised and the rider's guarantee will be effective as of the rider's exercise date, which is the date the Written Request is accepted and recorded at the Service Center.

You need not exercise the rider immediately upon notification of eligibility.  If the ratio of Debt to Accumulated Value is greater than the “maximum exercise ratio” at the time you exercise the rider, you will be billed for the loan repayment amount that will cause the ratio of Debt to the Accumulated Value to equal the maximum exercise ratio as of the exercise date.  The maximum exercise ratio is the maximum allowable ratio of the policy Debt to the Accumulated Value for the Overloan Protection Benefit Rider to be exercised.  In other words, the maximum exercise ratio generally represents the minimum amount of Net Accumulated Value required to pay for the Death Benefit provided by the base policy after the rider is exercised.  Monthly Deductions, unfavorable investment performance, partial surrenders and additional loans are all factors that might cause the ratio of Debt to Accumulated Value to exceed the maximum exercise ratio.The maximum exercise ratio is determined by the Company, varies based on the Insured's Attained Age, and will never be below 95%.  Your policy's maximum exercise ratio will be included in the letter notifying you of the policy's eligibility to exercise the rider.  You will have 30 days from the exercise date to pay the billed loan repayment amount.  If you do not pay the billed loan repayment amount, the guarantee will be void and the policy may lapse.

The following policy changes will occur on the exercise date:

(1) All other riders and benefits will terminate;

(2) Any Accumulated Value in the Separate Account is transferred to the Fixed Account;

(3) Your Death Benefit option becomes Option A (see “Death Benefit Options” on page 33 );

(4) The Specified Death Benefit (or Target Death Benefit, if applicable) is set equal to the Minimum Death Benefit for the Attained Age of the Insured as of the exercise date.

In addition, the following policy restrictions apply on the exercise date: no transfers to the Separate Account are allowed; no further premium payments are allowed; no further partial withdrawals or loans are allowed; no Death Benefit option changes are allowed; no Specified Death Benefit option changes are allowed; no riders or benefits may be added or reinstated; and any loan repayments will be allocated to the Fixed Account only.

After the rider exercise date, Monthly Deductions will continue until a Monthly Deduction would cause the Accumulated Value to drop below the policy Debt.  In that instance, Monthly Deductions will be discontinued to prevent the Accumulated Value from dropping below the Policy Debt, which will effectively keep the policy in force.  Loan interest will continue to accrue after the exercise date.  Likewise, interest will continue to be credited to the Loan Account.Your annual statement will reflect the status of the exercised Overloan Protection Benefit Rider on the base policy.  The rider will terminate upon the earlier of  (1) the date we receive a Written Request from you to terminate the rider or (2) the termination of the base policy for any reason, such as a full surrender or death of the Insured.  The rider has no expiry date.

If the rider's guarantee is voided because you do not pay the billed loan repayment amount associated with the maximum exercise ratio, as described above, the policy will no longer be subject to the above policy restrictions.  However, the policy changes made on the exercise date will not be reversed and any terminated riders will not be reinstated.  The Owner may subsequently submit a Written Request to reinstate the guarantee along with a loan repayment that is sufficient to cause the ratio of Debt to the Accumulated Value to be equal to or less than the maximum exercise ratio.

There may be tax consequences associated with this rider.  Accordingly, you should consult your tax counsel when considering whether to exercise the rider.

Guaranteed Death Benefit Rider - (This rider is available only under policies applied for on or after October 6, 2008.)  The Guaranteed Death Benefit Rider may provide an important benefit to you until the rider expires on its expiration date or otherwise terminates, as discussed below.  As long as the rider remains in effect, if you pay certain prescribed amounts of premiums, the rider will keep the policy (but not certain riders) in force, even though the policy’s Cash Surrender Value falls to a level that otherwise would cause the policy to terminate (following a Grace Period).  This rider will terminate upon the earliest to occur of the following events: 1) the expiration date of the rider as shown on the policy data page of the policy; 2) the Monthly Anniversary on which the policy fails to satisfy the premium requirement as stated below; 3) policy termination for any other reason.  The rider’s expiration date is the end of the 20th Policy Year or the Insured’s Attained Age 65, whichever is later.  If the policy fails to satisfy the premium requirement, we will notify the Owner and allow the Owner 61 days to correct the situation.  If it is not corrected, this rider terminates.  Once the rider terminates for any reason, it cannot be reinstated.  Only Death Benefit Options A and B are available with this rider.

This rider guarantees that the lesser of the initial Specified Death Benefit or the current Specified Death Benefit will remain in effect, regardless of the investment performance of the Investment Divisions, as long as the following premium requirement is met.  On each Monthly Anniversary, the Company will compare 1) the cumulative amount of actual premiums received to date, minus any then-outstanding Debt and minus the cumulative amount of any partial surrenders to 2) the sum of the Qualifying Monthly Premium Amounts from the Policy Date to the current Monthly Anniversary.  If the cumulative amount of actual premiums received minus Debt and minus the cumulative amount of any partial surrenders is greater than or equal to the sum of the Qualifying Monthly Premium Amounts, then the premium requirement is satisfied.

For example: If the Qualifying Monthly Premium Amount for your policy was $250, your Policy Date is November 1, 20 10 and, on the 10th Monthly Anniversary (September 1, 20 11 ), the sum of all of the premium you have paid into your policy since issue is $5,000, the sum of all total partial withdrawals you have taken from your policy since issue is $1,000 and your Debt is $0, we would compare the amount of $5,000 - $1,000 - $0 = $4,000 to the amount of 10 x $250 = $2,500.  Since the actual amount of premiums received, minus Debt and minus the cumulative amount of any partial surrenders, is greater than the sum of the Qualifying Monthly Premium Amount from the Policy Date (November 1, 20 10 ) to the current Monthly Anniversary (September 1, 20 11 ), the premium requirement is satisfied.

The Qualifying Monthly Premium Amount is shown on the policy data page of the policy.  It is the minimum amount of premium per month that must be paid in order for the Guaranteed Death Benefit Rider to remain in force.  It is determined by multiplying (a) a rate per $1,000 (which rate varies by age, class, gender and Death Benefit option) by (b) your policy’s Specified Death Benefit divided by $1,000.  If you increase your Specified Death Benefit, change your Death Benefit option, take a policy loan or partial surrender, or if your insurance underwriting risk classification changes, you may need to pay an additional amount of premiums to maintain the Guaranteed Death Benefit Rider in force.  We will notify you and give you an opportunity to pay additional premium to keep this rider in force.

This rider will be added automatically to all policies applied for on or after October 6, 2008.The guarantee provided by this rider applies only to the Specified Death Benefit and will not cause any other rider to remain in effect beyond the time that the policy or that rider would otherwise terminate in accordance with its terms.  The other riders that we make available with the policies do not affect the Guaranteed Death Benefit Rider; and the addition of the Guaranteed Death Benefit Rider to a policy that also has one or more of such other riders will not reduce the value of the benefits under the Guaranteed Death Benefit Rider or under any of such other riders.  Thus, the Guaranteed Death Benefit Rider is not mutually exclusive of any other available rider.

To the extent there is no Net Accumulated Value to pay the Monthly Deductions under the policy, those deductions will be waived if the Guaranteed Death Benefit Rider keeps the policy from lapsing.  However, such deductions will resume, to the extent that Net Accumulated Value subsequently becomes available to pay those deductions.  (Because the Guaranteed Death Benefit Rider will not keep any other rider for which we charge from terminating, however, charges for any such terminated riders will not resume.)

As noted previously, the Guaranteed Death Benefit Rider will terminate at its expiration date or if you fail to pay enough premiums to keep the rider in force by the end of the grace period that we allow for such payments.  Termination of the rider will have no effect on the policy, other than that the benefits of the rider will no longer be available.  This means that, if the policy’s Cash Surrender Value is not sufficient to continue the policy in force in accordance with its terms, the policy (together with any other remaining riders) may terminate if the Guaranteed Death Benefit Rider terminates.  Also, termination of the Guaranteed Death Benefit Rider will not result in reinstatement of any other riders that terminated while the Guaranteed Death Benefit Rider was in force.

Scheduled Term Insurance Rider - (This rider is available only under policies applied for before October 6, 2008.)  You may increase your total life insurance coverage by adding this rider to your policy.  This rider may be added after the Issue Date and will be effective on the Monthly Anniversary following approval.  This rider enables you to adjust your total coverage under the policy to meet your anticipated needs.  When you apply for this rider, you select a Target Death Benefit, which is your desired amount of total insurance coverage.  The Target Death Benefit may be for the life of the rider or it may be scheduled to change at the beginning of specified Policy Years.  The Target Death Benefit may equal the Specified Death Benefit.  All changes reflected in the schedule of Target Death Benefits must occur on a Policy Anniversary.  The Target Death Benefit cannot be scheduled to be reduced in the first seven Policy Years.  The Target Death Benefit can be changed and will be effective the Monthly Anniversary following our approval.  The Specified Death Benefit must be at least 20% of the Target Death Benefit.  The death benefit coverage under this rider equals the Total Death Benefit minus the Base Death Benefit under the base policy (i.e., determined without considering the rider), but not less than zero.  The rider does not provide a fixed amount of term coverage.  Rather, the rider coverage adjusts automatically to changes in the base policy Death Benefit so that the sum of the rider coverage and the base policy coverage will equal the Total Death Benefit so long as the rider is in effect.  Your Total Death Benefit will depend on which Death Benefit option you have selected.

· Under Death Benefit Option A, your Total Death Benefit is the greater of (a) the Target Death Benefit or (b) the Minimum Death Benefit.

· Under Death Benefit Option B, your Total Death Benefit is the greater of (a) the Target Death Benefit plus the Accumulated Value or (b) the Minimum Death Benefit.

· Under Death Benefit Option C, your Total Death Benefit is the greater of (a) the Target Death Benefit plus the greater of (i) total premiums less total partial surrenders (including any applicable charge) or (ii) zero or (b) the Minimum Death Benefit.

If your Accumulated Value increases sufficiently to require that the Base Death Benefit equal the Total Death Benefit, then the benefit under the rider would be zero.  However, the rider would remain in effect until you remove it from your policy.  Thereafter, if your Accumulated Value later dropped such that the Base Death Benefit were lower than the Total Death Benefit, your rider would resume providing a benefit.

You may increase your coverage under this rider in accordance with our rules for increasing the Specified Death Benefit of the policy and the rules above.  See “Changes in Specified Death Benefit” on page 35 .  However, we will treat a request to increase the death benefit as a request to increase both the Specified Death Benefit and the Target Death Benefit, unless you specifically request otherwise.

You may decrease your coverage under this rider in accordance with our rules for decreasing the Specified Death Benefit of the policy.  See “Changes in Specified Death Benefit” at page 35 .  Approved reductions will apply first to the rider coverage, then to previously approved increases in the Specified Death Benefit, and then to the original Specified Death Benefit.  We may refuse to effect scheduled increases in Target Death Benefit if you cancel a scheduled change or ask for an unscheduled decrease in your Target Death Benefit.  Partial surrenders, changes from Death Benefit Option A to Option B, and decreases in your death benefit coverage may reduce the amount of your Target Death Benefit in the same manner as those transactions would reduce your policy's Specified Death Benefit.  See “Partial Surrenders” on page 41 and “Changes in Death Benefit Option” on page 34 .

We deduct a separate monthly cost of insurance charge for coverage under this rider.  The cost of insurance charge will equal the benefit under the rider times the applicable cost of insurance rate as of the applicable Monthly Anniversary.  The cost of insurance rate will be determined by us from time to time, based on the Insured's age at issue of the rider, sex and underwriting risk class, and the number of years since the rider was issued.  This rider expires at the Insured's Attained Age 100.  We also deduct a monthly administrative charge on the excess of the Target Death Benefit over the Specified Death Benefit which will be the same as the monthly administrative charge under the base policy (this is deducted even if the rider benefit is reduced to zero).  The total charges you may pay under a policy with this rider may be more or less than you would pay if all of the coverage were provided under the base policy alone.  We do not charge a sales charge or surrender charge under this rider.  If you increase the Target Death Benefit after the rider is issued, we may require satisfactory evidence of insurability, and we will determine the applicable underwriting risk class and cost of insurance charge separately for the additional coverage.

This rider has no surrender value and does not contribute to the Accumulated Value.  The only benefit payable under this rider is the additional death benefit.  Benefits under this rider are not covered by the Guaranteed Minimum Death Benefit Rider (“GMDB”).  Accordingly, if the GMDB is in force and the Net Accumulated Value is insufficient to pay charges as they come due and you do not pay sufficient additional premium (see “Termination and Grace Period” on page 43 ), this rider will terminate; thereafter, if your policy has a GMDB Rider in effect, only the coverage provided by the base policy will remain in force.

Commissions payable to sales representatives on the sale of policies with a Scheduled Term Insurance Rider are calculated based on the total premium payments made for the base policy and the rider.  The commissions will vary depending on the ratio of the death benefit for the base policy and the rider.  The same amount of premium will result in the highest commission when there is no rider, with the commission declining as the portion of the death benefit coverage allocated to the rider increases.

Waiver of Monthly Deductions Rider.  In the event of the Insured's total disability commencing before the Policy Anniversary after the Insured reaches Attained Age 60, we will waive the Monthly Deduction for the policy and any rider then in effect during the continuance of the disability.  Eligible issue ages for this rider are 18-55.  You may not select both this rider and the Waiver of Specified Premium Rider.  Policy changes that would result in a larger Monthly Deduction may be restricted during a period of disability.  These changes could include the addition of an additional Other Insured Term Insurance Rider or benefits requiring evidence of insurability.  The policy may lapse if Debt is greater than the Accumulated Value less the surrender charge.

Waiver of Specified Premium Rider.  In the event of the Insured's total disability commencing before the Policy Anniversary corresponding to the Insured's Attained Age 60, we will pay a specified monthly premium into the policy during the continuance of the disability.  Eligible issue ages for this rider are 18-55.  You may not select both this rider and the Waiver of Monthly Deduction Rider.  Payment of the specified premium may not be sufficient to keep the policy in force during the period of disability.

Guaranteed Minimum Death Benefit Rider.  See “Guaranteed Minimum Death Benefit” on page 17.  (As ofOctober 6, 2008, we are no longer taking applications to add this rider to any policy.)

Protector Term Insurance Rider.  (As of November 3, 2008, we are no longer taking applications to add this rider to any policy.)   This rider provides renewable and convertible term insurance coverage on the base Insured (Rider Insured) up to the Rider Insured's Attained Age 95, subject to the terms of the rider.  The term periods available are 10, 15, 20 and 30 years but only one rider may be attached to the policy.  Until the earlier of the end of the term period or the Rider Insured's 80th birthday, this rider may be converted to other permanent insurance we then offer for conversion (except term insurance).  You may not be permitted to reduce or remove the rider if it would cause the policy to fail the definition of life insurance.  Accordingly, you should consult your tax counsel before removing or reducing the rider.

Other Insured Term Insurance Rider.  This rider provides term insurance coverage on an additional person up to the earlier of the Insured's Attained Age 121 (age 100under policiesapplied for before October 6, 2008) or the Rider Insured's Attained Age 121 (age 100under policiesapplied for before October 6, 2008), subject to the terms of the rider.  If the Rider Insured is not related to the Insured on the policy and the policy is not a MEC, the charges deducted for this rider may be treated as distributions for tax purposes and accordingly reduce the cost basis of the policy.  For MEC contracts, the charges for the Rider Insured's who are not related to the Insured may be treated as taxable distributions for tax purposes, to the extent there is a gain in the contract.  You should consult a qualified tax adviser for more information.  At any time before or on the Rider Insured's 65th birthday, this rider may be converted to other permanent insurance we then offer for conversion (except term insurance).  You may not be permitted to reduce or remove the rider if it would cause the policy to fail the definition of life insurance.  Accordingly, you should consult your tax counsel before removing or reducing the rider.

Child Insurance Rider.  This rider provides for term insurance on the Insured's children.  We provide coverage until the earlier of the 22nd birthday of each child (issue ages: 14 days to 18th birthday) or the end of the premium paying period for the rider.  The rider expires at the Insured's Attained Age 65.  Up to 5 units may be purchased.  Each unit provides $5,000 of term coverage on each Insured child.  If the Insured dies while the rider is in effect, we convert the coverage on each child to paid-up term insurance that remains in force until the child reaches age 22.  The rider may be exchanged for a whole life policy on the earlier of each child's 22nd birthday and the Insured's 65th birthday.  We do not require evidence of insurability to exchange the rider.

Policy Loans.  While the policy is in force, and not in the Grace Period, and after the Allocation Date, you may borrow money from us using the policy as the only security for your loan, subject to some limitations.  Loans have priority over the claims of any assignee or any other person.  Any outstanding policy loans and loan interest reduce the amount you may request.  In addition, if you have named an irrevocable beneficiary, you must also obtain his or her written consent before we make a policy loan to you.  You may borrow up to the maximum loan amount, which except for Day 1 Loans, is the Cash Surrender Value in effect as of the end of the Valuation Period in which we grant your request minus the Monthly Deductions to your next Policy Anniversary, or the next following Policy Anniversary if the loan is within 30 days of a Policy Anniversary.  For Day 1 Loans, the maximum loan amount is up to 90% of your premium payment, and this depends on the anticipated Monthly Deductions to which your policy will be subject to keep it in force.  The minimum loan amount is $500.

We ordinarily disburse your loan to you within seven days after we receive your loan request at our Service Center.  We may, however, postpone payment in the circumstances described below in “Postponement of Payment.”

When we make a policy loan to you, we transfer to the Loan Account a portion of the Accumulated Value equal to the loan amount.  We make these transfers pro rata from the Investment Divisions and the Fixed Account, unless you instruct us otherwise in writing.  We credit interest to the Loan Account at 3% annually.

Interest on policy loans accrues daily and is due at the end of each Policy Year.  If you do not pay the interest on a policy loan when due, the unpaid interest becomes part of the policy loan and accrues interest at the same rate.  In addition, on each Policy Anniversary, the value of the Loan Account is set equal to the Debt.  Accordingly, we transfer to the Loan Account an amount of Accumulated Value equal to the amount by which the Debt exceeds the value of the Loan Account.  Similarly, if the value in the Loan Account exceeds Debt, we transfer the excess from the Loan Account to the Investment Divisions and the Fixed Account proportionally based on your selections.

Day 1 Loans, if available, may only be taken in conjunction with a 1035 transfer (or 1035 exchange) of a policy with an existing loan for this policy.  Loans accrue interest daily at an annual simple interest rate of 4% during your first through fifth Policy Years (first through tenth Policy Years for policies applied for before October 6, 2008).  Thereafter, the rate of loan interest will be 3%, except that, under policies applied for on or after October 6, 2008, the Company reserves the right to increase this rate to 3.25%.  In contrast, amounts allocated to the Loan Account as collateral for such loans accrue compounded interest daily at an annual effective interest rate of 3%.

While the policy is in force, you may repay all or part of a policy loan without any penalty.  To repay a loan in full, the loan repayment must equal the Debt.  If you intend a payment to be a loan repayment rather than additional premium, you must clearly identify the payment as such or we treat it as additional premium.  We apply all loan repayments first to the loan principal, and then to the accrued loan interest.  (If you applied for your policy before October 6, 2008, we first apply all loan repayments to any standard loans you may have taken.)  When we receive a loan repayment, we transfer an equal amount from the Loan Account to the Investment Divisions and Fixed Account according to the most recent premium allocation instructions on file, unless you instruct us otherwise.  We reserve the right to require loan repayments to be credited to the Fixed Account to the extent that was the source of the loan being repaid.  We may refuse any loan repayment less than $25.  An overpayment of a loan may be treated as either as additional premium or it will be refunded at our election unless you specify in writing with your payment that any overpayment should be refunded.

If the total outstanding Debt exceeds the Accumulated Value less the surrender charge of your policy, we notify you and any assignee in writing.  To keep the policy in force, we require you to pay a premium sufficient to keep the policy in force for at least three more months.  If you do not pay us sufficient premium within the Grace Period, your policy lapses and terminates without value.  As explained below in the section entitled “Reinstatement,” you may subsequently reinstate the policy by either repayment or reimbursement of any Debt that was outstanding at the end of the Grace Period, however the loan cannot be reinstated.  If your policy lapses while a policy loan is outstanding, you may owe taxes or suffer other adverse tax consequences.

A policy loan, whether or not repaid, will have a permanent effect on your Accumulated Value because the investment results of each Investment Division and the interest paid on the Fixed Account will apply only to the amounts remaining in those accounts.  The longer a loan is outstanding, the greater the effect is likely to be.  The effect could be favorable or unfavorable.  If the Investment Divisions and/or Fixed Account earn more than the annual interest rate for amounts held in the Loan Account, your Accumulated Value will not increase as rapidly as it would if you had not taken a policy loan.  If the Investment Divisions and/or Fixed Account earn less than that rate, then your Accumulated Value will be greater than it would have been if you had not taken a policy loan.  The combination of an increasing loan balance, deduction for contract charges and fees, and unfavorable investment performance may cause the policy to lapse, triggering ordinary income taxation on the outstanding loan balance to the extent it exceeds your cost basis in the policy.  Also, if you do not repay a policy loan, your Debt reduces the Death Benefit and Cash Surrender Value otherwise payable.

In addition, you may realize taxable income when you take a policy loan.  If your policy is treated as a modified endowment contract for federal tax purposes, policy loans are treated as partial surrenders for tax purposes, and the amount of the loan equal to any increase in your Accumulated Value may be treated as taxable income to you.  In addition, you may also incur an additional 10% percent penalty tax.  This penalty tax will not apply to any amounts: (1) paid on or after the date you reach age 59½, (2) paid to your beneficiary after you die or (3) paid if you become totally disabled (as that term is defined in the Code).

You should also be aware that interest on policy loans is generally not deductible.  Before you take a policy loan, you should consult your tax adviser and carefully consider the potential impact of a policy loan on your rights and benefits under the policy.

Surrenders.  While your policy is in force, you may surrender your policy.  Your policy terminates on the day we receive your Written Request in good order.  You must submit your policy or a lost policy affidavit to our Service Center with your written surrender request.

Upon surrender, we pay you the Cash Surrender Value determined as of the day we receive your Written Request.  The Cash Surrender Value equals the Accumulated Value, minus the surrender charge minus any Debt.  The surrender charge is described in “Surrender Charge” below.  Generally, we pay you the Cash Surrender Value of your policy within seven days of our receipt of your Written Request.  You may not reinstate the policy once it is surrendered.  We have set forth the tax consequences of surrendering the policy in “Federal Tax Considerations” below.

We may in our discretion make available payment options to which you may apply surrender proceeds in order to receive a stream of periodic payments.  If you choose a payment option, we will offer a supplemental agreement setting forth the terms of the selected option.  For information about the payment options we currently offer, speak to your sales representative or contact us at the address or telephone number on the first page of this prospectus.  At any time in our discretion we may change the selection or the terms of the payment options we then offer, or discontinue offering payment options.

Surrendering your policy and applying the proceeds to a payment option may result in your being deemed to receive taxable income.  Accordingly, before following this course of action you should consult a qualified tax adviser.

Partial Surrenders.  While your policy is in force after the first Policy Year, you may withdraw a portion of your Cash Surrender Value by sending a Written Request to our Service Center.

Your Written Request for a partial surrender will be effective on the day we receive it at our Service Center, or, if not a Valuation Day, the next day that is a Valuation Day.  We pay you the amount requested and we deduct that amount plus any applicable surrender charge and a partial surrender fee not to exceed $25 from your Accumulated Value.  The minimum partial surrender amount is $500.  We will not permit a partial surrender to reduce the Cash Surrender Value to an amount less than or equal to the equivalent of the next three Monthly Deductions.  If your partial surrender would exceed that limit, we will notify you and give you the option of withdrawing your request or surrendering your policy.  Unless you request otherwise, we take the partial surrender from the Investment Divisions and the Fixed Account in proportion to each one's respective value at the time.  The amount withdrawn from the Fixed Account may not exceed the total amount withdrawn times the ratio of the Fixed Account Value to the value in the Investment Divisions and Fixed Account immediately before the partial surrender.

A partial surrender may reduce the Specified Death Benefit (and the Target Death Benefit, if your policy has a Scheduled Term Insurance Rider) under your policy as well as the Accumulated Value.  (The Scheduled Term Insurance Rider is an option that you may have selected, but only if you applied for your policy before October 6, 2008.)  The effect on the Death Benefit will depend on the Death Benefit option then in effect.

For policies with Death Benefit Option A:

If your policy does not have a Scheduled term Insurance Rider:

If the Minimum Death Benefit is less than or equal to the Specified Death Benefit, we will reduce the Specified Death Benefit by the partial surrender amount.  Otherwise if your Death Benefit equals the Minimum Death Benefit, we will reduce the Specified Death Benefit by the amount by which the partial surrender amount exceeds the difference between the Minimum Death Benefit and the Specified Death Benefit immediately before the partial surrender.

Example:  The following example illustrates the effect of a partial surrender on a policy having the indicated values, where the Base Death Benefit equals the Minimum Death Benefit.  The example assumes a corridor percentage of 250% and a total partial surrender amount of $20,000.

	Before the Partial Surrender	After the Partial Surrender
Accumulated Value	$84,000	$64,000
Specified Death Benefit (A)	$200,000	$190,000
Minimum Death Benefit (B)	$210,000 ($84,000 x 250%)	$160,000 ($64,000 x 250%)
Base Death Benefit	$210,000 (greater of A and B)	$190,000 (greater of A and B)

As shown above, the Accumulated Value is reduced by $20,000, the total amount of the partial surrender, while the Specified Death Benefit is reduced by $10,000, the amount by which the total partial surrender amount exceeded the difference between the Minimum Death Benefit ($210,000) and the Specified Death Benefit ($200,000) immediately before the partial surrender.

If your policy has a Scheduled Term Insurance Rider:

If the Minimum Death Benefit is less than or equal to the Specified Death Benefit, we will reduce the Specified Death Benefit and the Target Death Benefit by the partial surrender amount.  If the Minimum Death Benefit is greater than the Specified Death Benefit but less than or equal to the Target Death Benefit, we will reduce the Specified Death Benefit by the amount (if any) by which the partial surrender amount exceeds the difference between the Minimum Death Benefit and the Specified Death Benefit immediately before the partial surrender, and we will reduce the Target Death Benefit by the partial surrender amount.  If the Minimum Death Benefit is greater than the Specified Death Benefit and the Target Death Benefit, we will reduce the Specified Death Benefit by the amount (if any) by which the partial surrender amount exceeds the difference between the Minimum Death Benefit and the Specified Death Benefit immediately before the partial surrender, and we will reduce the Target Death Benefit by the amount (if any) by which the partial surrender amount exceeds the difference between the Minimum Death Benefit and the Target Death Benefit immediately before the partial surrender.  See Appendix A for examples of how your insurance coverage would change under Death Benefit Option A as the result of a partial surrender.

For policies with Death Benefit Option B:

A partial surrender generally does not affect the Specified Death Benefit (or, for policies with the Scheduled Term Insurance Rider, the Target Death Benefit).  However, the Death Benefit Proceeds (i.e., the net dollar amount that we actually pay upon the Insured’s death) typically are reduced dollar-for dollar.  That is because the Death Benefit Proceeds under Death Benefit Option B are typically equal to the Specified Death Benefit (or, if applicable, the Target Death Benefit), plus the policy’s Accumulated Value, and minus any Debt and due and unpaid charges.  Thus, because a partial surrender will reduce the Accumulated Value, it will also reduce the Death Benefit Proceeds, even though it does not change the Specified Death Benefit (or Target Death Benefit).

For policies with Death Benefit Option C:

If the partial surrender amount is less than the total premiums paid minus the total of all prior partial surrenders (including related charges), the Specified Death Benefit and the Target Death Benefit (if any) will not be reduced.  Otherwise, the Specified Death Benefit is reduced by the amount by which the partial surrender amount exceeds the greater of: (1) total premiums paid minus the sum of all prior partial surrender amounts (including related charges), (2) the Minimum Death Benefit less the Specified Death Benefit or (3) zero.  The Target Death Benefit (if any) is reduced by the amount that the partial surrender amount exceeds the greater of (1) total premium minus the sum of all prior partial surrender amounts (including related charges), (2) the Minimum Death Benefit less the Target Death Benefit or (3) zero.

Example for policies with Death Benefit Option C:  The following example illustrates the effect of a partial surrender on an Option C policy having the indicated values, where the Base Death Benefit equals the Minimum Death Benefit.  The example assumes a corridor percentage of 250% and a partial surrender amount of $70,000.

Partial Surrender - $70,000
	Before the Partial Surrender	After the Partial Surrender
Accumulated Value	$84,000	$14,000
Total Premiums Paid	$65,000	$65,000
Total Partial Surrenders	$5,000	$75,000
Specified Death Benefit	$150,000	$140,000
Minimum Death Benefit	$210,000 ($84,000 x 250%)	$35,000 ($14,000 x 250%)
Base Death Benefit	$210,000	$140,000

As shown above, the Accumulated Value is reduced by $70,000, the total amount of the partial surrender.  The Specified Death Benefit is reduced by $10,000, which is the amount by which the partial surrender ($70,000) exceeded the total premiums paid ($65,000) minus the sum of all prior partial surrenders ($5,000).

Partial surrenders are not permitted if the Death Benefit reduction would reduce the Specified Death Benefit below the minimum Specified Death Benefit ($100,000) or cause the policy to lose its status as life insurance under the Code.  If the Scheduled Term Insurance Rider is elected, the death benefit will be re-calculated upon partial surrender.

A partial surrender may give rise to taxable income.  Also, we will notify you if a partial surrender would cause your policy to be treated as a modified endowment contract for tax purposes, so that you can decide whether to pursue the partial surrender or modify or withdraw it to avoid modified endowment contract status.  We recommend that you consult your tax adviser before making a partial surrender.  The tax consequences of making a partial surrender are discussed in “Federal Tax Considerations.”

Status of Policy at Attained Age 121 (Attained Age 100 if you applied for your policy before October 6, 2008).  If your Cash Surrender Value is greater than zero at the Insured's Attained Age 121 (or, if applicable, age 100), your policy will remain in force subject to the following changes:

(1) We will transfer all of your Accumulated Value to the Fixed Account, and the Investment Divisions no longer will be available under your policy.  For policies issued in the state of Florida, this transfer will not occur unless requested by the Owner;

(2) We will stop charging the Monthly Deduction;

(3) The Death Benefit option will change to Option A, and no further changes in Death Benefit option will be permitted.  If your policy has an in force Scheduled Term Insurance Rider, the Specified Death Benefit under the policy will be changed to equal the Target Death Benefit and coverage under the rider will terminate;

(4) No additional premiums will be accepted and no changes in Specified Death Benefit will be permitted (other than any Specified Death Benefit decreases that result automatically from partial surrenders);

(5) Dollar cost averaging and rebalancing, if applicable, terminate;

(6) Riders will terminate as provided in the Rider form; and

(7) Partial surrenders and policy loans (loan interest will continue to accrue) will continue to be allowed.

If you have outstanding Debt, loan repayments may be necessary to maintain a positive Cash Surrender Value since loan interest will continue to accrue.

Termination and Grace Period.  Your policy will terminate and life insurance coverage will end when one of the following events first occurs:

(a) you surrender your policy;

(b) the Grace Period ends and your policy lapses; or

(c) the Insured dies.

Your policy will enter the Grace Period if your Cash Surrender Value on any Monthly Anniversary is insufficient to pay a Monthly Deduction when due or is $0 or less, unless the Guaranteed Minimum Death Benefit or the Guaranteed Death Benefit is in effect or the Minimum Premium criteria is satisfied (see below).  We will send you and any assignee notice of the amount necessary to keep your policy in force.  That amount generally is equal to the next three Monthly Deductions and the applicable Premium Charges or a greater amount if needed to have the Cash Surrender Value positive three months later.  If you do not pay that amount by the end of the Grace Period, your policy will lapse without value and coverage will end.

Minimum Premium criteria:  If within the first five Policy Years (three Policy Years if you applied for your policy before October 6, 2008) the actual Premium received minus any partial surrender amounts (less related charges and Debt) is greater than the sum of the monthly Minimum Premiums between the Policy Date and the Monthly Anniversary, the Policy will not enter the Grace Period if the Net Accumulated Value is greater than zero.

The policy will continue in effect through the Grace Period.  If the Insured dies during the Grace Period, we will pay a Death Benefit in accordance with your instructions.  However, we will reduce the proceeds by any overdue charges.

If the Insured is within two months of age 121 (age 100 if you applied for your policy before October 6, 2008) when the Policy goes into the Grace Period, the Owner will be required to pay an amount at least equal to the unpaid Monthly Deductions to keep the Policy in force to age 121 (age 100 if applicable) plus the applicable sales and tax charges.  The cost of insurance charges in the Monthly Deduction calculation will be based on the most recently paid cost of insurance charge as of the day the Grace Period begins.  All allocations are transferred to the Fixed Account.

Reinstatement.  If your policy lapses, you may apply for reinstatement of the policy within five years of the date of lapse by sending a Written Request to our Service Center.  We will require satisfactory evidence of the insurability of the Insured at the same underwriting risk classification as at the time of issuance of the policy.  The reinstatement amount (or charge) must be sufficient to cover all past due Monthly Deductions assessed during the Grace Period, plus the next three Monthly Deductions and the applicable sales and tax charges.  Policy loans will not be restored on reinstatement.

The Accumulated Value on the reinstatement date will equal the Accumulated Value at the time of lapse, minus any Debt, plus any additional Net Premium that is not considered payment of past due charges.  The Accumulated Value will be allocated to the Investment Divisions and Fixed Account according to your most recent allocation instructions.  The Death Benefit of the reinstated policy cannot exceed the Death Benefit at the time of lapse.  The surrender charge in effect upon reinstatement will be the surrender charge that existed on the date of lapse.  The Sales Charge, Policy Fee, Administrative Charge and Asset Based Risk Charge will be reinstated at the duration in effect when the policy lapsed.  The Cost of Insurance Charge will be reinstated at the duration in effect on the reinstatement date.

Right to Examine the Policy.  In most states, you may cancel your policy by returning it to us within ten days after you receive it.  The Right to Examine Period may be longer (i) in some states, (ii) if you acquire your policy as a replacement for another insurance policy, or (iii) if you are a senior citizen.  If you return your policy, the policy terminates and we will pay you an amount equal to your total premium paid, less any partial surrender and any policy loans.  In some states, however, we will return the Accumulated Value plus fees and charges.  We will pay the refund within seven days of receiving your request and the policy.  No surrender charge is imposed upon return of a policy within the Right to Examine Period.  Also in some states, we are required to hold the premiums of a senior citizen in the Fixed Account during the right to examine the policy period, unless we are specifically directed to allocate the premiums to the Investment Divisions.  If the policy’s Cash Surrender Value is higher than the amount otherwise described in this paragraph as being payable upon return of the policy pursuant to the right to examine, we will pay that higher amount instead.  In cases where the amount we pay upon return of the policy is the total premium paid (less any partial surrender and policy loans), we do not pay any Fixed Account interest (or any other return) for the period while the policy was outstanding.  However, where the amount we pay is based on the policy’s value, that value will include any such Fixed Account interest (and reflect any gains or losses under any variable investment option in which the policy’s value was invested).

Postponement of Payment.  We may defer for up to fifteen days the payment of any amount attributable to premium paid by check to allow the check a reasonable time to clear.  We ordinarily pay any amount attributable to your Accumulated Value allocated to the Separate Account within seven days, except that we may suspend or postpone any transfers or payments to or from the Investment Divisions if any of the following events occur:

(1) The New York Stock Exchange is closed (other than customary weekend and holiday closings).

(2) Trading on the New York Stock Exchange is restricted.

(3) An emergency exists, as determined by the Securities and Exchange Commission, so that it is not reasonably practicable to dispose of the Separate Account's investments or to determine the value of its assets.

(4) The Securities and Exchange Commission by order so permits for your protection.

In addition, we may delay payment from the Fixed Account for up to six months.  We will pay interest on the deferred amount at such rate as may be required by the applicable state or jurisdiction.

CHARGES AND DEDUCTIONS

We assess charges and deductions under the policies from your premium and against your value in the Investment Divisions and the Accumulated Value generally.  Additional charges and expenses are paid out of the Underlying Mutual Funds' assets, as described in the prospectuses of the Underlying Mutual Funds.

Premium Charges.  Before we allocate a premium to the Accumulated Value, we subtract the Premium Charges.  The three Premium Charges are:  the sales charge, the premium tax charge, and the federal (DAC) tax charge.  Premium received as the result of a Section 1035 exchange is subject to the Premium Charges.  In the case of a 1035 exchange of a policy with an existing policy loan for this policy; the cash portion of the transfer will be subject to all Premium Charges and the loan amount will be subject to only the premium tax charge and federal tax charge.

Sales Charge.  The sales charge may never exceed 6% of all premium paid.  This charge is intended primarily to help us pay for actual sales expenses, which include sales representatives' sales commissions and other sales and distribution expenses.  The current sales charge is 6% for years 1-5 and 4% for years 6+ (up to the Target Premium).  There is currently no Sales Charge on premiums in excess of the Target Premium for a given Policy Year.  Premium received 15 days or less in advance of the Policy Anniversary will be considered premium for the next Policy Year for purposes of calculating Sales Charges.  This will result in the payment of a higher Sales Charge if the premium would otherwise have been in excess of the Target Premium for the Policy Year in which it was received.  See “Premiums” on page 15 for more information.

State and Local Premium Tax Charge.  Unless prohibited by state law, the premium tax charge is 2.5% of each premium in all years.  It is intended to help us pay state and local premium taxes.

The premium tax charge represents an approximate average of the premium taxes we expect to pay.  Unless prohibited by state law, we do not vary the premium tax charge to reflect difference in individual states' tax rates, or the absence of premium tax in certain states.  Accordingly, this charge may be higher or lower than the premium tax rate in your state.  We may impose the premium tax charge in states that do not have a premium tax.  State premium tax rates currently range from 0 to 4%.  For policies issued in North Carolina, the premium tax charge will equal that state's premium tax rate, currently 1.9%.  We reserve the right to increase or decrease this charge due to any change in tax law or premium taxes we expect to pay.

Federal (DAC) Tax Charge.  The federal (DAC) tax charge is 1.5% of each premium in all years.  It is intended to help us pay the cost of certain Federal taxes and other expenses related to the receipt of premiums.

Asset Based Risk Charge.  On each Valuation Day, we deduct from the Investment Divisions the Asset Based Risk Charge.  This charge is reflected in the value of Accumulation Units of each Investment Division.

The Asset Based Risk Charge compensates Jackson for numerous risks it assumes in connection with the policies.  These include the risk that the cost of insurance charge will be insufficient to meet the claims and risks under the Minimum Death Benefit.  We also assume a risk that on the Monthly Anniversary preceding the death of an Insured the Death Benefit will exceed the amount on which the cost of insurance charges were based.  For policies applied for on or after October 6, 2008, this charge also compensates us for the risks we assume under the Guaranteed Death Benefit Rider.  This charge also compensates us for the risk that actual expenses incurred in issuing and administering the policies will exceed those expected to be incurred.  The foregoing are merely examples of some of the risks for which this charge is intended to compensate us.  The Asset Based Risk Charge will never exceed 1.00% on an annual basis.  The current Asset Based Risk Charge is 0.90% annually in years 1-10, 0.25% annually in years 11-20 and 0% in years 21+.

Monthly Deduction.  As of the Commencement Date and each Monthly Anniversary, we deduct from your Accumulated Value a Monthly Deduction to cover certain charges and expenses in connection with the policy.  If the Monthly Anniversary falls on a day other than a Valuation Day, the Monthly Deduction will be determined using the Accumulation Unit Values determined on the next Valuation Day.  If the Policy Date is prior to the Commencement Date, any amounts due from the Policy Date to the Commencement Date, in addition to the regular Monthly Deduction, will be taken on the next Monthly Anniversary.

The Monthly Deduction is the sum of the following items:

(1) the cost of insurance charge for your policy;

(2) the monthly policy fee;

(3) the monthly administrative charge; and

(4) the cost of additional benefits provided by rider, if any.

You may specify the Investment Divisions and the Fixed Account from which you wish us to deduct the Monthly Deduction.  If you do not, we will deduct the Monthly Deduction from the Investment Divisions and Fixed Account in proportion to their value on the Monthly Anniversary.

Cost of Insurance Charge.  The cost of insurance charge is effective as of the Policy Date and deducted as of the Commencement Date and each Monthly Anniversary thereafter by reduction of value of the Fixed Account(s) and canceling Accumulation Units when deducted from an Investment Division.  If the Policy Date is prior to the Commencement Date the charges would occur on the next Monthly Anniversary.  The cost of insurance charge is intended primarily to compensate us for providing life insurance coverage for the Insured.  We guarantee that this charge will not exceed the maximum cost of insurance charge determined on the basis of the rates shown in the table of guaranteed maximum monthly cost of insurance rates in your policy.  The cost of insurance charge is calculated based on the Net Amount at Risk.  The Net Amount at Risk for the Death Benefit options is as follows:

Option A – The greater of:  1) the Specified Death Benefit discounted by one month at the guaranteed minimum interest rate, minus the Accumulated Value or 2) the Minimum Death Benefit discounted by one month at the guaranteed minimum rate of interest, minus Accumulated Value.

Option B – The greater of: 1) the Specified Death Benefit discounted by one month at the guaranteed minimum interest rate or 2) the Minimum Death Benefit discounted by one month at the guaranteed minimum interest rate minus the Accumulated Value.

Option C – The greater of: 1) the Specified Death Benefit discounted by one month at the guaranteed minimum interest rate, plus the greater of the sum of all Premium paid minus all prior total partial surrender amounts or zero, minus the Accumulated Value or 2) the Minimum Death Benefit discounted by one month at the guaranteed minimum interest rate, minus the Accumulated Value.

The guaranteed cost of insurance charges vary based on your policy's Specified Death Benefit, Attained Age, and substandard rating.  Thus, the rates differ from year to year.  The cost of insurance charge covers our anticipated costs for standard and substandard ratings.  The current rate is determined by us, but it will never exceed the guaranteed rates shown in your policy.

The Accumulated Value may vary month to month, based on the performance of the Investment Divisions you have selected, the addition of interests credited to your Fixed Account and Loan Account (if any), the deduction of charges, and any other policy transactions.  Under policies with an Option A or Option C death benefit, increases in Accumulated Value generally decrease the Net Amount at Risk; conversely, decreases in the Accumulated Value increase the Net Amount at Risk.  Since the cost of insurance charge is based on the Net Amount at Risk, your cost of insurance charges probably will be correspondingly different each month.  Under policies with an Option B death benefit, however the Net Amount of Risk does not vary with changes in the Accumulated Value.  Accordingly, under Option B a change in Accumulated Value generally does not affect your monthly cost of insurance charge.  Under any Death Benefit option, however, if your death benefit equals Minimum Death Benefit, changes in Accumulated Value will affect the Net Amount at Risk, because your death benefit will equal the Accumulated Value times a specified percentage.  In that circumstance, increases in Accumulated Value increase the Net Amount at Risk and, accordingly, your monthly cost of insurance charge.

We determine the cost of insurance charge separately for the initial Specified Death Benefit and each subsequent increase.  The cost of insurance charge for an increase reflects circumstances, such as the Insured's age and health status, at the time of the increase.

We charge a lower current cost of insurance rate for policies with a Specified Death Benefit or Target Death Benefit of $1,000,000 or above.  If an increase (or decrease) in the Specified Death Benefit or Target Death Benefit causes a crossover from one band to the next, the monthly cost of insurance charge immediately following the increase will reflect the lower (or higher) cost of insurance rate.

Monthly Policy Fee.  We start deducting this fee as of the Commencement Date.  If the Policy Date is prior to the Commencement Date any amounts due from the Policy Date to the Commencement Date, in addition to the regular Monthly Deduction, will be taken on the next Monthly Anniversary.  We will deduct the charges for those months that have elapsed from the Policy Date to the Commencement Date.  Each month we deduct a monthly policy fee.  It is $15 per month for the first three Policy Years and $7.50 per month thereafter.  The monthly policy fee compensates Jackson primarily for expenses of policy administration, including those associated with preparing the policies and confirmations, maintenance of Owner records, and the cost of other services necessary to service Owners, as well as those administrative expenses listed above attributable to both the policies and the Separate Account.

Monthly Administrative Charge.  We start deducting this fee as of the Commencement Date unless the Policy Date is prior to the Commencement Date whereby the charges would occur on the next Monthly Anniversary.  We will deduct the charges for those months that have elapsed from the Policy Date to the Commencement Date.  The monthly administrative charge is $0.07 per month per $1,000 of Specified Death Benefit up to $2 million in Policy Years 1-10 and $0.01 per month per $1,000 (up to $2 million) thereafter.

If you request an increase in Specified Death Benefit under a policy applied for on or after October 6, 2008, we will impose an additional monthly administrative charge.  For each such increase, the additional charge will be (a) $0.07 per month per $1,000 of the increase (up to $2 million of increase) for 10 years from the date of the increase and (b) $0.01 per month per $1,000 of increase (up to $2 million of increase) thereafter.

The administrative charge compensates us primarily for our administrative expenses in connection with the issue and maintenance of the policies and initial preparation and maintenance of the Separate Account.  We perform or delegate all such administrative functions, which include preparation of annual reports and statements, maintenance of Investment Division and Separate Account records, and filing fees.  In addition, certain expenses such as administrative personnel costs, mailing costs, data processing costs, legal fees, accounting fees, and costs associated with accounting, valuation, regulatory and reporting requirements are attributable to both the policies and maintenance of the Separate Account.

Surrender Charge.  If you surrender your policy or take a partial surrender, we may subtract a surrender charge from the proceeds.  The surrender charge on a total surrender equals the amount shown in the surrender charge table in your policy, plus any additional surrender charge due to increases in the Specified Death Benefit of your policy.  The amount of the surrender charge decreases over time.

Initial Surrender Charge.  When we issue your policy, we determine the initial surrender charge.  To determine the initial surrender charge, we multiply the Specified Death Benefit of your policy by a rate per thousand dollars of Specified Death Benefit.  The applicable rate depends on the Insured's age at issue, sex and rate class.  For example, if the Insured is age 45 when your policy is issued, the applicable rates per thousand are as follows:

Male, Preferred, Nonsmoker	$15.88
Female, Preferred Nonsmoker	$12.73

Accordingly, if the Insured were a male standard class age 45 and the policy's Specified Death Benefit were $100,000, the surrender charge initially would be $1,588.  The rates for each category are greater or lesser according to the age of the Insured when your policy is issued.

The surrender charge decreases each year over a period of 9 years from issue.  If you surrender your policy after 9 Policy Years have elapsed, we do not charge a surrender charge (unless you have increased the Specified Death Benefit of your policy, as explained above.)  The following table shows the 9-year surrender charge schedule for a male standard class age 45:

Policy Year	Surrender Charge per $1,000
1	$15.88
2	$14.12
3	$12.35
4	$10.59
5	$  8.82
6	$  7.06
7	$  5.29
8	$  3.53
9	$  1.76
10+	$0

Thus, in the example given above, if the policy were surrendered during the 7th Policy Year, the surrender charge would equal $529.  The surrender charge decreases over the nine-year period by varying rates depending upon the issue age, sex and underwriting classification of the Insured.

Surrender Charge on Changes in Specified Death Benefit.  If you increase the Specified Death Benefit of your policy, we will impose an additional surrender charge.  We determine the initial amount of the additional surrender charge using the same formula and rates used in determining the initial surrender charge, except that we use the Insured's age and rating class at the time of the increase, rather than at the time your policy was issued.  Surrender charges will not be assessed to reduction in Specified Death Benefit.

The surrender charge on an increase also decreases over a 9-year period, starting from the effective date of the increase.  If you surrender your policy or make a partial surrender, we separately calculate the surrender charge applicable to the Specified Death Benefit amount and each increase and add those amounts to determine the total surrender charge.  If you decrease the Specified Death Benefit the applicable surrender charge remains the same.

We include in your policy a table showing the surrender charge rates for each duration applicable to the policy.  For additional information concerning the rates applicable to you, please consult your sales representative.

Example: The following example illustrates the calculation of the surrender charge for a policy that has had a post issue increase in the Specified Death Benefit.  Assuming a male standard nonsmoker age 45 at issue, an Initial Specified Death Benefit of $200,000, a post issue increase in the Specified Death Benefit of $50,000 effective on the 3rd policy anniversary, and no prior partial withdrawals, the surrender charge on a full surrender during the 6th policy year would be equal to (A) plus (B) where:

(A)   Is the initial Specified Death Benefit, multiplied by the 6th year surrender charge rate from the age 45 male standard nonsmoker surrender charge schedule, divided by $1,000

($200,000 x $7.06/$1,000) = $1,412.00

(B)   Is the amount of the Specified Death Benefit increase, multiplied by the 3rd year surrender charge rate from the age 48 male standard nonsmoker surrender charge schedule, divided by $1,000

($50,000 x $14.13/$1,000) = $706.50

The total surrender charge is $1,412.00 + $706.50 = $2,118.50

Surrender Charge on Partial Surrenders.  If you take a partial surrender, we will deduct a portion of the then current surrender charge and the partial surrender fee from your partial surrender proceeds.  The formula used to calculate the surrender charge on a partial surrender is as follows:

PW - $25	x ASC
AV - $25

Where:

PW	=	the total amount withdrawn, prior to any deductions;
AV	=	the Accumulated Value prior to the partial surrender;
$25	=	the partial surrender fee; and
ASC	=	the then current surrender charge on a total surrender, minus all surrender charges imposed on prior partial surrenders

Example: The following example illustrates the calculation of a partial surrender charge.  (The partial surrender charge is calculated in exactly the same way regardless of whether the full surrender charge is wholly attributable to the initial Specified Death Benefit or whether all or part of the full surrender charge is attributable to one or more Specified Death Benefit increases.)

Assume a full surrender charge equal to that calculated in the example above ($2,118.50, which, in this case, is attributable in part to the initial Specified Death Benefit and in part to a Specified Death Benefit Increase), an Accumulated Value of $45,000, partial withdrawal request of $10,000, and no prior partial withdrawals:

PW	=	$10,000;
AV	=	$45,000;
ASC	=	$2,118.50

Then, using the formula stated above, the surrender charge on a partial surrender during the 6th policy year would be equal to:

$10,000 (PW) - $25	x $2,118.50 (ASC)
$45,000 (AV) - $25

(PW less $25) is the requested partial withdrawal less the $25 partial surrender fee ($10,000 - $25 = $9,975).

(AV less $25) is the Accumulated Value less the $25 partial surrender fee ($45,000 - $25 = $44,975).

(ASC) is the full surrender charge less any surrender charges imposed upon prior partial surrenders ($2,118.50 - $0).

Therefore, in this example, the partial surrender charge is ($9,975/$44,975) x $2,118.50 = $469.86

The sales charge (in part) and the surrender charge are imposed primarily to cover our actual sales expenses, which include sales representatives' sales commissions and other sales and distribution expenses.  We expect to recover total sales expenses of the policies over the life of the policies.  However, the sales charge and surrender charge paid with respect to a particular policy may be higher or lower than the distribution expenses we incurred in connection with that policy.  To the extent distribution costs are not recovered by these charges, we may make up any shortfall from the assets of our general account, which includes funds derived from the asset based charge on the Separate Account assets and the other charges imposed under the policies.

Transfer Charge.  You may make 15 transfers free of charge in any Policy Year.  The Allocation Date transfer and transfers under our dollar cost averaging and rebalancing programs are free and are not counted toward the 15 free transfers per year and are not subject to the transfer charge.  We will deduct a charge of $25 per transfer in excess of 15 from the transferred amount before allocating it to the allocation option(s) you have requested.

Illustration Charge.  At your request, we will provide you with one personalized illustration free of charge each Policy Year.  We may charge a fee of up to $25 (to be paid in cash) for any additional illustration you may request.

Re-Underwriting Charge.  If your policy requires underwriting approval after the Commencement Date, we will deduct a charge of $25.

Rider Charges.  To the extent that your policy includes riders, a charge applicable to each rider you purchased may be deducted from your Accumulated Value each month.  Any such charge is to compensate us for providing the benefits pursuant to the rider in question and is specified in the applicable rider.  The rider charges are summarized in the Fee Table on page 1.  For a description of the available riders see “Optional Insurance Benefits” beginning on page 35 .

Additional Policy Charges.  We do not currently assess a charge for federal, state, or other taxes that may be attributable to the operations of the Separate Account, but we reserve the right to do so in the future.

Underlying Mutual Fund Expenses.  You indirectly bear the charges and expenses of the Underlying Mutual Funds whose shares are held by the Investment Divisions to which you allocate your Accumulated Value.  The Separate Account purchases shares of the Underlying Mutual Funds at net asset value.  Each Underlying Mutual Fund's net asset value reflects management fees and other operating expenses already deducted from the Underlying Mutual Fund's assets.  For a summary of historical expenses of the Underlying Mutual Funds, see the table called “Underlying Mutual Fund Expenses” above.  For more information concerning the management fees and other charges against the Underlying Mutual Funds, see the prospectuses and the statements of additional information for the Underlying Mutual Funds, which are available upon request.

We may receive compensation from the investment advisers or administrators of the Underlying Mutual Funds.  Such compensation will be consistent with the services we provide or the cost savings resulting from the arrangement and, therefore, may differ from one Underlying Mutual Fund to another.

Special Provisions for Group or Sponsored Arrangements.  Where permitted by state insurance laws, policies may be purchased under group or sponsored arrangements.  We may reduce or waive the charges and deductions described above for policies issued under these arrangements.  Among other things, we may waive surrender charges for employees, officers, directors, sales representatives, and their immediate family members.  We will reduce these charges and deductions in accordance with our rules in effect when we approve the application.  To qualify for a reduction, a group or sponsored arrangement must satisfy our criteria as to, for example, the size of the group, the expected number of participants, and anticipated premium from the group.  Generally, the sales contacts and effort, administrative costs, and mortality cost per policy vary based on such factors as the size of the group or sponsored arrangements, the purposes for which policies are purchased, and certain characteristics of the group's members.  The amount of reduction and the criteria for qualification will reflect the reduced sales effort and administrative costs resulting from, and the different mortality experience expected as a result of, sales to qualifying groups and sponsored arrangements.  From time to time, we may modify on a uniform basis both the amounts of reductions and the criteria for qualification.  Reductions in these charges will not be unfairly discriminatory.

Purpose and Amount of Charges.  The names by which we refer to the various charges we deduct pursuant to the terms of your policy, as well as our above explanation of those charges, may indicate the charges’ primary purposes.  But we do not explain every purpose for which each charge is imposed and we expect to earn a profit from some of these charges (including, for example, the cost of insurance charge and the Asset Based Risk Charge).  We have the right to use any profits from any charge for any proper corporate purpose, including retaining such profits as part of our corporate surplus.

GENERAL POLICY PROVISIONS

Statements to Owners.  Each year following your Policy Anniversary, we will send you a report showing information concerning your policy transactions in the past year and the current status of your policy.  The report will include information such as the Accumulated Value as of the end of the current and the prior year, the current Death Benefit, Cash Surrender Value, Debt, partial surrenders, Earnings, premium paid, and deductions made since the last annual report.  We will also include any information required by state law or regulation.

We will mail you confirmations or other appropriate notices of policy transactions.  In addition, we will send you the financial statements of the Underlying Mutual Funds and other reports as specified in the 1940 Act.  Please give us 30 days written notice of any address change.  Please read your statements and confirmations carefully, verify their accuracy, and contact us within 30 days with any question you may have.

We are working to provide documentation electronically.  When this program is available, we will, as permitted, forward documentation electronically.  Please contact us at our Service Center for more information.

Limit on Right to Contest.  We may not contest the insurance coverage under the policy after the policy has been in force during the lifetime of the Insured(s) for two years from the Issue Date, except for nonpayment of any required premium.  A reinstated or modified policy may be contested only with respect to material misrepresentations made in the application for such reinstatement or request for policy modifications.  In the case of an increase in coverage under the policy, only the amount of the increase may be contested with respect to material misrepresentations made in the related application.

In issuing a policy, we rely on your application.  Your statements in that application, in the absence of fraud, are considered representations and not warranties.  We will not use any statement made in connection with the application to void the policy or to deny a claim unless that statement is contained in the written application.

Suicide.  If an Insured commits suicide while sane or insane within two years of the Issue Date, we will return to you an amount equal to the premiums paid less total partial surrenders and any Debt.  Any increase in coverage will also have a two-year suicide period relating specifically to the increase in coverage.  If an Insured commits suicide while sane or insane within two years of the effective date of any increase in coverage, we will return to you an amount equal to the portion of the Monthly Deduction associated with such increase.  The applicable suicide exclusion period may be longer or shorter in certain states.

Misstatement as to Age and Sex.  If the age or sex of an Insured is incorrectly stated in the application and the error is discovered before a claim is made, the benefits under the policy will be those that the premium paid would have purchased at the correct age and sex.  If the claim is in process when the error is discovered, the death benefit will be adjusted to be that which the most recent cost of insurance deduction would have purchased for the correct age and sex.

Beneficiary.  You name the beneficiary(ies) in the application.  You may change the beneficiary by submitting a written request to the Service Center, unless an irrevocable beneficiary was previously named.  We will provide a form to be signed and filed with us.  Your request for a change in beneficiary will take effect when we record the change.  Until we record the change in beneficiary, we are entitled to rely on your most recent instructions in our files.  Accordingly, we are not liable for making a payment to the person shown in our files or taking any other related action before that time.

If you name more than one primary beneficiary, we will divide the Death Benefit equally among your beneficiaries unless you instruct otherwise.  The interest of any beneficiary who dies before the Insured(s) ends at his or her death.  If no primary beneficiary survives the Insured(s), we will divide the Death Benefit equally among any surviving named contingent beneficiary(ies), unless you instruct otherwise.  If no beneficiary is living, we will pay the Death Benefit to the Owner or the Owner's estate.

Assignment.  You may assign your policy while it is in force.  You must notify us of an assignment in writing.  Until we receive notice from you, we are not liable for any action we may take or payments we may make that may be contrary to the terms of your assignment.  We are not responsible for the validity of an assignment.  Your rights and the rights of the beneficiary may be affected by an assignment.  An assignment may result in taxable income and a 10% penalty tax.  You should consult your tax adviser before assigning your policy.

Creditors' Claims.  To the extent permitted by law, no benefits payable under this policy will be subject to the claims of your creditors or the creditors of your beneficiary.

Dividends.  We will not pay any dividend under the policy, nor do the policies share in the surplus or revenue of Jackson.

Notice and Elections.  To be effective, all notices and elections under the policy must be in writing, signed by you, and received by us at our Service Center.  Certain exceptions may apply.  Unless otherwise provided in the policy, all notices, requests and elections will be effective when received at our Service Center complete with all necessary information.

Modification.  We reserve the right to modify the policy without written notice or your consent in the circumstances described in this prospectus or as necessary to conform to applicable law or regulation or any ruling issued by a governmental agency.  The provisions of the policy will be construed so as to comply with the requirements of Section 7702 of the Code that defines life insurance.  We also reserve the right to change our administrative procedures consistent with the policy.

Conversion.  (This conversion privilege applies only to policies applied for before October 6, 2008.)  After the 20th Policy Anniversary, you may convert the policy to reduced paid-up insurance, so long as your Net Accumulated Value is at least $3,000, and if you do not want to pay any additional premium.  With reduced paid-up insurance, the policy's Death Benefit becomes your Net Accumulated Value divided by the net single premium.  The net single premium is calculated using the minimum interest rate of the Fixed Account and the guaranteed COI charge, which varies by sex and age of the Insured.  Reduced paid-up insurance has an accumulated value based on the minimum interest rate of the Fixed Account and the COI charges under the Commissioner's 1980 Standard Ordinary Age Nearest Birthday Mortality Table, male or female.  Partial surrenders will reduce the accumulated value and Death Benefit.  No loans will be allowed under this option.

FEDERAL TAX CONSIDERATIONS

The following discussion is based upon our understanding of current federal income tax law applicable to life insurance policies in general and is not intended as tax advice.  You should consult competent tax counsel for more complete information.

There is the risk that the tax advantages associated with the policy may be reduced or eliminated by changes in the federal tax laws.  We cannot predict the probability that any changes in those laws will be made.  Also, we do not guarantee the tax status of the policy.  You bear the complete risk that the policy may not be treated as a “life insurance contract” under federal income tax laws.  We also have not considered any applicable state or other federal tax laws.  You should seek tax advice concerning the effect on your personal tax liability of the transactions permitted under the policy, as well as any other questions you may have concerning the tax status of the policy, the applicability of state or other tax laws or the possibility of changes in the tax law.

The policy may be used in various arrangements, including non-qualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others.  The tax rules applicable to such plans are complex and the tax consequences of such plans will vary depending on the particular facts and circumstances of each individual arrangement.  Therefore, if the use of the policy in any such arrangement is contemplated, you should consult a qualified tax adviser for advice on the tax attributes and consequences of the particular arrangement.

Taxation of Jackson and the Separate Account.  Jackson is taxed as a life insurance company under Part I of Subchapter L of the Code.  The operations of the Separate Account are taxed as part of the operations of Jackson.  Investment income and realized capital gains are not taxed to the extent that they are applied under the policy.  Accordingly, we do not anticipate that Jackson will incur any federal income tax liability attributable to the operation of the Separate Account (as opposed to the federal tax related to the receipt of premiums under the policy).  Therefore, we are not making any charge or provision for federal income taxes attributable to the operation of the Separate Account.  However, if the tax treatment of the Separate Account is changed, we may charge the Separate Account for its share of the resulting federal income tax.

In several states we may incur state and local taxes (in additional to premium taxes) on the operations of the Separate Account.  At present, these taxes are not significant and we currently are not making any charge or provision for them against the Separate Account.  If these taxes should be increased, we may make a charge or provision for them against the Investment Divisions.  If we do so, the value of Accumulation Units and, therefore, the investment results of the Investment Divisions will be reduced.

Jackson Taxation.  We will pay company income taxes on the taxable corporate earnings created by this separate account product adjusted for various permissible deductions and certain tax benefits discussed below.  While we may consider company income tax liabilities and tax benefits when pricing our products, we do not currently include our income tax liabilities in the charges you pay under the contract.  We will periodically review the issue of charging for these taxes and may impose a charge in the future.  (We do impose a so-called “Federal Deferred Acquisition Cost (“DAC”) Tax Charge” under variable life insurance policies, but the “Federal DAC Tax Charge” merely compensates us for the required deferral of acquisition costs and does not constitute company income taxes.)

In calculating our corporate income tax liability, we derive certain corporate income tax benefits associated with the investment of company assets, including separate account assets that are treated as company assets under applicable income tax law.  These benefits reduce our overall corporate income tax liability.  Under current law, such benefits may include dividends received deductions and foreign tax credits which can be material.  We do not pass these benefits through to the separate accounts, principally because:  (i) the great bulk of the benefits results from the dividends received deduction, which involves no reduction in the dollar amount of dividends that the separate account receives; (ii) product owners are not the owners of the assets generating the benefits under applicable income tax law; and (iii), while we impose a so-called “Federal DAC Tax Charge” under variable life insurance policies, we do not currently include company income taxes in the charges owners pay under the policies.

Tax Status of the Policy.  The policy is structured to satisfy the definition of a life insurance contract under Section 7702 of the Code, which generally provides for the taxation of life insurance policies and places limitations on the relationship of the Accumulated Value to the insurance amount at risk.  As a result, the Death Benefit ordinarily will be fully excluded from the gross income of the beneficiary.

Depending upon the circumstances, a surrender, partial surrender, change in the Death Benefit option, change in the Specified Death Benefit, lapse with a policy loan outstanding, or an assignment of the policy may have tax consequences.  In particular, under specified conditions, a distribution under the policy during the first 15 years from date of issue that reduces future benefits under the policy will be taxed to you as ordinary income to the extent of any investment earnings in the policy.

In the absence of final regulations or other pertinent interpretations of the Code, some uncertainty exists as to how a substandard risk policy can meet the statutory definition of life insurance.  If a policy were deemed not to be life insurance for tax purposes, it would not provide most of the tax advantages usually provided by life insurance.  We reserve the right to amend the policy to comply with any future changes in the Code, any regulations or rulings under the Code and any other requirements imposed by the Internal Revenue Service (“IRS”).

Diversification Requirements.  Section 817(h) of the Code requires the investments held under the policy to be “adequately diversified” in accordance with Treasury regulations in order for the policy to be treated as a life insurance contract for federal income tax purposes.  We intend that each Investment Division and each Underlying Mutual Fund in which an Investment Division invests will comply with the diversification requirements prescribed by Section 1.817-5 of the Treasury regulations, which prescribe how assets may be invested.  If the investments held under the policy were not “adequately diversified,” you would lose the tax deferral advantages of the policy and would be subject to current federal income taxes on all Earnings allocable to the policy.

Owner Control.  In certain circumstances, the owner of a variable life insurance policy may be considered, for federal income tax purposes, the owner of the assets of the variable account used to support the policy.  In those circumstances, income and gains from the variable account assets would be includible in the Owner's gross income.  In a Revenue Ruling issued in 2003, the IRS considered certain variable annuity and variable life insurance policies and held that the types of actual and potential control that the policy owners could exercise over the investment assets held by the insurance company under these variable policies was not sufficient to cause the policy owners to be treated as the owners of those assets and thus to be subject to current income tax on the income and gains produced by those assets.  Under the policy, like the policies described in the Revenue Ruling, there will be no arrangement, plan, contract or agreement between the policy owner and Jackson regarding the availability of a particular investment option and other than the policy owner's right to allocate premiums and transfer funds among the available sub-accounts, all investment decisions concerning the sub-accounts will be made by the insurance company or an advisor in its sole and absolute discretion.

The policy will differ from the policies described in the Revenue Ruling in two respects.  The first difference is that the policy in the Revenue Ruling provided only 12 investment options with the insurance company having the ability to add an additional eight options whereas our policy offers 80 Investment Divisions and at least one Fixed Account.  The second difference is that the owner of a policy in the Revenue Ruling could only make one transfer per 30-day period without a fee, whereas a policy owner will be permitted to make up to 15 transfers in any one year without a charge.

The Revenue Ruling states that whether the owner of a variable policy is to be treated as the owner of the assets held by the insurance company under the policy will depend on all of the facts and circumstances.  Jackson does not believe that the differences between the policy and the policies described in the Revenue Ruling with respect to the number of investment choices and the number of investment transfers that can be made under the policy without an additional charge should prevent the holding in the Revenue Ruling from applying to the owner of a policy.  At this time, however, it cannot be determined whether additional guidance will be provided by the IRS on this issue and what standards may be contained in such guidance.  We reserve the right to modify the policy to the extent required to maintain favorable tax treatment.

The remainder of this discussion assumes that the policy will be treated as a life insurance contract for federal income tax purposes and that Jackson will be considered the owner, for federal income tax purposes, of the Separate Account assets.

Tax Treatment of Life Insurance Death Benefit Proceeds.  In general, the amount of the Death Benefit payable under your policy is excludable from gross income under the Code.  Certain transfers of the policy, however, may result in a portion of the Death Benefit being taxable.

If the Death Benefit is not received in a lump sum and is, instead, applied under one of the payment options, payments will include both amounts attributable to the Death Benefit, which will be excludable from the beneficiary's gross income, and amounts attributable to interest (occurring after the Insured's death), which will be includable in the beneficiary's gross income.

Tax Deferral During Accumulation Period.  Under existing provisions of the Code, any increase in your Accumulated Value is generally not taxable to you unless you receive or are deemed to receive amounts from the policy before the Insured dies.  See the following section entitled “Distributions” for a discussion of the taxability of such payments.

Distributions.  If you make a full withdrawal under your policy, the amount withdrawn will be includable in your income to the extent the amount received exceeds the “investment in the contract.”  The “investment in the contract” generally is the total premium and other consideration paid for the policy, less the aggregate amount previously received under the policy to the extent such amounts received were excludable from gross income.

Whether partial surrenders (or other amounts deemed to be withdrawn) from the policy constitute income depends, in part, upon whether the policy is considered a “modified endowment contract” (“MEC”) for federal income tax purposes.  Amounts deemed to be withdrawn for this purpose include charges deducted for the Other Insured Term Insurance Rider (on rider Insureds who are not related to the base Insured).

Policies Which Are MECs

Characterization of a Policy as a MEC.

Section 7702A of the Code treats any life insurance contract that fails to satisfy a “seven-pay” test as a modified endowment contract.  A policy will fail to satisfy the seven-pay test if the cumulative premiums paid under the policy at any time during the first seven policy years, or within seven years after a material change in the policy, exceed the sum of the net level premiums that would have been paid had the policy provided for paid-up future benefits after the payment of seven level premiums.

We will monitor your premium payments and other policy transactions and notify you if a payment or other transaction might cause your policy to become a MEC.  We will not invest any premium or portion of a premium that would cause your policy to become a MEC.  If we receive such a premium, we will notify you and if you elect to have your policy become a MEC contract, we will apply the premium on the business day we receive your election.  Otherwise we will return the premium to you.

Further, if a transaction occurs which decreases the Death Benefit of your policy during the first seven years, we will retest your policy, as of the date of its purchase, based on the lower Death Benefit to determine compliance with the seven-pay test.  Also, if a decrease in the Death Benefit occurs within seven years of a “material change,” we will retest your policy for compliance as of the date of the “material change.”  Failure to comply in either case would result in the policy's classification as a MEC.

The rules relating to whether a policy will be treated as a MEC are complex.  Therefore, you should consult with a qualified tax adviser to determine whether a particular transaction will cause your policy to be treated as a MEC.

Tax Treatment of Partial Surrenders, Loans, Assignments and Pledges under MECs.  If your policy is a MEC, partial surrenders from your policy and other amounts deemed to be withdrawn will be treated first as withdrawals of income and then as a recovery of premium.  Thus, you may realize taxable income upon a withdrawal if the Accumulated Value exceeds the “investment in the contract.”  You may also realize taxable income when you take a policy loan, because any loan (including unpaid loan interest) under the policy will be treated as a withdrawal for tax purposes.  Charges for some riders may be treated as withdrawals under these provisions.  In addition, if you assign or pledge any portion of the value of your policy (or agree to assign or pledge any portion), the assigned or pledged portion of your Accumulated Value will be treated as a withdrawal for tax purposes.  Before assigning, pledging, or requesting a loan under a policy that is a MEC, you should consult a qualified tax adviser.

Penalty Tax.  Generally, withdrawals (or the amount of any deemed withdrawals) from a MEC are subject to a penalty tax equal to 10% of the portion of the withdrawal that is includable in income, unless the withdrawals are made:  (1) after you reach age 59½, (2) because you have become disabled (as defined in the Code), or (3) as substantially equal periodic payments over your life or life expectancy or the joint lives or life expectancies of you and your beneficiary, as defined in the Code.  These exceptions will not apply, however, if the Owner of the policy is a corporation, partnership, trust or other entity.

Aggregation of Policies.  All life insurance policies that are MECs and that are purchased by the same person from us or any of our affiliates within the same calendar year will be aggregated and treated as one life insurance policy for purposes of determining the amount of a withdrawal (including a deemed withdrawal) that is includable in taxable income and subject to the 10% penalty tax.

Policies Which Are Not MECs

Tax Treatment of Withdrawals Generally.  If your policy is not a MEC, the amount of any partial withdrawal or deemed withdrawal from the policy will be treated first as a non-taxable recovery of premium and then as gross income from the policy.  Thus, only the portion of a withdrawal that exceeds the “investment in the contract” immediately before the withdrawal will be includable in gross income.

Certain Distributions Required by the Tax Law in the First 15 Policy Years.  As indicated above, the Code limits the amount of premium that may be paid and the Accumulated Values that can accumulate relative to the Death Benefit.  Where cash distributions are required under the Code in connection with a reduction in benefits during the first 15 years after the policy is issued (or if withdrawals are made in anticipation of a reduction in benefits, within the meaning of the Code, during this period), some or all of such amounts may be includable in taxable income.

Tax Treatment of Loans.  If your Policy is not a MEC, a loan received under the policy generally will be treated as indebtedness for tax purposes, rather than a withdrawal of Accumulated Value.  As a result, you will not realize taxable income on any part of the loan as long as the policy remains in force.  If you make a full surrender under your policy or if it lapses, any outstanding loan balance will be treated as an amount received by you as part of the Surrender Value.  Accordingly, you may be subject to taxation on the loan amount at that time.  Generally, you may not deduct interest paid on loans under the policy.

Finally, if your Policy is not a MEC, distributions (including distributions upon surrender) and policy loans are not subject to the 10% additional penalty tax.

Treatment Beyond Attained Age 121 (or Attained Age 100 for policies applied for before October 6, 2008).  As described above, if the Cash Surrender Value is greater than zero at the Insured's Attained Age 121 (or Attained Age 100 for policies applied for before October 6, 2008), no additional premiums will be accepted and no additional monthly charges will be incurred.  Neither the Code nor any regulations or other guidance under the Code prescribe how a policy can qualify as a life insurance contract for federal tax purposes after an Insured attains age 121 (or Attained Age 100 for policies applied for before October 6, 2008), and there is a risk that you could be viewed as constructively receiving the Cash Surrender Value (including any Indebtedness) in the year in which the Insured attains age 121 (or Attained Age 100 for policies applied for before October 6, 2008).  In that event, you would realize taxable income at that time in an amount equal to the Accumulated Value less the “investment in the contract”, even if the Accumulated Value is not distributed at that time.  You should consult a qualified tax professional as an Insured approaches Attained Age 121 (or Attained Age 100 for policies applied for before October 6, 2008).

Actions to Ensure Compliance with the Tax Law.  We believe that the maximum amount of premium we intend to permit for the Policies will comply with the Code definition of life insurance.  We will monitor the amount of your premium, and, if your total premiums during a Policy Year exceed those permitted by the Code, we will refund the excess premium within 60 days of the end of the Policy Year and will pay interest and other earnings (which will be includable in taxable income) as required by law on the amount refunded.  In addition, the operation of certain provisions in the policy may increase the Death Benefit (which may result in larger charges under a Policy) or require other action deemed necessary to ensure the compliance of the policy with the federal tax definition of life insurance.

Federal Income Tax Withholding.  We will withhold and remit to the federal government a part of the taxable portion of withdrawals made under a policy, unless the Owner notifies us in writing at or before the time of the withdrawal that he or she chooses not to have withholding.  As Owner, you will be responsible for the payment of any taxes and early distribution penalty taxes that may be due on the amounts received or deemed received under the policy, whether or not you choose withholding.  You may also be required to pay penalties under the estimated tax rules, if your withholding and estimated tax payments are insufficient to satisfy your total tax liability.

Tax Advice.  This summary is not a complete discussion of the tax treatment of the policy.  You should seek tax advice from an attorney who specializes in tax issues.

DESCRIPTION OF JACKSON AND THE SEPARATE ACCOUNT

Jackson National Life Insurance Company.  Jackson is a stock life insurance company organized under the laws of the state of Michigan in June 1961.  Its legal domicile and principal business address is 1 Corporate Way, Lansing Michigan 48951.  Jackson is admitted to conduct life insurance and annuity business in the District of Columbia and all states except New York.  Jackson is ultimately a wholly owned subsidiary of Prudential plc in London, England.

The Separate Account.  The Separate Account was established in 1997 as a segregated asset account of Jackson.  The Separate Account meets the definition of a “separate account” under the federal securities laws and is registered with the Securities and Exchange Commission as a unit investment trust under the 1940 Act.  The Securities and Exchange Commission does not supervise the management of the Separate Account or Jackson.

We own the assets of the Separate Account, but we hold them separate from our other assets.  To the extent that these assets are attributable to the policies offered by this prospectus, these assets are not chargeable with liabilities arising out of any other business we may conduct.  Income, gains, and losses, whether or not realized, from assets allocated to the Separate Account are credited to or charged against the Separate Account without regard to our other income, gains, or losses.  Our obligations arising under the policies are general corporate obligations of Jackson.

The Separate Account is divided into Investment Divisions.  The assets of each Investment Division are invested in the shares of one of the Underlying Mutual Funds.  We do not guarantee the investment performance of the Separate Account, its Investment Divisions, or the Underlying Mutual Funds.  Values allocated to the Separate Account will rise and fall with the values of shares of the Underlying Mutual Funds and are also reduced by policy charges.  In the future, we may use the Separate Account to fund other variable life insurance policies.  We will account separately for each type of variable life insurance policy funded by the Separate Account.

Safekeeping of the Separate Account's Assets.  We hold the assets of the Separate Account.  We keep those assets physically segregated and held separate and apart from our general account assets.  We maintain records of all purchases and redemptions of shares of the Underlying Mutual Funds.

State Regulation of Jackson.  We are subject to the laws of Michigan and regulated by the Michigan Department of Insurance.  We file quarterly and annual statements with the Department of Insurance covering our operations and financial condition for the quarter and year-end.  We are examined periodically by the Department of Insurance to verify our liabilities and policy reserves.  Our books and records are subject to review by the Department of Insurance at all times.  We are also subject to regulation under the insurance laws of every jurisdiction in which we operate.

DISTRIBUTION OF POLICIES

Jackson National Life Distributors LLC (“JNLD”), located at 7601 Technology Way, Denver, Colorado 80237, serves as the distributor of the policies.  JNLD is a wholly owned subsidiary of Jackson National Life Insurance Company.

Commissions are paid to registered representatives who sell the policies.  Information on commissions can be found in the Statement of Additional Information.  Where lower commissions are paid, we may also pay trail commissions.  We may use any of our corporate assets to cover the cost of distribution, including any profit from the policy's Asset Based Risk Charge and other charges.

Under certain circumstances, JNLD out of its own resources may pay bonuses, overrides, and marketing allowances, in addition to the standard commissions.  These payments and/or reimbursements to broker-dealers are in recognition of their marketing and distribution and/or administrative services support.  They may not be offered to all broker-dealers, and the terms of any particular agreement may vary among broker-dealers depending on, among other things, the level and type of marketing and distribution support provided assets under management, and the volume and size of the sales of our insurance products.  They may provide us greater access to the registered representatives of the broker-dealers receiving such compensation or may otherwise influence the broker-dealer and/or registered representative to present the Contracts more favorably than other investment alternatives.  Such compensation is subject to applicable state insurance law and regulation and the NASD rules of conduct.  While such compensation may be significant, it will not cause any additional direct charge by us to you.

The two primary forms of such compensation paid by JNLD are overrides and marketing support payments.  Overrides are payments that are designed as consideration for product placement, assets under management and sales volume.  Overrides are generally based on a fixed percentage of product sales.  Marketing support payments may be in the form of cash and/or non-cash compensation and allow us to, among other things, participate in sales conferences and educational seminars.  Examples of such payments include, but are not limited to, reimbursements for representative training or “due diligence”meetings (including travel and lodging expenses), client events , and business development and educational enhancement items , including payments to third party vendors for such items .  Payments or reimbursements for meetings and seminars are generally based on the anticipated level of participation and/or accessibility and the size of the audience.  Subject to NASD rules of conduct, we may also provide cash and/or non-cash compensation to registered representatives in the form of gifts, promotional items and occasional meals and entertainment.

Below is an alphabetical listing of the 20 broker-dealers that received the largest amounts of marketing and distribution and/or administrative support in 20 10 from the Distributor in relation to the sale of our variable insurance products:

Commonwealth Financial Network

First Allied Securities, Inc.

Invest Financial Corporation

Investment Centers of America, Inc.

Lincoln Financial Advisors

LPL Financial Corporation

Merrill Lynch, Pierce, Fenner & Smith, Inc.

MML Investors Services Inc.

Morgan Keegan & Company

National Planning Corporation

NEXT Financial Group, Inc

Raymond James

RBC Capital Markets Corp.

Securities America, Inc.

Signator Investors, Inc.

SII Investments, Inc.

Transamerica Financial Advisors, Inc.

UBS Financial Services, Inc.

Wells Fargo Advisors LLC

Woodbury Financial Services, Inc.

Please see Appendix B for a complete list of broker-dealers that received amounts of marketing and distribution and/or administrative support in 20 10 from the Distributor in relation to the sale of our variable insurance products.  While we endeavor to update this list on an annual basis, please note that interim changes or new arrangements may not be listed.

Besides Jackson National Life Distributors LLC, we are affiliated with the following broker-dealers:

· National Planning Corporation,

· SII Investments, Inc.,

· IFC Holdings, Inc. d/b/a Invest Financial Corporation,

· Investment Centers of America, Inc., and

· Curian Clearing LLC

The Distributor also has the following relationships with the sub-advisers and their affiliates.  The Distributor receives payments from certain of the sub-advisers to assist in defraying the costs of certain promotional and marketing meetings in which they participate.  The amounts paid depend on the nature of the meetings, the number of meetings attended, the costs expected to be incurred, and the level of the sub-adviser's participation.   Our affiliated broker-dealers may also sell the retail mutual funds of certain sub-advisers.   In addition, the Distributor acts as distributor of variable annuity contracts and variable life insurance policies (the “Other Contracts”) issued by Jackson and its subsidiary Jackson National Life Insurance Company of New York.  Raymond James Financial Services, a brokerage affiliate of the sub-adviser to the JNL/Eagle Funds, participates in the sale of Contracts and is compensated by JNLD for its activities at the standard rates of compensation.  Unaffiliated broker-dealers are also compensated at the standard rates of compensation.  The compensation consists of commissions, trail commissions, and other compensation or promotional incentives as described above and in the prospectus or statement of additional information for the Other Contracts.

All of the compensation described here, and other compensation or benefits provided by Jackson or our affiliates, may be greater or less than the total compensation on similar or other products.  The amount and/or structure of the compensation can possibly create a potential conflict of interest as it may influence your registered representative, broker-dealer or selling institution to present this policy over other investment alternatives.  The variations in compensation, however, may also reflect differences in sales effort or ongoing customer services expected of the registered representative or the broker-dealer.  You may ask your registered representative about any variations and how he or she and his or her broker-dealer are compensated for selling the policy.

LEGAL PROCEEDINGS

There are no pending legal proceedings affecting the Separate Account.  Jackson is a defendant in a number of civil proceedings similar to other litigation brought against many life insurers alleging misconduct in the sale or administration of insurance products.  The litigation currently pending against Jackson asserts various theories of liability and purports to be filed on behalf of individuals or differing classes of persons in the United States who purchased either life insurance or annuity products , or were assigned interests in those products, from Jackson during periods ranging from 1981 to present.  Jackson has retained national and local counsel experienced in the handling of such litigation.  To date, such litigation has either been resolved by Jackson on a non-material basis or is being vigorously defended.  Jackson accrues for legal contingencies once the contingency is deemed to be probable and estimable.  Please see the Jackson National Life Insurance Company and Subsidiaries Consolidated Financial Statements for the year ending December 31, 20 10 , for information concerning such amounts that have been accrued.  At this time, it is not feasible to make a meaningful estimate of the amount or range of any additional losses that could result from an unfavorable outcome in such actions.

FINANCIAL STATEMENTS

You can find the financial statements for the Separate Account and Jackson in the Statement of Additional Information.  The financial statements of Jackson that are included should be considered only as bearing upon Jackson's ability to meet its contractual obligations under the policies.  Jackson's financial statements do not bear on the future investment experience of the assets held in the Separate Account.

PRIVACY POLICY

Collection of Nonpublic Personal Information.  We collect nonpublic personal information (financial and health) about you from some or all of the following sources:

· Information we receive from you on applications or other forms;

· Information about your transactions with us;

· Information we receive from a consumer reporting agency;

· Information we obtain from others in the process of verifying information you provide us; and

· Individually identifiable health information, such as your medical history, when you have applied for a life insurance policy.

Disclosure of Current and Former Customer Nonpublic Personal Information.  We will not disclose our current and former customers' nonpublic personal information to affiliated or nonaffiliated third parties, except as permitted by law.  To the extent permitted by law, we may disclose to either affiliated or nonaffiliated third parties all of the nonpublic personal financial information that we collect about our customers, as described above.

In general, any disclosures to affiliated or nonaffiliated parties will be for the purpose of them providing services for us so that we may more efficiently administer your policy and process the transactions and services you request.  We do not sell information to either affiliated or non-affiliated parties.

We also share customer name and address information with unaffiliated mailers to assist in the mailing of company newsletters andother Owner communications.  Our agreements with these third parties require them to use this information responsibly and restrict their ability to share this information with other parties.

We do not internally or externally share nonpublic personal health information other than, as permitted by law, to process transactions or to provide services that you have requested.  These transactions or services include, but are not limited to, underwriting life insurance policies, obtaining reinsurance of life policies and processing claims for waiver of premium, accelerated death benefits, terminal illness benefits or death benefits.

You should know that your sales representative is independent of Jackson.  He or she is responsible for the use and security of information you provide him or her.  Please contact your sales representative if you have questions about his or her privacy policy.

Security to Protect the Confidentiality of Nonpublic Personal Information.  We have security practices and procedures in place to prevent unauthorized access to your nonpublic personal information.  Our practices of safeguarding your information help protect against the criminal use of the information.  Our employees are bound by a Code of Conduct requiring that all information be kept in strict confidence, and they are subject to disciplinary action for violation of the Code.

We restrict access to nonpublic personal information about you to our employees, agents and contractors.  We maintain physical, electronic and procedural safeguards that comply with federal and state regulations to guard your nonpublic personal information.

GLOSSARY OF TERMS

We have capitalized certain terms used in this prospectus.  To help you understand these terms, we have defined them in this section.

1940 Act - Investment Company Act of 1940, as amended.

Accumulated Value - The sum of your values in the Separate Account, the Fixed Account, and the Loan Account.  In policies applied for before October 6, 2008, Accumulated Value was referred to as Policy Value.

Accumulation Unit - An accounting unit of measurement that we use to calculate the value in an Investment Division.

Allocation Date - The date we allocate premium from the Fixed Account to the Investment Divisions elected on the application (or the most recent allocation instructions provided by the Owner).  The Allocation Date is generally the first business day on or after the fifth day following the Right to Examine Period for your policy.

Asset Based Risk Charge – Policies applied for before October 6, 2008, refer to this charge as the mortality and expense risk charge.

Attained Age - The Insured's age on the birthday nearest to the Policy Date plus the number of full years since the Policy Date.

Base Death Benefit -The greater of the death benefit for the base coverage (as defined by the Specified Death Benefit and Death Benefit option) or the Minimum Death Benefit.

Cash Surrender Value -The Accumulated Value minus any applicable surrender charge, minus any Debt.

Code - Internal Revenue Code of 1986, as amended.

Commencement Date -The date we place your policy in force after we have received: underwriting approval, any requirements outstanding after the Issue Date, and premium in an amount equal to or exceeding the minimum initial requirement.

Day 1 Loans - A loan that exists at the Issue Date of a policy as a result of a 1035 transfer of a policy with an existing loan.

Death Benefit - The greater of (a) the Minimum Death Benefit or (b) the death benefit amount determined by the Death Benefit option and the Specified Death Benefit  (or the Target Death Benefit if the policy was applied for before October 6, 2008, and the Scheduled Term Insurance Rider is elected) you have chosen.  If the Scheduled Term Insurance Rider is not elected, the Death Benefit equals the Base Death Benefit.  If the Scheduled Term Insurance Rider is elected, the Death Benefit equals the Total Death Benefit.

Death Benefit Proceeds - The amount we will pay to the beneficiary(ies) under the policy upon the death of the Insured.  This amount is equal to the Death Benefit less any outstanding Debt or due and unpaid charges plus any rider benefits.

Debt - The sum of all unpaid policy loans and accrued interest.

Earnings - Your Accumulated Value reduced by total premiums paid.

Fixed Account - An allocation option under the policy that earns an annually declared rate of interest of not less than 3%.  Assets allocated to the Fixed Account are part of our general account.

Grace Period - A 61-day period during which we will keep your policy in force even though the Accumulated Value is insufficient to keep your policy in force.  We will notify you and give you an opportunity to pay additional premium or policy loan repayments to keep your policy in force after the Grace Period.

Guideline Premium - The maximum amount of premium you can contribute to your policy under the Code.

Insured - The person whose life is insured under the policy.

Investment Division - Separate and distinct divisions of the Separate Account, each of which invests in a single Underlying Mutual Fund.  The value in the Investment Divisions will go up or down depending on the performance of the underlying mutual funds and the charges deducted from the Investment Divisions.

Issue Date - The date Jackson issued your policy and from which we measure contestability periods.  It may be later than the Policy Date.

Loan Account - An account established as part of our general account for amounts transferred from the Investment Divisions and/or the Fixed Account as security for your policy loans.

Minimum Death Benefit - Your Accumulated Value multiplied by the death benefit percentage applicable to the Attained Age as shown in the policy, or if greater, the minimum amount necessary for the policy to stay qualified as life insurance for federal tax purposes.

Minimum Premium - The minimum premium amount that must be paid during the first five Policy Years in order for the Net Accumulated Value (rather than the Cash Surrender Value) to be used to determine whether your Accumulated Value is sufficient to keep your policy in force.  (However, for policies applied for before October 6, 2008, this period is three years, rather than five.)

Monthly Anniversary - The same day in each month as the Policy Date unless your Policy Date is on the 29th, 30th or 31st and there is no such date in the month, then your Monthly Anniversary is the last day of the month.

Monthly Deduction -The amount deducted from your Accumulated Value on each Monthly Anniversary, consisting of the cost of insurance charge, the monthly policy fee, the monthly administrative charge, and the cost of any optional benefit.  If a monthly anniversary is not a business day, we will determine your Monthly Deduction as of the next following business day, and the deduction will have an effective date equal to the Monthly Anniversary date.

Net Accumulated Value -The Accumulated Value minus Debt.  In policies applied for before October 6, 2008, Net Accumulated Value was referred to as Net Policy Value.

Net Amount at Risk - The net amount at risk is the amount on which cost of insurance charges are based.

Net Premium - The premium less the Premium Charges.

Owner - The person(s) having the privileges of ownership defined in the policy.  The Owner(s) may or may not be the same person(s) as the Insured(s).  If your policy is issued pursuant to a retirement plan, your ownership privileges may be modified by the plan.

Policy Anniversary - An annual anniversary of the Policy Date.

Policy Date - The effective date of insurance coverage under your policy.  It is used to determine Policy Anniversaries, Policy Years, and Monthly Anniversaries.

Policy Year - Each twelve-month period beginning on the Policy Date or any Policy Anniversary.

Premium Charges -The sales charge, the premium tax charge, and the federal (DAC) tax charge.

Qualifying Monthly Premium Amount - The amount specified as such in your policy, if your policy includes the Guaranteed Death Benefit Rider.  The Qualifying Monthly Premium Amount is used in determining whether your policy meets the premium requirement of the Guaranteed Death Benefit Rider.

Required Monthly Premium Amount - The amount specified as such in your policy, if your policy includes the Guaranteed Minimum Death Benefit Rider.  The Required Monthly Premium Amount is used in determining whether your policy meets the premium requirement of the Guaranteed Minimum Death Benefit Rider.

Right to Examine Period -The minimum period of time during which you can cancel your policy, generally ten days from the date your received your policy.

Separate Account - Jackson National Life Separate Account IV, the segregated asset account of Jackson that funds the policies.

Service Center - Jackson Service Center, P.O. Box 30502, Lansing, Michigan 48909-8002, 1-800-766-4683 or IMG Service Center, P.O. Box 30386, Lansing, Michigan 48909-7886, 1-800-777-7779.  You can send express mail to the Jackson Service Center at 1 Corporate Way, Lansing, Michigan 48951 or the IMG Service Center at 1 Corporate Way, Lansing, Michigan 48951.

Specified Death Benefit - The initial amount of insurance under your base policy, adjusted for any changes in accordance with the terms of your policy.

Target Death Benefit -Thedeath benefit specified in the Scheduled Term Insurance Rider, adjusted for any changes in accordance with the terms of your policy.

Target Premium -The premium amount used to determine the initial portion of the sales charge and sales compensation.  This amount is set by the Company and varies by age, sex, Specified Death Benefit amount and underwriting classification.

Total Death Benefit -The greater of the death benefit for (a) the base and Scheduled Term Insurance Rider coverage (as defined by the Target Death Benefit and Death Benefit option) or (b) the Minimum Death Benefit.

Underlying Mutual Fund – A separate investment series of one of the following registered management investment companies: JNL Series Trust or JNL Variable Fund LLC.  The assets of each Investment Division of the Separate Account will be invested in one of the Underlying Mutual Funds.  Policies applied for before October 6, 2008, refer to these series as “Portfolios,” rather than as Underlying Mutual Funds.

Valuation Day - Each Business Day, as used in the policy, so long as the New York Stock Exchange is open for business.

Valuation Period - The period of time over which we determine the change in the value of the Investment Divisions.  Each Valuation Period begins at the close of normal trading on the New York Stock Exchange (currently 4:00 p.m. Eastern time) on each Valuation Day and ends at the close of the New York Stock Exchange on the next Valuation Day.

Written Request - A request in writing received by us at our Service Center that meets our requirements for completeness.  A complete Written Request is said to be in good order.

APPENDIX A

Effects of Partial Surrenders on the Death Benefit under Death Benefit Option A

The following examples illustrate how the Death Benefit is decreased as the result of a partial surrender under different circumstances.  All examples assume a total partial surrender amount of $20,000 and a corridor percentage of 250%.  See “Partial Surrenders” on page 41 for more information.

Example 1.  The following example illustrates the effect of a partial surrender on the Death Benefit for a policy having the indicated values, where neither the Base Death Benefit nor the Total Death Benefit is in the corridor.

	Before the Partial Surrender	After the Partial Surrender
Accumulated Value	$40,000	$20,000
Specified Death Benefit (A)	$200,000	$180,000
Target Death Benefit (B)	$250,000	$230,000
Minimum Death Benefit (C)	$100,000 ($40,000 x 250%)	$50,000 ($20,000 x 250%)
Base Death Benefit	$200,000 (greater of A and C)	$180,000 (greater of A and C)
Total Death Benefit	$250,000 (greater of B and C)	$230,000 (greater of B and C)

As shown above, both the Specified Death Benefit and the Target Death Benefit are reduced by $20,000, the total partial surrender amount.  The amount of Scheduled Term Insurance Rider coverage is unchanged at $50,000, the difference between the Total Death Benefit and the Base Death Benefit (the “STR Coverage”).

Example 2.  The following example illustrates the effect of a partial surrender on the Death Benefit for a policy having the indicated values, where the Base Death Benefit (but not the Total Death Benefit) is in the corridor, and total partial surrender amount is greater than the difference between the Minimum Death Benefit and Specified Death Benefit.

	Before the Partial Surrender	After the Partial Surrender
Accumulated Value	$84,000	$64,000
Specified Death Benefit (A)	$200,000	$190,000
Target Death Benefit (B)	$250,000	$230,000
Minimum Death Benefit (C)	$210,000 ($84,000 x 250%)	$160,000 ($64,000 x 250%)
Base Death Benefit	$210,000 (greater of A and C)	$190,000 (greater of A and C)
Total Death Benefit	$250,000 (greater of B and C)	$230,000 (greater of B and C)

As shown above, the Specified Death Benefit is reduced by $10,000, the amount by which the total partial surrender amount ($20,000) exceeded the difference between the Minimum Death Benefit ($210,000) and the Specified Death Benefit ($200,000) immediately before the partial surrender, while the Target Death Benefit is reduced by the total partial surrender amount.  The STR Coverage is unchanged as a result of the total partial surrender.

Example 3.  The following example illustrates the effect of a partial surrender on the Death Benefit for a policy having the indicated values, where the Base Death Benefit (but not the Total Death Benefit) is in the corridor, and total partial surrender amount is less than the difference between the Minimum Death Benefit and Specified Death Benefit.

	Before the Partial Surrender	After the Partial Surrender
Accumulated Value	$90,000	$70,000
Specified Death Benefit (A)	$200,000	$200,000
Target Death Benefit (B)	$250,000	$230,000
Minimum Death Benefit (C)	$225,000 ($90,000 x 250%)	$175,000 ($70,000 x 250%)
Base Death Benefit	$225,000 (greater of A and C)	$200,000 (greater of A and C)
Total Death Benefit	$250,000 (greater of B and C)	$230,000 (greater of B and C)

As shown above, the Specified Death Benefit is unchanged, while the Target Death Benefit is reduced by $20,000, the total partial surrender amount.  The STR Coverage adjusts from $25,000 to $30,000 as a result of the total partial surrender.

Example 4.  The following example illustrates the effect of a partial surrender on the Death Benefit for a policy having the indicated values, where both the Base Death Benefit and the Total Death Benefit are in the corridor, and total partial surrender amount is less than the difference between the Minimum Death Benefit and Specified Death Benefit but greater than the difference between the Minimum Death Benefit and the Target Death Benefit.

	Before the Partial Surrender	After the Partial Surrender
Accumulated Value	$104,000	$84,000
Specified Death Benefit (A)	$200,000	$200,000
Target Death Benefit (B)	$250,000	$240,000
Minimum Death Benefit (C)	$260,000 ($104,000 x 250%)	$210,000 ($84,000 x 250%)
Base Death Benefit	$260,000 (greater of A and C)	$210,000 (greater of A and C)
Total Death Benefit	$260,000 (greater of B and C)	$240,000 (greater of B and C)

As shown above, the Specified Death Benefit is unchanged, while the Target Death Benefit is reduced by $10,000, the amount by which the total partial surrender amount exceeds the difference between the Minimum Death Benefit and the Target Death Benefit.  The STR Coverage adjusts from $0 to $30,000 as a result of the total partial surrender.

Example 5.  The following example illustrates the effect of a partial surrender on the Death Benefit for a policy having the indicated values, where both the Base Death Benefit and the Total Death Benefit are in the corridor, and total partial surrender amount is less than the difference between the Minimum Death Benefit and Specified Death Benefit and also less than the difference between the Minimum Death Benefit and the Target Death Benefit.

	Before the Partial Surrender	After the Partial Surrender
Accumulated Value	$110,000	$90,000
Specified Death Benefit (A)	$200,000	$200,000
Target Death Benefit (B)	$250,000	$250,000
Minimum Death Benefit (C)	$275,000 ($110,000 x 250%)	$225,000 ($90,000 x 250%)
Base Death Benefit	$275,000 (greater of A and C)	$225,000 (greater of A and C)
Total Death Benefit	$275,000 (greater of B and C)	$250,000 (greater of B and C)

As shown above, both the Specified Death Benefit and the Target Death Benefit are unchanged.  The STR Coverage adjusts from $0 to $25,000 as a result of the total partial surrender.

APPENDIX B

BROKER-DEALER SUPPORT

Below is a complete list of broker-dealers that received marketing and distribution and/or administrative support in 20 10 from the Distributor in relation to the sale of our variable insurance products.

1st Global Capital Corporation	CFD Investments, Inc.	G.A. Repple & Company	Kenai Investments Inc.
Allen & Company	Coastal Equities	G.W. Sherwood Associates, Inc.	Key Investments
American Equity Investment Crp	Commonwealth Financial Network	Geneos Wealth Management, Inc.	KMS Financial Services Inc.
American Funds	Community Bankers Securities	Genworth Financial Securities	Koehler Financial, LLC
American Independent Securities Group	Comprehensive Asset Mgmt and Servicing, Inc.	Girard Securities, Inc.	Kovack Securities, Inc.
American Investors Company	Coordinated Capital Securities	Great American Advisors, Inc.	Labrunerie Financial, Inc.
American Portfolios Financial Services, Inc.	Cornerstone Wealth Advisor Inc.	GWN Securities, Inc.	Lasalle St Securities LLC
Ameriprise Advisor Services	Crowell, Weedon & Company	H. Beck, Inc.	Legend Equities Corp.
Ameritas Investment Corp.	Crown Capital Securities L.P.	H.D. Vest Investment Securities	Leonard & Company
Arvest Asset Management	Cuna Brokerage Services	Hantz Financial Services, Inc.	Liberty Partners Financial
Askar Corp	CUSO Financial Services	Harbor Financial Services	Lincoln Financial Advisors
Aurora Capital LLC	D.A. Davidson & Co.	Harbour Investment, Inc.	Lincoln Financial Securities
Ausdal Financial Partners Inc.	D H Hill Securities LLP	Harger & Company	Lincoln Investment Planning
AXA Advisors LLC	Davenport & Company, LLC	Harris Investors Services	Lowell & Company Inc.
BancWest Investment Services Inc.	David A. Noyes & Company	Harvest Capital LLC	LPL Financial Corporation
BB&T Investment Services Inc.	Delta Equity Services	Hazard & Siegel, Inc.	M & T Securities
BCG Securities	Dewaay Financial Network, LLC	HBW Securities	M&I Financial Advisors, Inc.
Beneficial Investment Services	Eagle One Investments, LLC	Hilliard Lyons	M. Griffith, Inc.
Benjamin F. Edwards & Co. Inc.	Equable Securities Corp	Hornor Townsend & Kent, Inc.	Madison Avenue Securities
Berthel Fisher & Company Financial Services	Equitas America	HSBC Securities	Main Street Securities
Bestvest Investments LTD	Equity Services, Inc.	Huntington Investment Company	Merrill Lynch, Pierce, Fenner
BFT Financial Group	Essex National Securities, Inc.	IBN Financial Services	& Smith, Inc.
BOSC, Inc.	Fifth Third Securities	IMS Securities	Metlife Securities
Brewer Financial Services	Financial Advisers of America	Independence Capital Company	Michigan Securities Inc.
Bristol Financial Services Inc.	Financial Network Investment	Independent Financial Group	Mid Atlantic Securities Inc.
Broker Dealer Financial	Financial Telesis Inc.	Infinex Investments Inc.	MidAmerica Financial Services
BrokersXpress, LLC	Financial West Investment Group	ING Financial Advisers	Milkie/Ferguson Investments
Brookstone Securities	Fintegra Financial Solutions	ING Financial Partners Inc.	MML Investors Services Inc.
Cadaret, Grant & Company	First Allied Securities, Inc.	Institutional Securities Corp.	Moloney Securities Co., Inc.
Cambridge Investment Research	First Citizens Investor Services	InterCarolina Financial Services	Money Concepts Capital Corp.
Cantella & Co, Inc.	First Citizens Securities Corp.	Invest Financial Corporation	Money Management Advisory, Inc.
Cape Securities Inc.	First Financial Equity	Investacorp, Inc.	Morgan Keegan & Company
Capital Financial Services	First Heartland Capital, Inc.	Investment Centers of America, Inc.	Multi-Financial Securities Corp.
Capital Financial Solutions	First Independent Financial	Investment Professionals, Inc.	Mutual of Omaha Investor Services, Inc.
Capital Growth Resources	First Liberties Financial	Investors Capital Corp.	Mutual Trust Company
Capital Guardian LLC	First Merit Financial Services	Investors Security Co Inc.	National Planning Corporation
Capital Investment Group	Foothill Securities, Inc.	J P Turner & Company, LLC	Navy Federal Brokerage Services
Capitol Securities Management	Foresters Equity Services Inc.	J W Cole Financial Inc.	Neidiger Tucker Bruner, Inc.
Capwest Securities, Inc.	Fortune Financial Services	Janney Montgomery Scott LLC	Newbridge Securities Corporation
Centaurus Financial, Inc.	Founders Financial Securities	J.J.B. Hilliard, W.L. Lyons, Inc.	Newport Coast Securities, Inc.
Center Street Securities	FSC Securities Corporation	JRL Capital Corporation	NEXT Financial Group, Inc.
NFP Securities, Inc.	RBC Capital Markets Corp.	St. Bernard Financial Services	United Planners
Northeast Securities, Inc.	Regal Securities Inc.	Sterne Agee Financial Services	USA Financial Securities Corp.
Northridge Securities Corp.	Resource Horizons Group	Stifel Nicolaus & Company	UVEST
NPB Financial Group	Ridgeway & Conger Inc.	Stonehurst Securities, Inc.	Valic Financial Advisors, Inc.
NRP Financial, Inc.	Robert W Baird & Company, Inc.	Strategic Financial Alliance	Valley National Investments
OneAmerica Securities	Rogan & Associates, Inc.	Summit Brokerage Services, Inc.	Valmark Securities, Inc.
Oppenheimer & Co., Inc.	Royal Alliance Associates, Inc.	Summit Equities Inc.	Vanderbilt Securities LLC
Pacific West	Royal Securities	Sunset Financial Services, Inc.	VSR Financial Services, Inc.
Packerland Brokerage Services	Sagepoint Financial, Inc.	SWBC Investment Services, LLC	Wall Street Financial Inc.
Park Avenue Securities	Sammons Securities Company, LLC	Symetra Investment Services	Walnut Street Securities
Paulson Investment Company	Sanders Morris Harris, Inc.	Synergy Investment Group	Waterford Investor Services
People’s Securities, Inc.	Securian Financial Services	The Investment Center, Inc.	Wayne Hummer Investments
Planmember Securities	Securities America, Inc.	The Leaders Group, Inc.	Wedbush Morgan Securities
Presidential Brokerage, Inc.	Securities Service Network	The O.N. Equity Sales Company	Wells Fargo Advisors LLC
Prime Capital Services Inc.	Sigma Financial Corporation	Thrivent Investment Management	Western Equity Group
Primevest Financial Services, Inc.	Signator Investors, Inc.	Tower Square Securities, Inc.	Westminster Financial
Pro Equities, Inc.	SII Investments, Inc.	Transamerica Financial Advisors, Inc.	WFG Investments, Inc.
Professional Asset Management	Silver Oak Securities	Triad Advisors, Inc.	Williams Financial Group
Prospera Financial Services, Inc.	SMH Capital, Inc.	Triune Capital Advisors	Woodbury Financial Services, Inc.
Purshe Kaplan Sterling	Sorrento Pacific Financial, LLC	Trustmont Financial Group	Workman Securities
QA3 Financial Corporation	Southeast Investments	U.S. Bancorp Investments, Inc.	World Equity Group, Inc.
Quest Securities	Southwest Securities Financial Services	UBS Financial Services, Inc.	World Group Securities Inc.
Questar Capital Corp	Spectrum Capital	UnionBanc Investment Services LLC	WRP Investments Inc.
Raymond James	Spire Securities, LLC	United Equity Securities	Wunderlich Securities

APPENDIX C

TRADEMARKS, SERVICE MARKS, AND RELATED DISCLOSURES

“JNL®,” “Jackson National®” and “Jackson®” are trademarks or service marks of Jackson National Life Insurance Company.

The “Dow Jones ® ”, “Dow Jones Industrial Average SM ”, “DJIA SM ” “Dow Jones Select Dividend Index SM ,” “The Dow SM ” and “the Dow 10 SM ” are products of Dow Jones Indexes, the marketing name of and a licensed trademark of CME Group Index Services LLC (“CME”), and have been licensed for use.   “Dow Jones®”, “Dow Jones Industrial AverageSM”, “DJIASM” “Dow Jones Select Dividend IndexSM,” “The DowSM” and “the Dow 10SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”) and have been licensed to CME and have been sub-licensed for use for certain purposes by Jackson National Life Insurance Company® (“Jackson”).  The JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon Capital Management VIP Fund, the JNL/Mellon Capital Management Dow SM Dividend Fund, the JNL/Mellon Capital Management JNL Optimized 5 Fund, the JNL/Mellon Capital Management Communications Sector Fund, the JNL/Mellon Capital Management Consumer Brands Sector Fund, the JNL/Mellon Capital Management Financial Sector Fund, the JNL/Mellon Capital Management Healthcare Sector Fund, the JNL/Mellon Capital Management Oil & Gas Sector Fund, and the JNL/Mellon Capital Management Technology Sector Fund (“Funds”) are not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates.  Dow Jones, CME and their respective affiliates make no representation or warranty, expressed or implied, to the owners of the Funds or any member of the public regarding the advisability of investing in securities generally or in the Funds particularly.  The only relationship of Dow Jones, CME or any of their respective affiliates to the Funds is the licensing of certain trademarks, trade names and service marks of Dow Jones and of the “Dow Jones ® ”, “Dow Jones Industrial Average SM ”, “DJIA SM ” “Dow Jones Select Dividend Index SM ,” “The Dow SM ” and “the Dow 10 SM ”, which is determined, composed and calculated by CME without regard to Jackson or the Funds .  Dow Jones and CME have no obligation to take the needs of Jackson or the owners of the Funds into consideration in determining, composing or calculating the Funds .  Dow Jones, CME and their respective affiliates are not responsible for and have not participated in the determination of the timing of, prices at, or quantities of the Funds to be issued or in the determination or calculation of the equation by which the Funds are to be converted into cash.  Dow Jones, CME and their respective affiliates have no obligation or liability in connection with the administration, marketing or trading of the Funds .
Dow Jones, CME and their respective affiliates do not:
●	Sponsor, endorse, sell or promote the Funds.
●	Recommend that any person invest in the Funds.
●	Have any responsibility or liability for or make any decisions about the timing, amount or pricing of the Funds.
●	Have any responsibility or liability for the administration, management or marketing of the Funds.
●	Consider the needs of the Funds in determining, composing or calculating the DJIA or have any obligation to do so.

Dow Jones, CME and their respective affiliates will not have any liability in connection with the Funds. Specifically,
●	Dow Jones, CME and their respective affiliates do not make any warranty, express or implied, and Dow Jones, CME and their respective affiliates disclaim any warranty about:
	●	The results to be obtained by the Funds or any other person in connection with the use of the DJIA and the data included in the DJIA;
	●	The accuracy or completeness of the DJIA and its data;
	●	The merchantability and the fitness for a particular purpose or use of the DJIA and its data;
●	Dow Jones, CME and/or their respective affiliates will have no liability for any errors, omissions or interruptions in the DJIA or its data;
●	Under no circumstances will Dow Jones, CME and/or their respective affiliates be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if they know that they might occur.
The licensing agreement relating to the use of the indexes and trademarks referred to above by Jackson National Life Insurance Company® and Dow Jones is solely for the benefit of the Funds and not for any other third parties. DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE “DOW JONES ® ”, “DOW JONES INDUSTRIAL AVERAGE SM ”, “DJIA SM ” “DOW JONES SELECT DIVIDEND INDEX SM ,” “THE DOW SM ” and “THE DOW 10 SM ” OR ANY DATA INCLUDED THEREIN AND DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.  DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED BY JACKSON, OWNERS OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE “DOW JONES ® ”, “DOW JONES INDUSTRIAL AVERAGE SM ”, “DJIA SM ” “DOW JONES SELECT DIVIDEND INDEX SM ,” “THE DOW SM ” and “THE DOW 10 SM ”  OR ANY DATA INCLUDED THEREIN.  DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE “DOW JONES ® ”, “DOW JONES INDUSTRIAL AVERAGE SM ”, “DJIA SM ” “DOW JONES SELECT DIVIDEND INDEX SM ,” “THE DOW SM ” and “THE DOW 10 SM ” OR ANY DATA INCLUDED THEREIN.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES, CME OR THEIR RESPECTIVE AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.  THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN CME AND JACKSON, OTHER THAN THE LICENSORS OF CME.

Goldman Sachs is a registered service mark of Goldman, Sachs & Co.

The Product(s) is not sponsored, endorsed, sold or promoted by The Nasdaq Stock Market, Inc. (including its affiliates) (Nasdaq, with its affiliates, are referred to as the Corporations).  The Corporations have not passed on the legality or suitability of or the accuracy or adequacy of descriptions and disclosures relating to the Product(s).  The Corporations make no representation or warranty, express or implied to the Owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly, or the ability of the Nasdaq-100 Index® to track general stock market performance.  The Corporations’ only relationship to Jackson (Licensee) is in the licensing of the Nasdaq-100®, Nasdaq-100 Index® and Nasdaq® trademarks or service marks, and certain trade names of the Corporations and the use of the Nasdaq-100 Index® which is determined, composed and calculated by Nasdaq without regard to Licensee or the Product(s).  Nasdaq has no obligation to take the needs of the Licensee or the Owners of the Product(s) into consideration in determining, composing or calculating the Nasdaq-100 Index®.  The Corporations are not responsible for and have not participated in the determination of the timing of, prices at or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash.  The Corporations have no liability in connection with the administration, marketing or trading of the Product(s).

The Corporations do not guarantee the accuracy and/or uninterrupted calculation of the Nasdaq-100 index® or any data included therein.  The Corporations make no warranty, express or implied, as to results to be obtained by Licensee, Owners of the product(s) or any other person or entity from the use of the Nasdaq-100 Index® or any data included therein.  The Corporations make no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the Nasdaq-100 Index® or any data included therein.  Without limiting any of the foregoing, in no event shall the Corporations have any liability for any lost profits or special, incidental, punitive, indirect or consequential damages, even if notified of the possibility of such damages.

“The Nasdaq-100®,” “Nasdaq-100 Index®,” “Nasdaq Stock Market®” and “Nasdaq®” are trade or service marks of The Nasdaq, Inc. (which with its affiliates are the “Corporations”) and have been licensed for use by Jackson.  The Corporations have not passed on the legality or suitability of the JNL/Mellon Capital Management Nasdaq®25 Fund, the JNL/Mellon Capital Management JNL Optimized 5 Fund, or the JNL/Mellon Capital Management VIP Fund.  The JNL/Mellon Capital Management Nasdaq® 25 Fund, the JNL/Mellon Capital Management VIP Fund and the JNL/Mellon Capital Management JNL Optimized 5 Fund are not issued, endorsed, sponsored, managed, sold or promoted by the Corporations.  THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE JNL/MELLON CAPITAL MANAGEMENT NASDAQ® 25 FUND, THE JNL/MELLON CAPITAL MANAGEMENT VIP FUND AND THE JNL/MELLON CAPITAL MANAGEMENT JNL OPTIMIZED 5 FUND.

“NYSE®” is a registered mark of, and “NYSE International 100 IndexSM” is a service mark of, the New York Stock Exchange, Inc. (“NYSE”) and have been licensed for use for certain purposes by Jackson National Asset Management, LLC.  The JNL/Mellon Capital Management NYSE® International 25 Fund is not sponsored, endorsed, sold or promoted by NYSE, and NYSE makes no representation regarding the advisability of investing in the JNL/Mellon Capital Management NYSE® International 25 Fund.

“NYSE International 100 IndexSM” is a service mark of NYSE Group, Inc.  NYSE Group, Inc. has no relationship to Jackson National Asset Management, LLC, other than the licensing of the “NYSE International 100 IndexSM” (the “Index”) and its service marks for use in connection with the JNL/Mellon Capital Management NYSE® International 25 Fund.

NYSE Group, Inc. does not:

·Sponsor, endorse, sell or promote the JNL/Mellon Capital Management NYSE® International 25 Fund.

·Recommend that any person invest in the JNL/Mellon Capital Management NYSE® International 25 Fund or any other securities.

·Have any responsibility or liability for or make any decisions about the timing, amount or pricing of JNL/Mellon Capital Management NYSE® International 25 Fund.

·Have any responsibility or liability for the administration, management or marketing of the JNL/Mellon Capital Management NYSE® International 25 Fund.

·Consider the needs of the JNL/Mellon Capital Management NYSE® International 25 Fund or the owners of the JNL/Mellon Capital Management NYSE® International 25 Fund in determining, composing or calculating the NYSE International 100 IndexSM or have any obligation to do so.

NYSE Group, Inc. and its affiliates will not have any liability in connection with the JNL/Mellon Capital Management NYSE® International 25 Fund.  Specifically,

·NYSE Group, Inc. and its affiliates make no warranty, express or implied, and NYSE Group, Inc. and its affiliates disclaim any warranty about:

·The results to be obtained by the JNL/Mellon Capital Management NYSE® International 25 Fund, the owner of the JNL/Mellon Capital Management NYSE® International 25 Fund or any other person in connection with the use of the Index and the data included in the NYSE International 100 IndexSM;

·The accuracy or completeness of the Index and its data;

·The merchantability and the fitness for a particular purpose or use of the Index and its data;

·NYSE Group, Inc. will have no liability for any errors, omissions or interruptions in the Index or its data;

·Under no circumstances will NYSE Group, Inc. or any of its affiliates be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if NYSE Group, Inc. knows that they might occur.

The licensing agreement between Jackson National Asset Management, LLC and NYSE Group, Inc. is solely for their benefit and not for the benefit of the owners of the JNL/Mellon Capital Management NYSE® International 25 Fund or any other third parties.

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes.  Russell is a trademark of Russell Investment Group.

JNL/Mellon Capital Management Small Cap Index Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with Russell Investment Group (“Russell”).  Russell is not responsible for and has not reviewed JNL/Mellon Capital Management Small Cap Index Fund nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes.  Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.

Russell’s publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based.  RUSSELL MAKES NO REPRESENTATION, WARRANTY, OR GUARANTEE AS TO THE ACCURACY COMPLETENESS, RELIABILITY, OR OTHERWISE OF THE RUSSELL INDEXES.  RUSSELL MAKES NO REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE, OR THE RESULTS OF USE, OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITY (OR COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES.  RUSSELL MAKES NO OTHER EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.

“ STANDARD & POOR’S ®,” “S&P®,” “S&P 500®,” “ STANDARD & POOR’S 500®,” “S&P 500 ® Index,” “S&P MIDCAP 400 Index®,” and the “S&P SmallCap 600 Index®” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and have been licensed for use by Jackson.  The JNL/Mellon Capital Management S&P 500 Index Fund, the JNL/Mellon Capital Management S&P 400 MidCap Index Fund, the JNL/Mellon Capital Management S&P® SMid 60 Fund, the JNL/Mellon Capital Management JNL 5 Fund, the JNL/Mellon Capital Management VIP Fund, the JNL/Mellon Capital Management S&P® 24 Fund and any other investment fund or other vehicle that is offered by third parties that uses an S&P Index as a benchmark or measure of performance, bears the S&P mark and /or seeks to provide an investment return based on the returns of any Standard & Poor’s Index are not sponsored, endorsed, sold or promoted by S&P” and its affiliates. S&P is not an investment adviser and S&P and its affiliates make no representation or warranty, express or implied, to the owners of the Fund s or any member of the public regarding the advisability of investing in the Funds or other such fund or vehicle .  Among the fund options considered are index funds based on the S&P 500 and other indexes that are published by S&P.  S&P typically receives license fees from the issuers of such funds, some of which may be based on the amount of assets invested in the fund.  Please see the Statement of Additional Information which sets forth certain additional disclaimers and limitations of liabilities on behalf of S&P.

“Value Line®,” “The Value Line Investment Survey,” and “Value Line TimelinessTM Ranking System” are trademarks of Value Line Securities, Inc. or Value Line Publishing, Inc. that have been licensed to Jackson.  The JNL/Mellon Capital Management Value Line® 30 Fund, the JNL/Mellon Capital Management VIP Fund, and the JNL/Mellon Capital Management JNL Optimized 5 Fund are not sponsored, recommended, sold or promoted by Value Line Publishing, Inc., Value Line, Inc. or Value Line Securities, Inc. (“Value Line”).  Value Line makes no representation regarding the advisability of investing in the JNL/Mellon Capital Management Value Line® 30 Fund, the JNL/Mellon Capital Management VIP Fund, and the JNL/Mellon Capital Management JNL Optimized 5 Fund.  Jackson is not affiliated with any Value Line Company.

THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. (“MSCI”), ANY OF ITS AFFILIATES, ANY OF ITS INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE “MSCI PARTIES”).  THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.  MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY JACKSON NATIONAL ASSET MANAGEMENT, LLC.  NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY REGARDING THE ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR IN THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE.  MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY.  NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE MSCI INDEXES.  NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND IS REDEEMABLE.  FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND.

ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN.  NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND, OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN.  NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

WHERE YOU CAN FIND MORE INFORMATION

You can call us at (800) 873-5654 to ask us questions, request information about the policies and the Separate Account, and obtain copies of the Statement of Additional Information, personalized illustrations or other documents.  You also can write to us at the address given on the first page of this prospectus.

We have filed a Statement of Additional Information with the Securities and Exchange Commission.  The Statement of Additional Information that relates to this prospectus is dated May 1, 2011 .  The Statement of Additional Information contains additional information about the Policy and is incorporated by reference in this prospectus.  You can obtain a free copy of the Statement of Additional Information upon request, by writing or calling us at the address or number given above.

We file reports and other information with the Securities and Exchange Commission.  You may read and copy any document we file with the SEC, including the Statement of Additional Information, at the SEC's public reference room in Washington, DC.  Please call the SEC at (202) 942-8090 for information on the operation of the public reference room.

Our SEC reports and other information about us are also available to the public at the SEC's website at http://www.sec.gov.  Copies of this information may be obtained upon payment of a duplicating fee by writing the SEC's Public Reference Section, 100 F Street, NE, Washington, DC 20549.

Investment Company Act File No. 811-09933

STATEMENT OF ADDITIONAL INFORMATION

May 1, 2011

INDIVIDUAL FLEXIBLE PREMIUM ADJUSTABLE VARIABLE UNIVERSAL LIFE INSURANCE POLICIES

Issued By

JACKSON NATIONAL LIFE INSURANCE COMPANY®

In Connection With Its

JACKSON NATIONAL SEPARATE ACCOUNT IV

This Statement of Additional Information is not a prospectus.  This Statement of Additional Information contains additional information about the Policies described above that you may find useful.  You should read it together with the Prospectus for the Policies.  The date of the Prospectus to which this Statement of Additional Information relates is May 1, 2011 .  You may obtain a copy of the Prospectus without charge by calling us toll-free at (800) 873-5654 or by writing to us at the following address.

Jackson National Life Insurance Company

P.O. Box 30314

Lansing, Michigan 48909-7814

TABLE OF CONTENTS

	Page
GENERAL INFORMATION AND HISTORY	3
SERVICES	3
DISTRIBUTOR	9
DISTRIBUTION OF THE POLICIES	9
PERFORMANCE DATA	9
ILLUSTRATION OF DEATH BENEFITS, ACCUMULATED VALUES AND CASH SURRENDER VALUES	10
FINANCIAL STATEMENTS	15

GENERAL INFORMATION AND HISTORY

Jackson National Life Insurance Company ("JacksonSM") is a stock life insurance company organized under the laws of the state of Michigan in June 1961.  Its legal domicile and principal business address is 1 Corporate Way, Lansing, Michigan 48951.  Jackson is a wholly owned subsidiary of Brooke Life Insurance Company and is ultimately a wholly owned subsidiary of Prudential plc, London, England, a publicly traded life insurance company in the United Kingdom.

Jackson National Separate Account IV (the "Separate Account") was established in 1997 as a segregated asset account of Jackson.  The Separate Account is registered as a unit investment trust under the Investment Company of 1940, as amended.

Trademarks, Service Marks, and Related Disclosures

The Product(s) is not sponsored, endorsed, sold or promoted by The Nasdaq Stock Market, Inc. (including its affiliates) (Nasdaq, with its affiliates, are referred to as the Corporations).  The Corporations have not passed on the legality or suitability of or the accuracy or adequacy of descriptions and disclosures relating to the Product(s).  The Corporations make no representation or warranty, express or implied to the Owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly, or the ability of the Nasdaq-100 Index® to track general stock market performance.  The Corporations’ only relationship to Jackson (Licensee) is in the licensing of the Nasdaq-100®, Nasdaq-100 Index® and Nasdaq® trademarks or service marks, and certain trade names of the Corporations and the use of the Nasdaq-100 Index® which is determined, composed and calculated by Nasdaq without regard to Licensee or the Product(s).  Nasdaq has no obligation to take the needs of the Licensee or the Owners of the Product(s) into consideration in determining, composing or calculating the Nasdaq-100 Index®.  The Corporations are not responsible for and have not participated in the determination of the timing of, prices at or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash.  The Corporations have no liability in connection with the administration, marketing or trading of the Product(s).

The Corporations do not guarantee the accuracy and/or uninterrupted calculation of the Nasdaq-100 index® or any data included therein.  The Corporations make no warranty, express or implied, as to results to be obtained by Licensee, Owners of the product(s) or any other person or entity from the use of the Nasdaq-100 Index® or any data included therein.  The Corporations make no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the Nasdaq-100 Index® or any data included therein.  Without limiting any of the foregoing, in no event shall the Corporations have any liability for any lost profits or special, incidental, punitive, indirect or consequential damages, even if notified of the possibility of such damages.

“The Nasdaq-100®,” “Nasdaq-100 Index®,” “Nasdaq Stock Market®” and “Nasdaq®” are trade or service marks of The Nasdaq, Inc. (which with its affiliates are the “Corporations”) and have been licensed for use by Jackson.  The Corporations have not passed on the legality or suitability of the JNL/Mellon Capital Management Nasdaq®25 Fund, the JNL/Mellon Capital Management JNL Optimized 5 Fund, or the JNL/Mellon Capital Management VIP Fund.  The JNL/Mellon Capital Management Nasdaq® 25 Fund, the JNL/Mellon Capital Management VIP Fund and the JNL/Mellon Capital Management JNL Optimized 5 Fund are not issued, endorsed, sponsored, managed, sold or promoted by the Corporations.  THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE JNL/MELLON CAPITAL MANAGEMENT NASDAQ® 25 FUND, THE JNL/MELLON CAPITAL MANAGEMENT VIP FUND AND THE JNL/MELLON CAPITAL MANAGEMENT JNL OPTIMIZED 5 FUND.

“NYSE®” is a registered mark of, and “NYSE International 100 IndexSM” is a service mark of, the New York Stock Exchange, Inc. (“NYSE”) and have been licensed for use for certain purposes by Jackson National Asset Management, LLC.  The JNL/Mellon Capital Management NYSE® International 25 Fund is not sponsored, endorsed, sold or promoted by NYSE, and NYSE makes no representation regarding the advisability of investing in the JNL/Mellon Capital Management NYSE® International 25 Fund.

“NYSE International 100 IndexSM” is a service mark of NYSE Group, Inc.  NYSE Group, Inc. has no relationship to Jackson National Asset Management, LLC, other than the licensing of the “NYSE International 100 IndexSM” (the “Index”) and its service marks for use in connection with the JNL/Mellon Capital Management NYSE® International 25 Fund.

NYSE Group, Inc. does not:

·Sponsor, endorse, sell or promote the JNL/Mellon Capital Management NYSE® International 25 Fund.

·Recommend that any person invest in the JNL/Mellon Capital Management NYSE® International 25 Fund or any other securities.

·Have any responsibility or liability for or make any decisions about the timing, amount or pricing of JNL/Mellon Capital Management NYSE® International 25 Fund.

·Have any responsibility or liability for the administration, management or marketing of the JNL/Mellon Capital Management NYSE® International 25 Fund.

·Consider the needs of the JNL/Mellon Capital Management NYSE® International 25 Fund or the owners of the JNL/Mellon Capital Management NYSE® International 25 Fund in determining, composing or calculating the NYSE International 100 IndexSM or have any obligation to do so.

NYSE Group, Inc. and its affiliates will not have any liability in connection with the JNL/Mellon Capital Management NYSE® International 25 Fund.  Specifically,

·NYSE Group, Inc. and its affiliates make no warranty, express or implied, and NYSE Group, Inc. and its affiliates disclaim any warranty about:

·The results to be obtained by the JNL/Mellon Capital Management NYSE® International 25 Fund, the owner of the JNL/Mellon Capital Management NYSE® International 25 Fund or any other person in connection with the use of the Index and the data included in the NYSE International 100 IndexSM;

·The accuracy or completeness of the Index and its data;

·The merchantability and the fitness for a particular purpose or use of the Index and its data;

·NYSE Group, Inc. will have no liability for any errors, omissions or interruptions in the Index or its data;

·Under no circumstances will NYSE Group, Inc. or any of its affiliates be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if NYSE Group, Inc. knows that they might occur.

The licensing agreement between Jackson National Asset Management, LLC and NYSE Group, Inc. is solely for their benefit and not for the benefit of the owners of the JNL/Mellon Capital Management NYSE® International 25 Fund or any other third parties.

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes.  Russell is a trademark of Russell Investment Group.

JNL/Mellon Capital Management Small Cap Index Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with Russell Investment Group ("Russell").  Russell is not responsible for and has not reviewed JNL/Mellon Capital Management Small Cap Index Fund nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes.  Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.

Russell's publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based.  RUSSELL MAKES NO REPRESENTATION, WARRANTY, OR GUARANTEE AS TO THE ACCURACY COMPLETENESS, RELIABILITY, OR OTHERWISE OF THE RUSSELL INDEXES.  RUSSELL MAKES NO REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE, OR THE RESULTS OF USE, OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITY (OR COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES.  RUSSELL MAKES NO OTHER EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.

Standard & Poor’s Investment Advisory Services LLC (“SPIAS”) is a registered investment adviser and a wholly-owned subsidiary of The McGraw-Hill Companies, Inc. SPIAS does not provide advice to underlying clients of the firms to which it provides services.  SPIAS does not act as a “fiduciary” or as an “investment manager”, as defined under ERISA, to any investor.  SPIAS is not responsible for client suitability. Past performance of the Funds is no indication of future results. Since performance fluctuates over time, the fact that the Funds may have outperformed the benchmarks over one period of time does not mean that they outperformed the benchmarks over other periods or will outperform the benchmarks in the future.  SPIAS does not take into account any information about any investor or any investor’s assets when creating, providing or maintaining any asset allocation portfolio.  SPIAS does not have any discretionary authority or control with respect to purchasing or selling securities or making other investments.

The JNL/Mellon Capital Management S&P Divisions and JNL/S&P Divisions, and any other investment fund or other vehicle that is offered by third parties that uses an S&P Index as a benchmark or measure of performance, bears the S&P mark and /or seeks to provide an investment return based on the returns of any Standard & Poor’s Index are not sponsored, endorsed, sold or promoted by Standard & Poor's Financial Services LLC (“S&P”) and its affiliates. S&P is not an investment adviser and S&P and its affiliates make no representation or warranty, express or implied, to the owners of the Divisions or any member of the public regarding the advisability of investing in securities generally or in the Divisions particularly or the ability of the S&P 500 ® Index, the S&P MIDCAP 400 Index®, the S&P SmallCap 600 Index®,or any other S&P Index to track general stock market performance.  S&P's only relationship to the Separate Account (Licensee) is the licensing of certain registered trademarks and trade names of S&P, the S&P 500 Index, the S&P MIDCAP 400 Index, and the S&P SmallCap 600 Index, which are determined, composed and calculated by S&P without regard to the Licensee or the Divisions.  S&P has no obligation to take the needs of the Licensee or the owners of the Divisions into consideration in determining, composing or calculating the S&P 500 Index, the S&P 400 Index, the S&P SmallCap 600 Index or any other S&P Index.  S&P is not responsible for and has not participated in the determination of the prices and amount of the Divisions or the timing of the issuance or sale of the Divisions or in the determination or calculation of the equation by which the Divisions are to be converted into cash.  S&P has no obligation or liability in connection with the administration, marketing or trading of the Divisions.

S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, THE S&P SMALLCAP 600 INDEX, OR ANY OTHER S&P INDEX OR ANY DATA INCLUDED THEREIN AND S&P SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.  S&P MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE DIVISIONS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, THE S&P SMALLCAP 600 INDEX, OR ANY OTHER S&P INDEX OR ANY DATA INCLUDED THEREIN.  S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, THE S&P SMALLCAP 600 INDEX, OR ANY OTHER S&P INDEX OR ANY DATA INCLUDED THEREIN.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

SPIAS, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings, and are not responsible for errors and omissions, or for the results obtained from the use of such information, and S&P Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.

S&P’s credit ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions.  S&P credit ratings should not be relied on when making any investment or other business decision.  S&P’s opinions and analyses do not address the suitability of any security.  S&P does not act as a fiduciary or an investment advisor. While S&P and SPIAS have obtained information from sources they believe to be reliable, neither S&P nor SPIAS performs an audit and neither undertakes any duty of due diligence or independent verification of any information it receives.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees .

Jackson has entered into a License Agreement with Value Line®.  Value Line Publishing, Inc.'s ("VLPI") only relationship to Jackson is VLPI's licensing to Jackson of certain VLPI trademarks and trade names and the Value Line Timeliness Ranking System (the "System"), which is composed by VLPI without regard to Jackson, this Product or any investor.  VLPI has no obligation to take the needs of  Jackson or any investor in the Product into consideration in composing the System.  The Product results may differ from the hypothetical or published results of the Value Line Timeliness Ranking System.  VLPI is not responsible for and has not participated in the determination of the prices and composition of the Product or the timing of the issuance for sale of the Product or in the calculation of the equations by which the Product is to be converted into cash.

VLPI MAKES NO WARRANTY CONCERNING THE SYSTEM, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY IMPLIED WARRANTIES ARISING FROM USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE, AND VLPI MAKES NO WARRANTY AS TO THE POTENTIAL PROFITS OR ANY OTHER BENEFITS THAT MAY BE ACHIEVED BY USING THE SYSTEM OR ANY INFORMATION OR MATERIALS GENERATED THEREFROM.  VLPI DOES NOT WARRANT THAT THE SYSTEM WILL MEET ANY REQUIREMENTS OR THAT IT WILL BE ACCURATE OR ERROR-FREE.  VLPI ALSO DOES NOT GUARANTEE ANY USES, INFORMATION, DATA OR OTHER RESULTS GENERATED FROM THE SYSTEM.  VLPI HAS NO OBLIGATION OR LIABILITY (I) IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR TRADING OF THE PRODUCT; OR (II) FOR ANY LOSS, DAMAGE, COST OR EXPENSE SUFFERED OR INCURRED BY ANY INVESTOR OR OTHER PERSON OR ENTITY IN CONNECTION WITH THIS PRODUCT, AND IN NO EVENT SHALL VLPI BE LIABLE FOR ANY LOST PROFITS OR OTHER CONSEQUENTIAL, SPECIAL, PUNITIVE, INCIDENTAL, INDIRECT OR EXEMPLARY DAMAGES IN CONNECTION WITH THE PRODUCT.

THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. (“MSCI”), ANY OF ITS AFFILIATES, ANY OF ITS INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE “MSCI PARTIES”).  THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.  MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY JACKSON NATIONAL ASSET MANAGEMENT, LLC.  NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY REGARDING THE ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR IN THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE.  MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY.  NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE MSCI INDEXES.  NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND IS REDEEMABLE.  FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND.

ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN.  NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND, OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN.  NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

SERVICES

The financial statements of Jackson National Separate Account IV and Jackson National Life Insurance Company for the periods indicated have been included herein in reliance upon the reports of KPMG LLP, an independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.  KPMG LLP is located at 303 East Wacker Drive, Chicago, Illinois 60601.

Actuarial matters included in the Prospectus and this Statement of Additional Information, including the hypothetical Policy illustrations included herein, have been approved by Angela Matthews, Actuary of Jackson, and are included in reliance upon her opinion as to their reasonableness.

DISTRIBUTOR

The Policies are distributed by Jackson National Life Distributors LLC ("JNLD"), a subsidiary of Jackson.  JNLD is located at 7601 Technology Way, Denver, Colorado 80237.  The Policies are offered on a continuous basis.  However, Jackson reserves the right to discontinue offering the Policies at any time.

The aggregate amount of underwriting commissions paid to broker-dealers was  $2,004,574 in 2008 , $1,494,322 in 2009 , and $1,351,302 in 2010 .  JNLD did not retain any portion of the commissions.

DISTRIBUTION OF THE POLICIES

The Policies are sold by registered representatives of broker-dealers who are our insurance agents, either individually or through an incorporated insurance agency.  Registered representatives who sell the Policies may earn a maximum sales commission of approximately 90% of all premiums up to the first year Target Premium plus up to 3% of any additional premiums paid in excess of that amount.  Registered representatives also may be eligible for a trail commission of up to 0.15% on Policies that have been in force for at least twelve months.  Jackson may also pay up to 8% of all premiums up to the first year Target Premium as a broker dealer concession in the first Policy Year.  From time to time, we may pay or permit other promotional incentives in cash, credits, or other compensation.   Jackson pays all such commissions and incentives. 

PERFORMANCE DATA

From time to time, we may advertise performance data related to the Investment Divisions of the Separate Account available under the Policy.

The performance figures are calculated using the actual historical performance of the Underlying Mutual Funds for the periods shown and represent the average annual total return for that period.  The performance for a specific period is calculated by taking a hypothetical $1,000 investment in an Investment Division on the first day of the period ("initial investment") and computing the average annual compounded rate of return for the period that would equate the initial investment with the value of that investment at the end of the period, carried to at least the nearest hundredth of a percent.

The performance returns will reflect the deduction of management fees and all other operating expenses of the Underlying Mutual Funds and the deduction of the current asset based risk charge applicable under the Policy for the first ten Policy Years.  The guaranteed asset based risk charge is higher and the current asset based risk charge is lower after the tenth year. The returns will not reflect any premium deductions for costs of insurance, premium charges, monthly policy fees or administrative charges, surrender charges, or other policy charges.  IF THE PERFORMANCE INCLUDED SUCH DEDUCTIONS, THE RETURNS SHOWN WOULD BE SIGNIFICANTLY LOWER.

Performance data may be shown for the period from the commencement of Policy sales.

ILLUSTRATION OF DEATH BENEFITS,

ACCUMULATED VALUES AND CASH SURRENDER VALUES

The following tables illustrate how values under a Policy change with the investment experience of the Underlying Mutual Funds. The tables illustrate how the Death Benefits, Accumulated Values and Cash Surrender Values of a Policy issued to an Insured of a given age and underwriting risk classification would vary over an extended period of time if the hypothetical gross investment rates of return on the assets held in the Investment Divisions of the Separate Account were a uniform annual rate of 0%, 6% or 12%.  If the hypothetical gross investment rate of return averages 0%, 6%, or 12%, but fluctuates over and under those averages throughout the years, the Death Benefits, Accumulated Values, and Cash Surrender Values may be different.

The amounts shown for the Death Benefit, Accumulated Value, and Cash Surrender Value as of each Policy Anniversary reflect the fact that the net investment returns on the assets held in the Investment Divisions are lower than the gross after-tax returns on the Underlying Mutual Funds, as a result of the expenses paid by the Underlying Mutual Funds and the charges deducted from the Investment Divisions.  The net investment returns reflect the deduction of the Underlying Mutual Fund investment management fees and other Underlying Mutual Fund expenses at an annual effective rate of 0.75%, which is the arithmetic average of the actual and estimated fees and expenses for all of the Underlying Mutual Funds.  The gross annual investment rates of 0%, 6% and 12% correspond to net annual investment rates of return of -1.738%, 4.203% and 10.143% respectively, on a guaranteed basis, and -1.639%, 4.307% and 10.253%, respectively, on a current basis during years one through ten, -0.998%, 4.987% and 10.972% respectively, on a current basis during years eleven through twenty, and -0.750%, 5.250% and 11.250%, respectively, on a current basis during years twenty-one and thereafter.

The tables illustrate the Death Benefits, Accumulated Values, and Cash Surrender Values that would result based upon the hypothetical investment rates of return if no payments other than the specified annual premium payments are made, if all premium payments are allocated to the Separate Account, and if no policy loans are taken.  The tables also assume that no partial surrenders, transfers, or changes in the Specified Death Benefit or death benefit option are made.

Values are shown for Policies issued to preferred non-tobacco class Insureds.  Values for Policies issued on a basis involving higher mortality risk would result in lower Death Benefits, Accumulated Values, and Cash Surrender Values than those illustrated.  Females generally have a more favorable cost of insurance rate structure than males, and non-tobacco class Insureds generally have a more favorable cost of insurance rate than tobacco class Insureds.

The amounts shown in the tables also reflect all charges deducted under the Policy based on the assumptions described herein and in the tables.  These charges include a sales charge, premium tax charge, and federal (DAC) tax charge, which are deducted from each premium; a daily asset based risk charge, which is deducted from the assets of the Investment Divisions; and a monthly policy fee, monthly administrative charge, and monthly cost of insurance charge, which are deducted from Accumulated Value.  The current sales charge is 6% for years 1-5 and 4% for years 6+ (up to the Target Premium).  The sales charge is guaranteed not to exceed 6% of all premium.  The premium tax charge and federal (DAC) tax charge are 2.5% and 1.5% of each premium, respectively.  The asset based risk charge is currently equivalent to an annual effective rate of 0.90% and 0.25% for Policy Years 1-10 and 11-20, respectively, and 0.00% thereafter.  This charge is guaranteed not to exceed 1.00% in all Policy Years.  The monthly policy fee is $15 per month for the first three Policy Years and $7.50 per month thereafter.  The monthly administrative fee is $0.07 per month per $1,000 of Specified Death Benefit for Policy Years 1-10 and $0.01 per month per $1,000 thereafter.  This charge is assessed on up to $2 million of Specified Death Benefit.  The monthly cost of insurance charge varies with the amount of insurance coverage and the age, sex and underwriting risk classification of the Insured.  Cash Surrender Values reflect any applicable Surrender Charges.

The hypothetical values shown in the tables do not reflect any charges for federal, state or other income taxes against the Separate Account, since we are not currently making this charge.  However, if such a charge is made in the future, a higher gross annual investment rate of return than illustrated would be needed to produce the net after tax returns shown in the tables.  The tables also do not reflect the deduction of the cost of any optional rider.

Upon request, we will furnish a comparable illustration based on the proposed Insured's age, sex and underwriting risk classification, Specified Death Benefit, death benefit option, proposed amount and frequency of premium payments, and any available riders requested.

JACKSON NATIONAL LIFE INSURANCE COMPANY

Individual Flexible Premium Adjustable Variable Life Insurance Policy

Male Preferred Non-tobacco Issue Age 45

$7,146 Annual Premium

$450,000 Specified Death Benefit (Death Benefit Option A)

Guaranteed Maximum Charges

	0% Hypothetical Gross Investment Return (-1.738% Net)			6% Hypothetical Gross Investment Return (4.203% Net)			12% Hypothetical Gross Investment Return (10.143% Net)
Policy Year	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit
1	4,743	-	450,000	5,074	-	450,000	5,406	-	450,000
2	9,318	2,964	450,000	10,275	3,921	450,000	11,273	4,919	450,000
3	13,722	8,165	450,000	15,602	10,044	450,000	17,642	12,084	450,000
4	18,091	13,326	450,000	21,198	16,433	450,000	24,708	19,942	450,000
5	22,329	18,360	450,000	26,978	23,009	450,000	32,443	28,474	450,000
6	26,410	23,233	450,000	32,921	29,744	450,000	40,890	37,713	450,000
7	30,321	27,940	450,000	39,021	36,641	450,000	50,109	47,729	450,000
8	34,025	32,437	450,000	45,247	43,658	450,000	60,148	58,559	450,000
9	37,517	36,725	450,000	51,596	50,804	450,000	71,087	70,295	450,000
10	40,756	40,756	450,000	58,037	58,037	450,000	82,989	82,989	450,000
11	44,023	44,023	450,000	64,864	64,864	450,000	96,266	96,266	450,000
12	46,996	46,996	450,000	71,768	71,768	450,000	110,738	110,738	450,000
13	49,660	49,660	450,000	78,742	78,742	450,000	126,535	126,535	450,000
14	52,064	52,064	450,000	85,839	85,839	450,000	143,859	143,859	450,000
15	54,177	54,177	450,000	93,039	93,039	450,000	162,870	162,870	450,000
16	55,948	55,948	450,000	100,306	100,306	450,000	183,742	183,742	450,000
17	57,315	57,315	450,000	107,593	107,593	450,000	206,669	206,669	450,000
18	58,196	58,196	450,000	114,838	114,838	450,000	231,877	231,877	450,000
19	58,538	58,538	450,000	122,007	122,007	450,000	259,659	259,659	450,000
20	58,316	58,316	450,000	129,092	129,092	450,000	290,380	290,380	450,000
25	47,909	47,909	450,000	163,194	163,194	450,000	502,076	502,076	582,409
30	13,670	13,670	450,000	191,632	191,632	450,000	843,306	843,306	902,338
35	**	**	**	202,080	202,080	450,000	1,392,711	1,392,711	1,462,346
40	**	**	**	157,823	157,823	450,000	2,252,626	2,252,626	2,365,257
45	**	**	**	**	**	**	3,564,564	3,564,564	3,742,792
50	**	**	**	**	**	**	5,642,493	5,642,493	5,698,918
55	**	**	**	**	**	**	9,067,115	9,067,115	9,157,787
60	**	**	**	**	**	**	14,466,844	14,466,844	14,611,512
65	**	**	**	**	**	**	22,857,265	22,857,265	23,085,838
70	**	**	**	**	**	**	35,740,509	35,740,509	36,097,914
75	**	**	**	**	**	**	55,797,478	55,797,478	56,355,452
76	**	**	**	**	**	**	60,996,607	60,996,607	61,606,573

Assumptions:

1.   Premium shown is paid at the beginning of each Policy Year. Values would differ if Premiums were paid with a different frequency or in different amounts.

2.   No policy loans or partial surrenders have been taken.

3.   Illustrated values reflect guaranteed expenses and guaranteed cost of insurance charges.

4.   Accumulated Values will vary from those illustrated if actual rates differ from those assumed.

5.   The Death Benefits shown comply with Section 7702 of the Internal Revenue Code (as amended) based on the Guideline Premium Test.

6.   When the Cash Surrender Value is zero, the Policy might lapse unless sufficient additional premium is paid within the Grace Period.

The hypothetical gross investment rates of return shown above are illustrative only and should not be deemed a representation of past or future investment rates of return. Actual investment results may be more or less than those shown and will depend on a number of factors, including the investment allocations made by an owner and the investment experience of the Underlying Mutual Funds. The Accumulated Value, Cash Surrender Value and Death Benefit for a Policy would be different from those shown if the actual gross annual rates of return averaged 0.00%, 6.00% and 12.00% over a period of years but also fluctuated above or below those averages for individual Policy Years. No representation can be made by Jackson or any Underlying Mutual Fund that these hypothetical rates of return can be achieved for any one year or sustained over any period of time.

JACKSON NATIONAL LIFE INSURANCE COMPANY

Individual Flexible Premium Adjustable Variable Life Insurance Policy

Male Preferred Non-tobacco Issue Age 45

$7,146 Annual Premium

$450,000 Specified Death Benefit (Death Benefit Option A)

Current Charges

	0% Hypothetical Gross Investment Return			6% Hypothetical Gross Investment Return			12% Hypothetical Gross Investment Return
Policy Year	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit
1	5,126	-	450,000	5,470	-	450,000	5,814	-	450,000
2	10,070	3,716	450,000	11,075	4,721	450,000	12,122	5,768	450,000
3	14,860	9,303	450,000	16,848	11,290	450,000	19,002	13,445	450,000
4	19,669	14,904	450,000	22,972	18,207	450,000	26,697	21,932	450,000
5	24,409	20,440	450,000	29,373	25,404	450,000	35,198	31,229	450,000
6	29,215	26,038	450,000	36,206	33,029	450,000	44,740	41,563	450,000
7	33,916	31,535	450,000	43,311	40,930	450,000	55,244	52,864	450,000
8	38,542	36,953	450,000	50,729	49,141	450,000	66,841	65,253	450,000
9	43,095	42,303	450,000	58,476	57,684	450,000	79,647	78,855	450,000
10	47,561	47,561	450,000	66,553	66,553	450,000	93,775	93,775	450,000
11	52,579	52,579	450,000	75,772	75,772	450,000	110,399	110,399	450,000
12	57,376	57,376	450,000	85,298	85,298	450,000	128,725	128,725	450,000
13	61,937	61,937	450,000	95,134	95,134	450,000	148,947	148,947	450,000
14	66,276	66,276	450,000	105,315	105,315	450,000	171,307	171,307	450,000
15	70,396	70,396	450,000	115,869	115,869	450,000	196,071	196,071	450,000
16	74,423	74,423	450,000	126,932	126,932	450,000	223,621	223,621	450,000
17	78,269	78,269	450,000	138,460	138,460	450,000	254,233	254,233	450,000
18	81,922	81,922	450,000	150,475	150,475	450,000	288,281	288,281	450,000
19	85,467	85,467	450,000	163,080	163,080	450,000	326,228	326,228	450,000
20	88,905	88,905	450,000	176,316	176,316	450,000	368,547	368,547	450,000
25	104,210	104,210	450,000	255,493	255,493	450,000	668,548	668,548	775,515
30	112,823	112,823	450,000	358,525	358,525	450,000	1,177,207	1,177,207	1,259,612
35	108,319	108,319	450,000	496,515	496,515	521,340	2,041,583	2,041,583	2,143,662
40	77,385	77,385	450,000	673,544	673,544	707,222	3,495,843	3,495,843	3,670,635
45	**	**	**	894,727	894,727	939,463	5,916,573	5,916,573	6,212,402
50	**	**	**	1,178,125	1,178,125	1,189,906	9,997,792	9,997,792	10,097,770
55	**	**	**	1,550,587	1,550,587	1,566,093	16,987,081	16,987,081	17,156,952
60	**	**	**	2,023,910	2,023,910	2,044,149	28,759,101	28,759,101	29,046,692
65	**	**	**	2,592,196	2,592,196	2,618,118	48,488,243	48,488,243	48,973,125
70	**	**	**	3,301,835	3,301,835	3,334,853	81,510,950	81,510,950	82,326,059
75	**	**	**	4,194,370	4,194,370	4,236,314	136,646,428	136,646,428	138,012,893
76	**	**	**	4,398,528	4,398,528	4,442,513	151,471,527	151,471,527	152,986,242

Assumptions:

1.   Premium shown is paid at the beginning of each Policy Year. Values would differ if Premiums were paid with a different frequency or in different amounts.

2.   No policy loans or partial surrenders have been taken.

3.   Illustrated values reflect current expenses and current cost of insurance charges, which are subject to change.

4.   Accumulated Values will vary from those illustrated if actual rates differ from those assumed.

5.   The Death Benefits shown comply with Section 7702 of the Internal Revenue Code (as amended) based on the Guideline Premium Test.

6.   When the Cash Surrender Value is zero, the Policy might lapse unless sufficient additional premium is paid within the Grace Period.

7.   The gross annual investment rates of 0%, 6% and 12% correspond to net annual investment rates of return of

-1.639%, 4.307% and 10.253%, respectively, during years one through ten,  -0.998%, 4.987% and 10.972% respectively, during years eleven through twenty, and -0.750%, 5.250% and 11.250%, respectively, during years twenty-one and thereafter.

The hypothetical gross investment rates of return shown above are illustrative only and should not be deemed a representation of past or future investment rates of return. Actual investment results may be more or less than those shown and will depend on a number of factors, including the investment allocations made by an owner and the investment experience of the Underlying Mutual Funds. The Accumulated Value, Cash Surrender Value and Death Benefit for a Policy would be different from those shown if the actual gross annual rates of return averaged 0.00%, 6.00% and 12.00% over a period of years but also fluctuated above or below those averages for individual Policy Years. No representation can be made by Jackson or any Underlying Mutual Fund that these hypothetical rates of return can be achieved for any one year or sustained over any period of time.

FINANCIAL STATEMENTS

In the pages that follow are the financial statements of the Separate Account as of December 31, 2010 and Jackson as of December 31, 2010, 2009, and 2008, and the accompanying Independent Registered Public Accounting Firm's Reports.  The financial statements of Jackson included herein should be considered only as bearing upon the ability of Jackson to meet its obligations under the Policies.  Jackson's financial statements do not bear on the future investment experience of the assets held in the Separate Account.

STATEMENT OF ADDITIONAL INFORMATION

May 1, 2011

INDIVIDUAL FLEXIBLE PREMIUM ADJUSTABLE VARIABLE UNIVERSAL LIFE INSURANCE POLICIES

Issued By

JACKSON NATIONAL LIFE INSURANCE COMPANY®

In Connection With Its

JACKSON NATIONAL SEPARATE ACCOUNT IV

This Statement of Additional Information is not a prospectus.  This Statement of Additional Information contains additional information about the Policies described above that you may find useful.  You should read it together with the Prospectus for the Policies.  The date of the Prospectus to which this Statement of Additional Information relates is May 1, 2011 .  You may obtain a copy of the Prospectus without charge by calling us toll-free at (800) 873-5654 or by writing to us at the following address.

Jackson National Life Insurance Company

P.O. Box 30314

Lansing, Michigan 48909-7814

TABLE OF CONTENTS

	Page
GENERAL INFORMATION AND HISTORY	3
SERVICES	3
DISTRIBUTOR	9
DISTRIBUTION OF THE POLICIES	9
PERFORMANCE DATA	9
ILLUSTRATION OF DEATH BENEFITS, ACCUMULATED VALUES AND CASH SURRENDER VALUES	10
FINANCIAL STATEMENTS	15

GENERAL INFORMATION AND HISTORY

Jackson National Life Insurance Company ("JacksonSM") is a stock life insurance company organized under the laws of the state of Michigan in June 1961.  Its legal domicile and principal business address is 1 Corporate Way, Lansing, Michigan 48951.  Jackson is a wholly owned subsidiary of Brooke Life Insurance Company and is ultimately a wholly owned subsidiary of Prudential plc, London, England, a publicly traded life insurance company in the United Kingdom.

Jackson National Separate Account IV (the "Separate Account") was established in 1997 as a segregated asset account of Jackson.  The Separate Account is registered as a unit investment trust under the Investment Company of 1940, as amended.

Trademarks, Service Marks, and Related Disclosures

The Product(s) is not sponsored, endorsed, sold or promoted by The Nasdaq Stock Market, Inc. (including its affiliates) (Nasdaq, with its affiliates, are referred to as the Corporations).  The Corporations have not passed on the legality or suitability of or the accuracy or adequacy of descriptions and disclosures relating to the Product(s).  The Corporations make no representation or warranty, express or implied to the Owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly, or the ability of the Nasdaq-100 Index® to track general stock market performance.  The Corporations’ only relationship to Jackson (Licensee) is in the licensing of the Nasdaq-100®, Nasdaq-100 Index® and Nasdaq® trademarks or service marks, and certain trade names of the Corporations and the use of the Nasdaq-100 Index® which is determined, composed and calculated by Nasdaq without regard to Licensee or the Product(s).  Nasdaq has no obligation to take the needs of the Licensee or the Owners of the Product(s) into consideration in determining, composing or calculating the Nasdaq-100 Index®.  The Corporations are not responsible for and have not participated in the determination of the timing of, prices at or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash.  The Corporations have no liability in connection with the administration, marketing or trading of the Product(s).

The Corporations do not guarantee the accuracy and/or uninterrupted calculation of the Nasdaq-100 index® or any data included therein.  The Corporations make no warranty, express or implied, as to results to be obtained by Licensee, Owners of the product(s) or any other person or entity from the use of the Nasdaq-100 Index® or any data included therein.  The Corporations make no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the Nasdaq-100 Index® or any data included therein.  Without limiting any of the foregoing, in no event shall the Corporations have any liability for any lost profits or special, incidental, punitive, indirect or consequential damages, even if notified of the possibility of such damages.

“The Nasdaq-100®,” “Nasdaq-100 Index®,” “Nasdaq Stock Market®” and “Nasdaq®” are trade or service marks of The Nasdaq, Inc. (which with its affiliates are the “Corporations”) and have been licensed for use by Jackson.  The Corporations have not passed on the legality or suitability of the JNL/Mellon Capital Management Nasdaq®25 Fund, the JNL/Mellon Capital Management JNL Optimized 5 Fund, or the JNL/Mellon Capital Management VIP Fund.  The JNL/Mellon Capital Management Nasdaq® 25 Fund, the JNL/Mellon Capital Management VIP Fund and the JNL/Mellon Capital Management JNL Optimized 5 Fund are not issued, endorsed, sponsored, managed, sold or promoted by the Corporations.  THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE JNL/MELLON CAPITAL MANAGEMENT NASDAQ® 25 FUND, THE JNL/MELLON CAPITAL MANAGEMENT VIP FUND AND THE JNL/MELLON CAPITAL MANAGEMENT JNL OPTIMIZED 5 FUND.

“NYSE®” is a registered mark of, and “NYSE International 100 IndexSM” is a service mark of, the New York Stock Exchange, Inc. (“NYSE”) and have been licensed for use for certain purposes by Jackson National Asset Management, LLC.  The JNL/Mellon Capital Management NYSE® International 25 Fund is not sponsored, endorsed, sold or promoted by NYSE, and NYSE makes no representation regarding the advisability of investing in the JNL/Mellon Capital Management NYSE® International 25 Fund.

“NYSE International 100 IndexSM” is a service mark of NYSE Group, Inc.  NYSE Group, Inc. has no relationship to Jackson National Asset Management, LLC, other than the licensing of the “NYSE International 100 IndexSM” (the “Index”) and its service marks for use in connection with the JNL/Mellon Capital Management NYSE® International 25 Fund.

NYSE Group, Inc. does not:

·Sponsor, endorse, sell or promote the JNL/Mellon Capital Management NYSE® International 25 Fund.

·Recommend that any person invest in the JNL/Mellon Capital Management NYSE® International 25 Fund or any other securities.

·Have any responsibility or liability for or make any decisions about the timing, amount or pricing of JNL/Mellon Capital Management NYSE® International 25 Fund.

·Have any responsibility or liability for the administration, management or marketing of the JNL/Mellon Capital Management NYSE® International 25 Fund.

·Consider the needs of the JNL/Mellon Capital Management NYSE® International 25 Fund or the owners of the JNL/Mellon Capital Management NYSE® International 25 Fund in determining, composing or calculating the NYSE International 100 IndexSM or have any obligation to do so.

NYSE Group, Inc. and its affiliates will not have any liability in connection with the JNL/Mellon Capital Management NYSE® International 25 Fund.  Specifically,

·NYSE Group, Inc. and its affiliates make no warranty, express or implied, and NYSE Group, Inc. and its affiliates disclaim any warranty about:

·The results to be obtained by the JNL/Mellon Capital Management NYSE® International 25 Fund, the owner of the JNL/Mellon Capital Management NYSE® International 25 Fund or any other person in connection with the use of the Index and the data included in the NYSE International 100 IndexSM;

·The accuracy or completeness of the Index and its data;

·The merchantability and the fitness for a particular purpose or use of the Index and its data;

·NYSE Group, Inc. will have no liability for any errors, omissions or interruptions in the Index or its data;

·Under no circumstances will NYSE Group, Inc. or any of its affiliates be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if NYSE Group, Inc. knows that they might occur.

The licensing agreement between Jackson National Asset Management, LLC and NYSE Group, Inc. is solely for their benefit and not for the benefit of the owners of the JNL/Mellon Capital Management NYSE® International 25 Fund or any other third parties.

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes.  Russell is a trademark of Russell Investment Group.

JNL/Mellon Capital Management Small Cap Index Fund is not promoted, sponsored or endorsed by, nor in any way affiliated with Russell Investment Group ("Russell").  Russell is not responsible for and has not reviewed JNL/Mellon Capital Management Small Cap Index Fund nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes.  Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.

Russell's publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based.  RUSSELL MAKES NO REPRESENTATION, WARRANTY, OR GUARANTEE AS TO THE ACCURACY COMPLETENESS, RELIABILITY, OR OTHERWISE OF THE RUSSELL INDEXES.  RUSSELL MAKES NO REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE, OR THE RESULTS OF USE, OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITY (OR COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES.  RUSSELL MAKES NO OTHER EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.

Standard & Poor’s Investment Advisory Services LLC (“SPIAS”) is a registered investment adviser and a wholly-owned subsidiary of The McGraw-Hill Companies, Inc. SPIAS does not provide advice to underlying clients of the firms to which it provides services.  SPIAS does not act as a “fiduciary” or as an “investment manager”, as defined under ERISA, to any investor.  SPIAS is not responsible for client suitability. Past performance of the Funds is no indication of future results. Since performance fluctuates over time, the fact that the Funds may have outperformed the benchmarks over one period of time does not mean that they outperformed the benchmarks over other periods or will outperform the benchmarks in the future.  SPIAS does not take into account any information about any investor or any investor’s assets when creating, providing or maintaining any asset allocation portfolio.  SPIAS does not have any discretionary authority or control with respect to purchasing or selling securities or making other investments.

The JNL/Mellon Capital Management S&P Divisions and JNL/S&P Divisions, and any other investment fund or other vehicle that is offered by third parties that uses an S&P Index as a benchmark or measure of performance, bears the S&P mark and /or seeks to provide an investment return based on the returns of any Standard & Poor’s Index are not sponsored, endorsed, sold or promoted by Standard & Poor's Financial Services LLC (“S&P”) and its affiliates. S&P is not an investment adviser and S&P and its affiliates make no representation or warranty, express or implied, to the owners of the Divisions or any member of the public regarding the advisability of investing in securities generally or in the Divisions particularly or the ability of the S&P 500 ® Index, the S&P MIDCAP 400 Index®, the S&P SmallCap 600 Index®,or any other S&P Index to track general stock market performance.  S&P's only relationship to the Separate Account (Licensee) is the licensing of certain registered trademarks and trade names of S&P, the S&P 500 Index, the S&P MIDCAP 400 Index, and the S&P SmallCap 600 Index, which are determined, composed and calculated by S&P without regard to the Licensee or the Divisions.  S&P has no obligation to take the needs of the Licensee or the owners of the Divisions into consideration in determining, composing or calculating the S&P 500 Index, the S&P 400 Index, the S&P SmallCap 600 Index or any other S&P Index.  S&P is not responsible for and has not participated in the determination of the prices and amount of the Divisions or the timing of the issuance or sale of the Divisions or in the determination or calculation of the equation by which the Divisions are to be converted into cash.  S&P has no obligation or liability in connection with the administration, marketing or trading of the Divisions.

S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, THE S&P SMALLCAP 600 INDEX, OR ANY OTHER S&P INDEX OR ANY DATA INCLUDED THEREIN AND S&P SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.  S&P MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE DIVISIONS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, THE S&P SMALLCAP 600 INDEX, OR ANY OTHER S&P INDEX OR ANY DATA INCLUDED THEREIN.  S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, THE S&P SMALLCAP 600 INDEX, OR ANY OTHER S&P INDEX OR ANY DATA INCLUDED THEREIN.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

SPIAS, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings, and are not responsible for errors and omissions, or for the results obtained from the use of such information, and S&P Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.

S&P’s credit ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions.  S&P credit ratings should not be relied on when making any investment or other business decision.  S&P’s opinions and analyses do not address the suitability of any security.  S&P does not act as a fiduciary or an investment advisor. While S&P and SPIAS have obtained information from sources they believe to be reliable, neither S&P nor SPIAS performs an audit and neither undertakes any duty of due diligence or independent verification of any information it receives.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees .

Jackson has entered into a License Agreement with Value Line®.  Value Line Publishing, Inc.'s ("VLPI") only relationship to Jackson is VLPI's licensing to Jackson of certain VLPI trademarks and trade names and the Value Line Timeliness Ranking System (the "System"), which is composed by VLPI without regard to Jackson, this Product or any investor.  VLPI has no obligation to take the needs of  Jackson or any investor in the Product into consideration in composing the System.  The Product results may differ from the hypothetical or published results of the Value Line Timeliness Ranking System.  VLPI is not responsible for and has not participated in the determination of the prices and composition of the Product or the timing of the issuance for sale of the Product or in the calculation of the equations by which the Product is to be converted into cash.

VLPI MAKES NO WARRANTY CONCERNING THE SYSTEM, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY IMPLIED WARRANTIES ARISING FROM USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE, AND VLPI MAKES NO WARRANTY AS TO THE POTENTIAL PROFITS OR ANY OTHER BENEFITS THAT MAY BE ACHIEVED BY USING THE SYSTEM OR ANY INFORMATION OR MATERIALS GENERATED THEREFROM.  VLPI DOES NOT WARRANT THAT THE SYSTEM WILL MEET ANY REQUIREMENTS OR THAT IT WILL BE ACCURATE OR ERROR-FREE.  VLPI ALSO DOES NOT GUARANTEE ANY USES, INFORMATION, DATA OR OTHER RESULTS GENERATED FROM THE SYSTEM.  VLPI HAS NO OBLIGATION OR LIABILITY (I) IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR TRADING OF THE PRODUCT; OR (II) FOR ANY LOSS, DAMAGE, COST OR EXPENSE SUFFERED OR INCURRED BY ANY INVESTOR OR OTHER PERSON OR ENTITY IN CONNECTION WITH THIS PRODUCT, AND IN NO EVENT SHALL VLPI BE LIABLE FOR ANY LOST PROFITS OR OTHER CONSEQUENTIAL, SPECIAL, PUNITIVE, INCIDENTAL, INDIRECT OR EXEMPLARY DAMAGES IN CONNECTION WITH THE PRODUCT.

THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. (“MSCI”), ANY OF ITS AFFILIATES, ANY OF ITS INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE “MSCI PARTIES”).  THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.  MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY JACKSON NATIONAL ASSET MANAGEMENT, LLC.  NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY REGARDING THE ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR IN THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE.  MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY.  NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE MSCI INDEXES.  NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND IS REDEEMABLE.  FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE ISSUER OR OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND.

ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN.  NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND, OWNERS OF THE JNL/MELLON CAPITAL MANAGEMENT INTERNATIONAL INDEX FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN.  NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

SERVICES

The financial statements of Jackson National Separate Account IV and Jackson National Life Insurance Company for the periods indicated have been included herein in reliance upon the reports of KPMG LLP, an independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.  KPMG LLP is located at 303 East Wacker Drive, Chicago, Illinois 60601.

Actuarial matters included in the Prospectus and this Statement of Additional Information, including the hypothetical Policy illustrations included herein, have been approved by Angela Matthews, Actuary of Jackson, and are included in reliance upon her opinion as to their reasonableness.

DISTRIBUTOR

The Policies are distributed by Jackson National Life Distributors LLC ("JNLD"), a subsidiary of Jackson.  JNLD is located at 7601 Technology Way, Denver, Colorado 80237.  The Policies are offered on a continuous basis.  However, Jackson reserves the right to discontinue offering the Policies at any time.

The aggregate amount of underwriting commissions paid to broker-dealers was  $2,004,574 in 2008 , $1,494,322 in 2009 , and $1,351,302 in 2010 .  JNLD did not retain any portion of the commissions.

DISTRIBUTION OF THE POLICIES

The Policies are sold by registered representatives of broker-dealers who are our insurance agents, either individually or through an incorporated insurance agency.  Registered representatives who sell the Policies may earn a maximum sales commission of approximately 90% of all premiums up to the first year Target Premium plus up to 3% of any additional premiums paid in excess of that amount.  Registered representatives also may be eligible for a trail commission of up to 0.15% on Policies that have been in force for at least twelve months.  Jackson may also pay up to 8% of all premiums up to the first year Target Premium as a broker dealer concession in the first Policy Year.  From time to time, we may pay or permit other promotional incentives in cash, credits, or other compensation.   Jackson pays all such commissions and incentives. 

PERFORMANCE DATA

From time to time, we may advertise performance data related to the Investment Divisions of the Separate Account available under the Policy.

The performance figures are calculated using the actual historical performance of the Underlying Mutual Funds for the periods shown and represent the average annual total return for that period.  The performance for a specific period is calculated by taking a hypothetical $1,000 investment in an Investment Division on the first day of the period ("initial investment") and computing the average annual compounded rate of return for the period that would equate the initial investment with the value of that investment at the end of the period, carried to at least the nearest hundredth of a percent.

The performance returns will reflect the deduction of management fees and all other operating expenses of the Underlying Mutual Funds and the deduction of the current asset based risk charge applicable under the Policy for the first ten Policy Years.  The guaranteed asset based risk charge is higher and the current asset based risk charge is lower after the tenth year. The returns will not reflect any premium deductions for costs of insurance, premium charges, monthly policy fees or administrative charges, surrender charges, or other policy charges.  IF THE PERFORMANCE INCLUDED SUCH DEDUCTIONS, THE RETURNS SHOWN WOULD BE SIGNIFICANTLY LOWER.

Performance data may be shown for the period from the commencement of Policy sales.

ILLUSTRATION OF DEATH BENEFITS,

ACCUMULATED VALUES AND CASH SURRENDER VALUES

The following tables illustrate how values under a Policy change with the investment experience of the Underlying Mutual Funds. The tables illustrate how the Death Benefits, Accumulated Values and Cash Surrender Values of a Policy issued to an Insured of a given age and underwriting risk classification would vary over an extended period of time if the hypothetical gross investment rates of return on the assets held in the Investment Divisions of the Separate Account were a uniform annual rate of 0%, 6% or 12%.  If the hypothetical gross investment rate of return averages 0%, 6%, or 12%, but fluctuates over and under those averages throughout the years, the Death Benefits, Accumulated Values, and Cash Surrender Values may be different.

The amounts shown for the Death Benefit, Accumulated Value, and Cash Surrender Value as of each Policy Anniversary reflect the fact that the net investment returns on the assets held in the Investment Divisions are lower than the gross after-tax returns on the Underlying Mutual Funds, as a result of the expenses paid by the Underlying Mutual Funds and the charges deducted from the Investment Divisions.  The net investment returns reflect the deduction of the Underlying Mutual Fund investment management fees and other Underlying Mutual Fund expenses at an annual effective rate of 0.75%, which is the arithmetic average of the actual and estimated fees and expenses for all of the Underlying Mutual Funds.  The gross annual investment rates of 0%, 6% and 12% correspond to net annual investment rates of return of -1.738%, 4.203% and 10.143% respectively, on a guaranteed basis, and -1.639%, 4.307% and 10.253%, respectively, on a current basis during years one through ten, -0.998%, 4.987% and 10.972% respectively, on a current basis during years eleven through twenty, and -0.750%, 5.250% and 11.250%, respectively, on a current basis during years twenty-one and thereafter.

The tables illustrate the Death Benefits, Accumulated Values, and Cash Surrender Values that would result based upon the hypothetical investment rates of return if no payments other than the specified annual premium payments are made, if all premium payments are allocated to the Separate Account, and if no policy loans are taken.  The tables also assume that no partial surrenders, transfers, or changes in the Specified Death Benefit or death benefit option are made.

Values are shown for Policies issued to preferred non-tobacco class Insureds.  Values for Policies issued on a basis involving higher mortality risk would result in lower Death Benefits, Accumulated Values, and Cash Surrender Values than those illustrated.  Females generally have a more favorable cost of insurance rate structure than males, and non-tobacco class Insureds generally have a more favorable cost of insurance rate than tobacco class Insureds.

The amounts shown in the tables also reflect all charges deducted under the Policy based on the assumptions described herein and in the tables.  These charges include a sales charge, premium tax charge, and federal (DAC) tax charge, which are deducted from each premium; a daily asset based risk charge, which is deducted from the assets of the Investment Divisions; and a monthly policy fee, monthly administrative charge, and monthly cost of insurance charge, which are deducted from Accumulated Value.  The current sales charge is 6% for years 1-5 and 4% for years 6+ (up to the Target Premium).  The sales charge is guaranteed not to exceed 6% of all premium.  The premium tax charge and federal (DAC) tax charge are 2.5% and 1.5% of each premium, respectively.  The asset based risk charge is currently equivalent to an annual effective rate of 0.90% and 0.25% for Policy Years 1-10 and 11-20, respectively, and 0.00% thereafter.  This charge is guaranteed not to exceed 1.00% in all Policy Years.  The monthly policy fee is $15 per month for the first three Policy Years and $7.50 per month thereafter.  The monthly administrative fee is $0.07 per month per $1,000 of Specified Death Benefit for Policy Years 1-10 and $0.01 per month per $1,000 thereafter.  This charge is assessed on up to $2 million of Specified Death Benefit.  The monthly cost of insurance charge varies with the amount of insurance coverage and the age, sex and underwriting risk classification of the Insured.  Cash Surrender Values reflect any applicable Surrender Charges.

The hypothetical values shown in the tables do not reflect any charges for federal, state or other income taxes against the Separate Account, since we are not currently making this charge.  However, if such a charge is made in the future, a higher gross annual investment rate of return than illustrated would be needed to produce the net after tax returns shown in the tables.  The tables also do not reflect the deduction of the cost of any optional rider.

Upon request, we will furnish a comparable illustration based on the proposed Insured's age, sex and underwriting risk classification, Specified Death Benefit, death benefit option, proposed amount and frequency of premium payments, and any available riders requested.

JACKSON NATIONAL LIFE INSURANCE COMPANY

Individual Flexible Premium Adjustable Variable Life Insurance Policy

Male Preferred Non-tobacco Issue Age 45

$7,146 Annual Premium

$450,000 Specified Death Benefit (Death Benefit Option A)

Guaranteed Maximum Charges

	0% Hypothetical Gross Investment Return (-1.738% Net)			6% Hypothetical Gross Investment Return (4.203% Net)			12% Hypothetical Gross Investment Return (10.143% Net)
Policy Year	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit
1	4,743	-	450,000	5,074	-	450,000	5,406	-	450,000
2	9,318	2,964	450,000	10,275	3,921	450,000	11,273	4,919	450,000
3	13,722	8,165	450,000	15,602	10,044	450,000	17,642	12,084	450,000
4	18,091	13,326	450,000	21,198	16,433	450,000	24,708	19,942	450,000
5	22,329	18,360	450,000	26,978	23,009	450,000	32,443	28,474	450,000
6	26,410	23,233	450,000	32,921	29,744	450,000	40,890	37,713	450,000
7	30,321	27,940	450,000	39,021	36,641	450,000	50,109	47,729	450,000
8	34,025	32,437	450,000	45,247	43,658	450,000	60,148	58,559	450,000
9	37,517	36,725	450,000	51,596	50,804	450,000	71,087	70,295	450,000
10	40,756	40,756	450,000	58,037	58,037	450,000	82,989	82,989	450,000
11	44,023	44,023	450,000	64,864	64,864	450,000	96,266	96,266	450,000
12	46,996	46,996	450,000	71,768	71,768	450,000	110,738	110,738	450,000
13	49,660	49,660	450,000	78,742	78,742	450,000	126,535	126,535	450,000
14	52,064	52,064	450,000	85,839	85,839	450,000	143,859	143,859	450,000
15	54,177	54,177	450,000	93,039	93,039	450,000	162,870	162,870	450,000
16	55,948	55,948	450,000	100,306	100,306	450,000	183,742	183,742	450,000
17	57,315	57,315	450,000	107,593	107,593	450,000	206,669	206,669	450,000
18	58,196	58,196	450,000	114,838	114,838	450,000	231,877	231,877	450,000
19	58,538	58,538	450,000	122,007	122,007	450,000	259,659	259,659	450,000
20	58,316	58,316	450,000	129,092	129,092	450,000	290,380	290,380	450,000
25	47,909	47,909	450,000	163,194	163,194	450,000	502,076	502,076	582,409
30	13,670	13,670	450,000	191,632	191,632	450,000	843,306	843,306	902,338
35	**	**	**	202,080	202,080	450,000	1,392,711	1,392,711	1,462,346
40	**	**	**	157,823	157,823	450,000	2,252,626	2,252,626	2,365,257
45	**	**	**	**	**	**	3,564,564	3,564,564	3,742,792
50	**	**	**	**	**	**	5,642,493	5,642,493	5,698,918
55	**	**	**	**	**	**	9,067,115	9,067,115	9,157,787
60	**	**	**	**	**	**	14,466,844	14,466,844	14,611,512
65	**	**	**	**	**	**	22,857,265	22,857,265	23,085,838
70	**	**	**	**	**	**	35,740,509	35,740,509	36,097,914
75	**	**	**	**	**	**	55,797,478	55,797,478	56,355,452
76	**	**	**	**	**	**	60,996,607	60,996,607	61,606,573

Assumptions:

1.   Premium shown is paid at the beginning of each Policy Year. Values would differ if Premiums were paid with a different frequency or in different amounts.

2.   No policy loans or partial surrenders have been taken.

3.   Illustrated values reflect guaranteed expenses and guaranteed cost of insurance charges.

4.   Accumulated Values will vary from those illustrated if actual rates differ from those assumed.

5.   The Death Benefits shown comply with Section 7702 of the Internal Revenue Code (as amended) based on the Guideline Premium Test.

6.   When the Cash Surrender Value is zero, the Policy might lapse unless sufficient additional premium is paid within the Grace Period.

The hypothetical gross investment rates of return shown above are illustrative only and should not be deemed a representation of past or future investment rates of return. Actual investment results may be more or less than those shown and will depend on a number of factors, including the investment allocations made by an owner and the investment experience of the Underlying Mutual Funds. The Accumulated Value, Cash Surrender Value and Death Benefit for a Policy would be different from those shown if the actual gross annual rates of return averaged 0.00%, 6.00% and 12.00% over a period of years but also fluctuated above or below those averages for individual Policy Years. No representation can be made by Jackson or any Underlying Mutual Fund that these hypothetical rates of return can be achieved for any one year or sustained over any period of time.

JACKSON NATIONAL LIFE INSURANCE COMPANY

Individual Flexible Premium Adjustable Variable Life Insurance Policy

Male Preferred Non-tobacco Issue Age 45

$7,146 Annual Premium

$450,000 Specified Death Benefit (Death Benefit Option A)

Current Charges

	0% Hypothetical Gross Investment Return			6% Hypothetical Gross Investment Return			12% Hypothetical Gross Investment Return
Policy Year	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit	Policy Value	Cash Surrender Value	Death Benefit
1	5,126	-	450,000	5,470	-	450,000	5,814	-	450,000
2	10,070	3,716	450,000	11,075	4,721	450,000	12,122	5,768	450,000
3	14,860	9,303	450,000	16,848	11,290	450,000	19,002	13,445	450,000
4	19,669	14,904	450,000	22,972	18,207	450,000	26,697	21,932	450,000
5	24,409	20,440	450,000	29,373	25,404	450,000	35,198	31,229	450,000
6	29,215	26,038	450,000	36,206	33,029	450,000	44,740	41,563	450,000
7	33,916	31,535	450,000	43,311	40,930	450,000	55,244	52,864	450,000
8	38,542	36,953	450,000	50,729	49,141	450,000	66,841	65,253	450,000
9	43,095	42,303	450,000	58,476	57,684	450,000	79,647	78,855	450,000
10	47,561	47,561	450,000	66,553	66,553	450,000	93,775	93,775	450,000
11	52,579	52,579	450,000	75,772	75,772	450,000	110,399	110,399	450,000
12	57,376	57,376	450,000	85,298	85,298	450,000	128,725	128,725	450,000
13	61,937	61,937	450,000	95,134	95,134	450,000	148,947	148,947	450,000
14	66,276	66,276	450,000	105,315	105,315	450,000	171,307	171,307	450,000
15	70,396	70,396	450,000	115,869	115,869	450,000	196,071	196,071	450,000
16	74,423	74,423	450,000	126,932	126,932	450,000	223,621	223,621	450,000
17	78,269	78,269	450,000	138,460	138,460	450,000	254,233	254,233	450,000
18	81,922	81,922	450,000	150,475	150,475	450,000	288,281	288,281	450,000
19	85,467	85,467	450,000	163,080	163,080	450,000	326,228	326,228	450,000
20	88,905	88,905	450,000	176,316	176,316	450,000	368,547	368,547	450,000
25	104,210	104,210	450,000	255,493	255,493	450,000	668,548	668,548	775,515
30	112,823	112,823	450,000	358,525	358,525	450,000	1,177,207	1,177,207	1,259,612
35	108,319	108,319	450,000	496,515	496,515	521,340	2,041,583	2,041,583	2,143,662
40	77,385	77,385	450,000	673,544	673,544	707,222	3,495,843	3,495,843	3,670,635
45	**	**	**	894,727	894,727	939,463	5,916,573	5,916,573	6,212,402
50	**	**	**	1,178,125	1,178,125	1,189,906	9,997,792	9,997,792	10,097,770
55	**	**	**	1,550,587	1,550,587	1,566,093	16,987,081	16,987,081	17,156,952
60	**	**	**	2,023,910	2,023,910	2,044,149	28,759,101	28,759,101	29,046,692
65	**	**	**	2,592,196	2,592,196	2,618,118	48,488,243	48,488,243	48,973,125
70	**	**	**	3,301,835	3,301,835	3,334,853	81,510,950	81,510,950	82,326,059
75	**	**	**	4,194,370	4,194,370	4,236,314	136,646,428	136,646,428	138,012,893
76	**	**	**	4,398,528	4,398,528	4,442,513	151,471,527	151,471,527	152,986,242

Assumptions:

1.   Premium shown is paid at the beginning of each Policy Year. Values would differ if Premiums were paid with a different frequency or in different amounts.

2.   No policy loans or partial surrenders have been taken.

3.   Illustrated values reflect current expenses and current cost of insurance charges, which are subject to change.

4.   Accumulated Values will vary from those illustrated if actual rates differ from those assumed.

5.   The Death Benefits shown comply with Section 7702 of the Internal Revenue Code (as amended) based on the Guideline Premium Test.

6.   When the Cash Surrender Value is zero, the Policy might lapse unless sufficient additional premium is paid within the Grace Period.

7.   The gross annual investment rates of 0%, 6% and 12% correspond to net annual investment rates of return of

-1.639%, 4.307% and 10.253%, respectively, during years one through ten,  -0.998%, 4.987% and 10.972% respectively, during years eleven through twenty, and -0.750%, 5.250% and 11.250%, respectively, during years twenty-one and thereafter.

The hypothetical gross investment rates of return shown above are illustrative only and should not be deemed a representation of past or future investment rates of return. Actual investment results may be more or less than those shown and will depend on a number of factors, including the investment allocations made by an owner and the investment experience of the Underlying Mutual Funds. The Accumulated Value, Cash Surrender Value and Death Benefit for a Policy would be different from those shown if the actual gross annual rates of return averaged 0.00%, 6.00% and 12.00% over a period of years but also fluctuated above or below those averages for individual Policy Years. No representation can be made by Jackson or any Underlying Mutual Fund that these hypothetical rates of return can be achieved for any one year or sustained over any period of time.

FINANCIAL STATEMENTS

In the pages that follow are the financial statements of the Separate Account as of December 31, 2010 and Jackson as of December 31, 2010, 2009, and 2008, and the accompanying Independent Registered Public Accounting Firm's Reports.  The financial statements of Jackson included herein should be considered only as bearing upon the ability of Jackson to meet its obligations under the Policies.  Jackson's financial statements do not bear on the future investment experience of the assets held in the Separate Account.

Jackson National Separate Account IV

Financial Statements

December 31, 2010

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
	JNL/American				JNL/American		JNL/American		JNL/American				JNL/BlackRock				JNL/Capital		JNL/Capital
	Funds Blue Chip		JNL/American		Funds Global		Funds		Funds		JNL/American		Commodity		JNL/BlackRock		Guardian Global		Guardian Global
	Income and		Funds Global		Small Capitalization		Growth-Income		International		Funds New		Securities		Global Allocation		Balanced		Diversified
	Growth Portfolio		Bond Portfolio		Portfolio		Portfolio		Portfolio		World Portfolio		Portfolio		Portfolio		Portfolio		Research Portfolio
Assets
Investments, at value (a)	$	8,003	$	78,175	$	22,351	$	23,249	$	18,645	$	16,803	$	693,759	$	18,690	$	414,124	$	309,003
Receivables:
Investment securities sold		-		56		1		1		-		-		109		-		7		33
Sub-account units sold		-		-		-		-		-		-		-		-		-		36
Total assets		8,003		78,231		22,352		23,250		18,645		16,803		693,868		18,690		414,131		309,072
Liabilities
Payables:
Investment securities purchased		-		-		-		-		-		-		-		-		-		36
Sub-account units redeemed		-		54		-		-		-		-		94		-		-		28
Insurance fees due to Jackson		-		2		1		1		-		-		15		-		7		5
Total liabilities		-		56		1		1		-		-		109		-		7		69
Net assets (Note 6)	$	8,003	$	78,175	$	22,351	$	23,249	$	18,645	$	16,803	$	693,759	$	18,690	$	414,124	$	309,003
(a)  Investment shares		769		7,467		2,003		2,223		1,715		1,478		62,727		1,806		42,474		13,205
Investments at cost	$	7,521	$	77,774	$	21,293	$	21,117	$	17,920	$	15,381	$	558,479	$	18,291	$	402,214	$	275,374

See notes to the financial statements.

Page 1

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
	JNL/Capital						JNL/Franklin				JNL/Franklin				JNL/Franklin		JNL/		JNL/Goldman
	Guardian U.S.		JNL/Eagle		JNL/Eagle		Templeton		JNL/Franklin		Templeton Inter-		JNL/Franklin		Templeton		Goldman Sachs		Sachs Emerging
	Growth Equity		Core Equity		SmallCap Equity		Global Growth		Templeton		national Small Cap		Templeton Mutual		Small Cap		Core Plus		Markets Debt
	Portfolio		Portfolio		Portfolio		Portfolio		Income Portfolio		Growth Portfolio		Shares Portfolio		Value Portfolio		Bond Portfolio		Portfolio
Assets
Investments, at value (a)	$	224,262	$	118,825	$	520,581	$	282,754	$	346,492	$	181,405	$	358,123	$	397,933	$	241,532	$	302,979
Receivables:
Investment securities sold		53		3		40		30		33		4		43		533		23		44
Sub-account units sold		10		-		69		37		-		-		-		-		336		-
Total assets		224,325		118,828		520,690		282,821		346,525		181,409		358,166		398,466		241,891		303,023
Liabilities
Payables:
Investment securities purchased		10		-		69		37		-		-		-		-		336		-
Sub-account units redeemed		49		-		29		24		25		-		35		524		18		37
Insurance fees due to Jackson		4		3		11		6		8		4		8		9		5		7
Total liabilities		63		3		109		67		33		4		43		533		359		44
Net assets (Note 6)	$	224,262	$	118,825	$	520,581	$	282,754	$	346,492	$	181,405	$	358,123	$	397,933	$	241,532	$	302,979
(a)  Investment shares		10,465		15,533		23,397		34,908		35,501		22,096		42,033		36,242		19,637		22,115
Investments at cost	$	190,666	$	135,676	$	411,642	$	264,797	$	333,864	$	155,564	$	319,050	$	327,952	$	235,485	$	282,133

See notes to the financial statements.

Page 2

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
	JNL/		JNL/Goldman																JNL/JPMorgan
	Goldman Sachs		Sachs U.S.		JNL/Invesco		JNL/Invesco		JNL/Invesco		JNL/Invesco		JNL/Ivy		JNL/JPMorgan		JNL/JPMorgan		U.S. Government
	Mid Cap		Equity Flex		Global Real Estate		International		Large Cap		Small Cap		Asset Strategy		International		MidCap Growth		& Quality Bond
	Value Portfolio		Portfolio		Portfolio		Growth Portfolio		Growth Portfolio		Growth Portfolio		Portfolio		Value Portfolio		Portfolio		Portfolio
Assets
Investments, at value (a)	$	312,701	$	77,718	$	612,366	$	479,169	$	774,294	$	405,838	$	279,480	$	584,588	$	177,412	$	515,960
Receivables:
Investment securities sold		226		65		41		62		210		27		10		58		410		148
Sub-account units sold		-		-		667		203		-		-		-		498		-		1,007
Total assets		312,927		77,783		613,074		479,434		774,504		405,865		279,490		585,144		177,822		517,115
Liabilities
Payables:
Investment securities purchased		-		-		667		203		-		-		-		498		-		1,007
Sub-account units redeemed		219		63		27		54		191		18		4		46		406		138
Insurance fees due to Jackson		7		2		14		8		19		9		6		12		4		10
Total liabilities		226		65		708		265		210		27		10		556		410		1,155
Net assets (Note 6)	$	312,701	$	77,718	$	612,366	$	479,169	$	774,294	$	405,838	$	279,480	$	584,588	$	177,412	$	515,960
(a)  Investment shares		29,472		9,432		71,455		44,326		61,016		31,266		24,409		76,118		8,740		38,304
Investments at cost	$	288,227	$	70,393	$	580,527	$	459,858	$	679,654	$	340,052	$	255,429	$	616,110	$	152,214	$	505,002

See notes to the financial statements.

Page 3

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
	JNL/Lazard		JNL/Lazard		JNL/M&G		JNL/M&G				JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM
	Emerging Markets		Mid Cap		Global Basics		Global Leaders		JNL/MCM		Bond Index		Communications		Consumer Brands		Dow Dividend		European 30
	Portfolio		Equity Portfolio		Portfolio		Portfolio		25 Portfolio		Portfolio		Sector Portfolio		Sector Portfolio		Portfolio		Portfolio
Assets
Investments, at value (a)	$	1,062,703	$	159,580	$	115,486	$	19,912	$	423,145	$	895,475	$	152,763	$	28,836	$	133,781	$	16,770
Receivables:
Investment securities sold		154		14		3		-		742		184		4		1		67		-
Sub-account units sold		1,326		-		-		-		-		1,577		-		-		-		-
Total assets		1,064,183		159,594		115,489		19,912		423,887		897,236		152,767		28,837		133,848		16,770
Liabilities
Payables:
Investment securities purchased		1,326		-		-		-		-		1,577		-		-		-		-
Sub-account units redeemed		131		11		-		-		732		165		-		-		64		-
Insurance fees due to Jackson		23		3		3		-		10		19		4		1		3		-
Total liabilities		1,480		14		3		-		742		1,761		4		1		67		-
Net assets (Note 6)	$	1,062,703	$	159,580	$	115,486	$	19,912	$	423,145	$	895,475	$	152,763	$	28,836	$	133,781	$	16,770
(a)  Investment shares		87,537		13,663		7,689		1,560		33,610		74,129		46,013		2,881		23,429		1,457
Investments at cost	$	861,377	$	154,123	$	93,109	$	17,700	$	385,132	$	876,173	$	145,696	$	25,304	$	122,003	$	14,914

See notes to the financial statements.

Page 4

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
	JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM
	Financial		Global Alpha		Healthcare		International		JNL 5		JNL Optimized		Nasdaq 25		NYSE International		Oil & Gas		Pacific Rim 30
	Sector Portfolio		Portfolio		Sector Portfolio		Index Portfolio		Portfolio		5 Portfolio		Portfolio		25 Portfolio		Sector Portfolio		Portfolio
Assets
Investments, at value (a)	$	235,246	$	91,446	$	273,340	$	1,144,724	$	9,164,831	$	1,049,000	$	41,754	$	137,890	$	1,066,535	$	55,683
Receivables:
Investment securities sold		39		6		11		202		2,933		109		2		3		223		1
Sub-account units sold		-		-		-		5,757		348		8		-		29		681		41
Total assets		235,285		91,452		273,351		1,150,683		9,168,112		1,049,117		41,756		137,922		1,067,439		55,725
Liabilities
Payables:
Investment securities purchased		-		-		-		5,757		348		8		-		29		681		41
Sub-account units redeemed		34		4		5		177		2,727		85		1		-		200		-
Insurance fees due to Jackson		5		2		6		25		206		24		1		3		23		1
Total liabilities		39		6		11		5,959		3,281		117		2		32		904		42
Net assets (Note 6)	$	235,246	$	91,446	$	273,340	$	1,144,724	$	9,164,831	$	1,049,000	$	41,754	$	137,890	$	1,066,535	$	55,683
(a)  Investment shares		32,810		8,717		24,125		88,945		1,051,013		118,397		4,723		19,046		39,414		4,367
Investments at cost	$	222,281	$	88,007	$	275,479	$	1,101,030	$	10,091,894	$	1,003,984	$	37,370	$	143,639	$	1,002,824	$	50,642

See notes to the financial statements.

Page 5

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
																			JNL/
	JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM		JNL/MCM				Oppenheimer
	S&P 24		S&P 400 MidCap		S&P 500		S&P SMid		Select Small-Cap		Small Cap		Technology		Value Line 30		JNL/MCM		Global Growth
	Portfolio		Index Portfolio		Index Portfolio		60 Portfolio		Portfolio		Index Portfolio		Sector Portfolio		Portfolio		VIP Portfolio		Portfolio
Assets
Investments, at value (a)	$	80,098	$	978,882	$	1,774,127	$	329,097	$	110,422	$	964,399	$	434,387	$	259,933	$	906,876	$	570,064
Receivables:
Investment securities sold		5		1,756		254		65		4		2,234		10		90		50		121
Sub-account units sold		-		-		4,532		-		-		-		-		-		79		26
Total assets		80,103		980,638		1,778,913		329,162		110,426		966,633		434,397		260,023		907,005		570,211
Liabilities
Payables:
Investment securities purchased		-		-		4,532		-		-		-		-		-		79		26
Sub-account units redeemed		3		1,736		212		57		1		2,214		-		84		31		109
Insurance fees due to Jackson		2		20		42		8		3		20		10		6		19		12
Total liabilities		5		1,756		4,786		65		4		2,234		10		90		129		147
Net assets (Note 6)	$	80,098	$	978,882	$	1,774,127	$	329,097	$	110,422	$	964,399	$	434,387	$	259,933	$	906,876	$	570,064
(a)  Investment shares		8,812		69,671		164,576		29,331		9,975		75,639		59,587		39,147		129,925		53,830
Investments at cost	$	66,040	$	821,027	$	1,586,206	$	295,588	$	117,726	$	747,178	$	323,563	$	232,212	$	1,004,544	$	574,681

See notes to the financial statements.

Page 6

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
									JNL/		JNL/		JNL/		JNL/		JNL/		JNL/S&P
	JNL/PAM		JNL/PAM		JNL/PIMCO		JNL/PIMCO		PPM America		PPM America		PPM America		PPM America		Red Rocks Listed		Competitive
	Asia ex-Japan		China-India		Real Return		Total Return		High Yield		Mid Cap Value		Small Cap Value		Value Equity		Private Equity		Advantage
	Portfolio		Portfolio		Portfolio		Bond Portfolio		Bond Portfolio		Portfolio		Portfolio		Portfolio		Portfolio		Portfolio
Assets
Investments, at value (a)	$	87,232	$	331,646	$	262,736	$	1,709,539	$	669,155	$	12,104	$	4,837	$	47,910	$	234,467	$	59,433
Receivables:
Investment securities sold		6		115		58		815		159		-		-		1		43		70
Sub-account units sold		-		-		-		127		503		-		-		-		-		-
Total assets		87,238		331,761		262,794		1,710,481		669,817		12,104		4,837		47,911		234,510		59,503
Liabilities
Payables:
Investment securities purchased		-		-		-		127		503		-		-		-		-		-
Sub-account units redeemed		4		108		52		782		144		-		-		-		38		69
Insurance fees due to Jackson		2		7		6		33		15		-		-		1		5		1
Total liabilities		6		115		58		942		662		-		-		1		43		70
Net assets (Note 6)	$	87,232	$	331,646	$	262,736	$	1,709,539	$	669,155	$	12,104	$	4,837	$	47,910	$	234,467	$	59,433
(a)  Investment shares		8,965		36,932		21,624		130,400		91,041		1,131		477		3,930		23,215		5,554
Investments at cost	$	74,924	$	292,622	$	257,272	$	1,732,897	$	638,144	$	10,543	$	4,827	$	41,713	$	190,333	$	52,356

See notes to the financial statements.

Page 7

Jackson National Separate Account IV
Statements of Assets and Liabilities
December 31, 2010
	JNL/S&P
	Dividend Income		JNL/S&P		JNL/S&P		JNL/Select		JNL/Select		JNL/		JNL/T. Rowe		JNL/T. Rowe		JNL/T. Rowe		JNL/T. Rowe
	& Growth		Intrinsic Value		Total Yield		Balanced		Money Market		Select Value		Price Established		Price Mid-Cap		Price Short-Term		Price Value
	Portfolio		Portfolio		Portfolio		Portfolio		Portfolio		Portfolio		Growth Portfolio		Growth Portfolio		Bond Portfolio		Portfolio
Assets
Investments, at value (a)	$	166,278	$	100,056	$	65,141	$	1,038,921	$	2,942,556	$	889,010	$	1,207,673	$	1,145,443	$	88,087	$	593,409
Receivables:
Investment securities sold		10		15		70		43		58		114		236		921		2		35
Sub-account units sold		16		-		-		201		168		3,589		-		-		286		38
Total assets		166,304		100,071		65,211		1,039,165		2,942,782		892,713		1,207,909		1,146,364		88,375		593,482
Liabilities
Payables:
Investment securities purchased		16		-		-		201		168		3,589		-		-		286		38
Sub-account units redeemed		8		13		68		19		4		99		209		896		-		22
Insurance fees due to Jackson		2		2		2		24		54		15		27		25		2		13
Total liabilities		26		15		70		244		226		3,703		236		921		288		73
Net assets (Note 6)	$	166,278	$	100,056	$	65,141	$	1,038,921	$	2,942,556	$	889,010	$	1,207,673	$	1,145,443	$	88,087	$	593,409
(a)  Investment shares		16,967		9,956		6,674		61,951		2,942,556		50,340		56,249		37,791		8,853		53,412
Investments at cost	$	144,801	$	102,174	$	64,318	$	984,648	$	2,942,556	$	816,040	$	984,686	$	944,626	$	88,146	$	598,345

See notes to the financial statements.

Page 8

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
	JNL/American						JNL/American			JNL/American			JNL/American						JNL/BlackRock						JNL/Capital			JNL/Capital
	Funds Blue Chip			JNL/American			Funds Global			Funds			Funds			JNL/American			Commodity			JNL/BlackRock			Guardian Global			Guardian Global
	Income and			Funds Global			Small Capitalization			Growth-Income			International			Funds New			Securities			Global Allocation			Balanced			Diversified
	Growth Portfolio(a)			Bond Portfolio(a)			Portfolio(a)			Portfolio(a)			Portfolio(a)			World Portfolio(a)			Portfolio			Portfolio(b)			Portfolio			Research Portfolio
Investment income
Dividends	$	-		$	-		$	-		$	-		$	-		$	-		$	2,376		$	-		$	4,491		$	2,307
Expenses
Insurance charges (Note 3)		14			193			32			58			31			41			4,451			12			2,195			1,912
Total expenses		14			193			32			58			31			41			4,451			12			2,195			1,912
Net investment income (loss)		(14	)		(193	)		(32	)		(58	)		(31	)		(41	)		(2,075	)		(12	)		2,296			395
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			-			-			-			-			-			-			-			-
Investments		52			71			25			47			24			69			11,874			1			(2,064	)		10,332
Net change in unrealized appreciation
(depreciation) on investments		482			401			1,059			2,132			725			1,423			90,658			399			35,505			26,000
Net realized and unrealized gain (loss)		534			472			1,084			2,179			749			1,492			102,532			400			33,441			36,332
Net increase (decrease) in net assets
from operations	$	520		$	279		$	1,052		$	2,121		$	718		$	1,451		$	100,457		$	388		$	35,737		$	36,727
(a) Commencement of operations May 3, 2010.
(b) Commencement of operations October 11, 2010.

See notes to the financial statements.

Page 9

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
	JNL/Capital									JNL/Franklin					JNL/Franklin					JNL/Franklin			JNL/		JNL/Goldman
	Guardian U.S.			JNL/Eagle			JNL/Eagle			Templeton			JNL/Franklin		Templeton Inter-		JNL/Franklin			Templeton			Goldman Sachs		Sachs Emerging
	Growth Equity			Core Equity			SmallCap Equity			Global Growth			Templeton		national Small Cap		Templeton Mutual			Small Cap			Core Plus		Markets Debt
	Portfolio			Portfolio			Portfolio			Portfolio			Income Portfolio		Growth Portfolio		Shares Portfolio			Value Portfolio			Bond Portfolio		Portfolio
Investment income
Dividends	$	682		$	356		$	965		$	3,694		$	12,459	$	2,021	$	439		$	1,742		$	6,066	$	2,671
Expenses
Insurance charges (Note 3)		1,584			855			2,674			1,983			2,927		1,331		2,620			2,580			2,014		1,262
Total expenses		1,584			855			2,674			1,983			2,927		1,331		2,620			2,580			2,014		1,262
Net investment income (loss)		(902	)		(499	)		(1,709	)		1,711			9,532		690		(2,181	)		(838	)		4,052		1,409
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			-			-			-		-		-			-			2,600		651
Investments		12,396			(5,646	)		7,906			(342	)		5,657		7,493		4,190			5,595			5,305		3,941
Net change in unrealized appreciation
(depreciation) on investments		16,025			17,164			100,355			16,778			25,153		21,525		32,706			66,659			4,399		17,204
Net realized and unrealized gain (loss)		28,421			11,518			108,261			16,436			30,810		29,018		36,896			72,254			12,304		21,796
Net increase (decrease) in net assets
from operations	$	27,519		$	11,019		$	106,552		$	18,147		$	40,342	$	29,708	$	34,715		$	71,416		$	16,356	$	23,205

See notes to the financial statements.

Page 10

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
	JNL/			JNL/Goldman																								JNL/JPMorgan
	Goldman Sachs			Sachs U.S.			JNL/Invesco			JNL/Invesco			JNL/Invesco			JNL/Invesco			JNL/Ivy			JNL/JPMorgan			JNL/JPMorgan			U.S. Government
	Mid Cap			Equity Flex			Global Real Estate			International			Large Cap			Small Cap			Asset Strategy			International			MidCap Growth			& Quality Bond
	Value Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Growth Portfolio			Portfolio			Value Portfolio			Portfolio			Portfolio
Investment income
Dividends	$	1,631		$	543		$	21,142		$	3,509		$	2,637		$	-		$	24		$	14,798		$	-		$	14,358
Expenses
Insurance charges (Note 3)		2,246			563			4,104			2,602			5,873			2,186			1,423			3,895			1,055			3,978
Total expenses		2,246			563			4,104			2,602			5,873			2,186			1,423			3,895			1,055			3,978
Net investment income (loss)		(615	)		(20	)		17,038			907			(3,236	)		(2,186	)		(1,399	)		10,903			(1,055	)		10,380
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			-			-			-			-			18			-			-			-
Investments		(8,787	)		(242	)		(2,150	)		(12,245	)		(130	)		1,304			(527	)		(47,596	)		399			11,805
Net change in unrealized appreciation
(depreciation) on investments		67,038			5,840			74,382			58,852			122,112			71,781			23,897			82,054			28,256			16,246
Net realized and unrealized gain (loss)		58,251			5,598			72,232			46,607			121,982			73,085			23,388			34,458			28,655			28,051
Net increase (decrease) in net assets
from operations	$	57,636		$	5,578		$	89,270		$	47,514		$	118,746		$	70,899		$	21,989		$	45,361		$	27,600		$	38,431

See notes to the financial statements.

Page 11

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
	JNL/Lazard			JNL/Lazard			JNL/M&G			JNL/M&G					JNL/MCM		JNL/MCM			JNL/MCM			JNL/MCM		JNL/MCM
	Emerging Markets			Mid Cap			Global Basics			Global Leaders			JNL/MCM		Bond Index		Communications			Consumer Brands			Dow Dividend		European 30
	Portfolio			Equity Portfolio			Portfolio			Portfolio			25 Portfolio		Portfolio		Sector Portfolio			Sector Portfolio			Portfolio		Portfolio
Investment income
Dividends	$	5,007		$	764		$	772		$	89		$	9,539	$	24,222	$	3,280		$	127		$	4,304	$	10
Expenses
Insurance charges (Note 3)		6,657			1,003			884			121			2,881		6,708		1,066			164			855		84
Total expenses		6,657			1,003			884			121			2,881		6,708		1,066			164			855		84
Net investment income (loss)		(1,650	)		(239	)		(112	)		(32	)		6,658		17,514		2,214			(37	)		3,449		(74	)
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			-			375			204			-		1,478		-			-			-		79
Investments		45,888			(10,474	)		10,843			(23	)		5,348		19,637		(5,864	)		(653	)		2,801		635
Net change in unrealized appreciation
(depreciation) on investments		132,091			38,493			10,075			2,200			51,274		10,399		30,816			3,781			6,434		1,352
Net realized and unrealized gain (loss)		177,979			28,019			21,293			2,381			56,622		31,514		24,952			3,128			9,235		2,066
Net increase (decrease) in net assets
from operations	$	176,329		$	27,780		$	21,181		$	2,349		$	63,280	$	49,028	$	27,166		$	3,091		$	12,684	$	1,992

See notes to the financial statements.

Page 12

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
	JNL/MCM		JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM
	Financial		Global Alpha			Healthcare			International			JNL 5			JNL Optimized			Nasdaq 25			NYSE International			Oil & Gas			Pacific Rim 30
	Sector Portfolio		Portfolio			Sector Portfolio			Index Portfolio			Portfolio			5 Portfolio			Portfolio			25 Portfolio			Sector Portfolio			Portfolio
Investment income
Dividends	$	2,943	$	-		$	3,214		$	21,263		$	194,993		$	20,934		$	138		$	3,022		$	10,288		$	-
Expenses
Insurance charges (Note 3)		1,906		442			2,074			7,652			69,329			7,893			174			1,071			6,931			275
Total expenses		1,906		442			2,074			7,652			69,329			7,893			174			1,071			6,931			275
Net investment income (loss)		1,037		(442	)		1,140			13,611			125,664			13,041			(36	)		1,951			3,357			(275	)
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-		20			-			-			-			-			-			-			-			7
Investments		1,843		95			(2,848	)		(12,459	)		(628,109	)		(16,648	)		768			(4,980	)		(43,259	)		453
Net change in unrealized appreciation
(depreciation) on investments		25,620		3,589			11,897			71,722			1,780,965			128,330			3,169			3,861			200,324			5,177
Net realized and unrealized gain (loss)		27,463		3,704			9,049			59,263			1,152,856			111,682			3,937			(1,119	)		157,065			5,637
Net increase (decrease) in net assets
from operations	$	28,500	$	3,262		$	10,189		$	72,874		$	1,278,520		$	124,723		$	3,901		$	832		$	160,422		$	5,362

See notes to the financial statements.

Page 13

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
																									JNL/
	JNL/MCM			JNL/MCM		JNL/MCM		JNL/MCM			JNL/MCM			JNL/MCM		JNL/MCM			JNL/MCM						Oppenheimer
	S&P 24			S&P 400 MidCap		S&P 500		S&P SMid			Select Small-Cap			Small Cap		Technology			Value Line 30			JNL/MCM			Global Growth
	Portfolio			Index Portfolio		Index Portfolio		60 Portfolio			Portfolio			Index Portfolio		Sector Portfolio			Portfolio			VIP Portfolio			Portfolio
Investment income
Dividends	$	254		$	6,650	$	23,840	$	286		$	738		$	6,349	$	1,058		$	2,044		$	21,231		$	4,572
Expenses
Insurance charges (Note 3)		389			5,668		12,998		1,644			883			5,868		3,326			941			6,311			3,839
Total expenses		389			5,668		12,998		1,644			883			5,868		3,326			941			6,311			3,839
Net investment income (loss)		(135	)		982		10,842		(1,358	)		(145	)		481		(2,268	)		1,103			14,920			733
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			7,418		1,950		-			-			-		-			-			-			-
Investments		842			7,685		7,028		354			(9,075	)		19,474		15,900			(110	)		(47,892	)		(11,042	)
Net change in unrealized appreciation
(depreciation) on investments		10,565			165,767		189,104		7,760			23,101			174,781		31,548			24,934			145,426			82,718
Net realized and unrealized gain (loss)		11,407			180,870		198,082		8,114			14,026			194,255		47,448			24,824			97,534			71,676
Net increase (decrease) in net assets
from operations	$	11,272		$	181,852	$	208,924	$	6,756		$	13,881		$	194,736	$	45,180		$	25,927		$	112,454		$	72,409

See notes to the financial statements.

Page 14

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
												JNL/			JNL/			JNL/			JNL/		JNL/			JNL/S&P
	JNL/PAM			JNL/PAM			JNL/PIMCO		JNL/PIMCO			PPM America			PPM America			PPM America			PPM America		Red Rocks Listed			Competitive
	Asia ex-Japan			China-India			Real Return		Total Return			High Yield			Mid Cap Value			Small Cap Value			Value Equity		Private Equity			Advantage
	Portfolio			Portfolio			Portfolio		Bond Portfolio			Bond Portfolio			Portfolio			Portfolio			Portfolio		Portfolio			Portfolio
Investment income
Dividends	$	132		$	-		$	3,980	$	32,437		$	37,604		$	-		$	11		$	586	$	392		$	515
Expenses
Insurance charges (Note 3)		463			1,852			2,383		13,273			3,791			132			14			352		1,127			472
Total expenses		463			1,852			2,383		13,273			3,791			132			14			352		1,127			472
Net investment income (loss)		(331	)		(1,852	)		1,597		19,164			33,813			(132	)		(3	)		234		(735	)		43
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		-			2,991			5,304		54,585			-			-			238			-		1,254			2,204
Investments		4,991			15,531			12,922		58,140			29,577			(1,673	)		(316	)		933		3,870			1,426
Net change in unrealized appreciation
(depreciation) on investments		6,642			19,104			1,709		(8,526	)		(2,474	)		781			(2	)		5,633		40,068			2,615
Net realized and unrealized gain (loss)		11,633			37,626			19,935		104,199			27,103			(892	)		(80	)		6,566		45,192			6,245
Net increase (decrease) in net assets
from operations	$	11,302		$	35,774		$	21,532	$	123,363		$	60,916		$	(1,024	)	$	(83	)	$	6,800	$	44,457		$	6,288

See notes to the financial statements.

Page 15

Jackson National Separate Account IV
Statements of Operations
For the Year Ended December 31, 2010
	JNL/S&P
	Dividend Income		JNL/S&P			JNL/S&P			JNL/Select			JNL/Select			JNL/			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe
	& Growth		Intrinsic Value			Total Yield			Balanced			Money Market			Select Value			Price Established			Price Mid-Cap			Price Short-Term			Price Value
	Portfolio		Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Bond Portfolio			Portfolio
Investment income
Dividends	$	1,925	$	804		$	527		$	12,038		$	-		$	8,183		$	1,502		$	3,131		$	1,079		$	5,681
Expenses
Insurance charges (Note 3)		1,649		964			587			7,724			16,587			4,264			8,389			7,636			1,148			4,545
Total expenses		1,649		964			587			7,724			16,587			4,264			8,389			7,636			1,148			4,545
Net investment income (loss)		276		(160	)		(60	)		4,314			(16,587	)		3,919			(6,887	)		(4,505	)		(69	)		1,136
Realized and unrealized gain (loss)
Net realized gain (loss) on:
Distributions from investment companies		6,333		9,767			1,298			-			-			-			-			21,660			-			-
Investments		22,886		2,149			(5,108	)		(2,257	)		-			(2,276	)		24,989			21,115			1,090			(38,526	)
Net change in unrealized appreciation
(depreciation) on investments		1,686		(5,128	)		(238	)		93,660			-			93,724			153,837			203,061			3,075			112,562
Net realized and unrealized gain (loss)		30,905		6,788			(4,048	)		91,403			-			91,448			178,826			245,836			4,165			74,036
Net increase (decrease) in net assets
from operations	$	31,181	$	6,628		$	(4,108	)	$	95,717		$	(16,587	)	$	95,367		$	171,939		$	241,331		$	4,096		$	75,172

See notes to the financial statements.

Page 16

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
	JNL/American						JNL/American			JNL/American			JNL/American						JNL/BlackRock						JNL/Capital			JNL/Capital
	Funds Blue Chip			JNL/American			Funds Global			Funds			Funds			JNL/American			Commodity			JNL/BlackRock			Guardian Global			Guardian Global
	Income and			Funds Global			Small Capitalization			Growth-Income			International			Funds New			Securities			Global Allocation			Balanced			Diversified
	Growth Portfolio(a)			Bond Portfolio(a)			Portfolio(a)			Portfolio(a)			Portfolio(a)			World Portfolio(a)			Portfolio			Portfolio(b)			Portfolio			Research Portfolio
Operations
Net investment income (loss)	$	(14	)	$	(193	)	$	(32	)	$	(58	)	$	(31	)	$	(41	)	$	(2,075	)	$	(12	)	$	2,296		$	395
Net realized gain (loss) on investments		52			71			25			47			24			69			11,874			1			(2,064	)		10,332
Net change in unrealized appreciation
(depreciation) on investments		482			401			1,059			2,132			725			1,423			90,658			399			35,505			26,000
Net increase (decrease) in net assets
from operations		520			279			1,052			2,121			718			1,451			100,457			388			35,737			36,727
Contract transactions 1
Policy purchase payments		861			1,530			246			4,279			210			1,453			100,477			62			41,934			30,093
Policy withdrawals		-			-			-			-			-			-			(4,543	)		-			(24,174	)		(65,197	)
Transfers between portfolios		7,003			77,772			21,519			17,629			17,873			14,491			(3,643	)		18,323			(25,588	)		(464	)
Policyholder charges		(381	)		(1,406	)		(466	)		(780	)		(156	)		(592	)		(36,994	)		(83	)		(18,158	)		(19,130	)
Net increase (decrease) in net assets from
contract transactions		7,483			77,896			21,299			21,128			17,927			15,352			55,297			18,302			(25,986	)		(54,698	)
Net increase (decrease) in net assets		8,003			78,175			22,351			23,249			18,645			16,803			155,754			18,690			9,751			(17,971	)
Net assets beginning of period		-			-			-			-			-			-			538,005			-			404,373			326,974
Net assets end of period	$	8,003		$	78,175		$	22,351		$	23,249		$	18,645		$	16,803		$	693,759		$	18,690		$	414,124		$	309,003
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		-			-			-			-			-			-			53,921			-			33,172			11,816
Units Issued		857			7,757			2,072			2,316			1,780			1,564			28,936			1,817			5,138			7,692
Units Redeemed		(84	)		(257	)		(61	)		(81	)		(55	)		(78	)		(23,312	)		(8	)		(6,879	)		(9,511	)
Units Outstanding at December 31, 2010		773			7,500			2,011			2,235			1,725			1,486			59,545			1,809			31,431			9,997
(a) Commencement of operations May 3, 2010.
(b) Commencement of operations October 11, 2010.

See notes to the financial statements.

Page 17

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
	JNL/Capital									JNL/Franklin						JNL/Franklin						JNL/Franklin			JNL/			JNL/Goldman
	Guardian U.S.			JNL/Eagle			JNL/Eagle			Templeton			JNL/Franklin			Templeton Inter-			JNL/Franklin			Templeton			Goldman Sachs			Sachs Emerging
	Growth Equity			Core Equity			SmallCap Equity			Global Growth			Templeton			national Small Cap			Templeton Mutual			Small Cap			Core Plus			Markets Debt
	Portfolio			Portfolio			Portfolio			Portfolio			Income Portfolio			Growth Portfolio			Shares Portfolio			Value Portfolio			Bond Portfolio			Portfolio
Operations
Net investment income (loss)	$	(902	)	$	(499	)	$	(1,709	)	$	1,711		$	9,532		$	690		$	(2,181	)	$	(838	)	$	4,052		$	1,409
Net realized gain (loss) on investments		12,396			(5,646	)		7,906			(342	)		5,657			7,493			4,190			5,595			7,905			4,592
Net change in unrealized appreciation
(depreciation) on investments		16,025			17,164			100,355			16,778			25,153			21,525			32,706			66,659			4,399			17,204
Net increase (decrease) in net assets
from operations		27,519			11,019			106,552			18,147			40,342			29,708			34,715			71,416			16,356			23,205
Contract transactions 1
Policy purchase payments		28,568			10,749			39,083			49,166			83,308			34,618			48,460			27,476			27,504			25,182
Policy withdrawals		(25,554	)		(2,145	)		(2,029	)		(8,322	)		(95,881	)		(2,561	)		(6,327	)		(12,744	)		(21,016	)		(2,085	)
Transfers between portfolios		(94,027	)		10,927			151,213			30,145			(25,744	)		(86,880	)		17,829			92,682			(10,568	)		184,853
Policyholder charges		(19,866	)		(5,703	)		(14,071	)		(25,550	)		(43,658	)		(11,606	)		(18,461	)		(16,333	)		(11,801	)		(6,324	)
Net increase (decrease) in net assets from
contract transactions		(110,879	)		13,828			174,196			45,439			(81,975	)		(66,429	)		41,501			91,081			(15,881	)		201,626
Net increase (decrease) in net assets		(83,360	)		24,847			280,748			63,586			(41,633	)		(36,721	)		76,216			162,497			475			224,831
Net assets beginning of period		307,622			93,978			239,833			219,168			388,125			218,126			281,907			235,436			241,057			78,148
Net assets end of period	$	224,262		$	118,825		$	520,581		$	282,754		$	346,492		$	181,405		$	358,123		$	397,933		$	241,532		$	302,979
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		11,543			5,548			10,257			28,493			38,026			29,003			36,397			22,272			9,876			6,613
Units Issued		1,889			1,755			9,297			11,961			22,549			11,546			15,278			17,377			3,312			20,024
Units Redeemed		(6,009	)		(973	)		(3,130	)		(5,900	)		(30,200	)		(20,333	)		(9,932	)		(9,750	)		(3,874	)		(4,394	)
Units Outstanding at December 31, 2010		7,423			6,330			16,424			34,554			30,375			20,216			41,743			29,899			9,314			22,243

See notes to the financial statements.

Page 18

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
	JNL/			JNL/Goldman																								JNL/JPMorgan
	Goldman Sachs			Sachs U.S.			JNL/Invesco			JNL/Invesco			JNL/Invesco			JNL/Invesco			JNL/Ivy			JNL/JPMorgan			JNL/JPMorgan			U.S. Government
	Mid Cap			Equity Flex			Global Real Estate			International			Large Cap			Small Cap			Asset Strategy			International			MidCap Growth			& Quality Bond
	Value Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Growth Portfolio			Portfolio			Value Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	(615	)	$	(20	)	$	17,038		$	907		$	(3,236	)	$	(2,186	)	$	(1,399	)	$	10,903		$	(1,055	)	$	10,380
Net realized gain (loss) on investments		(8,787	)		(242	)		(2,150	)		(12,245	)		(130	)		1,304			(509	)		(47,596	)		399			11,805
Net change in unrealized appreciation
(depreciation) on investments		67,038			5,840			74,382			58,852			122,112			71,781			23,897			82,054			28,256			16,246
Net increase (decrease) in net assets
from operations		57,636			5,578			89,270			47,514			118,746			70,899			21,989			45,361			27,600			38,431
Contract transactions 1
Policy purchase payments		41,927			18,129			86,623			78,573			59,776			45,406			34,413			82,105			27,008			28,689
Policy withdrawals		(3,062	)		(458	)		(15,638	)		(8,652	)		(6,692	)		(1,910	)		-			(22,519	)		(5,889	)		(30,231	)
Transfers between portfolios		(23,555	)		(2,916	)		87,822			6,838			59,417			159,684			133,426			(27,180	)		30,082			(52,365	)
Policyholder charges		(18,361	)		(4,793	)		(36,430	)		(25,492	)		(40,806	)		(18,384	)		(9,214	)		(36,830	)		(9,734	)		(26,828	)
Net increase (decrease) in net assets from
contract transactions		(3,051	)		9,962			122,377			51,267			71,695			184,796			158,625			(4,424	)		41,467			(80,735	)
Net increase (decrease) in net assets		54,585			15,540			211,647			98,781			190,441			255,695			180,614			40,937			69,067			(42,304	)
Net assets beginning of period		258,116			62,178			400,719			380,388			583,853			150,143			98,866			543,651			108,345			558,264
Net assets end of period	$	312,701		$	77,718		$	612,366		$	479,169		$	774,294		$	405,838		$	279,480		$	584,588		$	177,412		$	515,960
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		23,169			7,485			35,696			21,595			50,934			11,249			9,515			39,481			4,874			27,240
Units Issued		6,465			5,685			28,994			9,246			28,127			15,568			17,723			19,655			4,516			8,306
Units Redeemed		(6,944	)		(4,511	)		(17,821	)		(6,723	)		(21,135	)		(2,477	)		(2,586	)		(19,242	)		(2,994	)		(11,995	)
Units Outstanding at December 31, 2010		22,690			8,659			46,869			24,118			57,926			24,340			24,652			39,894			6,396			23,551

See notes to the financial statements.

Page 19

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
	JNL/Lazard			JNL/Lazard			JNL/M&G			JNL/M&G						JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM
	Emerging Markets			Mid Cap			Global Basics			Global Leaders			JNL/MCM			Bond Index			Communications			Consumer Brands			Dow Dividend			European 30
	Portfolio			Equity Portfolio			Portfolio			Portfolio			25 Portfolio			Portfolio			Sector Portfolio			Sector Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	(1,650	)	$	(239	)	$	(112	)	$	(32	)	$	6,658		$	17,514		$	2,214		$	(37	)	$	3,449		$	(74	)
Net realized gain (loss) on investments		45,888			(10,474	)		11,218			181			5,348			21,115			(5,864	)		(653	)		2,801			714
Net change in unrealized appreciation
(depreciation) on investments		132,091			38,493			10,075			2,200			51,274			10,399			30,816			3,781			6,434			1,352
Net increase (decrease) in net assets
from operations		176,329			27,780			21,181			2,349			63,280			49,028			27,166			3,091			12,684			1,992
Contract transactions 1
Policy purchase payments		127,500			26,332			18,831			424			39,493			109,207			20,930			4,909			28,915			2,460
Policy withdrawals		(28,248	)		(15,875	)		(762	)		(1,019	)		(5,221	)		(22,040	)		(3,945	)		(582	)		(831	)		(2,365	)
Transfers between portfolios		64,081			(14,630	)		(75,439	)		7,245			92,508			(134,446	)		9,182			12,814			3,530			10,100
Policyholder charges		(51,600	)		(17,384	)		(8,741	)		(422	)		(19,489	)		(43,655	)		(10,066	)		(1,767	)		(7,617	)		(1,003	)
Net increase (decrease) in net assets from
contract transactions		111,733			(21,557	)		(66,111	)		6,228			107,291			(90,934	)		16,101			15,374			23,997			9,192
Net increase (decrease) in net assets		288,062			6,223			(44,930	)		8,577			170,571			(41,906	)		43,267			18,465			36,681			11,184
Net assets beginning of period		774,641			153,357			160,416			11,335			252,574			937,381			109,496			10,371			97,100			5,586
Net assets end of period	$	1,062,703		$	159,580		$	115,486		$	19,912		$	423,145		$	895,475		$	152,763		$	28,836		$	133,781		$	16,770
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		63,693			8,282			13,058			995			25,376			68,124			21,777			1,013			16,212			463
Units Issued		38,851			2,989			3,302			691			22,995			26,078			13,261			2,819			11,829			1,571
Units Redeemed		(30,453	)		(4,141	)		(8,667	)		(132	)		(13,493	)		(31,977	)		(9,992	)		(1,523	)		(7,529	)		(664	)
Units Outstanding at December 31, 2010		72,091			7,130			7,693			1,554			34,878			62,225			25,046			2,309			20,512			1,370

See notes to the financial statements.

Page 20

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM
	Financial			Global Alpha			Healthcare			International			JNL 5			JNL Optimized			Nasdaq 25			NYSE International			Oil & Gas			Pacific Rim 30
	Sector Portfolio			Portfolio			Sector Portfolio			Index Portfolio			Portfolio			5 Portfolio			Portfolio			25 Portfolio			Sector Portfolio			Portfolio
Operations
Net investment income (loss)	$	1,037		$	(442	)	$	1,140		$	13,611		$	125,664		$	13,041		$	(36	)	$	1,951		$	3,357		$	(275	)
Net realized gain (loss) on investments		1,843			115			(2,848	)		(12,459	)		(628,109	)		(16,648	)		768			(4,980	)		(43,259	)		460
Net change in unrealized appreciation
(depreciation) on investments		25,620			3,589			11,897			71,722			1,780,965			128,330			3,169			3,861			200,324			5,177
Net increase (decrease) in net assets
from operations		28,500			3,262			10,189			72,874			1,278,520			124,723			3,901			832			160,422			5,362
Contract transactions 1
Policy purchase payments		31,962			5,963			29,322			146,772			1,162,939			165,855			5,386			27,406			130,393			15,348
Policy withdrawals		(28,329	)		-			(7,926	)		(38,884	)		(624,137	)		(95,870	)		(61	)		(843	)		(101,893	)		(2,328	)
Transfers between portfolios		(9,834	)		74,089			16,901			92,077			(687,405	)		(26,736	)		22,814			(18,887	)		73,873			24,998
Policyholder charges		(12,960	)		(2,250	)		(14,877	)		(69,550	)		(642,450	)		(71,883	)		(1,646	)		(9,209	)		(70,891	)		(4,054	)
Net increase (decrease) in net assets from
contract transactions		(19,161	)		77,802			23,420			130,415			(791,053	)		(28,634	)		26,493			(1,533	)		31,482			33,964
Net increase (decrease) in net assets		9,339			81,064			33,609			203,289			487,467			96,089			30,394			(701	)		191,904			39,326
Net assets beginning of period		225,907			10,382			239,731			941,435			8,677,364			952,911			11,360			138,591			874,631			16,357
Net assets end of period	$	235,246		$	91,446		$	273,340		$	1,144,724		$	9,164,831		$	1,049,000		$	41,754		$	137,890		$	1,066,535		$	55,683
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		30,010			1,052			19,185			59,969			860,886			106,664			1,331			16,371			29,595			1,379
Units Issued		18,306			8,269			6,983			22,752			147,594			36,846			4,063			5,573			12,870			3,582
Units Redeemed		(20,544	)		(512	)		(4,981	)		(14,017	)		(226,813	)		(39,602	)		(1,873	)		(5,872	)		(11,983	)		(767	)
Units Outstanding at December 31, 2010		27,772			8,809			21,187			68,704			781,667			103,908			3,521			16,072			30,482			4,194

See notes to the financial statements.

Page 21

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
																												JNL/
	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM						Oppenheimer
	S&P 24			S&P 400 MidCap			S&P 500			S&P SMid			Select Small-Cap			Small Cap			Technology			Value Line 30			JNL/MCM			Global Growth
	Portfolio			Index Portfolio			Index Portfolio			60 Portfolio			Portfolio			Index Portfolio			Sector Portfolio			Portfolio			VIP Portfolio			Portfolio
Operations
Net investment income (loss)	$	(135	)	$	982		$	10,842		$	(1,358	)	$	(145	)	$	481		$	(2,268	)	$	1,103		$	14,920		$	733
Net realized gain (loss) on investments		842			15,103			8,978			354			(9,075	)		19,474			15,900			(110	)		(47,892	)		(11,042	)
Net change in unrealized appreciation
(depreciation) on investments		10,565			165,767			189,104			7,760			23,101			174,781			31,548			24,934			145,426			82,718
Net increase (decrease) in net assets
from operations		11,272			181,852			208,924			6,756			13,881			194,736			45,180			25,927			112,454			72,409
Contract transactions 1
Policy purchase payments		6,450			105,878			238,901			55,936			4,090			115,887			23,484			28,121			144,659			88,160
Policy withdrawals		(681	)		(21,175	)		(78,543	)		(3,384	)		(3,453	)		(36,433	)		(7,711	)		(708	)		(61,809	)		(24,705	)
Transfers between portfolios		35,371			96,355			85,539			91,746			1,615			65,324			(3,517	)		107,076			3,591			(4,861	)
Policyholder charges		(2,658	)		(42,545	)		(116,377	)		(10,163	)		(5,926	)		(56,681	)		(12,500	)		(8,319	)		(71,160	)		(28,477	)
Net increase (decrease) in net assets from
contract transactions		38,482			138,513			129,520			134,135			(3,674	)		88,097			(244	)		126,170			15,281			30,117
Net increase (decrease) in net assets		49,754			320,365			338,444			140,891			10,207			282,833			44,936			152,097			127,735			102,526
Net assets beginning of period		30,344			658,517			1,435,683			188,206			100,215			681,566			389,451			107,836			779,141			467,538
Net assets end of period	$	80,098		$	978,882		$	1,774,127		$	329,097		$	110,422		$	964,399		$	434,387		$	259,933		$	906,876		$	570,064
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		3,863			45,029			139,485			18,883			18,272			52,185			56,317			17,713			74,733			35,295
Units Issued		6,189			20,274			42,631			42,117			5,846			17,895			11,835			24,735			18,385			8,073
Units Redeemed		(1,353	)		(11,811	)		(30,530	)		(33,260	)		(6,500	)		(11,228	)		(11,664	)		(6,942	)		(17,220	)		(5,835	)
Units Outstanding at December 31, 2010		8,699			53,492			151,586			27,740			17,618			58,852			56,488			35,506			75,898			37,533

See notes to the financial statements.

Page 22

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
													JNL/			JNL/			JNL/			JNL/			JNL/			JNL/S&P
	JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO			PPM America			PPM America			PPM America			PPM America			Red Rocks Listed			Competitive
	Asia ex-Japan			China-India			Real Return			Total Return			High Yield			Mid Cap Value			Small Cap Value			Value Equity			Private Equity			Advantage
	Portfolio			Portfolio			Portfolio			Bond Portfolio			Bond Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	(331	)	$	(1,852	)	$	1,597		$	19,164		$	33,813		$	(132	)	$	(3	)	$	234		$	(735	)	$	43
Net realized gain (loss) on investments		4,991			18,522			18,226			112,725			29,577			(1,673	)		(78	)		933			5,124			3,630
Net change in unrealized appreciation
(depreciation) on investments		6,642			19,104			1,709			(8,526	)		(2,474	)		781			(2	)		5,633			40,068			2,615
Net increase (decrease) in net assets
from operations		11,302			35,774			21,532			123,363			60,916			(1,024	)		(83	)		6,800			44,457			6,288
Contract transactions 1
Policy purchase payments		14,608			57,396			39,819			291,029			149,341			1,796			907			8,347			26,635			7,332
Policy withdrawals		(1,245	)		(12,686	)		(29,043	)		(150,518	)		(16,406	)		(122	)		-			(2,414	)		(6,784	)		(555	)
Transfers between portfolios		17,765			28,464			11,406			62,862			42,673			4,825			4,078			(4,954	)		105,079			747
Policyholder charges		(6,259	)		(15,705	)		(18,009	)		(125,453	)		(28,322	)		(1,357	)		(267	)		(2,751	)		(7,016	)		(4,106	)
Net increase (decrease) in net assets from
contract transactions		24,869			57,469			4,173			77,920			147,286			5,142			4,718			(1,772	)		117,914			3,418
Net increase (decrease) in net assets		36,171			93,243			25,705			201,283			208,202			4,118			4,635			5,028			162,371			9,706
Net assets beginning of period		51,061			238,403			237,031			1,508,256			460,953			7,986			202			42,882			72,096			49,727
Net assets end of period	$	87,232		$	331,646		$	262,736		$	1,709,539		$	669,155		$	12,104		$	4,837		$	47,910		$	234,467		$	59,433
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		4,569			19,986			19,232			79,029			30,213			963			24			2,432			8,705			4,979
Units Issued		7,260			23,414			24,787			87,308			37,243			7,124			2,161			894			22,614			1,823
Units Redeemed		(4,685	)		(17,008	)		(24,131	)		(83,449	)		(29,186	)		(6,948	)		(1,731	)		(999	)		(8,772	)		(1,468	)
Units Outstanding at December 31, 2010		7,144			26,392			19,888			82,888			38,270			1,139			454			2,327			22,547			5,334

See notes to the financial statements.

Page 23

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2010
	JNL/S&P
	Dividend Income			JNL/S&P			JNL/S&P			JNL/Select			JNL/Select			JNL/			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe
	& Growth			Intrinsic Value			Total Yield			Balanced			Money Market			Select Value			Price Established			Price Mid-Cap			Price Short-Term			Price Value
	Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Bond Portfolio			Portfolio
Operations
Net investment income (loss)	$	276		$	(160	)	$	(60	)	$	4,314		$	(16,587	)	$	3,919		$	(6,887	)	$	(4,505	)	$	(69	)	$	1,136
Net realized gain (loss) on investments		29,219			11,916			(3,810	)		(2,257	)		-			(2,276	)		24,989			42,775			1,090			(38,526	)
Net change in unrealized appreciation
(depreciation) on investments		1,686			(5,128	)		(238	)		93,660			-			93,724			153,837			203,061			3,075			112,562
Net increase (decrease) in net assets
from operations		31,181			6,628			(4,108	)		95,717			(16,587	)		95,367			171,939			241,331			4,096			75,172
Contract transactions 1
Policy purchase payments		20,964			28,907			18,137			101,870			561,627			90,378			116,849			144,487			7,798			80,747
Policy withdrawals		(978	)		(10,561	)		(559	)		(21,854	)		(143,459	)		(18,183	)		(35,558	)		(28,408	)		(445	)		(10,547	)
Transfers between portfolios		(28,582	)		(24,133	)		1,422			76,721			522,858			159,363			90,702			74,453			(128,436	)		(55,419	)
Policyholder charges		(14,434	)		(8,806	)		(4,755	)		(66,752	)		(137,947	)		(27,866	)		(54,540	)		(64,725	)		(6,267	)		(44,826	)
Net increase (decrease) in net assets from
contract transactions		(23,030	)		(14,593	)		14,245			89,985			803,079			203,692			117,453			125,807			(127,350	)		(30,045	)
Net increase (decrease) in net assets		8,151			(7,965	)		10,137			185,702			786,492			299,059			289,392			367,138			(123,254	)		45,127
Net assets beginning of period		158,127			108,021			55,004			853,219			2,156,064			589,951			918,281			778,305			211,341			548,282
Net assets end of period	$	166,278		$	100,056		$	65,141		$	1,038,921		$	2,942,556		$	889,010		$	1,207,673		$	1,145,443		$	88,087		$	593,409
1 Contract Unit Transactions
Units Outstanding at December 31, 2009		16,990			10,298			5,976			29,073			144,251			30,646			31,329			17,858			19,665			39,026
Units Issued		21,468			25,054			9,245			11,427			159,108			19,140			14,215			9,283			16,442			15,111
Units Redeemed		(24,486	)		(26,534	)		(8,723	)		(8,247	)		(106,024	)		(8,816	)		(10,088	)		(6,489	)		(28,131	)		(17,123	)
Units Outstanding at December 31, 2010		13,972			8,818			6,498			32,253			197,335			40,970			35,456			20,652			7,976			37,014

See notes to the financial statements.

Page 24

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2009
													JNL/Capital			JNL/Capital			JNL/Capital			JNL/Capital			JNL/Credit Suisse			JNL/
	JNL/AIM Global			JNL/AIM			JNL/AIM			JNL/AIM			Guardian Global			Guardian Global			Guardian			Guardian U.S.			Commodity			Credit Suisse
	Real Estate			International			Large Cap			Small Cap			Balanced			Diversified			International Small			Growth Equity			Securities			Long/Short
	Portfolio			Growth Portfolio			Growth Portfolio			Growth Portfolio			Portfolio			Research Portfolio			Cap Portfolio			Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	4,944		$	4,532		$	(1,796	)	$	(922	)	$	6,976		$	3,112		$	1,870		$	(530	)	$	1,480		$	88
Net realized gain (loss) on investments		(127,757	)		(43,552	)		(39,270	)		(16,214	)		(14,350	)		(13,600	)		(3,504	)		(4,623	)		(75,544	)		(4,393	)
Net change in unrealized appreciation
(depreciation) on investments		219,437			121,599			144,289			53,162			62,321			86,845			31,671			55,571			203,690			14,111
Net increase (decrease) in net assets
from operations		96,624			82,579			103,223			36,026			54,947			76,357			30,037			50,418			129,626			9,806
Contract transactions 1
Policy purchase payments		87,969			55,778			55,994			30,170			39,799			32,464			6,589			25,030			71,746			16,663
Policy withdrawals		(16,560	)		(30,262	)		(7,723	)		(2,100	)		(12,432	)		(7,793	)		-			(6,500	)		(11,951	)		(164	)
Transfers between portfolios		(24,471	)		72,429			62,254			(2,585	)		152,040			83,669			153,005			175,990			107,918			13,884
Policyholder charges		(35,201	)		(22,906	)		(32,241	)		(8,768	)		(14,582	)		(17,355	)		(6,121	)		(16,064	)		(29,295	)		(3,303	)
Net increase (decrease) in net assets from
contract transactions		11,737			75,039			78,284			16,717			164,825			90,985			153,473			178,456			138,418			27,080
Net increase (decrease) in net assets		108,361			157,618			181,507			52,743			219,772			167,342			183,510			228,874			268,044			36,886
Net assets beginning of period		292,358			222,770			402,346			97,400			184,601			159,632			34,616			78,748			269,961			25,292
Net assets end of period	$	400,719		$	380,388		$	583,853		$	150,143		$	404,373		$	326,974		$	218,126		$	307,622		$	538,005		$	62,178
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		34,250			17,878			43,256			9,737			18,730			8,164			7,375			4,025			40,237			3,774
Units Issued		27,051			9,440			22,263			6,925			20,470			7,678			30,888			10,448			50,134			6,833
Units Redeemed		(25,605	)		(5,723	)		(14,585	)		(5,413	)		(6,028	)		(4,026	)		(9,260	)		(2,930	)		(36,450	)		(3,122	)
Units Outstanding at December 31, 2009		35,696			21,595			50,934			11,249			33,172			11,816			29,003			11,543			53,921			7,485

See notes to the financial statements.

Page 25

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2009
							JNL/Franklin									JNL/Franklin			JNL/			JNL/Goldman			JNL/
	JNL/Eagle			JNL/Eagle			Templeton			JNL/Franklin			JNL/Franklin			Templeton			Goldman Sachs			Sachs Emerging			Goldman Sachs			JNL/Ivy
	Core Equity			SmallCap Equity			Global Growth			Templeton			Templeton Mutual			Small Cap			Core Plus			Markets Debt			Mid Cap			Asset Strategy
	Portfolio			Portfolio			Portfolio			Income Portfolio			Shares Portfolio			Value Portfolio			Bond Portfolio			Portfolio			Value Portfolio			Portfolio(a)
Operations
Net investment income (loss)	$	384		$	(1,616	)	$	2,144		$	19,794		$	7,556		$	370		$	8,276		$	(181	)	$	736		$	(75	)
Net realized gain (loss) on investments		(15,152	)		(29,515	)		(16,140	)		(18,391	)		(9,869	)		(45,220	)		(1,999	)		2,192			(60,002	)		(26	)
Net change in unrealized appreciation
(depreciation) on investments		37,383			96,930			63,933			74,783			47,936			87,201			19,993			3,627			118,633			153
Net increase (decrease) in net assets
from operations		22,615			65,799			49,937			76,186			45,623			42,351			26,270			5,638			59,367			52
Contract transactions 1
Policy purchase payments		10,497			39,933			40,104			49,603			53,632			28,222			33,732			9,510			23,195			6,726
Policy withdrawals		(824	)		(1,747	)		(3,100	)		(8,327	)		(2,460	)		(17,515	)		(1,254	)		-			(943	)		-
Transfers between portfolios		3,210			(30,521	)		(3,028	)		79,560			91,143			60,163			1,826			64,396			(55,710	)		92,401
Policyholder charges		(4,985	)		(11,258	)		(17,716	)		(36,681	)		(13,489	)		(15,213	)		(12,419	)		(1,764	)		(11,605	)		(313	)
Net increase (decrease) in net assets from
contract transactions		7,898			(3,593	)		16,260			84,155			128,826			55,657			21,885			72,142			(45,063	)		98,814
Net increase (decrease) in net assets		30,513			62,206			66,197			160,341			174,449			98,008			48,155			77,780			14,304			98,866
Net assets beginning of period		63,465			177,627			152,971			227,784			107,458			137,428			192,902			368			243,812			-
Net assets end of period	$	93,978		$	239,833		$	219,168		$	388,125		$	281,907		$	235,436		$	241,057		$	78,148		$	258,116		$	98,866
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		5,004			10,143			25,862			29,409			17,486			17,243			8,969			38			28,861			-
Units Issued		2,030			10,015			15,660			19,333			27,162			20,380			5,435			10,082			5,733			9,677
Units Redeemed		(1,486	)		(9,901	)		(13,029	)		(10,716	)		(8,251	)		(15,351	)		(4,528	)		(3,507	)		(11,425	)		(162	)
Units Outstanding at December 31, 2009		5,548			10,257			28,493			38,026			36,397			22,272			9,876			6,613			23,169			9,515
(a) Commencement of operations September 28, 2009.

See notes to the financial statements.

Page 26

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2009
							JNL/JPMorgan
	JNL/JPMorgan			JNL/JPMorgan			U.S. Government			JNL/Lazard			JNL/Lazard			JNL/Lazard			JNL/M&G			JNL/M&G						JNL/MCM
	International			MidCap Growth			& Quality Bond			Emerging Markets			Mid Cap			Small Cap			Global Basics			Global Leaders			JNL/MCM			Bond Index
	Value Portfolio			Portfolio			Portfolio			Portfolio			Equity Portfolio			Equity Portfolio(a)			Portfolio			Portfolio			25 Portfolio			Portfolio
Operations
Net investment income (loss)	$	17,348		$	(792	)	$	7,971		$	7,534		$	90		$	1,036		$	169		$	66		$	8,675		$	19,708
Net realized gain (loss) on investments		(167,439	)		(9,478	)		38,705			(36,357	)		(66,318	)		(117,424	)		1,279			-			(8,830	)		3,150
Net change in unrealized appreciation
(depreciation) on investments		262,201			42,834			(34,503	)		263,459			107,727			109,265			12,301			12			81,046			12,094
Net increase (decrease) in net assets
from operations		112,110			32,564			12,173			234,636			41,499			(7,123	)		13,749			78			80,891			34,952
Contract transactions 1
Policy purchase payments		122,110			19,068			117,698			61,569			34,115			14,624			301			51			8,130			105,567
Policy withdrawals		(13,820	)		(3,219	)		(14,030	)		(10,650	)		(1,896	)		-			-			-			(501	)		(14,285	)
Transfers between portfolios		(95,592	)		(9,668	)		(409,358	)		285,780			(68,369	)		(148,465	)		150,474			11,251			23,739			397,719
Policyholder charges		(36,544	)		(7,852	)		(40,772	)		(32,240	)		(16,755	)		(5,007	)		(4,108	)		(45	)		(10,694	)		(32,982	)
Net increase (decrease) in net assets from
contract transactions		(23,846	)		(1,671	)		(346,462	)		304,459			(52,905	)		(138,848	)		146,667			11,257			20,674			456,019
Net increase (decrease) in net assets		88,264			30,893			(334,289	)		539,095			(11,406	)		(145,971	)		160,416			11,335			101,565			490,971
Net assets beginning of period		455,387			77,452			892,553			235,546			164,763			145,971			-			-			151,009			446,410
Net assets end of period	$	543,651		$	108,345		$	558,264		$	774,641		$	153,357		$	-		$	160,416		$	11,335		$	252,574		$	937,381
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		42,874			4,951			45,922			33,027			12,457			13,906			-			-			23,066			34,188
Units Issued		20,995			2,112			44,593			61,552			2,759			2,577			13,531			999			6,185			49,331
Units Redeemed		(24,388	)		(2,189	)		(63,275	)		(30,886	)		(6,934	)		(16,483	)		(473	)		(4	)		(3,875	)		(15,395	)
Units Outstanding at December 31, 2009		39,481			4,874			27,240			63,693			8,282			-			13,058			995			25,376			68,124
(a) The period is from January 1, 2009 through acquisition April 3, 2009.

See notes to the financial statements.

Page 27

Jackson National Separate Account IV
Statements of Changes in Net Assets
For the Year Ended December 31, 2009
										JNL/MCM
	JNL/MCM			JNL/MCM			JNL/MCM			Enhanced			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM
	Communications			Consumer Brands			Dow Dividend			S&P 500 Stock			European 30			Financial			Global Alpha			Healthcare			International			JNL 5
	Sector Portfolio			Sector Portfolio			Portfolio			Index Portfolio(a)			Portfolio			Sector Portfolio			Portfolio(b)			Sector Portfolio			Index Portfolio			Portfolio
Operations
Net investment income (loss)	$	3,670		$	(14	)	$	6,246		$	4,025		$	117		$	1,938		$	(12	)	$	1,471		$	14,557		$	237,771
Net realized gain (loss) on investments		(23,366	)		(3,963	)		(4,440	)		(117,779	)		500			(49,817	)		(1	)		(3,682	)		(100,415	)		(1,220,739	)
Net change in unrealized appreciation
(depreciation) on investments		39,865			5,915			18,072			103,741			504			83,209			(150	)		42,228			303,137			2,689,008
Net increase (decrease) in net assets
from operations		20,169			1,938			19,878			(10,013	)		1,121			35,330			(163	)		40,017			217,279			1,706,040
Contract transactions 1
Policy purchase payments		25,463			3,548			22,849			4,838			585			33,237			23			23,734			173,535			1,410,893
Policy withdrawals		(1,789	)		(285	)		(515	)		-			-			(582	)		-			(1,381	)		(27,151	)		(357,376	)
Transfers between portfolios		4,297			(6,074	)		22,280			(141,404	)		4,123			35,913			10,715			(1,924	)		69,845			(413,915	)
Policyholder charges		(10,230	)		(1,027	)		(5,688	)		(2,911	)		(243	)		(11,916	)		(193	)		(14,213	)		(64,375	)		(669,035	)
Net increase (decrease) in net assets from
contract transactions		17,741			(3,838	)		38,926			(139,477	)		4,465			56,652			10,545			6,216			151,854			(29,433	)
Net increase (decrease) in net assets		37,910			(1,900	)		58,804			(149,490	)		5,586			91,982			10,382			46,233			369,133			1,676,607
Net assets beginning of period		71,586			12,271			38,296			149,490			-			133,925			-			193,498			572,302			7,000,757
Net assets end of period	$	109,496		$	10,371		$	97,100		$	-		$	5,586		$	225,907		$	10,382		$	239,731		$	941,435		$	8,677,364
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		17,834			1,536			7,726			22,479			-			20,961			-			18,617			46,910			856,624
Units Issued		13,497			618			14,219			1,318			624			31,792			1,071			6,611			45,723			231,576
Units Redeemed		(9,554	)		(1,141	)		(5,733	)		(23,797	)		(161	)		(22,743	)		(19	)		(6,043	)		(32,664	)		(227,314	)
Units Outstanding at December 31, 2009		21,777			1,013			16,212			-			463			30,010			1,052			19,185			59,969			860,886
(a) The period is from January 1, 2009 through acquisition April 3, 2009.
(b) Commencement of operations September 28, 2009.

See notes to the financial statements.

Page 28

Jackson National Separate Account IV

Statements of Changes in Net Assets

For the Year Ended December 31, 2009

	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM
	JNL Optimized			Nasdaq 25			NYSE International			Oil & Gas			Pacific Rim 30			S&P 24			S&P 400 MidCap			S&P 500			S&P SMid			Select Small-Cap
	5 Portfolio			Portfolio			25 Portfolio			Sector Portfolio			Portfolio			Portfolio			Index Portfolio			Index Portfolio			60 Portfolio			Portfolio
Operations
Net investment income (loss)	$	17,082		$	(133	)	$	4,921		$	3,119		$	170		$	(73	)	$	3,744		$	9,744		$	569		$	465
Net realized gain (loss) on investments		(81,814	)		1,281			(13,934	)		(50,159	)		857			159			(51,866	)		(80,014	)		2,520			(21,344	)
Net change in unrealized appreciation
(depreciation) on investments		326,237			4,525			49,581			179,205			(231	)		4,407			217,317			364,452			46,238			27,073
Net increase (decrease) in net assets
from operations		261,505			5,673			40,568			132,165			796			4,493			169,195			294,182			49,327			6,194
Contract transactions 1
Policy purchase payments		177,597			1,538			22,632			116,833			2,590			4,666			97,707			220,046			21,618			3,826
Policy withdrawals		(12,822	)		-			(2,986	)		(9,846	)		-			(93	)		(16,053	)		(60,868	)		(2,300	)		(1,014	)
Transfers between portfolios		(39,811	)		(1,009	)		(23,654	)		(10,470	)		11,658			9,373			91,164			292,384			60,354			24,609
Policyholder charges		(73,950	)		(824	)		(8,739	)		(65,938	)		(705	)		(1,643	)		(31,975	)		(98,491	)		(5,528	)		(5,153	)
Net increase (decrease) in net assets from
contract transactions		51,014			(295	)		(12,747	)		30,579			13,543			12,303			140,843			353,071			74,144			22,268
Net increase (decrease) in net assets		312,519			5,378			27,821			162,744			14,339			16,796			310,038			647,253			123,471			28,462
Net assets beginning of period		640,392			5,982			110,770			711,887			2,018			13,548			348,479			788,430			64,735			71,753
Net assets end of period	$	952,911		$	11,360		$	138,591		$	874,631		$	16,357		$	30,344		$	658,517		$	1,435,683		$	188,206		$	100,215
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		98,135			979			17,706			28,586			210			2,012			32,746			95,987			10,441			13,640
Units Issued		38,635			7,661			8,560			13,270			1,417			3,142			29,978			86,979			54,529			12,207
Units Redeemed		(30,106	)		(7,309	)		(9,895	)		(12,261	)		(248	)		(1,291	)		(17,695	)		(43,481	)		(46,087	)		(7,575	)
Units Outstanding at December 31, 2009		106,664			1,331			16,371			29,595			1,379			3,863			45,029			139,485			18,883			18,272

See notes to the financial statements.

Page 29

Jackson National Separate Account IV

Statements of Changes in Net Assets

For the Year Ended December 31, 2009

													JNL/															JNL/
	JNL/MCM			JNL/MCM			JNL/MCM						Oppenheimer			JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO			PPM America
	Small Cap			Technology			Value Line 30			JNL/MCM			Global Growth			Asia ex-Japan			China-India			Real Return			Total Return			Core Equity
	Index Portfolio			Sector Portfolio			Portfolio			VIP Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Bond Portfolio			Portfolio(a)
Operations
Net investment income (loss)	$	1,899		$	(1,817	)	$	(9	)	$	7,334		$	3,639		$	(170	)	$	(790	)	$	4,051		$	24,563		$	1,796
Net realized gain (loss) on investments		(31,670	)		6,232			(26,174	)		(163,688	)		(18,333	)		1,766			4,430			(9,155	)		65,102			(7,103	)
Net change in unrealized appreciation
(depreciation) on investments		182,924			140,415			46,057			313,511			138,464			9,935			32,930			31,458			57,331			10,827
Net increase (decrease) in net assets
from operations		153,153			144,830			19,874			157,157			123,770			11,531			36,570			26,354			146,996			5,520
Contract transactions 1
Policy purchase payments		106,059			16,656			23,303			131,591			78,123			4,363			20,704			26,962			192,471			4,333
Policy withdrawals		(16,996	)		(2,147	)		-			(18,406	)		(7,371	)		(287	)		(292	)		(3,576	)		(47,028	)		-
Transfers between portfolios		235,334			145,857			(6,247	)		(61,821	)		(10,411	)		28,623			163,082			(41,479	)		301,529			(27,806	)
Policyholder charges		(44,249	)		(11,662	)		(7,530	)		(68,238	)		(27,951	)		(1,399	)		(6,945	)		(13,490	)		(86,245	)		(1,790	)
Net increase (decrease) in net assets from
contract transactions		280,148			148,704			9,526			(16,874	)		32,390			31,300			176,549			(31,583	)		360,727			(25,263	)
Net increase (decrease) in net assets		433,301			293,534			29,400			140,283			156,160			42,831			213,119			(5,229	)		507,723			(19,743	)
Net assets beginning of period		248,265			95,917			78,436			638,858			311,378			8,230			25,284			242,260			1,000,533			19,743
Net assets end of period	$	681,566		$	389,451		$	107,836		$	779,141		$	467,538		$	51,061		$	238,403		$	237,031		$	1,508,256		$	-
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		24,122			22,385			14,539			75,569			32,572			1,341			4,356			22,991			60,538			1,375
Units Issued		55,531			51,778			62,482			28,250			11,474			6,375			40,977			32,342			115,697			946
Units Redeemed		(27,468	)		(17,846	)		(59,308	)		(29,086	)		(8,751	)		(3,147	)		(25,347	)		(36,101	)		(97,206	)		(2,321	)
Units Outstanding at December 31, 2009		52,185			56,317			17,713			74,733			35,295			4,569			19,986			19,232			79,029			-
(a) The period is from January 1, 2009 through acquisition September 25, 2009.

See notes to the financial statements.

Page 30

Jackson National Separate Account IV

Statements of Changes in Net Assets

For the Year Ended December 31, 2009

	JNL/			JNL/			JNL/			JNL/			JNL/			JNL/S&P			JNL/S&P
	PPM America			PPM America			PPM America			PPM America			Red Rocks Listed			Competitive			Dividend Income			JNL/S&P			JNL/S&P			JNL/Select
	High Yield			Mid Cap Value			Small Cap Value			Value Equity			Private Equity			Advantage			& Growth			Intrinsic Value			Total Yield			Balanced
	Bond Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
Operations
Net investment income (loss)	$	21,922		$	12		$	(7	)	$	1,706		$	1,661		$	(361	)	$	(517	)	$	(657	)	$	(297	)	$	13,457
Net realized gain (loss) on investments		5,165			157			(12,881	)		(1,605	)		4,902			7,688			(8,686	)		13,128			(3,555	)		(27,797	)
Net change in unrealized appreciation
(depreciation) on investments		70,195			821			11,732			10,672			4,531			4,638			17,742			8,942			764			147,799
Net increase (decrease) in net assets
from operations		97,282			990			(1,156	)		10,773			11,094			11,965			8,539			21,413			(3,088	)		133,459
Contract transactions 1
Policy purchase payments		42,533			330			208			7,632			17,269			5,745			6,582			10,659			6,093			74,159
Policy withdrawals		(8,994	)		-			-			(396	)		(42	)		(25	)		(27	)		(27	)		(28	)		(7,242	)
Transfers between portfolios		278,458			6,171			(22,337	)		12,691			39,683			21,046			101,661			48,827			32,381			48,046
Policyholder charges		(18,010	)		(508	)		(68	)		(2,447	)		(2,071	)		(3,315	)		(6,426	)		(7,645	)		(3,092	)		(55,514	)
Net increase (decrease) in net assets from
contract transactions		293,987			5,993			(22,197	)		17,480			54,839			23,451			101,790			51,814			35,354			59,449
Net increase (decrease) in net assets		391,269			6,983			(23,353	)		28,253			65,933			35,416			110,329			73,227			32,266			192,908
Net assets beginning of period		69,684			1,003			23,555			14,629			6,163			14,311			47,798			34,794			22,738			660,311
Net assets end of period	$	460,953		$	7,986		$	202		$	42,882		$	72,096		$	49,727		$	158,127		$	108,021		$	55,004		$	853,219
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		6,681			177			3,552			1,197			1,037			1,983			6,607			5,271			3,460			26,870
Units Issued		43,624			1,013			33			1,675			12,159			27,376			17,931			63,609			24,637			8,350
Units Redeemed		(20,092	)		(227	)		(3,561	)		(440	)		(4,491	)		(24,380	)		(7,548	)		(58,582	)		(22,121	)		(6,147	)
Units Outstanding at December 31, 2009		30,213			963			24			2,432			8,705			4,979			16,990			10,298			5,976			29,073

See notes to the financial statements.

Page 31

Jackson National Separate Account IV

Statements of Changes in Net Assets

For the Year Ended December 31, 2009

	JNL/Select			JNL/			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe			JNL/T. Rowe
	Money Market			Select Value			Price Established			Price Mid-Cap			Price Short-Term			Price Value
	Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Bond Portfolio			Portfolio
Operations
Net investment income (loss)	$	(12,794	)	$	6,106		$	(1,824	)	$	(4,735	)	$	4,961		$	4,793
Net realized gain (loss) on investments		-			(24,984	)		(22,496	)		(87,489	)		1,680			(71,590	)
Net change in unrealized appreciation
(depreciation) on investments		-			116,723			279,672			303,658			486			212,952
Net increase (decrease) in net assets
from operations		(12,794	)		97,845			255,352			211,434			7,127			146,155
Contract transactions 1
Policy purchase payments		683,516			102,293			90,169			133,019			5,475			95,098
Policy withdrawals		(13,543	)		(7,518	)		(8,247	)		(19,471	)		(696	)		(2,672	)
Transfers between portfolios		(582,274	)		72,481			262,671			19,896			155,495			(36,549	)
Policyholder charges		(137,163	)		(24,028	)		(45,951	)		(54,021	)		(6,518	)		(38,109	)
Net increase (decrease) in net assets from
contract transactions		(49,464	)		143,228			298,642			79,423			153,756			17,768
Net increase (decrease) in net assets		(62,258	)		241,073			553,994			290,857			160,883			163,923
Net assets beginning of period		2,218,322			348,878			364,287			487,448			50,458			384,359
Net assets end of period	$	2,156,064		$	589,951		$	918,281		$	778,305		$	211,341		$	548,282
1 Contract Unit Transactions
Units Outstanding at December 31, 2008		149,699			22,407			17,783			16,323			5,003			37,361
Units Issued		248,517			15,448			19,798			8,457			18,732			13,286
Units Redeemed		(253,965	)		(7,209	)		(6,252	)		(6,922	)		(4,070	)		(11,621	)
Units Outstanding at December 31, 2009		144,251			30,646			31,329			17,858			19,665			39,026

See notes to the financial statements.

Page 32

Jackson National Separate Account IV

Notes to Financial Statements

Note 1 – Organization

Jackson National Life Insurance Company (“Jackson”) established Jackson National Separate Account IV (the “Separate Account”) on June 14, 1997.  The Separate Account commenced operations on March 8, 2004, and is registered under the Investment Company Act of 1940 as a unit investment trust.

The Separate Account assets legally belong to Jackson and the obligations under the contracts are the obligation of Jackson.  However, the contract assets in the Separate Account are not chargeable with liabilities arising out of any other business Jackson may conduct.

The Separate Account receives and invests, based on the directions of the policyholder, net premiums for individual flexible premium variable universal life contracts issued by Jackson.  The contracts can be purchased on a non-tax qualified basis or in connection with certain plans qualifying for favorable federal income tax treatment.  The Separate Account contains eighty (80) Portfolios as of December 31, 2010, each of which invests in the following series of mutual funds (“Funds”):

JNL Series Trust
JNL/American Funds Blue Chip Income and Growth Fund	JNL/Goldman Sachs U.S. Equity Flex Fund	JNL/Oppenheimer Global Growth Fund
JNL/American Funds Global Bond Fund	JNL/Invesco Global Real Estate Fund	JNL/PAM Asia ex-Japan Fund
JNL/American Funds Global Small Capitalization Fund	JNL/Invesco International Growth Fund	JNL/PAM China-India Fund
JNL/American Funds Growth-Income Fund	JNL/Invesco Large Cap Growth Fund	JNL/PIMCO Real Return Fund
JNL/American Funds International Fund	JNL/Invesco Small Cap Growth Fund	JNL/PIMCO Total Return Bond Fund
JNL/American Funds New World Fund	JNL/Ivy Asset Strategy Fund	JNL/PPM America High Yield Bond Fund
JNL/BlackRock Commodity Securities Fund	JNL/JPMorgan International Value Fund	JNL/PPM America Mid Cap Value Fund
JNL/BlackRock Global Allocation Fund	JNL/JPMorgan MidCap Growth Fund	JNL/PPM America Small Cap Value Fund
JNL/Capital Guardian Global Balanced Fund	JNL/JPMorgan U.S. Government & Quality Bond Fund	JNL/PPM America Value Equity Fund
JNL/Capital Guardian Global Diversified Research Fund	JNL/Lazard Emerging Markets Fund	JNL/Red Rocks Listed Private Equity Fund
JNL/Capital Guardian U.S. Growth Equity Fund	JNL/Lazard Mid Cap Equity Fund	JNL/S&P Competitive Advantage Fund
JNL/Eagle Core Equity Fund	JNL/M&G Global Basics Fund	JNL/S&P Dividend Income & Growth Fund
JNL/Eagle SmallCap Equity Fund	JNL/M&G Global Leaders Fund	JNL/S&P Intrinsic Value Fund
JNL/Franklin Templeton Global Growth Fund	JNL/MCM Bond Index Fund*	JNL/S&P Total Yield Fund
JNL/Franklin Templeton Income Fund	JNL/MCM European 30 Fund*	JNL/Select Balanced Fund
JNL/Franklin Templeton International Small Cap Growth Fund	JNL/MCM Global Alpha Fund*	JNL/Select Money Market Fund
JNL/Franklin Templeton Mutual Shares Fund	JNL/MCM International Index Fund*	JNL/Select Value Fund
JNL/Franklin Templeton Small Cap Value Fund	JNL/MCM Pacific Rim 30 Fund*	JNL/T. Rowe Price Established Growth Fund
JNL/Goldman Sachs Core Plus Bond Fund	JNL/MCM S&P 400 MidCap Index Fund*	JNL/T. Rowe Price Mid-Cap Growth Fund
JNL/Goldman Sachs Emerging Markets Debt Fund	JNL/MCM S&P 500 Index Fund*	JNL/T. Rowe Price Short-Term Bond Fund
JNL/Goldman Sachs Mid Cap Value Fund	JNL/MCM Small Cap Index Fund*	JNL/T. Rowe Price Value Fund

Page 33

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 1 – Organization (continued)

JNL Variable Fund LLC
JNL/MCM 25 Fund*	JNL/MCM JNL 5 Fund*	JNL/MCM S&PÒ SMid 60 Fund*
JNL/MCM Communications Sector Fund*	JNL/MCM JNL Optimized 5 Fund*	JNL/MCM Select Small-Cap Fund*
JNL/MCM Consumer Brands Sector Fund*	JNL/MCM NasdaqÒ 25 Fund*	JNL/MCM Technology Sector Fund*
JNL/MCM DowSM Dividend Fund*	JNL/MCM NYSEÒ International 25 Fund*	JNL/MCM Value LineÒ 30 Fund*
JNL/MCM Financial Sector Fund*	JNL/MCM Oil & Gas Sector Fund*	JNL/MCM VIP Fund*
JNL/MCM Healthcare Sector Fund*	JNL/MCM S&PÒ 24 Fund*

Jackson National Asset Management, LLC, a wholly-owned subsidiary of Jackson, serves as investment adviser for all the Funds and receives a fee for its services from each of the Funds.

During the year ended December 31, 2010, the following Funds changed names:

PRIOR PORTFOLIO NAME	CURRENT PORTFOLIO NAME	EFFECTIVE DATE
JNL/Capital Guardian International Small CapFund	JNL/Franklin Templeton International Small Cap Growth Fund(1)	May 3, 2010
JNL/AIM Global Real Estate Fund	JNL/Invesco Global Real Estate Fund	October 11, 2010
JNL/AIM International Growth Fund	JNL/Invesco International Growth Fund	October 11, 2010
JNL/AIM Large Cap Growth Fund	JNL/Invesco Large Cap Growth Fund	October 11, 2010
JNL/AIM Small Cap Growth Fund	JNL/Invesco Small Cap Growth Fund	October 11, 2010
JNL/Credit Suisse Commodity Securities Fund	JNL/BlackRock Commodity Securities Fund(1)	October 11, 2010
JNL/Credit Suisse Long/Short Fund	JNL/Goldman Sachs U.S. Equity Flex Fund(1)	October 11, 2010

(1) These name changes are due to changes in sub-adviser.

* MCM denotes the sub-adviser Mellon Capital Management throughout these financial statements.

Note 2 – Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Separate Account in the preparation of its financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Page 34

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 2 – Significant Accounting Policies (continued)

Investments

The Separate Account’s investments in the corresponding series of mutual funds are stated at the closing net asset values of the respective Funds.  The average cost method is used in determining the cost of the shares sold on withdrawals by the Separate Account.  Investments in the Funds are recorded on trade date.  Realized gain distributions and dividend distributions received from the Funds are reinvested in additional shares of the Funds and are recorded as income or gain to the Separate Account on the ex-dividend date.

Federal Income Taxes

The operations of the Separate Account are included in the federal income tax return of Jackson, which is taxed as a “life insurance company” under the provisions of the Internal Revenue Code.  Under current law, no federal income taxes are payable with respect to the Separate Account.  Therefore, no federal income tax has been provided.

FASB Accounting Standards Codification™ (the ASC)

In June 2009, the FASB issued an accounting pronouncement establishing the FASB Accounting Standards Codification™ (the ASC) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities. This pronouncement was effective for financial statements issued for interim and annual periods ending after September 15, 2009, for most entities. On the effective date, all non-SEC accounting and reporting standards were superseded.  This pronouncement had no impact on the accompanying financial statements.

Topic 820 in the Accounting Standards Codification (ASC 820), “Fair Value Measurements”

This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. The changes to current GAAP from the application of this statement relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurements.

Various inputs are used in determining the value of a Fund’s investments under ASC 820 guidance.  The inputs are summarized into three broad categories.  Level 1 includes valuations based on quoted prices of identical securities in active markets.  Level 2 includes valuations for which all significant inputs are observable, either directly or indirectly.  Direct observable inputs include closing prices of similar securities in active markets or closing prices for identical or similar securities in non-active markets.  Indirect observable inputs include factors such as interest rates, yield curves, prepayment speeds, and credit risks.  Level 3 includes valuations based on inputs that are unobservable and significant to the fair value measurement including a Fund’s own assumptions in determining the fair value of the investment.  The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  As of December 31, 2010, all of the Separate Account's investments are in funds for which quoted prices are available in an active market.  Therefore, all investments have been categorized as Level 1. The characterization of the underlying securities held by the Funds in accordance with ASC 820 differs from the characterization of an investment in the fund.

Note 3 – Policy Charges

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

Page 35

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 3 – Policy Charges (continued)

Asset-based Charges

Insurance Charges

Jackson deducts a daily contract charge from the net assets of the Separate Account equivalent to an annual rate of 0.15% - 0.90% for years 1-10, 0.0% - 0.25% for years 11-20, and 0.0% for years greater than 21 for the assumption of mortality and expense risks.  The mortality risk assumed by Jackson is that the insured may receive benefits greater than those anticipated by Jackson.  This charge is an expense of the Separate Account and is deducted daily from the net assets of the Separate Account.  This is charged through the daily unit value calculation.

Transaction Charges

Policy premium payments are reflected net of the following charges paid:

Sales Charge

A basic sales charge is deducted from each premium payment received.  This sales charge is not to exceed 6% of each premium in all years.  Total sales charges deducted from premium payments for the years ended December 31, 2010 and 2009 amounted to $334,257 and $324,215, respectively.

Premium Tax Charge

A premium tax charge in the amount of 2.5% is deducted from each premium payment.

Federal Tax Charge

A federal tax charge of 1.5% is deducted from each premium payment.

Total tax charges for the years ended December 31, 2010 and 2009 amounted to $379,497 and $396,489, respectively.

In addition to deductions for premium payments, cash value charges, if any, are assessed from the actual cash value of the policy.  These charges are paid by redeeming units of the Separate Account held by the individual policyholder.

Cost of Insurance Charge

The cost of insurance varies with the amount of insurance, the insured’s age, sex, risk class, and duration of the policy.

Monthly Policy Charge

A monthly policy fee is assessed at $7.50 - $15 per month of policy years 1-10 and $7.50 - $8 per month thereafter.

Administrative Charge

An administrative charge of $0.05 - $0.30 per thousand of the specified death benefit (policy face value) will be assessed in the first 15 policy years, and $0.01 per thousand thereafter.

Page 36

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 3 – Policy Charges (continued)

Optional Rider Charges

Types of optional riders include the following: Scheduled Term Insurance, Waiver of Monthly Deductions, Wavier of Specified Premium, Guaranteed Minimum Death Benefit, and Child Insurance Rider.  For a full explanation of product optional riders please refer to the products prospectus.

The total cash value charges for the years ended December 31, 2010 and 2009 amounted to $2,534,873 and $2,245,440, respectively.

Contract Charges

Transfer Charge

A transfer charge of $25 will apply to transfers made by policyholders between the portfolios in excess of 15 transfers in a contract year.  Jackson may waive the transfer charge in connection with pre-authorized automatic transfer programs, or in those states where a lesser charge is required.  This charge will be deducted from the amount transferred prior to the allocation to a different portfolio.

Re-Underwriting Charge

If a transaction under a policy requires underwriting approval after the commencement date, a charge of $25 is deducted.

Illustration Charge

One personalized illustration is free of charge each policy year.  A fee of $25 (to be paid in cash) will be assessed for any additional illustration requests during the policy year.

Surrender Charges

During the first nine contract years, certain contracts include a provision for a charge upon the surrender, partial surrender or increase in the specified death benefit of the contract.  The amount assessed under the contract terms, if any, depends upon the specified rate associated with the particular contract.  The rate is determined based on a number of factors, including the insured’s age, sex, underwriting risk classification, and the contract year of surrender.  The surrender charges are assessed by Jackson and withheld from the proceeds of withdrawals.

The total contract charges for the years ended December 31, 2010 and 2009 amounted to $375 and $175, respectively.

Page 37

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 4 – Purchases and Sales of Investments

For the year ended December 31, 2010, purchases and proceeds from sales of investments are as follows:

JNL Series Trust
	Purchases	Proceeds       from Sales		Purchases	Proceeds       from Sales
JNL/American Funds Blue Chip Income and Growth Fund	$8,329	$860	JNL/M&G Global Basics Fund	$44,361	$110,210
JNL/American Funds Global Bond Fund	80,579	2,877	JNL/M&G Global Leaders Fund	7,989	1,589
JNL/American Funds Global Small Capitalization Fund	21,956	689	JNL/MCM Bond Index Fund	409,358	481,300
JNL/American Funds Growth-Income Fund	21,915	846	JNL/MCM European 30 Fund	17,155	7,957
JNL/American Funds International Fund	18,523	627	JNL/MCM Global Alpha Fund	82,989	5,610
JNL/American Funds New World Fund	16,202	890	JNL/MCM International Index Fund	380,249	236,224
JNL/BlackRock Commodity Securities Fund	287,558	234,336	JNL/MCM Pacific Rim 30 Fund	45,099	11,404
JNL/BlackRock Global Allocation Fund	18,385	95	JNL/MCM S&P 400 MidCap Index Fund	347,014	200,101
JNL/Capital Guardian Global Balanced Fund	66,148	89,838	JNL/MCM S&P 500 Index Fund	477,519	335,206
JNL/Capital Guardian Global Diversified Research Fund	207,427	261,730	JNL/MCM Small Cap Index Fund	255,727	167,148
JNL/Capital Guardian U.S. Growth Equity Fund	51,984	163,764	JNL/Oppenheimer Global Growth Fund	115,100	84,250
JNL/Eagle Core Equity Fund	31,091	17,762	JNL/PAM Asia ex-Japan Fund	81,146	56,608
JNL/Eagle SmallCap Equity Fund	257,914	85,427	JNL/PAM China-India Fund	277,070	218,462
JNL/Franklin Templeton Global Growth Fund	94,710	47,560	JNL/PIMCO Real Return Fund	326,054	314,979
JNL/Franklin Templeton Income Fund	254,572	327,017	JNL/PIMCO Total Return Bond Fund	1,850,319	1,698,650
JNL/Franklin Templeton International Small Cap Growth Fund	93,338	159,076	JNL/PPM America High Yield Bond Fund	643,556	462,458
JNL/Franklin Templeton Mutual Shares Fund	121,489	82,169	JNL/PPM America Mid Cap Value Fund	77,106	72,097
JNL/Franklin Templeton Small Cap Value Fund	205,618	115,376	JNL/PPM America Small Cap Value Fund	21,045	16,092
JNL/Goldman Sachs Core Plus Bond Fund	94,374	103,602	JNL/PPM America Value Equity Fund	17,511	19,049
JNL/Goldman Sachs Emerging Markets Debt Fund	261,056	57,369	JNL/Red Rocks Listed Private Equity Fund	195,315	76,882
JNL/Goldman Sachs Mid Cap Value Fund	79,498	83,164	JNL/S&P Competitive Advantage Fund	21,381	15,716
JNL/Goldman Sachs U.S. Equity Flex Fund	46,880	36,938	JNL/S&P Dividend Income & Growth Fund	215,517	231,937
JNL/Invesco Global Real Estate Fund	361,569	222,153	JNL/S&P Intrinsic Value Fund	275,664	280,649
JNL/Invesco International Growth Fund	172,741	120,567	JNL/S&P Total Yield Fund	96,289	80,805
JNL/Invesco Large Cap Growth Fund	325,989	257,530	JNL/Select Balanced Fund	367,899	273,599
JNL/Invesco Small Cap Growth Fund	220,671	38,061	JNL/Select Money Market Fund	2,408,319	1,621,828
JNL/Ivy Asset Strategy Fund	185,467	28,224	JNL/Select Value Fund	389,418	181,807
JNL/JPMorgan International Value Fund	267,170	260,692	JNL/T. Rowe Price Established Growth Fund	420,973	310,406
JNL/JPMorgan MidCap Growth Fund	110,948	70,537	JNL/T. Rowe Price Mid-Cap Growth Fund	459,220	316,258
JNL/JPMorgan U.S. Government & Quality Bond Fund	198,405	268,759	JNL/T. Rowe Price Short-Term Bond Fund	181,713	309,132
JNL/Lazard Emerging Markets Fund	519,176	409,094	JNL/T. Rowe Price Value Fund	225,609	254,518
JNL/Lazard Mid Cap Equity Fund	60,647	82,443

Page 38

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 4 – Purchases and Sales of Investments (continued)

JNL Variable Fund LLC
	Purchases	Proceeds   from Sales		Purchases	Proceeds   from Sales
JNL/MCM 25 Fund	$266,728	$152,779	JNL/MCM NYSEÒ International 25 Fund	$49,509	$49,090
JNL/MCM Communications Sector Fund	72,005	53,690	JNL/MCM Oil & Gas Sector Fund	404,479	369,640
JNL/MCM Consumer Brands Sector Fund	32,245	16,907	JNL/MCM S&PÒ 24 Fund	49,231	10,885
JNL/MCM DowSM Dividend Fund	75,205	47,758	JNL/MCM S&PÒ SMid 60 Fund	463,415	330,638
JNL/MCM Financial Sector Fund	150,537	168,661	JNL/MCM Select Small-Cap Fund	32,780	36,600
JNL/MCM Healthcare Sector Fund	90,164	65,605	JNL/MCM Technology Sector Fund	82,938	85,450
JNL/MCM JNL 5 Fund	1,764,774	2,430,163	JNL/MCM Value LineÒ 30 Fund	170,709	43,436
JNL/MCM JNL Optimized 5 Fund	358,257	373,851	JNL/MCM VIP Fund	219,504	189,303
JNL/MCM NasdaqÒ 25 Fund	43,588	17,131

Note 5 – Subsequent Events

Effective February 22, 2011, changes were made to the investment options available in the Separate Account.  JNL/BlackRock Global Allocation Portfolio was removed as an investment option for all new investment allocations, but any current investment balances as of February 22, 2011, remained invested in the Portfolio.  Management has evaluated the Funds for any other subsequent events through the date the financial statements are available to be issued, and has concluded there are no other events that require financial statement disclosure and/or adjustments to the financial statements.

Page 39

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights

 The following is a summary for each period in the five-year period ended December 31, 2010 of unit values, total returns and expense ratios for variable annuity contracts with the highest and lowest expense ratios in addition to certain other portfolio data.  Unit values for portfolios that do not have any assets at period end are calculated based on the net asset value of the underlying fund less expenses charged directly to the Separate Account.

	JNL/American																											JNL/Capital
	Funds Blue						JNL/American			JNL/American															JNL/Capital			Guardian
	Chip			JNL/American			Funds Global			Funds			JNL/American			JNL/American			JNL/BlackRock			JNL/BlackRock			Guardian			Global
	Income and			Funds Global			Small			Growth			Funds			Funds New			Commodity			Global			Global			Diversified
	Growth			Bond			Capitalization			-Income			International			World			Securities			Allocation			Balanced			Research
	Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(a)			Portfolio(c)			Portfolio			Portfolio
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	10.350229		$	10.423733		$	11.111333		$	10.397660		$	10.815402		$	11.302552		$	11.602289		$	10.334347		$	12.754628		$	29.504560
Total Return*		3.50	%***		4.24	%***		11.11	%***		3.98	%***		8.15	%***		13.03	%***		16.54	%		3.34	%***		8.42	%		11.00	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a		$	9.955948			n/a		$	11.764277		$	26.579941
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			49.00	%		n/a			21.49	%		37.30	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			0.90	%		n/a			0.90	%		0.90	%
Period ended December 31, 2008
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a		$	6.681945			n/a		$	9.683308		$	19.359090
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			-51.62	%		n/a			-28.76	%		-42.87	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			0.90	%		n/a			0.90	%		0.90	%
Period ended December 31, 2007
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a		$	13.810204			n/a		$	13.593315		$	33.887139
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			38.10	%***		n/a			7.27	%		19.78	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			0.90	%		n/a			0.90	%		0.90	%
Period ended December 31, 2006
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a		$	12.672464		$	28.291702
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			9.98	%		12.56	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			0.90	%		0.90	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations May 3, 2010.

(c) Commencement of operations October 11, 2010.

Page 40

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/American																											JNL/Capital
	Funds Blue						JNL/American			JNL/American															JNL/Capital			Guardian
	Chip			JNL/American			Funds Global			Funds			JNL/American			JNL/American			JNL/BlackRock			JNL/BlackRock			Guardian			Global
	Income and			Funds Global			Small			Growth-			Funds			Funds New			Commodity			Global			Global			Diversified
	Growth			Bond			Capitalization			Income			International			World			Securities			Allocation			Balanced			Research
	Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(a)			Portfolio(c)			Portfolio			Portfolio
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	10.399647		$	10.447141		$	11.150705		$	10.449598		$	10.859197		$	11.363534		$	11.948350		$	10.347291		$	13.815892		$	33.287557
Total Return*		4.00	%***		4.47	%***		11.51	%***		4.50	%***		8.59	%***		13.64	%***		17.41	%		3.47	%***		9.23	%		11.84	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a		$	10.176277			n/a		$	12.647913		$	29.763895
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			50.12	%		n/a			22.41	%		38.33	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			0.15	%		n/a			0.15	%		0.15	%
Period ended December 31, 2008
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a		$	6.778767			n/a		$	10.332839		$	21.516089
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			-51.25	%		n/a			-28.23	%		-42.44	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			0.15	%		n/a			0.15	%		0.15	%
Period ended December 31, 2007
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a		$	13.905731			n/a		$	14.396725		$	37.382502
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			39.06	%***		n/a			8.08	%		20.76	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			0.15	%		n/a			0.15	%		0.15	%
Period ended December 31, 2006
Unit Value		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a		$	13.320544		$	30.955660
Total Return*		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			10.82	%		13.51	%
Ratio of Expenses**		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			0.15	%		0.15	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations May 3, 2010.

(c) Commencement of operations October 11, 2010.

Page 41

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/American																											JNL/Capital
	Funds Blue						JNL/American			JNL/American															JNL/Capital			Guardian
	Chip			JNL/American			Funds Global			Funds			JNL/American			JNL/American			JNL/BlackRock			JNL/BlackRock			Guardian			Global
	Income and			Funds Global			Small			Growth-			Funds			Funds New			Commodity			Global			Global			Diversified
	Growth			Bond			Capitalization			Income			International			World			Securities			Allocation			Balanced			Research
	Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio(a)			Portfolio(c)			Portfolio			Portfolio
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	8		$	78		$	22		$	23		$	19		$	17		$	694		$	19		$	414		$	309
1 Units Outstanding (in thousands)		1			8			2			2			2			1			60			2			31			10
Investment Income Ratio *		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.43	%		0.00	%		1.14	%		0.74	%
Period ended December 31, 2009
Net Assets (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a		$	538			n/a		$	404		$	327
Units Outstanding (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a			54			n/a			33			12
Investment Income Ratio *		n/a			n/a			n/a			n/a			n/a			n/a			1.22	%		n/a			3.28	%		2.06	%
Period ended December 31, 2008
Net Assets (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a		$	270			n/a		$	185		$	160
Units Outstanding (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a			40			n/a			19			8
Investment Income Ratio *		n/a			n/a			n/a			n/a			n/a			n/a			0.25	%		n/a			1.01	%		0.00	%
Period ended December 31, 2007
Net Assets (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a		$	163			n/a		$	285		$	129
Units Outstanding (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a			12			n/a			21			4
Investment Income Ratio *		n/a			n/a			n/a			n/a			n/a			n/a			0.00	%		n/a			4.84	%		1.44	%
Period ended December 31, 2006
Net Assets (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a		$	40		$	72
Units Outstanding (in thousands)		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			3			3
Investment Income Ratio *		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			1.03	%		0.41	%

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations May 3, 2010.

(c) Commencement of operations October 11, 2010.

Page 42

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																JNL/Franklin
																Templeton
																International			JNL/Franklin									JNL/Goldman
	JNL/Capital						JNL/Eagle			JNL/Franklin			JNL/Franklin			Small			Templeton			JNL/Franklin			JNL/			Sachs
	Guardian U.S.			JNL/Eagle			SmallCap			Templeton			Templeton			Cap			Mutual			Templeton			Goldman Sachs			Emerging
	Growth Equity			Core Equity			Equity			Global Growth			Income			Growth			Shares			Small Cap			Core Plus			Markets Debt
	Portfolio			Portfolio			Portfolio			Portfolio(b)			Portfolio(a)			Portfolio(c)			Portfolio(b)			Value Portfolio			Bond Portfolio			Portfolio(d)
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	28.956532		$	18.630354		$	31.188187		$	8.159900		$	11.390005		$	8.195088		$	8.542594		$	13.267591		$	25.648245		$	13.589884
Total Return*		11.95	%		11.02	%		34.72	%		6.36	%		11.78	%		19.61	%		10.66	%		25.93	%		6.78	%		15.18	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value	$	25.866123		$	16.781414		$	23.150691		$	7.672188		$	10.189587		$	6.851256		$	7.719824		$	10.535863		$	24.019691		$	11.798689
Total Return*		33.95	%		33.06	%		34.55	%		30.03	%		31.88	%		51.68	%		25.87	%		32.76	%		13.44	%		22.15	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2008
Unit Value	$	19.310952		$	12.611717		$	17.206620		$	5.900166		$	7.726319		$	4.516919		$	6.133415		$	7.935814		$	21.173755		$	9.659549
Total Return*		-41.34	%		-39.48	%		-38.72	%		-41.04	%		-30.14	%		-54.25	%		-38.32	%		-33.66	%		-5.80	%		-3.40	%***
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2007
Unit Value	$	32.918860		$	20.839390		$	28.080192		$	10.006324		$	11.060050		$	9.873173		$	9.944002		$	11.962966		$	22.476571			n/a
Total Return*		8.95	%		-0.07	%		11.26	%		0.06	%***		1.03	%		-1.27	%***		-0.56	%***		-6.74	%		6.22	%		n/a
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		n/a
Period ended December 31, 2006
Unit Value	$	30.213500		$	20.854650		$	25.239352			n/a		$	10.947149			n/a			n/a		$	12.826857		$	21.161250			n/a
Total Return*		3.94	%		11.52	%		19.27	%		n/a			9.47	%***		n/a			n/a			16.88	%		4.00	%		n/a
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		n/a			0.90	%		n/a			n/a			0.90	%		0.90	%		n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations January 16, 2007.

(c) Commencement of operations December 3, 2007.

(d) Commencement of operations October 6, 2008.

Page 43

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																JNL/Franklin
																Templeton
																Inter-			JNL/Franklin									JNL/Goldman
	JNL/Capital						JNL/Eagle			JNL/Franklin			JNL/Franklin			national Small			Templeton			JNL/Franklin			JNL/			Sachs
	Guardian U.S.			JNL/Eagle			SmallCap			Templeton			Templeton			Cap			Mutual			Templeton			Goldman Sachs			Emerging
	Growth Equity			Core Equity			Equity			Global Growth			Income			Growth			Shares			Small Cap			Core Plus			Markets Debt
	Portfolio			Portfolio			Portfolio			Portfolio(b)			Portfolio(a)			Portfolio(c)			Portfolio(b)			Value Portfolio			Bond Portfolio			Portfolio(d)
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	32.520980		$	20.741278		$	34.771019		$	8.397307		$	11.783087		$	18.081473		$	8.800722		$	13.844204		$	28.824715		$	13.829341
Total Return*		12.79	%		11.86	%		35.73	%		7.16	%		12.62	%		20.51	%		11.49	%		26.88	%		7.58	%		16.05	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value	$	28.833042		$	18.542861		$	25.617428		$	7.836379		$	10.462490		$	15.003631		$	7.893678		$	10.911573		$	26.793020		$	11.916950
Total Return*		34.95	%		34.06	%		35.56	%		31.01	%		32.87	%		52.94	%		26.81	%		33.76	%		14.29	%		23.12	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2008
Unit Value	$	21.365110		$	13.831319		$	18.897657		$	5.981444		$	7.874025		$	9.810138		$	6.224612		$	8.157542		$	23.442004		$	9.678779
Total Return*		-40.90	%		-39.02	%		-38.26	%		-40.59	%		-29.62	%		-1.90	%***		-37.86	%		-33.16	%		-5.09	%		-3.21	%***
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2007
Unit Value	$	36.150717		$	22.681201		$	30.609406		$	10.068404		$	11.187374			n/a		$	10.016526		$	12.204810		$	24.698462			n/a
Total Return*		9.89	%		0.67	%		12.08	%		0.68	%***		1.81	%		n/a			0.17	%***		-6.02	%		7.02	%		n/a
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%		0.15	%		n/a
Period ended December 31, 2006
Unit Value	$	32.898515		$	22.530903		$	27.309652			n/a		$	10.988884			n/a			n/a		$	12.986803		$	23.078148			n/a
Total Return*		4.65	%		12.38	%		20.29	%		n/a			9.89	%***		n/a			n/a			17.75	%		4.89	%		n/a
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		n/a			0.15	%		n/a			n/a			0.15	%		0.15	%		n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations January 16, 2007.

(c) Commencement of operations December 3, 2007.

(d) Commencement of operations October 6, 2008.

Page 44

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																JNL/Franklin
																Templeton
																Inter-			JNL/Franklin									JNL/Goldman
	JNL/Capital						JNL/Eagle			JNL/Franklin			JNL/Franklin			national Small			Templeton			JNL/Franklin			JNL/			Sachs
	Guardian U.S.			JNL/Eagle			SmallCap			Templeton			Templeton			Cap			Mutual			Templeton			Goldman Sachs			Emerging
	Growth Equity			Core Equity			Equity			Global Growth			Income			Growth			Shares			Small Cap			Core Plus			Markets Debt
	Portfolio			Portfolio			Portfolio			Portfolio(b)			Portfolio(a)			Portfolio(c)			Portfolio(b)			Value Portfolio			Bond Portfolio			Portfolio(d)
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	224		$	119		$	521		$	283		$	346		$	181		$	358		$	398		$	242		$	303
1 Units Outstanding (in thousands)		7			6			16			35			30			20			42			30			9			22
Investment Income Ratio *		0.28	%		0.35	%		0.29	%		1.52	%		3.64	%		1.20	%		0.13	%		0.56	%		2.44	%		1.65	%
Period ended December 31, 2009
Net Assets (in thousands)	$	308		$	94		$	240		$	219		$	388		$	218		$	282		$	235		$	241		$	78
Units Outstanding (in thousands)		12			6			10			28			38			29			36			22			10			7
Investment Income Ratio *		0.38	%		1.33	%		0.00	%		2.01	%		7.97	%		2.80	%		5.23	%		1.04	%		4.60	%		0.18	%
Period ended December 31, 2008
Net Assets (in thousands)	$	79		$	63		$	178		$	153		$	228		$	35		$	107		$	137		$	193		$	0
Units Outstanding (in thousands)		4			5			10			26			29			7			17			17			9			0
Investment Income Ratio *		0.15	%		3.35	%		0.00	%		0.02	%		0.11	%		0.27	%		0.00	%		1.48	%		4.42	%		0.00	%
Period ended December 31, 2007
Net Assets (in thousands)	$	78		$	97		$	208		$	111		$	170		$	10		$	109		$	120		$	167			n/a
Units Outstanding (in thousands)		2			5			7			11			15			1			11			10			7			n/a
Investment Income Ratio *		0.00	%		1.03	%		2.83	%		1.90	%		12.86	%		0.00	%		0.00	%		3.63	%		4.96	%		n/a
Period ended December 31, 2006
Net Assets (in thousands)	$	53		$	54		$	107			n/a		$	4			n/a			n/a		$	106		$	146			n/a
Units Outstanding (in thousands)		2			3			4			n/a			-			n/a			n/a			8			7			n/a
Investment Income Ratio *		0.00	%		0.01	%		0.00	%		n/a			6.87	%		n/a			n/a			1.32	%		0.08	%		n/a

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations January 16, 2007.

(c) Commencement of operations December 3, 2007.

(d) Commencement of operations October 6, 2008.

Page 45

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																												JNL/
	JNL/																											JPMorgan
	Goldman																					JNL/			JNL/			U.S.
	Sachs			JNL/Goldman			JNL/Invesco			JNL/Invesco			JNL/Invesco			JNL/Invesco			JNL/Ivy			JPMorgan			JPMorgan			Government
	Mid Cap			Sachs U.S.			Global Real			International			Large Cap			Small Cap			Asset			International			MidCap			& Quality
	Value			Equity Flex			Estate			Growth			Growth			Growth			Strategy			Value			Growth			Bond
	Portfolio			Portfolio(a)			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio(b)			Portfolio			Portfolio			Portfolio
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	13.736519		$	8.961809		$	13.019643		$	19.102467		$	13.356444		$	16.583083		$	11.322849		$	14.381446		$	27.607964		$	21.284028
Total Return*		23.51	%		7.94	%		16.32	%		11.51	%		16.64	%		25.38	%		9.02	%		6.89	%		24.72	%		6.56	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value	$	11.121997		$	8.302581		$	11.192890		$	17.130384		$	11.451257		$	13.226566		$	10.385811		$	13.454344		$	22.135127		$	19.973112
Total Return*		31.90	%		23.95	%		31.44	%		38.68	%		23.45	%		33.79	%		3.86	%***		29.43	%		41.97	%		2.99	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2008
Unit Value	$	8.432045		$	6.698412		$	8.515419		$	12.352269		$	9.275909		$	9.886037			n/a		$	10.395044		$	15.591780		$	19.393509
Total Return*		-36.61	%		-38.07	%		-36.08	%		-41.38	%		-38.11	%		-40.12	%		n/a			-44.94	%		-44.81	%		5.77	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		n/a			0.90	%		0.90	%		0.90	%
Period ended December 31, 2007
Unit Value	$	13.301278		$	10.816878		$	13.321591		$	21.073376		$	14.987748		$	16.510330			n/a		$	18.879743		$	28.251903		$	18.334812
Total Return*		2.05	%		8.17	%***		-15.59	%		8.97	%		15.00	%		10.57	%		n/a			11.22	%		7.15	%		5.67	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		n/a			0.90	%		0.90	%		0.90	%
Period ended December 31, 2006
Unit Value	$	13.034457			n/a		$	15.781580		$	19.339354		$	13.032768		$	14.931429			n/a		$	16.974826		$	26.366030		$	17.350230
Total Return*		15.02	%		n/a			35.37	%		21.88	%		7.02	%		13.71	%		n/a			31.09	%		11.31	%		2.47	%
Ratio of Expenses**		0.90	%		n/a			0.90	%		0.90	%		0.90	%		0.90	%		n/a			0.90	%		0.90	%		0.90	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations September 28, 2009.

Page 46

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																												JNL/JPMorgan
	JNL/			JNL/Goldman			JNL/Invesco																					U.S.
	Goldman Sachs			Sachs U.S.			Global Real			JNL/Invesco			JNL/Invesco			JNL/Invesco			JNL/Ivy			JNL/JPMorgan			JNL/JPMorgan			Government
	Mid Cap			Equity Flex			Estate			International			Large Cap			Small Cap			Asset Strategy			International			MidCap Growth			& Quality Bond
	Value Portfolio			Portfolio(a)			Portfolio			Growth Portfolio			Growth Portfolio			Growth Portfolio			Portfolio(b)			Value Portfolio			Portfolio			Portfolio
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	14.329966		$	9.215239		$	13.577352		$	21.475366		$	14.339872		$	17.788565		$	11.430182		$	15.851121		$	31.193816		$	23.992694
Total Return*		24.44	%		8.75	%		17.20	%		12.35	%		17.52	%		26.32	%		9.84	%		7.70	%		25.68	%		7.37	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value	$	11.515562		$	8.473552		$	11.585126		$	19.114420		$	12.201907		$	14.082042		$	10.405933		$	14.718459		$	24.820255		$	22.346744
Total Return*		32.90	%		24.97	%		32.43	%		39.73	%		24.38	%		34.80	%		4.06	%***		30.40	%		43.05	%		3.76	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2008
Unit Value	$	8.665127		$	6.780466		$	8.748010		$	13.679877		$	9.810428		$	10.446860			n/a		$	11.286765		$	17.350449		$	21.535939
Total Return*		-36.13	%		-37.52	%		-35.60	%		-40.94	%		-37.64	%		-39.67	%		n/a			-44.53	%		-44.33	%		6.61	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%		0.15	%
Period ended December 31, 2007
Unit Value	$	13.566891		$	10.851428		$	13.583168		$	23.164291		$	15.732489		$	17.316002			n/a		$	20.346161		$	31.168702		$	20.201121
Total Return*		2.82	%		8.51	%***		-14.95	%		9.79	%		15.95	%		11.56	%		n/a			12.06	%		8.16	%		6.64	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%		0.15	%
Period ended December 31, 2006
Unit Value	$	13.195052			n/a		$	15.970235		$	21.099172		$	13.567844		$	15.522342			n/a		$	18.156141		$	28.818034		$	18.943374
Total Return*		15.86	%		n/a			36.39	%		22.91	%		7.88	%		14.55	%		n/a			32.38	%		12.21	%		3.26	%
Ratio of Expenses**		0.15	%		n/a			0.15	%		0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%		0.15	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations September 28, 2009.

Page 47

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																												JNL/JPMorgan
	JNL/			JNL/Goldman			JNL/Invesco												JNL/Ivy									U.S.
	Goldman Sachs			Sachs U.S.			Global Real			JNL/Invesco			JNL/Invesco			JNL/Invesco			Asset			JNL/JPMorgan			JNL/JPMorgan			Government
	Mid Cap			Equity Flex			Estate			International			Large Cap			Small Cap			Strategy			International			MidCap Growth			& Quality Bond
	Value Portfolio			Portfolio(a)			Portfolio			Growth Portfolio			Growth Portfolio			Growth Portfolio			Portfolio(b)			Value Portfolio			Portfolio			Portfolio
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	313		$	78		$	612		$	479		$	774		$	406		$	279		$	585		$	177		$	516
1 Units Outstanding (in thousands)		23			9			47			24			58			24			25			40			6			24
Investment Income Ratio *		0.62	%		0.83	%		4.24	%		0.87	%		0.40	%		0.00	%		0.01	%		2.84	%		0.00	%		2.50	%
Period ended December 31, 2009
Net Assets (in thousands)	$	258		$	62		$	401		$	380		$	584		$	150		$	99		$	544		$	108		$	558
Units Outstanding (in thousands)		23			7			36			22			51			11			10			39			5			27
Investment Income Ratio *		1.17	%		1.10	%		2.38	%		2.56	%		0.48	%		0.00	%		0.00	%		4.39	%		0.00	%		1.93	%
Period ended December 31, 2008
Net Assets (in thousands)	$	244		$	25		$	292		$	223		$	402		$	97			n/a		$	455		$	77		$	893
Units Outstanding (in thousands)		29			4			34			18			43			10			n/a			43			5			46
Investment Income Ratio *		1.62	%		0.00	%		2.71	%		0.45	%		0.36	%		0.00	%		n/a			3.00	%		0.00	%		5.57	%
Period ended December 31, 2007
Net Assets (in thousands)	$	210		$	8		$	359		$	250		$	434		$	102			n/a		$	464		$	90		$	135
Units Outstanding (in thousands)		16			1			27			12			29			6			n/a			24			3			7
Investment Income Ratio *		3.77	%		0.00	%		3.44	%		2.53	%		0.69	%		0.35	%		n/a			7.40	%		0.00	%		8.25	%
Period ended December 31, 2006
Net Assets (in thousands)	$	74			n/a		$	212		$	105		$	221		$	77			n/a		$	226		$	33		$	30
Units Outstanding (in thousands)		6			n/a			13			5			17			5			n/a			13			1			2
Investment Income Ratio *		2.48	%		n/a			1.89	%		0.44	%		0.12	%		0.00	%		n/a			2.98	%		0.00	%		0.00	%

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations September 28, 2009.

Page 48

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/Lazard																					JNL/MCM
	Emerging			JNL/Lazard			JNL/M&G			JNL/M&G						JNL/MCM			JNL/MCM			Consumer			JNL/MCM			JNL/MCM
	Markets			Mid Cap			Global Basics			Global Leaders			JNL/MCM			Bond Index			Communications			Brands			Dow Dividend			European 30
	Portfolio(a)			Equity Portfolio			Portfolio(c)			Portfolio(c)			25 Portfolio			Portfolio			Sector Portfolio			Sector Portfolio			Portfolio(b)			Portfolio(c)
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	14.664888		$	21.948870		$	15.003939		$	12.803314		$	12.110115		$	14.194863		$	6.069731		$	12.457171		$	6.305062		$	12.201896
Total Return*		21.14	%		22.14	%		22.27	%		12.45	%		22.06	%		5.18	%		21.45	%		21.82	%		11.26	%		1.22	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value	$	12.105270		$	17.970457		$	12.271226		$	11.385704		$	9.921448		$	13.495197		$	4.997630		$	10.226006		$	5.666921		$	12.054657
Total Return*		70.42	%		37.94	%		45.87	%		36.48	%		51.72	%		5.04	%		24.99	%		32.22	%		19.31	%		39.99	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2008
Unit Value	$	7.103379		$	13.027461		$	8.412191		$	8.342680		$	6.539178		$	12.847217		$	3.998507		$	7.734335		$	4.749595		$	8.611155
Total Return*		-50.39	%		-39.43	%		-15.88	%***		-16.57	%***		-35.66	%		2.96	%		-40.18	%		-31.81	%		-49.76	%		-13.89	%***
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2007
Unit Value	$	14.317160		$	21.508333			n/a			n/a		$	10.164025		$	12.478394		$	6.684744		$	11.342661		$	9.453472			n/a
Total Return*		30.93	%		-3.38	%		n/a			n/a			-3.46	%		5.72	%		3.52	%		-8.51	%		-5.47	%***		n/a
Ratio of Expenses**		0.90	%		0.90	%		n/a			n/a			0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		n/a
Period ended December 31, 2006
Unit Value	$	10.935330		$	22.261780			n/a			n/a		$	10.528745		$	11.802936		$	6.457355		$	12.397126			n/a			n/a
Total Return*		9.35	%***		13.83	%		n/a			n/a			5.29	%***		2.92	%		35.46	%		12.72	%		n/a			n/a
Ratio of Expenses**		0.90	%		0.90	%		n/a			n/a			0.90	%		0.90	%		0.90	%		0.90	%		n/a			n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations December 3, 2007.

(c) Commencement of operations October 6, 2008.

Page 49

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/Lazard																					JNL/MCM
	Emerging			JNL/Lazard			JNL/M&G			JNL/M&G						JNL/MCM			JNL/MCM			Consumer			JNL/MCM			JNL/MCM
	Markets			Mid Cap			Global Basics			Global Leaders			JNL/MCM			Bond Index			Communications			Brands			Dow Dividend			European 30
	Portfolio(a)			Equity Portfolio			Portfolio(c)			Portfolio(c)			25 Portfolio			Portfolio			Sector Portfolio			Sector Portfolio			Portfolio(b)			Portfolio(c)
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	15.187143		$	24.157554		$	15.258829		$	13.016587		$	12.547809		$	15.223081		$	6.614776		$	13.600389		$	7.155647		$	12.442531
Total Return*		22.06	%		23.06	%		23.20	%		13.27	%		22.98	%		5.98	%		22.37	%		22.82	%		12.10	%		2.19	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value	$	12.442679		$	19.630955		$	12.385421		$	11.491204		$	10.203219		$	14.364584		$	5.405743		$	11.073358		$	6.383344		$	12.175991
Total Return*		71.70	%		38.98	%		46.97	%		37.50	%		52.87	%		5.83	%		25.92	%		33.31	%		20.21	%		41.15	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2008
Unit Value	$	7.246826		$	14.124882		$	8.427028		$	8.357392		$	6.674553		$	13.572690		$	4.293020		$	8.306675		$	5.310079		$	8.626346
Total Return*		-50.01	%		-38.97	%		-15.73	%***		-16.43	%***		-35.15	%		3.73	%		-39.73	%		-31.30	%		-46.90	%***		-13.74	%***
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2007
Unit Value	$	14.497151		$	23.145991			n/a			n/a		$	10.292010		$	13.084533		$	7.123304		$	12.091557			n/a			n/a
Total Return*		31.92	%		-2.65	%		n/a			n/a			-2.73	%		6.54	%		4.32	%		-7.81	%		n/a			n/a
Ratio of Expenses**		0.15	%		0.15	%		n/a			n/a			0.15	%		0.15	%		0.15	%		0.15	%		n/a			n/a
Period ended December 31, 2006
Unit Value	$	10.989271		$	23.776963			n/a			n/a		$	10.581230		$	12.281892		$	6.828616		$	13.115267			n/a			n/a
Total Return*		9.89	%***		14.68	%		n/a			n/a			5.81	%***		3.88	%		36.62	%		13.54	%		n/a			n/a
Ratio of Expenses**		0.15	%		0.15	%		n/a			n/a			0.15	%		0.15	%		0.15	%		0.15	%		n/a			n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations December 3, 2007.

(c) Commencement of operations October 6, 2008.

Page 50

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/Lazard																					JNL/MCM
	Emerging			JNL/Lazard			JNL/M&G			JNL/M&G						JNL/MCM			JNL/MCM			Consumer			JNL/MCM			JNL/MCM
	Markets			Mid Cap			Global Basics			Global Leaders			JNL/MCM			Bond Index			Communications			Brands			Dow Dividend			European 30
	Portfolio(a)			Equity Portfolio			Portfolio(c)			Portfolio(c)			25 Portfolio			Portfolio			Sector Portfolio			Sector Portfolio			Portfolio(b)			Portfolio(c)
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	1,063		$	160		$	115		$	20		$	423		$	895		$	153		$	29		$	134		$	17
1 Units Outstanding (in thousands)		72			7			8			2			35			62			25			2			21			1
Investment Income Ratio *		0.58	%		0.55	%		0.76	%		0.63	%		2.78	%		2.60	%		2.61	%		0.56	%		3.98	%		0.09	%
Period ended December 31, 2009
Net Assets (in thousands)	$	775		$	153		$	160		$	11		$	253		$	937		$	109		$	10		$	97		$	6
Units Outstanding (in thousands)		64			8			13			1			25			68			22			1			16			0
Investment Income Ratio *		2.35	%		0.77	%		0.64	%		0.86	%		5.61	%		3.59	%		5.20	%		0.62	%		11.64	%		3.90	%
Period ended December 31, 2008
Net Assets (in thousands)	$	236		$	165		$	-		$	-		$	151		$	446		$	72		$	12		$	38		$	-
Units Outstanding (in thousands)		33			12			-			-			23			34			18			2			8			-
Investment Income Ratio *		1.00	%		1.37	%		0.00	%		0.00	%		3.87	%		4.89	%		6.85	%		1.01	%		1.37	%		0.00	%
Period ended December 31, 2007
Net Assets (in thousands)	$	347		$	327			n/a			n/a		$	293		$	314		$	77		$	5		$	-			n/a
Units Outstanding (in thousands)		24			15			n/a			n/a			29			25			12			0			-			n/a
Investment Income Ratio *		0.56	%		7.14	%		n/a			n/a			1.23	%		5.83	%		6.91	%		0.96	%		0.00	%		n/a
Period ended December 31, 2006
Net Assets (in thousands)	$	40		$	211			n/a			n/a		$	234		$	141		$	31		$	4			n/a			n/a
Units Outstanding (in thousands)		4			9			n/a			n/a			22			12			5			-			n/a			n/a
Investment Income Ratio *		0.00	%		2.78	%		n/a			n/a			0.00	%		1.07	%		6.60	%		0.64	%		n/a			n/a

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations December 3, 2007.

(c) Commencement of operations October 6, 2008.

Page 51

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																						JNL/MCM
	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			NYSE			JNL/MCM			JNL/MCM
	Financial			Global Alpha			Healthcare			International			JNL 5			JNL Optimized			Nasdaq 25			International			Oil & Gas			Pacific Rim 30
	Sector Portfolio			Portfolio(e)			Sector Portfolio			Index Portfolio			Portfolio			5 Portfolio(a)			Portfolio(c)			25 Portfolio(b)			Sector Portfolio			Portfolio(d)
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	8.380854		$	10.374323		$	12.776173		$	16.520645		$	11.668433		$	10.063604		$	9.466502		$	8.560213		$	34.551564		$	13.265346
Total Return*		12.66	%		5.14	%		3.20	%		6.05	%		16.22	%		13.01	%		16.43	%		1.53	%		18.31	%		12.03	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value	$	7.439245		$	9.867259		$	12.380045		$	15.578239		$	10.040350		$	8.904745		$	8.130880		$	8.431011		$	29.205437		$	11.840447
Total Return*		17.74	%		-1.33	%***		20.03	%		28.41	%		23.27	%		36.76	%		33.14	%		35.11	%		19.20	%		23.60	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2008
Unit Value	$	6.318420			n/a		$	10.314029		$	12.131725		$	8.145188		$	6.510986		$	6.107050		$	6.239900		$	24.501318		$	9.579716
Total Return*		-50.98	%		n/a			-23.74	%		-43.33	%		-42.88	%		-46.45	%		-41.91	%		-46.35	%		-38.29	%		-4.20	%***
Ratio of Expenses**		0.90	%		n/a			0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2007
Unit Value	$	12.889675			n/a		$	13.524370		$	21.407291		$	14.259621		$	12.159189		$	10.512740		$	11.631606		$	39.704215			n/a
Total Return*		-17.92	%		n/a			6.86	%		9.56	%		0.72	%		12.78	%		5.13	%***		16.32	%***		34.34	%		n/a
Ratio of Expenses**		0.90	%		n/a			0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		n/a
Period ended December 31, 2006
Unit Value	$	15.702916			n/a		$	12.656454		$	19.538850		$	14.157430		$	10.781597			n/a			n/a		$	29.553998			n/a
Total Return*		17.92	%		n/a			5.50	%		24.80	%		17.92	%		7.82	%***		n/a			n/a			19.97	%		n/a
Ratio of Expenses**		0.90	%		n/a			0.90	%		0.90	%		0.90	%		0.90	%		n/a			n/a			0.90	%		n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations April 30, 2007.

(c) Commencement of operations December 3, 2007.

(d) Commencement of operations October 6, 2008.

(e) Commencement of operations September 28, 2009.

Page 52

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																						JNL/MCM
	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			NYSE			JNL/MCM			JNL/MCM
	Financial			Global Alpha			Healthcare			International			JNL 5			JNL Optimized			Nasdaq 25			International			Oil & Gas			Pacific Rim 30
	Sector Portfolio			Portfolio(e)			Sector Portfolio			Index Portfolio			Portfolio			5 Portfolio(a)			Portfolio(c)			25 Portfolio(b)			Sector Portfolio			Portfolio(d)
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	9.132691		$	10.474596		$	13.931637		$	17.640084		$	12.227489		$	10.425385		$	14.741567		$	8.791749		$	37.657566		$	13.466352
Total Return*		13.51	%		5.95	%		3.98	%		6.85	%		17.09	%		13.86	%		17.28	%		2.30	%		19.20	%		12.89	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value	$	8.046009		$	9.886483		$	13.398745		$	16.509511		$	10.442786		$	9.155945		$	12.569711		$	8.594458		$	31.593027		$	11.928806
Total Return*		18.63	%		-1.14	%***		20.93	%		29.38	%		24.20	%		37.79	%		25.70	%***		36.13	%		20.10	%		24.30	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2008
Unit Value	$	6.782698			n/a		$	11.079317		$	12.760898		$	8.408360		$	6.644632			n/a		$	6.313364		$	26.306313		$	9.596601
Total Return*		-50.61	%		n/a			-23.16	%		-42.90	%		-42.45	%		-46.05	%		n/a			-45.95	%		-37.83	%		-4.03	%***
Ratio of Expenses**		0.15	%		n/a			0.15	%		0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%		0.15	%
Period ended December 31, 2007
Unit Value	$	13.733391			n/a		$	14.419347		$	22.349259		$	14.610362		$	12.316084			n/a		$	11.680496		$	42.310649			n/a
Total Return*		-17.29	%		n/a			7.67	%		10.39	%		1.48	%		13.63	%		n/a			16.80	%***		35.36	%		n/a
Ratio of Expenses**		0.15	%		n/a			0.15	%		0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%		n/a
Period ended December 31, 2006
Unit Value	$	16.605147			n/a		$	13.392623		$	20.245313		$	14.396694		$	10.838637			n/a			n/a		$	31.257467			n/a
Total Return*		18.81	%		n/a			6.29	%		25.74	%		18.81	%		8.39	%***		n/a			n/a			20.87	%		n/a
Ratio of Expenses**		0.15	%		n/a			0.15	%		0.15	%		0.15	%		0.15	%		n/a			n/a			0.15	%		n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations April 30, 2007.

(c) Commencement of operations December 3, 2007.

(d) Commencement of operations October 6, 2008.

(e) Commencement of operations September 28, 2009.

Page 53

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																						JNL/MCM
	JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			JNL/MCM			NYSE			JNL/MCM			JNL/MCM
	Financial			Global Alpha			Healthcare			International			JNL 5			JNL Optimized			Nasdaq 25			International			Oil & Gas			Pacific Rim 30
	Sector Portfolio			Portfolio(e)			Sector Portfolio			Index Portfolio			Portfolio			5 Portfolio(a)			Portfolio(c)			25 Portfolio(b)			Sector Portfolio			Portfolio(d)
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	235		$	91		$	273		$	1,145		$	9,165		$	1,049		$	42		$	138		$	1,067		$	56
1 Units Outstanding (in thousands)		28			9			21			69			782			104			4			16			30			4
Investment Income Ratio *		1.24	%		0.00	%		1.27	%		2.18	%		2.32	%		2.19	%		0.64	%		2.26	%		1.17	%		0.00	%
Period ended December 31, 2009
Net Assets (in thousands)	$	226		$	10		$	240		$	941		$	8,677		$	953		$	11		$	139		$	875		$	16
Units Outstanding (in thousands)		30			1			19			60			861			107			1			16			30			1
Investment Income Ratio *		1.98	%		0.00	%		1.54	%		2.65	%		4.05	%		3.01	%		0.00	%		4.65	%		1.19	%		3.75	%
Period ended December 31, 2008
Net Assets (in thousands)	$	134			n/a		$	193		$	572		$	7,001		$	640		$	6		$	111		$	712		$	2
Units Outstanding (in thousands)		21			n/a			19			47			857			98			1			18			29			0
Investment Income Ratio *		2.08	%		n/a			1.07	%		2.02	%		2.71	%		0.02	%		0.38	%		0.02	%		0.87	%		0.00	%
Period ended December 31, 2007
Net Assets (in thousands)	$	91			n/a		$	162		$	1,260		$	10,237		$	516		$	-		$	71		$	835			n/a
Units Outstanding (in thousands)		7			n/a			12			59			716			42			-			6			21			n/a
Investment Income Ratio *		1.94	%		n/a			1.47	%		3.04	%		2.39	%		3.74	%		0.00	%		7.80	%		1.24	%		n/a
Period ended December 31, 2006
Net Assets (in thousands)	$	50			n/a		$	118		$	499		$	6,707		$	270			n/a			n/a		$	441			n/a
Units Outstanding (in thousands)		3			n/a			9			25			473			25			n/a			n/a			15			n/a
Investment Income Ratio *		1.46	%		n/a			0.61	%		1.35	%		0.44	%		1.49	%		n/a			n/a			1.47	%		n/a

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations April 30, 2007.

(c) Commencement of operations December 3, 2007.

(d) Commencement of operations October 6, 2008.

(e) Commencement of operations September 28, 2009.

Page 54

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

				JNL/MCM									JNL/MCM															JNL/
	JNL/MCM			S&P 400			JNL/MCM			JNL/MCM			Select Small-			JNL/MCM			JNL/MCM			JNL/MCM						Oppenheimer
	S&P 24			MidCap			S&P 500			S&P SMid			Cap			Small Cap			Technology			Value Line 30			JNL/MCM			Global Growth
	Portfolio(b)			Index Portfolio			Index Portfolio			60 Portfolio(a)			Portfolio			Index Portfolio			Sector Portfolio			Portfolio(b)			VIP Portfolio			Portfolio
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	9.018762		$	18.035371		$	11.660628		$	11.837980		$	6.255622		$	16.197094		$	7.630010		$	7.249470		$	11.867286		$	15.015183
Total Return*		15.72	%		25.06	%		13.67	%		19.73	%		14.35	%		25.45	%		11.25	%		21.72	%		14.28	%		14.64	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value	$	7.793779		$	14.421048		$	10.258491		$	9.887219		$	5.470800		$	12.911222		$	6.858309		$	5.955667		$	10.384391		$	13.097379
Total Return*		18.11	%		37.10	%		25.12	%		60.34	%		4.16	%		26.53	%		62.74	%		13.82	%		23.25	%		38.33	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2008
Unit Value	$	6.598858		$	10.518465		$	8.198655		$	6.166415		$	5.252534		$	10.203817		$	4.214380		$	5.232697		$	8.425190		$	9.468447
Total Return*		-33.23	%		-38.07	%		-38.13	%		-30.73	%		-40.45	%		-35.42	%		-43.82	%		-48.26	%		-43.21	%		-41.23	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2007
Unit Value	$	9.883175		$	16.984958		$	13.251915		$	8.901848		$	8.819979		$	15.799107		$	7.501115		$	10.113014		$	14.836474		$	16.109803
Total Return*		-1.17	%***		6.72	%		4.19	%		-10.98	%***		-11.13	%		-2.73	%		13.73	%		1.13	%***		10.07	%		5.60	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2006
Unit Value		n/a		$	15.915376		$	12.719072			n/a		$	9.924174		$	16.242249		$	6.595420			n/a		$	13.478939		$	15.255847
Total Return*		n/a			8.93	%		14.26	%		n/a			-0.76	%***		16.61	%		8.49	%		n/a			11.34	%		16.16	%
Ratio of Expenses**		n/a			0.90	%		0.90	%		n/a			0.90	%		0.90	%		0.90	%		n/a			0.90	%		0.90	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations December 3, 2007.

Page 55

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

				JNL/MCM									JNL/MCM															JNL/
	JNL/MCM			S&P 400			JNL/MCM			JNL/MCM			Select Small-			JNL/MCM			JNL/MCM			JNL/MCM						Oppenheimer
	S&P 24			MidCap			S&P 500			S&P SMid			Cap			Small Cap			Technology			Value Line 30			JNL/MCM			Global Growth
	Portfolio(b)			Index Portfolio			Index Portfolio			60 Portfolio(a)			Portfolio			Index Portfolio			Sector Portfolio			Portfolio(b)			VIP Portfolio			Portfolio
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	9.528660		$	19.297817		$	12.469247		$	12.180181		$	6.477982		$	17.311885		$	8.311523		$	7.766700		$	12.424224		$	16.148693
Total Return*		16.58	%		26.00	%		14.52	%		20.63	%		15.20	%		26.39	%		12.09	%		22.64	%		15.14	%		15.51	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value	$	8.173415		$	15.315208		$	10.887923		$	10.097071		$	5.623116		$	13.696733		$	7.415085		$	6.332875		$	10.790513		$	13.980869
Total Return*		18.98	%		38.13	%		26.07	%		61.55	%		4.94	%		27.49	%		63.96	%		14.67	%		24.18	%		39.37	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2008
Unit Value	$	6.869480		$	11.087196		$	8.636652		$	6.250270		$	5.358343		$	10.743752		$	4.522481		$	5.522534		$	8.689276		$	10.031603
Total Return*		-31.31	%***		-37.61	%		-37.67	%		-30.17	%		-40.00	%		-34.93	%		-43.39	%		-44.77	%***		-42.79	%		-40.78	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2007
Unit Value		n/a		$	17.769525		$	13.855551		$	8.950575		$	8.930710		$	16.510809		$	7.989322			n/a		$	15.187172		$	16.940447
Total Return*		n/a			7.53	%		4.98	%		-10.49	%***		-10.45	%		-2.00	%		14.59	%		n/a			10.91	%		6.40	%
Ratio of Expenses**		n/a			0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%
Period ended December 31, 2006
Unit Value		n/a		$	16.525467		$	13.198510			n/a		$	9.973307		$	16.846919		$	6.971917			n/a		$	13.693584		$	15.921922
Total Return*		n/a			9.74	%		15.12	%		n/a			-0.27	%***		17.50	%		9.31	%		n/a			12.17	%		17.02	%
Ratio of Expenses**		n/a			0.15	%		0.15	%		n/a			0.15	%		0.15	%		0.15	%		n/a			0.15	%		0.15	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations December 3, 2007.

Page 56

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

				JNL/MCM									JNL/MCM															JNL/
	JNL/MCM			S&P 400			JNL/MCM			JNL/MCM			Select Small-			JNL/MCM			JNL/MCM			JNL/MCM						Oppenheimer
	S&P 24			MidCap			S&P 500			S&P SMid			Cap			Small Cap			Technology			Value Line 30			JNL/MCM			Global Growth
	Portfolio(b)			Index Portfolio			Index Portfolio			60 Portfolio(a)			Portfolio			Index Portfolio			Sector Portfolio			Portfolio(b)			VIP Portfolio			Portfolio
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	80		$	979		$	1,774		$	329		$	110		$	964		$	434		$	260		$	907		$	570
1 Units Outstanding (in thousands)		9			53			152			28			18			59			56			36			76			38
Investment Income Ratio *		0.55	%		0.84	%		1.57	%		0.13	%		0.71	%		0.81	%		0.27	%		1.69	%		2.68	%		0.93	%
Period ended December 31, 2009
Net Assets (in thousands)	$	30		$	659		$	1,436		$	188		$	100		$	682		$	389		$	108		$	779		$	468
Units Outstanding (in thousands)		4			45			139			19			18			52			56			18			75			35
Investment Income Ratio *		0.37	%		1.47	%		1.73	%		1.08	%		1.36	%		1.16	%		0.18	%		0.69	%		1.88	%		1.78	%
Period ended December 31, 2008
Net Assets (in thousands)	$	14		$	348		$	788		$	65		$	72		$	248		$	96		$	78		$	639		$	311
Units Outstanding (in thousands)		2			33			96			10			14			24			22			15			76			33
Investment Income Ratio *		0.00	%		1.37	%		1.96	%		0.02	%		0.80	%		1.76	%		0.28	%		2.03	%		1.89	%		1.96	%
Period ended December 31, 2007
Net Assets (in thousands)	$	-		$	437		$	1,042		$	7		$	90		$	293		$	103		$	-		$	1,070		$	353
Units Outstanding (in thousands)		-			26			78			1			10			18			14			-			72			22
Investment Income Ratio *		0.00	%		1.21	%		1.82	%		8.74	%		12.37	%		1.33	%		0.09	%		0.00	%		3.37	%		1.21	%
Period ended December 31, 2006
Net Assets (in thousands)		n/a		$	321		$	789			n/a		$	31		$	254		$	53			n/a		$	949		$	212
Units Outstanding (in thousands)		n/a			20			62			n/a			6			13			8			n/a			70			14
Investment Income Ratio *		n/a			1.20	%		0.79	%		n/a			0.00	%		1.39	%		0.08	%		n/a			0.52	%		0.50	%

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations April 30, 2007.

(b) Commencement of operations December 3, 2007.

 

Page 57

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																			JNL/						JNL/
													JNL/			JNL/			PPM America			JNL/			Red Rocks			JNL/S&P
	JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO			PPM America			PPM America			Small Cap			PPM America			Listed			Competitive
	Asia ex-Japan			China-India			Real Return			Total Return			High Yield			Mid Cap Value			Value			Value Equity			Private Equity			Advantage
	Portfolio(b)			Portfolio(b)			Portfolio(a)			Bond Portfolio			Bond Portfolio			Portfolio(c)			Portfolio(c)			Portfolio			Portfolio(d)			Portfolio(b)
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	11.171471		$	11.469880		$	13.142370		$	20.127212		$	17.294592		$	10.660819		$	10.648470		$	20.354491		$	10.369004		$	11.111838
Total Return*		18.52	%		16.07	%		6.99	%		6.82	%		14.72	%		28.54	%		26.72	%		16.49	%		25.40	%		11.86	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value	$	9.426107		$	9.881890		$	12.283893		$	18.841546		$	15.075380		$	8.293851		$	8.403144		$	17.472565		$	8.268771		$	9.933562
Total Return*		68.29	%		80.91	%		16.70	%		14.63	%		45.27	%		46.48	%		33.69	%		43.43	%		39.36	%		43.41	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2008
Unit Value	$	5.601064		$	5.462259		$	10.525595		$	16.437422		$	10.377789		$	5.662034		$	6.285642		$	12.182251		$	5.933569		$	6.926825
Total Return*		-43.99	%***		-45.38	%***		-4.43	%		-0.33	%		-31.27	%		-43.38	%***		-37.14	%***		-47.55	%		-40.66	%***		-30.22	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2007
Unit Value		n/a			n/a		$	11.013862		$	16.492630		$	15.100058			n/a			n/a		$	23.224396			n/a		$	9.926599
Total Return*		n/a			n/a			10.14	%***		7.55	%		-1.68	%		n/a			n/a			-6.19	%		n/a			-0.73	%***
Ratio of Expenses**		n/a			n/a			0.90	%		0.90	%		0.90	%		n/a			n/a			0.90	%		n/a			0.90	%
Period ended December 31, 2006
Unit Value		n/a			n/a			n/a		$	15.334478		$	15.358394			n/a			n/a		$	24.756563			n/a			n/a
Total Return*		n/a			n/a			n/a			2.65	%		9.73	%		n/a			n/a			12.05	%		n/a			n/a
Ratio of Expenses**		n/a			n/a			n/a			0.90	%		0.90	%		n/a			n/a			0.90	%		n/a			n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

(c) Commencement of operations March 31, 2008.

(d) Commencement of operations October 6, 2008.

Page 58

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																			JNL/						JNL/
													JNL/			JNL/			PPM America			JNL/			Red Rocks			JNL/S&P
	JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO			PPM America			PPM America			Small Cap			PPM America			Listed			Competitive
	Asia ex-Japan			China-India			Real Return			Total Return			High Yield			Mid Cap Value			Value			Value Equity			Private Equity			Advantage
	Portfolio(b)			Portfolio(b)			Portfolio(a)			Bond Portfolio			Bond Portfolio			Portfolio(c)			Portfolio(c)			Portfolio			Portfolio(d)			Portfolio(b)
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	18.004288		$	21.031017		$	13.537028		$	22.145785		$	18.905048		$	10.386905		$	11.358509		$	22.954855		$	10.543938		$	12.085640
Total Return*		19.41	%		16.94	%		7.79	%		7.63	%		15.58	%		29.49	%		27.72	%		17.37	%		26.34	%		12.63	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value	$	15.077742		$	17.983883		$	12.558225		$	20.576283		$	16.356071		$	8.021105		$	8.893297		$	19.557254		$	8.345447		$	10.730461
Total Return*		50.78	%***		82.47	%		17.58	%		15.49	%		46.36	%		47.60	%		34.10	%		44.56	%		40.40	%		44.50	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2008
Unit Value		n/a		$	9.855716		$	10.680330		$	17.816674		$	11.175125		$	5.434389		$	6.631804		$	13.529039		$	5.943952		$	7.426072
Total Return*		n/a			-1.44	%***		-3.73	%		0.42	%		-30.74	%		-45.66	%***		-33.68	%***		-47.11	%		-40.56	%***		-25.74	%***
Ratio of Expenses**		n/a			0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2007
Unit Value		n/a			n/a		$	11.094085		$	17.743016		$	16.136032			n/a			n/a		$	25.577708			n/a			n/a
Total Return*		n/a			n/a			10.94	%***		8.37	%		-0.91	%		n/a			n/a			-5.48	%		n/a			n/a
Ratio of Expenses**		n/a			n/a			0.15	%		0.15	%		0.15	%		n/a			n/a			0.15	%		n/a			n/a
Period ended December 31, 2006
Unit Value		n/a			n/a			n/a			3.51	%		10.87	%		n/a			n/a		$	27.062037			n/a			n/a
Total Return*		n/a			n/a			n/a			3.51	%		10.87	%		n/a			n/a			13.02	%		n/a			n/a
Ratio of Expenses**		n/a			n/a			n/a			0.15	%		0.15	%		n/a			n/a			0.15	%		n/a			n/a

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

(c) Commencement of operations March 31, 2008.

(d) Commencement of operations October 6, 2008.

Page 59

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

																			JNL/						JNL/
													JNL/			JNL/			PPM America			JNL/			Red Rocks			JNL/S&P
	JNL/PAM			JNL/PAM			JNL/PIMCO			JNL/PIMCO			PPM America			PPM America			Small Cap			PPM America			Listed			Competitive
	Asia ex-Japan			China-India			Real Return			Total Return			High Yield			Mid Cap Value			Value			Value Equity			Private Equity			Advantage
	Portfolio(b)			Portfolio(b)			Portfolio(a)			Bond Portfolio			Bond Portfolio			Portfolio(c)			Portfolio(c)			Portfolio			Portfolio(d)			Portfolio(b)
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	87		$	332		$	263		$	1,710		$	669		$	12		$	5		$	48		$	234		$	59
1 Units Outstanding (in thousands)		7			26			20			83			38			1			0			2			23			5
Investment Income Ratio *		0.21	%		0.00	%		1.31	%		1.78	%		7.62	%		0.00	%		0.27	%		1.37	%		0.26	%		0.96	%
Period ended December 31, 2009
Net Assets (in thousands)	$	51		$	238		$	237		$	1,508		$	461		$	8		$	0		$	43		$	72		$	50
Units Outstanding (in thousands)		5			20			19			79			30			1			0			2			9			5
Investment Income Ratio *		0.01	%		0.00	%		2.77	%		2.86	%		8.52	%		1.29	%		0.02	%		7.19	%		5.93	%		0.01	%
Period ended December 31, 2008
Net Assets (in thousands)	$	8		$	25		$	242		$	1,001		$	70		$	1		$	24		$	15		$	6		$	14
Units Outstanding (in thousands)		1			4			23			61			7			0			4			1			1			2
Investment Income Ratio *		2.64	%		0.00	%		2.01	%		5.13	%		10.48	%		0.05	%		0.99	%		3.91	%		0.55	%		0.22	%
Period ended December 31, 2007
Net Assets (in thousands)		n/a			n/a		$	15		$	430		$	67			n/a			n/a		$	16			n/a		$	-
Units Outstanding (in thousands)		n/a			n/a			1			26			4			n/a			n/a			1			n/a			-
Investment Income Ratio *		n/a			n/a			0.00	%		5.50	%		7.51	%		n/a			n/a			2.26	%		n/a			0.00	%
Period ended December 31, 2006
Net Assets (in thousands)		n/a			n/a			n/a		$	231		$	59			n/a			n/a		$	7			n/a			n/a
Units Outstanding (in thousands)		n/a			n/a			n/a			15			4			n/a			n/a			-			n/a			n/a
Investment Income Ratio *		n/a			n/a			n/a			1.45	%		1.43	%		n/a			n/a			0.02	%		n/a			n/a

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations January 16, 2007.

(b) Commencement of operations December 3, 2007.

(c) Commencement of operations March 31, 2008.

(d) Commencement of operations October 6, 2008.

Page 60

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/S&P																								JNL/T. Rowe
	Dividend																		JNL/T. Rowe						Price Short-
	Income			JNL/S&P			JNL/S&P			JNL/Select			JNL/Select			JNL/			Price			JNL/T. Rowe			Term			JNL/T. Rowe
	& Growth			Intrinsic Value			Total Yield			Balanced			Money Market			Select Value			Established			Price Mid-Cap			Bond			Price Value
	Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Portfolio(a)			Portfolio
Highest expense ratio
Period ended December 31, 2010
Unit Value	$	10.413650		$	11.240327		$	10.008042		$	31.924431		$	14.396414		$	21.250874		$	33.630344		$	54.677623		$	10.994430		$	15.898628
Total Return*		17.59	%		13.71	%		9.31	%		9.99	%		-0.90	%		12.90	%		15.97	%		26.96	%		2.30	%		15.00	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2009
Unit Value	$	8.856003		$	9.884978		$	9.155431		$	29.024234		$	14.526562		$	18.822492		$	28.998261		$	43.067809		$	10.747768		$	13.825373
Total Return*		22.68	%		56.43	%		41.76	%		18.92	%		-0.71	%		23.16	%		42.50	%		45.81	%		6.78	%		36.22	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2008
Unit Value	$	7.218957		$	6.319172		$	6.458560		$	24.407387		$	14.629809		$	15.282399		$	20.349258		$	29.537457		$	10.065465		$	10.148987
Total Return*		-26.07	%		-36.31	%		-35.82	%		-21.27	%		1.48	%		-33.84	%		-43.26	%		-41.06	%		-6.50	%		-40.93	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2007
Unit Value	$	9.765174		$	9.921797		$	10.063603		$	31.002604		$	14.416497		$	23.099760		$	35.865068		$	50.111731		$	10.765363		$	17.180879
Total Return*		-2.35	%***		-0.78	%***		0.64	%***		6.76	%		4.01	%		7.16	%		9.27	%		16.40	%		4.62	%		0.12	%
Ratio of Expenses**		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Period ended December 31, 2006
Unit Value		n/a			n/a			n/a		$	29.039875		$	13.860894		$	21.557003		$	32.822320		$	43.051928		$	10.289759		$	17.160838
Total Return*		n/a			n/a			n/a			12.87	%		3.79	%		19.97	%		12.98	%		6.05	%		2.90	%***		19.23	%
Ratio of Expenses**		n/a			n/a			n/a			0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations December 3, 2007.

Page 61

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/S&P																								JNL/T. Rowe
	Dividend																		JNL/T. Rowe						Price Short-
	Income			JNL/S&P			JNL/S&P			JNL/Select			JNL/Select			JNL/			Price			JNL/T. Rowe			Term			JNL/T. Rowe
	& Growth			Intrinsic Value			Total Yield			Balanced			Money Market			Select Value			Established			Price Mid-Cap			Bond			Price Value
	Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Portfolio(a)			Portfolio
Lowest expense ratio
Period ended December 31, 2010
Unit Value	$	12.153827		$	12.755007		$	10.462279		$	35.904988		$	16.209540		$	22.592100		$	37.826791		$	61.500789		$	11.300556		$	17.226462
Total Return*		18.49	%		14.56	%		10.13	%		10.82	%		-0.15	%		13.75	%		16.85	%		27.91	%		3.06	%		15.86	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2009
Unit Value	$	10.257566		$	11.133910		$	9.500198		$	32.399243		$	16.233890		$	19.860940		$	32.372985		$	48.080261		$	10.964534		$	14.868119
Total Return*		23.69	%		57.61	%		42.87	%		19.81	%		0.04	%		24.09	%		43.58	%		46.91	%		7.59	%		37.25	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2008
Unit Value	$	8.293099		$	7.064019		$	6.649635		$	27.041949		$	16.227122		$	16.005060		$	22.547730		$	32.728801		$	10.191049		$	10.832906
Total Return*		-17.07	%***		-29.36	%***		-33.50	%***		-20.68	%		2.24	%		-33.34	%		-42.83	%		-40.61	%		-5.79	%		-40.48	%
Ratio of Expenses**		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2007
Unit Value		n/a			n/a			n/a		$	34.091888		$	15.871136		$	24.011295		$	39.442672		$	55.111008		$	10.817285		$	18.201637
Total Return*		n/a			n/a			n/a			7.57	%		4.79	%		7.97	%		10.09	%		17.28	%		4.92	%		0.88	%
Ratio of Expenses**		n/a			n/a			n/a			0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Period ended December 31, 2006
Unit Value		n/a			n/a			n/a		$	31.691395		$	15.145660		$	22.239521		$	35.826396		$	46.989671		$	10.309745		$	18.043328
Total Return*		n/a			n/a			n/a			13.71	%		4.72	%		20.85	%		13.84	%		6.84	%		3.10	%***		20.14	%
Ratio of Expenses**		n/a			n/a			n/a			0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%

* Total return for period indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio.  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.  Total return for portfolios with no investment activity at period end is calculated based on the total return of the underlying mutual fund less expenses that are charged directly to the Separate Account.

** Annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated.  The ratios include only those expenses that result in a direct reduction to unit values.

Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying funds are excluded.

*** Total return is calculated from the effective date through the end of the reporting period. The effective date is the date when the optional benefit in the variable account was elected by a contract owner.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations December 3, 2007.

Page 62

Jackson National Separate Account IV

Notes to Financial Statements (continued)

Note 6 - Financial Highlights (continued)

	JNL/S&P																								JNL/T. Rowe
	Dividend																		JNL/T. Rowe						Price Short-
	Income			JNL/S&P			JNL/S&P			JNL/Select			JNL/Select			JNL/			Price			JNL/T. Rowe			Term			JNL/T. Rowe
	& Growth			Intrinsic Value			Total Yield			Balanced			Money Market			Select Value			Established			Price Mid-Cap			Bond			Price Value
	Portfolio(b)			Portfolio(b)			Portfolio(b)			Portfolio			Portfolio			Portfolio			Growth Portfolio			Growth Portfolio			Portfolio(a)			Portfolio
Portfolio data
Period ended December 31, 2010
1 Net Assets (in thousands)	$	166		$	100		$	65		$	1,039		$	2,943		$	889		$	1,208		$	1,145		$	88		$	593
1 Units Outstanding (in thousands)		14			9			6			32			197			41			35			21			8			37
Investment Income Ratio *		0.83	%		0.71	%		0.79	%		1.29	%		0.00	%		1.19	%		0.15	%		0.33	%		0.76	%		1.02	%
Period ended December 31, 2009
Net Assets (in thousands)	$	158		$	108		$	55		$	853		$	2,156		$	590		$	918		$	778		$	211		$	548
Units Outstanding (in thousands)		17			10			6			29			144			31			31			18			20			39
Investment Income Ratio *		0.06	%		0.02	%		0.02	%		2.69	%		0.16	%		2.03	%		0.57	%		0.00	%		4.75	%		1.82	%
Period ended December 31, 2008
Net Assets (in thousands)	$	48		$	35		$	23		$	660		$	2,218		$	349		$	364		$	487		$	50		$	384
Units Outstanding (in thousands)		7			5			3			27			150			22			18			16			5			37
Investment Income Ratio *		17.38	%		0.24	%		7.70	%		2.91	%		2.26	%		0.04	%		0.14	%		0.00	%		1.91	%		2.22	%
Period ended December 31, 2007
Net Assets (in thousands)	$	-		$	-		$	-		$	664		$	900		$	307		$	468		$	508		$	9		$	641
Units Outstanding (in thousands)		-			-			-			21			62			13			13			10			1			37
Investment Income Ratio *		0.00	%		0.00	%		0.00	%		1.51	%		4.81	%		5.01	%		1.32	%		1.97	%		8.11	%		2.55	%
Period ended December 31, 2006
Net Assets (in thousands)		n/a			n/a			n/a		$	152		$	902		$	146		$	190		$	250		$	-		$	259
Units Outstanding (in thousands)		n/a			n/a			n/a			5			65			7			6			6			-			15
Investment Income Ratio *		n/a			n/a			n/a			2.43	%		4.71	%		2.30	%		0.17	%		0.87	%		0.00	%		1.00	%

* These amounts represent the dividends, excluding distributions of capital gains, received by the portfolio from the underlying mutual fund divided by the average net assets.  In some instances, the investment income ratio may be rounded to 0.00% even though the portfolio received dividend income from the underlying mutual fund.

1 Some investments have a net asset and ending unit balance of less than one thousand, due to rounding it is displayed as a zero.

(a) Commencement of operations May 1, 2006.

(b) Commencement of operations December 3, 2007.

Page 63

Independent Auditors’ Report

The Board of Directors of Jackson National Life Insurance Company and

Contract Owners of Jackson National Separate Account IV:

We have audited the accompanying statements of assets and liabilities of each of the sub-accounts within Jackson National Separate Account IV (Separate Account) as set forth herein as of December 31, 2010, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods in the two year period then ended, and the financial highlights for each of the years or periods in the five year period then ended. These financial statements and financial highlights are the responsibility of the Separate 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the transfer agent of the underlying mutual fund. 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, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each sub-account within Jackson National Separate Account IV as set forth herein as of December 31, 2010, the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two year period then ended, and the financial highlights for each of the years or periods in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

March 1, 2011

Jackson National Life Insurance

 Company and Subsidiaries

 Consolidated Financial Statements

December 31, 2010

Jackson National Life Insurance Company and Subsidiaries

Index to Consolidated Financial Statements

December 31, 2010

__________________________________________________________________

Report of Independent Registered Public Accounting Firm	1
Consolidated Balance Sheet	2
Consolidated Income Statements	3
Consolidated Statements of Changes in Equity and Comprehensive Income	4
Consolidated Statements of Cash Flows	5
Notes to Consolidated Financial Statements	6

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholder of

Jackson National Life Insurance Company:

We have audited the accompanying consolidated balance sheets of Jackson National Life Insurance Company and Subsidiaries  (the Company) as of December 31, 2010 and 2009, and the related consolidated income statements and the consolidated statements of changes in equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2010.  These consolidated financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these consolidated 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.  An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Jackson National Life Insurance Company and Subsidiaries as of December 31, 2010 and 2009, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2010 in conformity with U.S. generally accepted accounting principles.

As discussed in Note 4 to the consolidated financial statements, the Company has changed its method of evaluating other-than-temporary impairments of debt securities due to the adoption of FASB Staff Position No. FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” (included in FASB ASC Topic 320, Investments-Debt and Equity Securities), as of January 1, 2009.

As discussed in Note 4 to the consolidated financial statements, during 2010 the Company consolidated entities formerly considered to be QSPEs due to the adoption of ASU 2010-10, “Amendment for Certain Investment Funds”, as of January 1, 2010.

/s/ KPMG LLP

Chicago, Illinois

March 7, 2011

Jackson National Life Insurance Company and Subsidiaries

Financial Statements

Consolidated Balance Sheets

(In thousands, except per share information)

	December 31,
Assets	2010		2009
Investments:
Cash and short-term investments	$	674,253	$	1,043,725
Securities available for sale, at fair value:
Fixed maturities (amortized cost: 2010, $39,222,320; 2009, $36,791,797,     including fair value through profit and loss: 2010, $345,038; 2009, $0)		40,801,885		36,368,034
Trading securities, at fair value		467,101		557,671
Commercial mortgage loans		5,700,365		5,983,571
Policy loans		855,842		852,941
Derivative instruments		1,010,377		837,728
Other invested assets		1,038,012		866,023
Total investments		50,547,835		46,509,693
Accrued investment income		553,762		450,133
Deferred acquisition costs		5,305,670		4,738,901
Deferred sales inducements		451,096		476,749
Reinsurance recoverable		1,089,539		1,133,118
Income taxes receivable from Parent		50,854		369,478
Deferred income taxes		-		89,678
Other assets		166,923		192,042
Separate account assets		48,854,037		33,329,412
Total assets	$	107,019,716	$	87,289,204
Liabilities and Equity
Liabilities
Policy reserves and liabilities:
Reserves for future policy benefits and claims payable	$	3,149,572	$	3,194,039
Deposits on investment contracts		39,916,376		38,283,062
Guaranteed investment contracts		700,090		920,101
Trust instruments supported by funding agreements		2,209,268		2,331,458
Federal Home Loan Bank funding agreements		1,750,989		1,750,965
Long-term borrowings		338,805		288,680
Securities lending payable		58,115		34,203
Deferred income taxes		656,577		-
Derivative instruments		1,250,807		745,214
Other liabilities		1,886,751		1,234,646
Separate account liabilities		48,854,037		33,329,412
Total liabilities		100,771,387		82,111,780
Equity
Common stock, $1.15 par value; authorized 50,000 shares;
issued and outstanding 12,000 shares		13,800		13,800
Additional paid-in capital		3,711,500		3,561,395
Accumulated other comprehensive income, net of
tax of $53,280 in 2010 and $(356,307) in 2009		837,006		76,344
Retained earnings		1,633,691		1,450,505
Total stockholder's equity		6,195,997		5,102,044
Noncontrolling interests		52,332		75,380
Total equity		6,248,329		5,177,424
Total liabilities and equity	$	107,019,716	$	87,289,204

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Financial Statements

Consolidated Income Statements

(In thousands)

	Years Ended December 31,
	2010			2009			2008
Revenues
Fee income	$	1,565,992		$	1,082,281		$	1,069,910
Premiums		142,721			115,231			170,161
Net investment income		2,664,955			2,577,794			2,662,099
Net realized losses on investments:
Total other-than-temporary impairments		(319,977	)		(1,196,893	)		(913,692	)
Portion of other-than-temporary impairments included in
other comprehensive income (loss)		176,719			422,186			-
Net other-than-temporary impairments		(143,258	)		(774,707	)		(913,692	)
Other investment gains (losses)		87,763			166,829			(289,542	)
Total net realized losses on investments		(55,495	)		(607,878	)		(1,203,234	)
Risk management activity		(1,069,971	)		(912,080	)		(466,638	)
Other income		61,233			61,112			107,763
Total revenues		3,309,435			2,316,460			2,340,061
Benefits and Expenses
Death and other policy benefits		593,089			583,573			514,148
Interest credited on deposit liabilities		1,404,217			1,461,137			1,406,066
Interest expense on trust instruments supported
by funding agreements		59,803			82,131			196,175
Interest expense on Federal Home Loan Bank advances,
notes and reverse repurchase agreements		34,825			49,767			71,295
Increase (decrease) in reserves, net of reinsurance		68,972			(536,828	)		164,027
Commissions		1,263,012			980,903			739,798
General and administrative expenses		539,711			447,617			478,320
Deferral of policy acquisition costs		(1,180,950	)		(944,596	)		(719,724	)
Deferral of sales inducements		(144,037	)		(132,196	)		(113,232	)
Amortization of acquisition costs:
Attributable to operations		361,603			108,240			926,903
Attributable to risk management activity		(443,295	)		(341,509	)		(103,491	)
Attributable to net realized losses on investments		(5,553	)		(72,349	)		(164,503	)
Amortization of deferred sales inducements:
Attributable to operations		97,729			43,542			39,836
Attributable to risk management activity		(21,247	)		(1,203	)		59,694
Attributable to net realized losses on investments		(897	)		(10,062	)		(15,770	)
Total benefits and expenses		2,626,982			1,718,167			3,479,542
Pretax income (loss)		682,453			598,293			(1,139,481	)
Federal income tax expense (benefit)		176,737			182,536			(172,081	)
Income (loss) before extraordinary loss		505,716			415,757			(967,400	)
Extraordinary loss, net of tax benefit of $4,651 in 2008		-			-			(8,638	)
Net income (loss)		505,716			415,757			(976,038	)
Less: Net income (loss) attributable to noncontrolling interests		7,288			(12,415	)		5,825
Net income (loss) attributable to Jackson	$	498,428		$	428,172		$	(981,863	)

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Financial Statements

Consolidated Statements of Changes in Equity and Comprehensive Income

(In thousands)

					Accumulated
			Additional		other						Total			Non-
	Common		paid-in		comprehensive			Retained			stockholder's			controlling			Total
	stock		capital		income (loss)			earnings			equity			interests			equity
Balances as of December 31, 2007	$	13,800	$	2,934,881	$	(91,235	)	$	2,440,407		$	5,297,853		$	131,210		$	5,429,063
Comprehensive income:
Net income (loss)									(981,863	)		(981,863	)		5,825			(976,038	)
Net unrealized losses
on securities not other-than
-temporarily impaired, net
of tax of $(1,045,509)						(1,987,509	)					(1,987,509	)		(10,624	)		(1,998,133	)
Reclassification adjustment
for losses included
in net income, net of tax
of $242,964						451,219						451,219						451,219
Total comprehensive loss						(1,536,290	)		(981,863	)		(2,518,153	)		(4,799	)		(2,522,952	)
Capital contribution				34,104								34,104						34,104
Dividends to stockholder									(313,101	)		(313,101	)					(313,101	)
Balances as of December 31, 2008	$	13,800	$	2,968,985	$	(1,627,525	)	$	1,145,443		$	2,500,703		$	126,411		$	2,627,114

Comprehensive income:
Net income (loss)									428,172			428,172			(12,415	)		415,757
Net unrealized gains (losses)
on securities not other-than
-temporarily impaired, net
of tax of $382,885						1,621,868						1,621,868			(38,616	)		1,583,252
Net unrealized losses on
other-than-temporarily impaired
securities, net of tax of $(127,733)						(237,217	)					(237,217	)					(237,217	)
Reclassification adjustment
for losses included
in net income, net of tax
of $240,213						446,108						446,108						446,108
Total comprehensive income (loss)						1,830,759			428,172			2,258,931			(51,031	)		2,207,900
Cumulative effect of change in
accounting, net of DAC						(126,890	)		126,890			-						-
Capital contribution				592,410								592,410						592,410
Dividends to stockholder									(250,000	)		(250,000	)					(250,000	)
Balances as of December 31, 2009	$	13,800	$	3,561,395	$	76,344		$	1,450,505		$	5,102,044		$	75,380		$	5,177,424

Comprehensive income:
Net income									498,428			498,428			7,288			505,716
Net unrealized gains (losses)
on securities not other-than
-temporarily impaired, net
of tax of $422,473						784,594						784,594			(30,336	)		754,258
Net unrealized losses on
other-than-temporarily impaired
securities, net of tax of $(54,663)						(101,517	)					(101,517	)					(101,517	)
Reclassification adjustment
for losses included
in net income, net of tax
of $15,223						28,270						28,270						28,270
Total comprehensive income (loss)						711,347			498,428			1,209,775			(23,048	)		1,186,727
Cumulative effect of change in
accounting, net of DAC						49,315			(40,242	)		9,073						9,073
Capital contribution				150,105								150,105						150,105
Dividends to stockholder									(275,000	)		(275,000	)					(275,000	)
Balances as of December 31, 2010	$	13,800	$	3,711,500	$	837,006		$	1,633,691		$	6,195,997		$	52,332		$	6,248,329

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Financial Statements

Consolidated Statements of Cash Flows

(In thousands)

	Years Ended December 31,
	2010			2009			2008
Cash flows from operating activities:
Net income (loss)	$	505,716		$	415,757		$	(976,038	)
Adjustments to reconcile income (loss)
to net cash provided by operating activities:
Net realized losses on investments		55,495			607,878			1,203,234
Risk management activity		1,069,971			912,080			466,638
Interest credited on deposit liabilities		1,404,217			1,461,137			1,406,066
Interest expense on trust instruments supported
by funding agreements		59,803			82,131			196,175
Interest expense on Federal Home Loan Bank funding
agreements		22,678			28,906			57,928
Mortality, expense and surrender charges		(354,070	)		(327,521	)		(321,484	)
Amortization of discount and premium on investments		(3,243	)		(1,235	)		28,168
Deferred income tax expense (benefit)		355,790			409,848			(113,368	)
Change in:
Accrued investment income		(103,629	)		46,654			(41,579	)
Deferred sales inducements and acquisition costs		(1,336,646	)		(1,350,132	)		(90,287	)
Trading portfolio activity, net		90,570			268,154			101,064
Income taxes receivable from Parent		318,624			(200,147	)		(161,872	)
Other assets and liabilities, net		222,438			213,440			212,972
Net cash provided by operating activities		2,307,714			2,566,950			1,967,617
Cash flows from investing activities:
Sales of fixed maturities and equities available for sale		8,689,802			9,001,912			2,248,000
Principal repayments, maturities, calls and redemptions:
Fixed maturities available for sale		1,934,006			2,166,500			2,964,781
Commercial mortgage loans		1,375,297			742,080			407,640
Purchases of:
Fixed maturities and equities available for sale		(13,190,087	)		(10,029,527	)		(7,622,992	)
Commercial mortgage loans		(1,045,450	)		(351,711	)		(1,310,760	)
Other investing activities		(716,905	)		(1,534,559	)		473,947
Net cash used in investing activities		(2,953,337	)		(5,305	)		(2,839,384	)
Cash flows from financing activities:
Policyholders' account balances:
Deposits		17,868,878			14,123,189			12,846,221
Withdrawals		(7,182,166	)		(9,543,370	)		(9,029,910	)
Net transfers to separate accounts		(10,767,308	)		(6,984,733	)		(2,442,002	)
Proceeds from repurchase agreements		552,458			-			-
Proceeds from borrowings		15,000			-			550,000
Payments on borrowings		(65,711	)		(150,000	)		(634,047	)
Proceeds and payments on short-term borrowings from Parent		-			-			(32,000	)
Payment of cash dividends to Parent		(275,000	)		(250,000	)		(313,101	)
Capital contribution from Parent		130,000			571,000			-
Net cash provided by (used in) financing activities		276,151			(2,233,914	)		945,161
Net (decrease) increase in cash and short-term investments		(369,472	)		327,731			73,394
Cash and short-term investments, beginning of year		1,043,725			715,994			642,600
Total cash and short-term investments, end of year	$	674,253		$	1,043,725		$	715,994

See accompanying Notes to Consolidated Financial Statements.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

1.   Nature of Operations

Jackson National Life Insurance Company (the “Company” or “Jackson”) is wholly owned by Brooke Life Insurance Company (“Brooke Life” or the “Parent”), which is ultimately a wholly owned subsidiary of Prudential plc (“Prudential”), London, England.  Jackson, together with its New York life insurance subsidiary, is licensed to sell group and individual annuity products (including immediate, index linked and deferred fixed annuities and variable annuities), guaranteed investment contracts (“GICs”) and individual life insurance products, including variable universal life, in all 50 states and the District of Columbia.

The consolidated financial statements include accounts, after the elimination of intercompany accounts and transactions, of the following:

·   Life insurers: Jackson and its wholly owned subsidiaries Jackson National Life Insurance Company of New York, Squire Reassurance Company LLC (“Squire Re”) and Jackson National Life (Bermuda) LTD;

·   Wholly owned broker-dealer, investment management and investment advisor subsidiaries: Jackson National Life Distributors, LLC, Jackson National Asset Management, LLC, Curian Clearing, LLC and Curian Capital, LLC;

·   Wholly owned insurance agency: JNL Southeast Agency, LLC;

·   PGDS (US One) LLC (“PGDS”), a wholly owned subsidiary that provides information technology services to Jackson and certain affiliates;

·   Other partnerships, limited liability companies and variable interest entities (“VIEs”) in which Jackson has a controlling interest or is deemed the primary beneficiary.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).  All significant intercompany accounts and transactions have been eliminated upon consolidation.  Certain prior year amounts have been reclassified to conform with the current year presentation with no impact on stockholder’s equity or net income.

The preparation of the consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions about future events that affect the amounts reported in the financial statements and the accompanying notes.  Significant estimates or assumptions, as further discussed in the notes, include: 1) valuation of investments and derivative instruments, including fair values of securities deemed to be in an illiquid market and the determination of when an impairment is other-than-temporary; 2) assessments as to whether certain entities are variable interest entities, the existence of reconsideration events and the determination of which party, if any, should consolidate the entity; 3) assumptions impacting future gross profits, including lapse and mortality rates, expenses, investment returns and policy crediting rates, used in the calculation of amortization of deferred acquisition costs and deferred sales inducements; 4) assumptions used in calculating policy reserves and liabilities, including lapse and mortality rates, expenses and investment returns; 5) assumptions as to future earnings levels being sufficient to realize deferred tax benefits; 6) estimates related to establishment of loan loss reserves, liabilities for lawsuits and the liability for state guaranty fund assessments; 7) assumptions and estimates associated with the Company’s tax positions which impact the amount of recognized tax benefits recorded by the Company; and, 8) the value of guarantee obligations.  These estimates and assumptions are based on management’s best estimates and judgments.  Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors deemed appropriate.  As facts and circumstances dictate, these estimates and assumptions may be adjusted.  Since future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.  Changes in estimates, including those resulting from continuing changes in the economic environment, will be reflected in the financial statements in the periods the estimates are changed.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

2.   Summary of Significant Accounting Policies (continued)

Changes in Accounting Principles – Adopted in Current Year

On January 1, 2010, the Company adopted Accounting Standards Update No. 2009-16, “Accounting for Transfers of Financial Assets” (“ASU 2009-16”).  This accounting guidance amends the current guidance on transfers of financial assets by eliminating the qualifying special-purpose entity (“QSPE”) concept, providing certain conditions that must be met to qualify for sale accounting, changing the amount of gain or loss recognized on certain transfers and requiring additional disclosures.

On January 1, 2010, the Company adopted ASU 2010-10, “Amendment for Certain Investment Funds,” which provides accounting guidance for determining which enterprise, if any, has a controlling financial interest in a variable interest entity (“VIE”) and requires additional disclosures regarding a company’s involvement in VIEs.  The adoption of ASU 2010-10 and ASU 2009-16 occurred simultaneously, requiring the consolidation of entities formerly considered to be QSPEs and decreasing retained earnings by $40.2 million.  Additional details on the application of this change in accounting principles are included in Note 4.

Changes in Accounting Principles – Adopted in Prior Years

On January 1, 2009, the Company adopted Accounting Standards Codification (“ASC”) 320-10-65, “Debt and Equity Securities – Transition and Open Effective Date Information” (previously FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments”).  ASC 320-10-65 requires entities to separate an other-than-temporary impairment of a debt security into two components when there are credit related losses associated with the impaired debt security for which management believes it does not have the intent to sell the security and is not more likely than not to be required to sell the security before recovery of its amortized cost basis.  The difference between the fair value and the amortized cost of the security is presented as an other-than-temporary impairment charge within earnings, with an offset for any non-credit related loss component of the charge to be recognized in other comprehensive income.  ASC 320-10-65 required companies to record, as of the period of adoption, a cumulative effect adjustment to reclassify the non-credit portion of a previously recognized other-than-temporary impairment from retained earnings to other comprehensive income, if, as of the date of adoption, the company did not intend to sell the security before anticipated recovery of its amortized cost basis.  Upon adoption, the Company transferred $186.6 million ($126.9 million net of deferred acquisition costs and sales inducements) of non-credit related impairments from retained earnings to other comprehensive income.

Changes in Accounting Principles – Not Yet Fully Adopted

In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements,” which requires additional disclosures related to transfers between Levels 1 and 2 and for fair value measurement activity in Level 3.  Additional information to be provided will include purchases, sales, issuances, and settlements on a gross basis.  This ASU also clarifies certain other existing disclosure requirements including the level of disaggregation and disclosures around inputs and valuation techniques.  The accounting guidance for new disclosures and clarification of existing disclosures is effective for periods beginning after December 15, 2009.  The additional disclosures related to activity in Level 3 are effective for fiscal years beginning after December 15, 2010. As required, the additional disclosures effective for periods beginning after December 15, 2009, are included herein.  The remaining required disclosures, effective for fiscal years beginning after December 15, 2010, will be included in the Company’s consolidated financial statements for the year ending December 31, 2011.

In April 2010, the FASB issued ASU No. 2010-15, “How Investments Held through Separate Accounts Affect an Insurer’s Consolidation Analysis of Those Investments.” This guidance clarifies that an insurance entity should not consider any separate account interests held for the benefit of policyholders in an investment to be the insurer’s interests and should not combine those interests with its general account interest in the same investment when assessing the investment for consolidation, unless the separate account interests are held for the benefit of a related policyholder, as defined in the Variable Interest Entities Subsections of Subtopic 810-10 and those Subsections require the consideration of related parties.  This accounting guidance will be effective on January 1, 2011, and is not expected to impact the Company’s consolidated financial statements.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

2.   Summary of Significant Accounting Policies (continued)

In October 2010, the FASB issued ASU No. 2010-26, “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.” ASU 2010-26 clarifies which costs related to the acquisition or renewal of insurance contracts can be deferred by insurance entities.  The guidance also specifies that only costs directly related to the successful acquisition of new or renewal contracts can be capitalized.  All other acquisition related costs should be expensed as incurred.  This accounting guidance will be effective on January 1, 2012 and can be applied either prospectively or retrospectively.  Jackson has not yet determined the impact this guidance will have on the Company’s consolidated financial statements upon adoption.

In July 2010, the FASB issued ASU No. 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses,” which requires significant new disclosures about the allowance for credit losses and the credit quality of financing receivables.  The FASB has elected to defer the disclosures related to troubled debt restructurings included within this ASU.  Those disclosures are expected to be effective for 2011 reporting.  The remaining disclosures under ASU No. 2010-20 were not deferred and have been included within Note 4.

Comprehensive Income (Loss)

Comprehensive income (loss) includes all changes in stockholder’s equity (except those arising from transactions with owners/stockholders) and, in the Company’s case, includes net income (loss) and net unrealized gains or losses on available for sale securities.

Investments

Cash and short-term investments, which primarily include high quality, non-asset-backed commercial paper, money market instruments and deposits in the Federal Home Loan Bank of Indianapolis (“FHLBI”), are carried at cost or amortized cost.  These investments have original maturities of three months or less and are considered cash equivalents for reporting cash flows.

Fixed maturities consist primarily of bonds, notes, redeemable preferred stocks and asset-backed securities. Acquisition discounts and premiums on fixed maturities are amortized into investment income through call or maturity dates using the effective interest method.  Discounts and premiums on asset-backed securities are amortized over the estimated redemption period.  Certain asset-backed securities are considered to be other than high quality or otherwise deemed to be high-risk, meaning the Company might not recover substantially all of its recorded investment due to unanticipated prepayment events.  For these securities, changes in investment yields due to changes in estimated future cash flows are accounted for on a prospective basis.  The carrying value of such securities was $878.5 million and $953.4 million as of December 31, 2010 and 2009, respectively.

Fixed maturities are generally classified as available for sale and are carried at fair value.  Effective January 1, 2009, for declines in fair value considered to be other-than-temporary, an impairment charge reflecting the difference between the amortized cost basis and fair value is included in net realized losses on investments.  If management believes the Company does not intend to sell the security and is not more likely than not to be required to sell the security prior to recovery of its amortized cost basis, an amount representing the non-credit related portion of a loss is reclassified out of net realized losses on investments and into other comprehensive income.  In determining whether an other-than-temporary impairment has occurred, and in calculating the non-credit related component of the total impairment loss, the Company considers a number of factors, which are further detailed in Note 4.  For periods prior to January 1, 2009, Jackson recognized an other-than-temporary impairment when the Company did not expect full recovery of amortized cost or did not have the intent and ability to hold a security to recovery and impairment losses were recognized in net realized losses on investments for the full difference between fair value and amortized cost.

During 2009, the Company transferred the remainder of its equity holdings from available for sale to a trading portfolio and recognized a loss of $87.5 million.  At December 31, 2010 and 2009, all equity holdings were classified as trading.  Previously, trading securities primarily consisted of private equity securities and investments in mutual funds that support liabilities of the Company’s non-qualified voluntary deferred compensation plans.  Trading securities are carried at fair value with changes in value included in net investment income.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

2.   Summary of Significant Accounting Policies (continued)

Commercial mortgage loans are carried at aggregate unpaid principal balances, net of unamortized discounts and premiums and an allowance for loan losses.

On a periodic basis, Jackson assesses each commercial mortgage loan in the portfolio for the need of an allowance for loan losses.  This review contemplates a variety of factors which may include, but are not limited to, current economic conditions, the physical condition of the property, the financial condition of the borrower, and the near and long-term prospects for change in these conditions.  As deemed appropriate, Jackson recognizes an allowance for loan losses through a charge to investment income.  This allowance may be reduced when the exposure on a particular loan is deemed to have been reduced or eliminated, either through the termination of the mortgage loan, recognition of an impairment charge, or a reversal of the conditions that led to the allowance.  Separately, Jackson also reviews individual loans in the portfolio for impairment based on an assessment of the factors identified above.  Impairment charges recognized are recorded initially against the established loan loss allowance and, if necessary, any additional amounts are recorded as realized losses. As deemed necessary based on cash flow expectations and other factors, Jackson may place loans on non-accrual status.  In this case, all cash received is applied against the carrying value of the loan.

Policy loans are carried at the unpaid principal balances.

Other invested assets primarily include investments in limited partnerships and real estate.  Carrying values for limited partnership investments are determined by using the proportion of Jackson’s investment in each fund (NAV equivalent) as a practical expedient for fair value.  Real estate is carried at the lower of depreciated cost or fair value.

Pursuant to the guidance provided for in ASC 810, the Company concluded that it holds interests in VIEs that represent primary beneficial interests.  These consolidated VIEs include entities structured to hold and manage investments.

Realized gains and losses on sales of investments are recognized in income at the date of sale and are determined using the specific cost identification method.

The changes in unrealized gains and losses on certain investments which are classified as available for sale, net of tax and the effect of the adjustment for deferred acquisition costs and deferred sales inducements, and, beginning in 2009, the non-credit related portion of other-than-temporary impairment charges are excluded from net income and included as a component of other comprehensive income and total equity.  The changes in unrealized gains and losses on investments for which Jackson elected the fair value option are included in net income (loss) along with the related adjustment for deferred acquisition costs and deferred sales inducements.

Derivative Instruments, Embedded Derivatives and Risk Management Activity

The Company enters into financial derivative transactions, including, but not limited to, swaps, spread cap options, put-swaptions, futures and options to reduce and manage business risks.  These transactions manage the risk of a change in the value, yield, price, cash flows, credit quality or degree of exposure with respect to assets, liabilities or future cash flows which the Company has acquired or incurred.  The Company manages the potential credit exposure for over-the-counter derivative contracts through careful evaluation of the counterparty credit standing, collateral agreements, and master netting agreements.  The Company is exposed to credit-related losses in the event of nonperformance by counterparties, however, it does not anticipate nonperformance.  During 2008, nonperformance by one derivative counterparty resulted in a loss on the related transactions.  The related charge of $17.2 million was reported in net investment income.  There were no such losses in 2010 or 2009.

The Company generally uses freestanding derivative instruments for hedging purposes.  Additionally, certain liabilities, primarily trust instruments supported by funding agreements, index linked annuities and guarantees offered in connection with variable annuities issued by the Company, contain embedded derivative instruments.  Further details regarding Jackson’s derivative positions are included in Note 5.  The Company generally does not account for freestanding derivatives as either fair value or cash flow hedges as might be permitted if specific hedging documentation requirements were followed.  Financial derivatives, including derivatives embedded in certain host liabilities that have been separated for accounting and financial reporting purposes, are carried at fair

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

2.   Summary of Significant Accounting Policies (continued)

value.  The results from derivative financial instruments and embedded derivatives, including net payments, realized gains and losses and changes in value, are reported in risk management activity.

Deferred Acquisition Costs

Certain costs of acquiring new business, principally commissions and certain costs associated with policy issuance and underwriting, which vary with and are primarily related to the production of new business, are capitalized as deferred acquisition costs.  Deferred acquisition costs are increased by interest thereon and amortized in proportion to anticipated premium revenues for traditional life policies and in proportion to estimated gross profits for annuities and interest-sensitive life products.  Unamortized deferred acquisition costs are written off when a contract is internally replaced and substantially changed.  A review of assumptions used for estimating future gross profits underlying the amortization of deferred acquisition costs is conducted on an annual basis.  Based on results of the annual review, the deferred acquisition cost balance is adjusted, with an offsetting credit or charge to amortization expense.

As certain fixed maturities and equities available for sale are carried at fair value, an adjustment is made to deferred acquisition costs equal to the change in amortization that would have occurred if such securities had been sold at their stated fair value and the proceeds reinvested at current yields.  This adjustment, along with the change in fair value of equity and fixed maturities available for sale, net of applicable tax, is credited or charged directly to stockholder’s equity as a component of other comprehensive income.  Deferred acquisition costs have been decreased by $598.5 million and increased by $131.9 million at December 31, 2010 and 2009, respectively, to reflect this adjustment.  Effective January 1, 2009, in connection with the adoption of amended accounting guidance, Jackson reclassified $53.0 million of deferred acquisition costs amortization from retained earnings to accumulated other comprehensive income.

For variable annuity business, the Company employs a mean reversion methodology that is applied with the objective of adjusting the amortization of deferred acquisition costs that would otherwise be highly volatile due to fluctuations in the level of future gross profits arising from changes in equity market levels.  The mean reversion methodology achieves this objective by applying a dynamic adjustment to the level of expectations of short-term future investment returns. Under the methodology, the projected returns for the next five years are set such that, when combined with the actual returns for the current and preceding two years, the average rate of return over the eight year period is 8.4%, after investment management fees. The mean reversion methodology does, however, include a cap and a floor of 15% and 0% per annum, respectively, on the projected return for each of the next five years. Projected returns after the next five years are set at 8.4%. At December 31, 2010 and 2009,  future projected returns were capped at the 15% level.

Deferred Sales Inducements

Bonus interest on deferred fixed annuities and contract enhancements on index linked annuities and variable annuities are capitalized as deferred sales inducements.  Deferred sales inducements are increased by interest thereon and amortized in proportion to estimated gross profits.  Unamortized deferred sales inducements are written off when a contract is internally replaced and substantially changed.  A review of assumptions used for estimating future gross profits underlying the amortization of deferred sales inducements is conducted on an annual basis.  Based on results of the annual review, the deferred sales inducement balance is adjusted, with an offsetting credit or charge to amortization expense.  As certain fixed maturities and equities available for sale are carried at fair value, an adjustment is made to deferred sales inducements equal to the change in amortization that would have occurred if such securities had been sold at their stated fair value and the proceeds reinvested at current yields.  This adjustment, along with the change in fair value of equity and fixed maturities available for sale, net of applicable tax, is credited or charged directly to stockholder’s equity as a component of other comprehensive income.  Deferred sales inducements have been decreased by $82.2 million and increased by $11.9 million at December 31, 2010 and 2009, respectively, to reflect this adjustment.  Effective January 1, 2009, in connection with the adoption of amended accounting guidance, Jackson reclassified $6.7 million of deferred sales inducements amortization from retained earnings to accumulated other comprehensive income.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

2.   Summary of Significant Accounting Policies (continued)

Federal Income Taxes

The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as certain foreign jurisdictions.  The Company is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2007.

Jackson files a consolidated federal income tax return with Brooke Life and Jackson National Life Insurance Company of New York. Jackson National Life (Bermuda) LTD is taxed as a controlled foreign corporation of Jackson.  All other subsidiaries are limited liability companies with all of their interests owned by Jackson.  Accordingly, they are not considered separate entities for income tax purposes and, therefore, are taxed as part of the operations of Jackson.  Income tax expense is calculated on a separate company basis.

Deferred federal income taxes arise from the recognition of temporary differences between the basis of assets and liabilities determined for financial reporting purposes and the basis determined for income tax purposes.  Such temporary differences are principally related to the effects of recording certain invested assets at market value, the deferral of policy acquisition costs and sales inducements and the provisions for future policy benefits and expenses.  Deferred tax assets and liabilities are measured using the tax rates expected to be in effect when such benefits are realized.  In accordance with GAAP, Jackson is required to test the value of deferred tax assets for realizability.  Deferred tax assets are reduced by a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized.  In determining the need for a valuation allowance, the Company considers the carryback capacity of losses, reversal of existing temporary differences, estimated future taxable income and tax planning strategies.

The determination of the valuation allowance for Jackson’s deferred tax assets requires management to make certain judgments and assumptions regarding future operations that are based on historical experience and expectations of future performance.  In order to recognize a tax benefit in the consolidated financial statements, there must be a greater than 50 percent chance of success with the relevant taxing authority with regard to that tax position.  Management’s judgments are potentially subject to change given the inherent uncertainty in predicting future performance, which is impacted by such factors as policyholder behavior, competitor pricing and other specific industry and market conditions.

The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense.At December 31, 2010 and 2009, the Company had no unrecognized tax benefits.

Policy Reserves and Liabilities

Reserves for future policy benefits and claims payable:

For traditional life insurance contracts, reserves for future policy benefits are determined using the net level premium method and assumptions as of the issue date or acquisition date as to mortality, interest, persistency and expenses plus provisions for adverse deviations.  Mortality assumptions range from 25% to 160% of the 1975-1980 Basic Select and Ultimate tables depending on policy duration.  Interest rate assumptions range from 4.0% to 6.0%.  Lapse and expense assumptions are based on Company experience.  See Note 6 for description of general account reserves related to variable annuity guarantees.

Deposits on investment contracts:

For the Company’s interest-sensitive life contracts, liabilities approximate the policyholder’s account value.  For deferred annuities, the fixed option on variable annuities, guaranteed investment contracts and other investment contracts, the liability is the policyholder’s account value.  The liability for index linked annuities is based on two components, 1) the imputed value of the underlying guaranteed host contract, and 2) the fair value of the embedded option component of the contract.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

2.   Summary of Significant Accounting Policies (continued)

Trust Instruments Supported by Funding Agreements

Jackson and Jackson National Life Funding, LLC have established a European Medium Note program, with up to $7 billion in aggregate principal amount outstanding at any one time.  Jackson National Life Funding, LLC was formed as a special purpose vehicle solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with Jackson and secured by the issuance of funding agreements.  Carrying values totaled $1.0 billion and $1.0 billion at December 31, 2010 and 2009, respectively.

Jackson and Jackson National Life Global Funding have established a $10.8 billion aggregate Global Medium Term Note program.  Jackson National Life Global Funding was formed as a statutory business trust, solely for the purpose of issuing Medium Term Note instruments to institutional investors, the proceeds of which are deposited with Jackson and secured by the issuance of funding agreements.  The carrying values at December 31, 2010 and 2009 totaled $1.2 billion and $1.3 billion, respectively.

Those medium term note instruments issued in a foreign currency have been economically hedged for changes in exchange rates using cross-currency swaps.  The fair value of derivatives embedded in funding agreements, as well as unrealized foreign currency transaction gains and losses, are included in the carrying value of the trust instruments supported by funding agreements.

Trust instrument liabilities are adjusted to reflect the effects of foreign currency transaction gains and losses using exchange rates as of the reporting date.  Foreign currency transaction gains and losses are included in risk management activity.

Federal Home Loan Bank Advances

Jackson and Squire Re are members of the Federal Home Loan Bank of Indianapolis (“FHLBI”) primarily for the purpose of participating in its mortgage-collateralized loan advance program with short-term and long-term funding facilities.  Membership requires the Company to purchase and hold a minimum amount of FHLBI capital stock plus additional stock based on outstanding advances.  Advances are in the form of short-term or long-term notes or funding agreements issued to FHLBI.  At December 31, 2010 and 2009, the Company held $112.1 million and $117.6 million, respectively, of FHLBI capital stock, supporting $1.8 billion and $1.8 billion, respectively, in funding agreements, short-term and long-term borrowing capacity.

Separate Account Assets and Liabilities

The assets and liabilities associated with individual variable life and annuity contracts, which aggregated $48.9 billion and $33.3 billion at December 31, 2010 and 2009, respectively, are segregated in separate accounts.  The Company receives administrative fees for managing the funds and other fees for assuming mortality and certain expense risks.  Such fees are recorded as earned and included in fee income in the consolidated income statements.

The Company has issued a group variable annuity contract designed for use in connection with and issued to the Company’s Defined Contribution Retirement Plan.  These deposits are allocated to the Jackson National Separate Account - II and aggregated $176.6 million and $142.2 million at December 31, 2010 and 2009, respectively.  The Company receives administrative fees for managing the funds.  These fees are recorded as earned and included in fee income in the consolidated income statements.

Revenue and Expense Recognition

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

Deposits on interest-sensitive life products and investment contracts, principally deferred annuities and guaranteed investment contracts, are treated as policyholder deposits and excluded from revenue.  Revenues consist primarily of investment income and charges assessed against the policyholder’s account value for mortality charges, surrenders, variable annuity benefit guarantees and administrative expenses.  Fee income also includes revenues related to asset management fees and 12b-1 service fees.  Surrender benefits are treated as repayments of the policyholder account.  Annuity benefit payments are treated as reductions to the policyholder account.  Death benefits in excess of the

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

2.   Summary of Significant Accounting Policies (continued)

policyholder account are recognized as an expense when incurred.  Expenses consist primarily of the interest credited to policyholder deposits.  Underwriting and other acquisition expenses are associated with gross profit in order to recognize profit over the life of the business.  This is accomplished through deferral and amortization of acquisition costs and sales inducements.  Expenses not related to policy acquisition are recognized when incurred.

Investment income is not accrued on securities in default and otherwise where the collection is uncertain.  Receipts of interest on such securities are generally used to reduce the cost basis of the securities.

Jackson has terminated, at the customers’ requests, a number of Medium Term Note contracts at a discounted rate.  The income on these early terminations, totaling $2.5 million, $16.8 million and $48.8 million in 2010, 2009 and 2008, respectively, was included in other income.

Subsequent Events

The Company has evaluated events through March 7, 2011, which is the date the financial statements were available to be issued.

3.   Fair Value Measurements

The following table summarizes the fair value and carrying value of Jackson’s financial instruments (in thousands).  The basis for determining the fair value of each instrument is also described below.

	December 31, 2010				December 31, 2009
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
Cash and short-term investments	$	674,253	$	674,253	$	1,043,725	$	1,043,725
Fixed maturities		40,801,885		40,801,885		36,368,034		36,368,034
Trading securities		467,101		467,101		557,671		557,671
Commercial mortgage loans		5,700,365		5,953,073		5,983,571		5,939,175
Policy loans		855,842		684,503		852,941		680,569
Limited partnerships		865,761		865,761		704,688		704,688
Other loans		19,410		19,313		24,410		22,358
Derivative instruments		1,010,377		1,010,377		837,728		837,728
GMIB reinsurance recoverable		127,534		127,534		141,459		141,459
Separate account assets		48,854,037		48,854,037		33,329,412		33,329,412
Liabilities
Annuity reserves (1)	$	33,829,330	$	25,847,154	$	32,475,348	$	24,927,600
Reserves for guaranteed investment contracts		700,090		735,869		920,101		968,519
Trust instruments supported by funding agreements		2,209,268		2,266,664		2,331,458		2,371,266
Federal Home Loan Bank funding agreements		1,750,989		1,637,555		1,750,965		1,572,456
Borrowings		338,805		358,407		288,680		294,466
Derivative instruments		1,250,807		1,250,807		745,214		745,214
Separate account liabilities		48,854,037		48,854,037		33,329,412		33,329,412
(1) - Annuity reserves represent only the components of deposits on investment contracts that are considered to be financial instruments.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

3.   Fair Value Measurements (continued)

Fair value measurements are based upon observable and unobservable inputs.  Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information.  Jackson utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  All assets and liabilities measured at fair value are required to be classified into one of the following categories:

Level 1 Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date.  Level 1 securities include U.S. Treasury securities and exchange traded equity and derivative securities.

Level 2 Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities.  Most debt securities and preferred stocks that are model priced using observable inputs are classified within Level 2.  Also included are freestanding and embedded derivative instruments that are priced using models with observable market inputs.

Level 3 Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Embedded derivative instruments that are valued using unobservable inputs are included in Level 3.  Because Level 3 fair values, by their nature, contain unobservable market inputs, considerable judgment may be used to determine the Level 3 fair values. Level 3 fair values represent the Company’s best estimate of an amount that could be realized in a current market exchange absent actual market exchanges.

In many situations, inputs used to measure the fair value of an asset or liability may fall into different levels of the fair value hierarchy. In these situations, the Company will determine the level in which the fair value falls based upon the lowest level input that is significant to the determination of the fair value. As a result, both observable and unobservable inputs may be used in the determination of fair values that the Company has classified within Level 3.

The Company determines the fair values of certain financial assets and liabilities based on quoted market prices, where available. The Company may also determine fair value based on estimated future cash flows discounted at the appropriate current market rate. When appropriate, fair values reflect adjustments for counterparty credit quality, the Company’s credit standing, liquidity and risk margins on unobservable inputs.

Where quoted market prices are not available, fair value estimates are made at a point in time, based on relevant market data, as well as the best information about the individual financial instrument.  At times, illiquid market conditions may result in inactive markets for certain of the Company’s financial instruments.  In such instances, there is generally no or limited observable market data for these assets and liabilities.  Fair value estimates for financial instruments deemed to be in an illiquid market are based on judgments regarding current economic conditions, liquidity discounts, currency, credit and interest rate risks, loss experience and other factors.  These fair values are estimates and involve considerable uncertainty and variability as a result of the inputs selected and may differ materially from the values that would have been used had an active market existed.  As a result of market inactivity, such calculated fair value estimates may not be realizable in an immediate sale or settlement of the instrument.  In addition, changes in the underlying assumptions used in the fair value measurement technique could significantly affect these fair value estimates.

The following is a discussion of the methodologies used to determine fair values of the financial instruments listed in the above table.

Fixed Maturity and Equity Securities

The fair values for fixed maturity and equity securities are determined by management using information available from independent pricing services, broker-dealer quotes, or internally derived estimates. Priority is given to publicly available prices from independent sources, when available.  Securities for which the independent pricing service does not provide a quotation are either submitted to independent broker-dealers for prices or priced internally.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

3.   Fair Value Measurements (continued)

Typical inputs used by these three pricing methods include, but are not limited to, reported trades, benchmark yields, credit spreads, liquidity premiums, and/or estimated cash flows based on default and prepayment assumptions.

As a result of typical trading volumes and the lack of specific quoted market prices for most fixed maturities, independent pricing services will normally derive the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recently reported trades, the independent pricing services and brokers may use matrix or pricing model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at relevant market rates.  Certain securities are priced using broker-dealer quotes, which may utilize proprietary inputs and models. Additionally, the majority of these quotes are non-binding.

Included in the pricing of asset-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment assumptions believed to be relevant for the underlying collateral.  Actual prepayment experience may vary from these estimates.

Internally derived estimates may be used to develop a fair value for securities for which the Company is unable to obtain either a reliable price from an independent pricing service or a suitable broker-dealer quote. These estimates may incorporate Level 2 and Level 3 inputs and are generally derived using expected future cash flows, discounted at market interest rates available from market sources based on the credit quality and duration of the instrument to determine fair value.  For securities that may not be reliably priced using these internally developed pricing models, a fair value may be estimated using indicative market prices.  These prices are indicative of an exit price, but the assumptions used to establish the fair value may not be observable or corroborated by market observable information and, therefore, are considered to be Level 3 inputs.

The Company performs a monthly analysis on the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value.  This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals.  Examples of procedures performed include, but are not limited to, initial and on-going review of third party pricing service methodologies, review of pricing statistics and trends, back testing recent trades and monitoring of trading volumes.  In addition, the Company considers whether prices received from independent brokers represent a reasonable estimate of fair value through the use of internal and external cash flow models, which are developed based on spreads and, when available, market indices.  As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the available market data, the price received from the third party may be adjusted accordingly.

For those securities that were internally valued at December 31, 2010 and 2009, an internally developed model was used to determine the fair value.  The pricing model used by the Company utilizes current spread levels of similarly rated securities to determine the  market discount rate for the security.  Furthermore, appropriate risk premiums for illiquidity and non-performance are incorporated in the discount rate.  Cash flows, as estimated by the Company using issuer-specific default statistics and prepayment assumptions, are discounted to determine an estimated fair value. 

On an ongoing basis, the Company reviews the independent pricing services’ valuation methodologies and related inputs, and evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy distribution based upon trading activity and the observability of market inputs. Based on the results of this evaluation, each price is classified into Level 1, 2, or 3. Most prices provided by independent pricing services, including broker quotes, are classified into Level 2 due to their use of market observable inputs.

Commercial Mortgage Loans

Fair values are determined by discounting the future cash flows at current market interest rates.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

3.   Fair Value Measurements (continued)

Policy Loans

Fair values are determined using projected future cash flows, based on assumptions as to expected mortality and lapse rates, and discounted at current market interest rates.

Freestanding Derivative Instruments

Freestanding derivative instruments are reported at fair value, which reflects the estimated amounts, net of payment accruals, which the Company would receive or pay upon sale or termination of the contracts at the reporting date. Changes in fair value are included in risk management activity.  Freestanding derivatives priced using valuation models incorporate inputs that are predominantly observable in the market. Inputs used to value derivatives include, but are not limited to, interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels.

Freestanding derivative instruments classified as Level 1 include futures, which are traded on active exchanges.

Freestanding derivative instruments classified as Level 2 include interest rate swaps, cross currency swaps, credit default swaps, put swaptions and equity index call and put options. These derivative valuations are determined using pricing models with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data.

Other Invested Assets

Other invested assets include investments in limited partnerships and real estate.  Fair value for limited partnerships is determined by using the proportion of Jackson’s investment in each fund (NAV equivalent) as a practical expedient for fair value.  No adjustments to these amounts were deemed necessary at December 31, 2010.

Fair Values of Separate Account Assets and Liabilities

Separate account assets are invested in mutual funds, which are categorized as Level 1 assets.  The value of separate account liabilities are set equal to the value of separate account assets under GAAP.

Annuity Reserves

Fair values for immediate annuities without mortality features are derived by discounting the future estimated cash flows using current market interest rates for similar maturities.  Fair values for deferred annuities, including equity indexed annuities, are determined using projected future cash flows discounted at the rate that would be required to transfer the liability to a willing third party.

Reserves for Guaranteed Investment Contracts

Fair values for guaranteed investment contracts are based on the present value of future cash flows discounted at current market interest rates.

Trust Instruments Supported by Funding Agreements

Fair values for trust instruments supported by funding agreements are based on the present value of future cash flows discounted at current market interest rates, plus the fair value of any embedded derivatives that are not required to be reported separately.

Federal Home Loan Bank Funding Agreements

Fair values of the FHLBI funding agreements are based on present value of future cash flows discounted at current market interest rates.

Borrowings

Carrying value of the short-term borrowings is considered a reasonable estimate for fair value due to their short-term maturity.  Fair values of other borrowings are based on future cash flows discounted at current market interest rates.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

3.    Fair Value Measurements (continued)

Fair Values of Certain Guaranteed Benefits

Variable annuity contracts issued by the Company offer various guaranteed minimum death, withdrawal, income and accumulation benefits. Certain benefits, primarily non-life contingent guaranteed minimum withdrawal benefits (“GMWB”), guaranteed minimum accumulation benefits (“GMAB”) and the reinsured portion of the Company’s guaranteed minimum income benefits (“GMIB”), are recorded at fair value.  Guaranteed benefits that are not subject to fair value accounting are accounted for as insurance benefits.

Non-life contingent GMWBs and GMABs are recorded at fair value with changes in fair value recorded in risk management activity. The fair value of the reserve is based on the expectations of future benefit payments and future fees associated with the benefits.  At the inception of the contract, the Company attributes to the derivative a portion of total fees collected from the contract holder, which is then held static in future valuations. Those fees, generally referred to as the attributed fees, are set such that the present value of the attributed fees is equal to the present value of future claims expected to be paid under the guaranteed benefit at the inception of the contract. In subsequent valuations, both the present value of future benefits and the present value of attributed fees are revalued based on current market conditions and policyholder behavior assumptions. The difference between each of the two components represents the fair value of the embedded derivative.

Jackson’s GMIB book is reinsured through an unrelated party and, due to the net settlement provisions of the reinsurance agreement, this contract meets the definition of a freestanding derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value, with changes in fair value recorded in risk management activity.  Due to the inability to economically reinsure or hedge new issues of the GMIB, the Company discontinued offering the benefit in 2009.

Fair values for GMWB and GMAB embedded derivatives, as well as GMIB reinsurance recoverables, are calculated using internally developed models because active, observable markets do not exist for those guaranteed benefits.

The fair value calculation is based on the present value of future cash flows comprised of future expected benefit payments, less future attributed rider fees, over the lives of the contracts.  Estimating these cash flows requires numerous estimates and subjective judgments related to capital market inputs, as well as actuarially determined assumptions related to expectations concerning policyholder behavior.   Capital market inputs include expected market rates of return, market volatility, correlations of market index returns to funds, fund performance and discount rates.  The more significant actuarial assumptions include the benefit utilization by policyholders under varying conditions, persistency, mortality assumptions and withdrawal rates.  Because of the dynamic and complex nature of these cash flows, best estimate assumptions, plus risk margins, and a stochastic process involving the generation of thousands of scenarios that assume risk neutral returns consistent with swap rates are used.

At each valuation date, the Company assumes expected returns based on LIBOR swap rates as of that date to determine the value of expected future cash flows produced in the stochastic process.  Volatility assumptions are based on a weighting of available market data for implied market volatility for durations up to 10 years, at which point the projected volatility is held constant.  Additionally, non-performance risk is incorporated into the calculation through the use of discount interest rates based on a AA corporate credit curve as an approximation of Jackson’s own credit risk.  Other risk margins, particularly for policyholder behavior, are also incorporated into the model through the use of best estimate assumptions, plus a risk margin. Estimates of future policyholder behavior are subjective and are based primarily on the Company’s experience.

As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model.

The use of the models and assumptions described above requires a significant amount of judgment.  Management believes the aggregation of each of these components results in an amount that the Company would be required to transfer for a liability, or receive for an asset, to or from a willing buyer or seller, if one existed, for those market participants to assume the risks associated with the guaranteed benefits and the related reinsurance. However, the ultimate settlement amount of the liability, which is currently unknown, will likely be significantly different than

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

3.   Fair Value Measurements (continued)

this fair value as the Company believes settlement will be based on our best estimate assumptions rather than those best estimate assumptions plus margins for risk.

Financial Instruments Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in thousands):

December 31, 2010	Total		Level 1		Level 2		Level 3
Assets
Fixed maturities
Government securities	$	3,848,246	$	3,817,832	$	30,414	$	-
Public utilities		2,708,660		-		2,707,928		732
Corporate securities		24,816,251		-		24,784,177		32,074
Residential mortgage-backed		4,348,262		-		4,348,262		-
Commercial mortgage-backed		3,764,136		-		3,764,136		-
Other asset-backed securities		1,316,330		11,193		1,230,324		74,813
Trading securities		467,101		255,166		-		211,935
Limited partnerships		865,761		-		-		865,761
Derivative instruments		1,010,377		-		1,010,377		-
GMIB reinsurance recoverable		127,534		-		-		127,534
Separate account assets (1)		48,854,037		48,854,037		-		-
Total	$	92,126,695	$	52,938,228	$	37,875,618	$	1,312,849
Liabilities
Embedded derivative liabilities (2)	$	1,249,972	$	-	$	936,438	$	313,534
Derivative instruments		1,250,807		117,449		1,127,527		5,831
Long-term borrowings		26,207		-		26,207		-
Total	$	2,526,986	$	117,449	$	2,090,172	$	319,365
December 31, 2009	Total		Level 1		Level 2		Level 3
Assets
Fixed maturities
Government securities	$	612,144	$	610,511	$	1,633	$	-
Public utilities		2,407,817		-		2,394,479		13,338
Corporate securities		23,245,553		-		22,773,087		472,466
Residential mortgage-backed		5,309,091		-		5,306,122		2,969
Commercial mortgage-backed		3,405,883		-		3,327,984		77,899
Other asset-backed securities		1,387,546		-		484,590		902,956
Trading securities		557,671		276,323		35,303		246,045
Limited partnerships		704,689		-		-		704,689
Derivative instruments		837,728		-		555,739		281,989
GMIB reinsurance recoverable		141,459		-		-		141,459
Separate account assets (1)		33,329,412		33,329,412		-		-
Total	$	71,938,993	$	34,216,246	$	34,878,937	$	2,843,810
Liabilities
Embedded derivative liabilities (2)	$	1,121,510	$	-	$	684,077	$	437,433
Derivative instruments		745,214		21,393		696,591		27,230
Total	$	1,866,724	$	21,393	$	1,380,668	$	464,663
(1) Pursuant to ASC 944-80, the value of the separate account liabilities is set equal to the value of the separate account assets.
(2) Includes the embedded derivative liabilities related to GMWB benefits and equity indexed annuities.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

3.   Fair Value Measurements (continued)

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

The tables below provide rollforwards for 2010 and 2009 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the table below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 below may vary significantly from the total income effect of the hedged instruments. Additionally, the Company’s policy for determining and disclosing transfers between levels is to recognize transfers using beginning of period balances.

				Total Realized/Unrealized Gains (Losses) Included in
	Fair Value								Purchases,			Transfers			Fair Value
	as of						Other		Issuances			in and/or			as of
	January 1,			Net			Comprehensive		and			(out of)			December 31,
(in thousands)	2010			Income			Income		Settlements			Level 3			2010
Assets
Fixed maturities
Public utilities	$	13,338		$	(1,809	)	$	1,870	$	(8,165	)	$	(4,502	)	$	732
Corporate securities		472,466			803			4,611		(158,439	)		(287,367	)		32,074
Residential mortgage-backed		2,969			(4,583	)		7,038		(5,424	)		-			-
Commercial mortgage-backed		77,899			(1,579	)		16,203		(43,852	)		(48,671	)		-
Other asset-backed securities		902,956			(2,444	)		13,683		(386,693	)		(452,689	)		74,813
Equities and trading securities		246,045			64,689			-		(98,799	)		-			211,935
Limited partnerships		704,689			67,466			-		93,606			-			865,761
Derivative instruments		281,989			(26,551	)		-		(99,003	)		(156,435	)		-
GMIB reinsurance recoverable		141,459			(13,925	)		-		-			-			127,534
Liabilities
Embedded derivative liabilities		(437,433	)		123,899			-		-			-			(313,534	)
Derivative instruments		(27,230	)		21,399			-		-			-			(5,831	)

	Fair Value			Total Realized/Unrealized Gains (Losses) Included in						Purchases,			Transfers			Fair Value
	as of						Other			Issuances			in and/or			as of
	January 1,			Net			Comprehensive			and			(out of)			December 31,
(in thousands)	2009			Income			Income			Settlements			Level 3			2009
Assets
Fixed maturities
Public utilities	$	14,920		$	113		$	2,211		$	(5,019	)	$	1,113		$	13,338
Corporate securities		478,790			7,346			133,792			(327,586	)		180,124			472,466
Residential mortgage-backed		3,005,646			13,718			(4,261	)		(47,621	)		(2,964,513	)		2,969
Commercial mortgage-backed		128,732			373			(21,719	)		(15,987	)		(13,500	)		77,899
Other asset-backed securities		1,679,707			19,103			(256,411	)		(158,496	)		(380,947	)		902,956
Equities and trading securities		335,470			(78,808	)		-			26,983			(37,600	)		246,045
Limited partnerships		740,961			(90,219	)		-			53,947			-			704,689
Derivative instruments		71,059			309,180			-			(165,773	)		67,523			281,989
GMIB reinsurance recoverable		249,468			(108,009	)		-			-			-			141,459
Liabilities
Embedded derivative liabilities		(1,123,947	)		686,514			-			-			-			(437,433	)
Derivative instruments		(102,586	)		75,356			-			-			-			(27,230	)

During 2008, the Company determined that, due to inactivity in certain markets, reliable market prices were no longer available on certain securities.  As a result, these securities were valued using internal estimates at December 31, 2008.  These securities were reflected as transfers into Level 3 during 2008.  At December 31, 2008, the related securities had an amortized cost and fair value of $5,469.4 million and $4,783.3 million, respectively, and were primarily asset-backed securities.  During 2009, the Company determined that sufficient activity had returned to certain markets and, as a result, reliable market prices were available at December 31, 2009 for the majority of these securities.  This change was reflected as a transfer out of Level 3 during 2009.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

3.   Fair Value Measurements (continued)

Upon adoption of ASC 820-10, certain broker priced assets were classified as Level 3 holdings as a result of illiquidity in the market and the resultant lack of observability into the assumptions used to produce those fair values.  During 2010, as a result of changes in the level of observability of these inputs, Jackson determined that these assets would be more appropriately categorized in Level 2.  As a result, Jackson transferred securities with an amortized cost and fair value of $1,059.5 million and $775.3 million, respectively, and derivative assets with a fair value of $156.4 million from Level 3 to Level 2 during 2010.

The portion of gains (losses) included in net income or other comprehensive income attributable to the change in unrealized gains and losses on Level 3 financial instruments still held at December 31, 2010 and 2009, was as follows (in thousands):

	December 31, 2010			December 31, 2009
Assets
Fixed maturities
Public utilities	$	-		$	2,211
Corporate securities		2,635			86,801
Residential mortgage-backed		-			(3,622	)
Commercial mortgage-backed		-			(22,045	)
Other asset-backed securities		2,891			(256,877	)
Trading securities		28,905			(79,483	)
Limited partnerships		68,169			(90,210	)
Derivative instruments		-			146,235
GMIB reinsurance recoverable		(13,925	)		(108,009	)
Liabilities
Embedded derivative liabilities	$	123,899		$	686,514
Derivative instruments		21,399			75,356

4. Investments

Investments are comprised primarily of fixed-income securities, primarily publicly traded industrial, utility and government bonds, asset-backed securities and commercial mortgage loans.  Asset-backed securities include mortgage-backed and other structured securities.  The Company generates the majority of its general account deposits from interest-sensitive individual annuity contracts, life insurance products and guaranteed investment contracts on which it has committed to pay a declared rate of interest.  The Company's strategy of investing in fixed-income securities and loans aims to ensure matching of the asset yield with the amounts credited to the interest-sensitive liabilities and to earn a stable return on its investments.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

Fixed Maturities

The following table sets forth fixed maturity investments at December 31, 2010, classified by rating categories as assigned by nationally recognized statistical rating organizations (“NRSRO”), the National Association of Insurance Commissioners (“NAIC”), or if not rated by such organizations, the Company’s affiliated investment advisor.   At December 31, 2010, the carrying value of investments rated by the Company’s affiliated investment advisor totaled $148.4 million.  For purposes of the table, if not otherwise rated higher by a NRSRO, NAIC Class 1 investments are included in the A rating; Class 2 in BBB; Class 3 in BB and Classes 4 through 6 in B and below.

	Percent of Total
	Fixed Maturities
Investment Rating	December 31, 2010
AAA	25.5%
AA	6.1%
A	27.1%
BBB	35.4%
Investment grade	94.1%
BB	2.9%
B and below	3.0%
Below investment grade	5.9%
Total fixed maturities	100.0%

At December 31, 2010, based on ratings by NRSROs, of the total carrying value of fixed maturities in an unrealized loss position, 70% were investment grade, 19% were below investment grade and 11% were not rated.  Unrealized losses on fixed maturities that were below investment grade or not rated represented approximately 49% of the aggregate gross unrealized losses on available for sale fixed maturities.

Corporate securities in an unrealized loss position were diversified across industries. As of December 31, 2010, the industries accounting for the larger percentage of unrealized losses included banking/finance (7.26% of fixed maturities gross unrealized losses) and energy (2.78%).  The largest unrealized loss related to a single corporate obligor was $16.0 million at December 31, 2010.

The amortized cost, gross unrealized gains and losses, fair value and non-credit OTTI of available for sale fixed maturities, including $345.0 million in securities carried at fair value with changes in value recorded through the income statement, were as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Non-credit
December 31, 2010	Cost (1)		Gains		Losses		Value		OTTI (2)
Fixed Maturities
Government securities	$	3,789,201	$	62,052	$	3,007	$	3,848,246	$	-
Public utilities		2,514,868		205,830		12,038		2,708,660		-
Corporate securities		23,362,634		1,597,001		143,384		24,816,251		(12,184	)
Residential mortgage-backed		4,542,139		138,232		332,109		4,348,262		158,502
Commercial mortgage-backed		3,549,421		277,898		63,183		3,764,136		8,192
Other asset-backed securities		1,464,057		18,831		166,558		1,316,330		17,757
Total fixed maturities	$	39,222,320	$	2,299,844	$	720,279	$	40,801,885	$	172,267
(1) Carrying value for securities carried at fair value with changes in value recorded through the income statement.
(2) Represents the amount of cumulative non-credit OTTI gains (losses) recognized in other comprehensive income on securities for which credit impairments have been recorded.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Non-credit
December 31, 2009	Cost		Gains		Losses		Value		OTTI (1)
Fixed Maturities
Government securities	$	628,834	$	590	$	17,280	$	612,144	$	-
Public utilities		2,290,931		132,898		16,012		2,407,817		-
Corporate securities		22,510,422		1,099,607		364,476		23,245,553		4,323
Residential mortgage-backed		6,033,004		86,564		810,477		5,309,091		(325,815	)
Commercial mortgage-backed		3,576,800		157,067		327,984		3,405,883		252
Other asset-backed securities		1,751,806		14,858		379,118		1,387,546		(96,032	)
Total fixed maturities	$	36,791,797	$	1,491,584	$	1,915,347	$	36,368,034	$	(417,272	)
(1) Represents the amount of cumulative non-credit OTTI gains (losses) recognized in other comprehensive income on securities for which credit impairments have been recorded.

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at December 31, 2010, by contractual maturity, are shown below (in thousands).  Expected maturities may differ from contractual maturities where securities can be called or prepaid with or without early redemption penalties.

			Gross		Gross
	Amortized (1)		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Due in 1 year or less	$	928,124	$	19,963	$	272	$	947,815
Due after 1 year through 5 years		7,291,484		486,124		9,239		7,768,369
Due after 5 years through 10 years		16,746,163		1,037,411		72,203		17,711,371
Due after 10 years through 20 years		2,692,371		161,072		29,023		2,824,420
Due after 20 years		2,008,561		160,313		47,692		2,121,182
Residential mortgage-backed		4,542,139		138,232		332,109		4,348,262
Commercial mortgage-backed		3,549,421		277,898		63,183		3,764,136
Other asset-backed securities		1,464,057		18,831		166,558		1,316,330
Total	$	39,222,320	$	2,299,844	$	720,279	$	40,801,885
(1) Carrying value for securities carried at fair value with changes in value recorded through the income statement.

U.S. Treasury securities with a carrying value of $4.2 million and $4.1 million at December 31, 2010 and 2009, respectively, were on deposit with regulatory authorities, as required by law in various states in which business is conducted.

At December 31, 2010, the amortized cost and carrying value of fixed maturities in default that were anticipated to be income producing when purchased were $2.9 million and $8.8 million, respectively.  The amortized cost and carrying value of fixed maturities that have been non-income producing for the 12 months preceding December 31, 2010 were $2.9 million and $8.8 million, respectively, and for the 12 months preceding December 31, 2009 were $4.1 million and $4.3 million, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

Residential mortgage-backed securities (“RMBS”) include certain RMBS which are collateralized by residential mortgage loans and are neither explicitly nor implicitly guaranteed by U.S. government agencies (“non-agency mortgage-backed securities”).  The Company’s non-agency mortgage-backed securities include investments in securities backed by prime, Alt-A, and subprime loans as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2010	Cost (1)		Gains		Losses		Value
Prime	$	1,073,242	$	12,511	$	134,826	$	950,927
Alt-A		736,193		2,786		95,028		643,951
Subprime		475,652		1,076		99,128		377,600
Total non-agency RMBS	$	2,285,087	$	16,373	$	328,982	$	1,972,478
(1) Carrying value for securities carried at fair value with changes in value recorded through the income statement.
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2009	Cost		Gains		Losses		Value
Prime	$	1,510,862	$	6,144	$	386,254	$	1,130,752
Alt-A		965,171		1,488		254,448		712,211
Subprime		475,023		109		163,418		311,714
Total non-agency RMBS	$	2,951,056	$	7,741	$	804,120	$	2,154,677

The Company defines its exposure to non-agency residential mortgage loans as follows.  Prime loan-backed securities are collateralized by mortgage loans made to the highest rated borrowers.  Alt-A loan-backed securities are collateralized by mortgage loans made to borrowers who lack credit documentation or necessary requirements to obtain prime borrower rates.  Subprime loan-backed securities are collateralized by mortgage loans made to borrowers that have a FICO score of 680 or lower.  28% of the Company’s investments in Alt-A related mortgage-backed securities are rated investment grade by at least one NRSRO.  37% of the Company’s investments in subprime related mortgage-backed securities are rated triple-A by at least one NRSRO.  In 2010, the Company recorded other-than-temporary impairment charges of $23.0 million, $50.5 million, and $11.4 million on securities backed by prime, Alt-A and subprime loans, respectively.  In 2009, the Company recorded other-than-temporary impairment charges of $351.1 million, $241.0 million, and $19.0 million on securities backed by prime, Alt-A and subprime loans, respectively.  In 2008, the Company recorded other-than-temporary impairment charges of $47.0 million, $255.0 million, and $7.3 million on securities backed by prime, Alt-A and subprime loans, respectively.

Asset-backed securities also include investments in securities which are collateralized by commercial mortgage loans (“CMBS”).  At December 31, 2010, the amortized cost and fair value of the Company’s investment in CMBS was $3.6 billion and $3.8 billion, respectively, of which 99% were rated investment grade by at least one NRSRO.  In 2010, the Company recorded other-than-temporary impairment charges of $11.1 million on CMBS.  No other-than-temporary impairment charges were recorded on CMBS during 2009 or 2008.

Corporate securities include direct investments in below investment grade syndicated bank loans.  Unlike most corporate debentures, syndicated bank loans are collateralized by specific tangible assets of the borrowers.  As such, investors in these securities that become impaired have historically experienced less severe losses compared to corporate bonds.  At December 31, 2010, the amortized cost and fair value of the Company’s direct investments in bank loans were $115.1 million and $118.5 million, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

The following table summarizes the number of securities, fair value and the related amount of gross unrealized losses aggregated by investment category and length of time that individual fixed maturity investments have been in a continuous loss position (in thousands):

	December 31, 2010						December 31, 2009
	Less than 12 months						Less than 12 months
	Gross						Gross
	Unrealized				# of		Unrealized				# of
	Losses		Fair Value		securities		Losses		Fair Value		securities
Government securities	$	3,007	$	480,177		3	$	17,280	$	605,607		3
Public utilities		10,655		264,765		19		7,704		286,119		25
Corporate securities		81,721		2,936,548		176		56,900		2,306,980		238
Residential mortgage-backed		4,255		112,509		23		220,138		1,724,086		158
Commerical mortgage-backed		4,152		203,927		18		25,716		320,072		45
Other asset-backed securities		2,923		146,656		17		122,857		573,973		49
Total temporarily impaired
securities	$	106,713	$	4,144,582		256	$	450,595	$	5,816,837		518
	12 months or longer						12 months or longer
	Gross						Gross
	Unrealized				# of		Unrealized				# of
	Losses		Fair Value		securities		Losses		Fair Value		securities
Government securities	$	-	$	-		-	$	-	$	-		-
Public utilities		1,383		6,941		2		8,308		60,565		11
Corporate securities		61,663		491,829		61		307,576		2,894,472		314
Residential mortgage-backed		327,854		1,590,392		173		590,339		1,365,474		190
Commerical mortgage-backed		59,031		145,344		31		302,268		1,552,264		135
Other asset-backed securities		163,635		442,578		81		256,261		466,000		95
Total temporarily impaired
securities	$	613,566	$	2,677,084		348	$	1,464,752	$	6,338,775		745
	Total						Total
	Gross						Gross
	Unrealized				# of		Unrealized				# of
	Losses		Fair Value		securities		Losses		Fair Value		securities
Government securities	$	3,007	$	480,177		3	$	17,280	$	605,607		3
Public utilities		12,038		271,706		21		16,012		346,684		36
Corporate securities		143,384		3,428,377		237		364,476		5,201,452		552
Residential mortgage-backed		332,109		1,702,901		196		810,477		3,089,560		348
Commerical mortgage-backed		63,183		349,271		49		327,984		1,872,336		180
Other asset-backed securities		166,558		589,234		98		379,118		1,039,973		144
Total temporarily impaired
securities	$	720,279	$	6,821,666		604	$	1,915,347	$	12,155,612		1,263

Other-Than-Temporary Impairments on Available For Sale Securities

The Company periodically reviews its available for sale fixed maturities and equities on a case-by-case basis to determine if any decline in fair value to below cost or amortized cost is other-than-temporary.  Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, the severity of the unrealized loss and the reasons for the decline in value, and expectations for the amount and timing of a recovery in fair value.

Securities the Company determines are underperforming or potential problem securities are subject to regular review. To facilitate thereview, securities with significant declines in value, or where other objective criteria evidencing credit deterioration have been met, are included on a watch list. Among the criteria for securities to be

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

included on a watch list are: credit deterioration that has led to a significant decline in fair value of the security; a significant covenant related to the security has been breached; or an issuer has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled interest or principal payment, or has experienced a specific material adverse change that may impair its creditworthiness.

In performing these reviews, the Company considers the relevant facts and circumstances relating to each investment and exercises considerable judgment in determining whether a security is other-than-temporarily impaired. Assessment factors include judgments about an obligor’s current and projected financial position, an issuer’s current and projected ability to service and repay its debt obligations, the existence of, and realizable value of, any collateral backing the obligations and the macro-economic and micro-economic outlooks for specific industries and issuers.  This assessment may also involve assumptions regarding underlying collateral such as prepayment rates, default and recovery rates, and third-party servicing capabilities.

Among the specific factors considered are whether the decline in fair value results from a change in the credit quality of the security itself, or from a downward movement in the market as a whole, and the likelihood of recovering the carrying value based on the near-term prospects of the issuer.  Unrealized losses that are considered to be primarily the result of market conditions (e.g., minor increases in interest rates, temporary market illiquidity or volatility, or industry-related events) are usually determined to be temporary, and where the Company also believes there exists a reasonable expectation for recovery in the near term.  To the extent that factors contributing to impairment losses recognized affect other investments, such investments are also reviewed for other-than-temporary impairment and losses are recorded when appropriate.

In addition to the review procedures described above, investments in asset-backed securities where market prices are depressed are subject to a review of their future estimated cash flows, including expected and stress case scenarios, to identify potential shortfalls in contractual payments.  These estimated cash flows are developed using available performance indicators from the underlying assets including current and projected default or delinquency rates, levels of credit enhancement, current subordination levels, vintage, expected loss severity and other relevant characteristics.  These estimates reflect a combination of data derived by third parties and internally developed assumptions.  Where possible, this data is benchmarked against third-party sources.

Even in the case of severely depressed market values on asset-backed securities, the Company places significant reliance on the results of its cash flow testing and its lack of an intent to sell these securities until their fair values recover when reaching other-than-temporary impairment conclusions with regard to these securities.  Other-than-temporary impairment charges are recorded on asset-backed securities when the Company forecasts a contractual payment shortfall.

Prior to January 1, 2009, Jackson generally recognized an other-than-temporary impairment on debt securities in an unrealized loss position when Jackson did not expect full recovery of amortized cost or did not have the intent and ability to hold such securities until they had fully recovered their amortized cost.  The recognition of other-than-temporary impairments in reporting periods prior to January 1, 2009 captured the entire difference between the amortized cost and fair value with this difference being recorded in net income and a corresponding decrease to the amortized cost of the security.

Effective January 1, 2009, Jackson began recognizing other-than-temporary impairments on debt securities in an unrealized loss position when any one of the following circumstances exists:

·   The Company does not expect full recovery of the amortized cost based on the discounted cash flows estimated to be collected;

·   The Company intends to sell a security; or,

·   It is more likely than not that the Company will be required to sell a security prior to recovery.

For mortgage-backed securities, credit impairment is assessed using a cash flow model that estimates the cash flows on the underlying mortgages, using the security-specific collateral characteristics and transaction structure.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

The model estimates cash flows from the underlying mortgage loans and distributes those cash flows to various tranches of securities, considering the transaction structure and any subordination and credit enhancements existing in that structure.  The cash flow model incorporates actual cash flows on the mortgage-backed securities

through the current period and then projects the remaining cash flows using a number of assumptions, including prepayment speeds, default rates and loss severity.

These estimates reflect a combination of data derived by third parties and internally developed assumptions.  Where possible, this data is benchmarked against other third-party sources. In addition, these estimates are extrapolated along a default timing curve to estimate the total lifetime pool default rate.

Effective January 1, 2009, other-than-temporary impairments are calculated as the difference between amortized cost and fair value.   For other-than-temporarily impaired securities where Jackson does not intend to sell the security and it is not more likely than not that Jackson will be required to sell the security prior to recovery, total other-than-temporary impairments are reduced by the non-credit portion of the other-than-temporary impairments, which are recognized in other comprehensive income.  The resultant net other-than-temporary impairments recorded in net income reflect the credit loss on the other-than-temporarily impaired securities.  The amortized cost of the other-than-temporarily impaired securities is reduced by the amount of this credit loss.

For securities that were deemed to be other-than-temporarily impaired and for which a non-credit loss was recorded in other comprehensive income, the amount recorded as an unrealized gain (loss) represents the difference between the fair value and the new amortized cost basis of the securities.  The unrealized gain (loss) on other-than-temporarily impaired securities is recorded in other comprehensive income.

The following table summarizes net realized investment gains (losses) for the periods indicated (in thousands):

	2010			2009			2008
Available-for-sale securities
Realized gains on sale	$	440,843		$	464,044		$	58,059
Realized losses on sale		(356,080	)		(209,720	)		(347,601	)
Impairments:
Total other-than-temporary impairments		(319,977	)		(1,196,893	)		(913,692	)
Portion of other-than-temporary impairments
included in other comprehensive income		176,719			422,186			-
Net other-than-temporary impairments		(143,258	)		(774,707	)		(913,692	)
Transfer to trading portfolio		-			(87,491	)		-
Other		3,000			(4	)		-
Net realized losses on investments	$	(55,495	)	$	(607,878	)	$	(1,203,234	)

Included in net realized losses on investments are impairment charges on other invested assets of $5.0 million in 2010 and on equities of $84.6 million in 2008.  There were no such impairment charges in 2009.

The aggregate fair value of securities sold at a loss for the years ended December 31, 2010, 2009 and 2008 was $1,926.7 million, $1,334.7 million and $1,795.5 million, respectively, which was approximately 84%, 86% and 84%  of book value, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

The following summarizes the current year activity for credit losses recognized in net income on debt securities where an other-than-temporary impairment was identified and the non-credit portion of the other-than-temporary impairment was included in other comprehensive income (in thousands):

	For the years ending December 31,
	2010			2009
Cumulative credit loss beginning balance	$	1,062,190		$	-
Adoption of new accounting guidance related to other-than-temporary impairments		-			547,558
Additions:
New credit losses		61,354			572,104
Incremental credit losses		76,904			202,603
Reductions:
Securities sold, paid down or disposed of		(502,078	)		(260,075	)
Cumulative credit loss ending balance	$	698,370		$	1,062,190

There are inherent uncertainties in assessing the fair values assigned to the Company’s investments and in determining whether a decline in fair value is other-than-temporary. The Company’s reviews of net present value and fair value involve several criteria including economic conditions, credit loss experience, other issuer-specific developments and estimated future cash flows. These assessments are based on the best available information at the time. Factors such as market liquidity, the widening of bid/ask spreads and a change in the cash flow assumptions can contribute to future price volatility. If actual experience differs negatively from the assumptions and other considerations used in the consolidated financial statements, unrealized losses currently reported in accumulated other comprehensive income may be recognized in the consolidated income statements in future periods.

The Company currently has no intent to sell securities with unrealized losses considered to be temporary until they mature or recover in value and believes that it has the ability to do so.  However, if the specific facts and circumstances surrounding an individual security, or the outlook for its industry sector change, the Company may sell the security prior to its maturity or recovery and realize a loss.

Commercial Mortgage Loans

Commercial mortgage loans of $5.7 billion and $6.0 billion at December 31, 2010 and 2009, respectively, are reported net of an allowance for loan losses of $33.2 million and $14.2 million at each date, respectively.  At December 31, 2010, commercial mortgage loans were collateralized by properties located in 41 states.  Jackson’s commercial mortgage loan portfolio does not include single-family residential mortgage loans, and is therefore not exposed to the risk of defaults associated with residential subprime mortgage loans.  Jackson periodically reviews these loans for impairment and, during 2010 and 2009, recognized impairment charges of $17.7 million and $13.8 million, respectively.  There were no such impairment charges in 2008.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

The following table provides a summary of the allowance for losses in Jackson's commercial mortgage loan portfolio at December 31, 2010 and 2009 (in thousands):

Allowance for loan losses:	2010			2009
Balance at beginning of year	$	14,246		$	15,987
Charge-offs		(17,717	)		(13,750	)
Recoveries		-			-
Net charge-offs		(17,717	)		(13,750	)
Provision for loan losses		36,661			12,009
Balance at end of year	$	33,190		$	14,246

The table below illustrates the delinquency status and accrual status of Jackson's commercial mortgage loan holdings as of December 31, 2010 and 2009 (in thousands).  Delinquency status is determined from the date of the first missed contractual payment.

	Accruing
			Less than		60 days to		90 days
			60 days		90 days		or more		Total		Non-
	Current		delinquent		delinquent		delinquent		accruing		accrual		Total
2010	$	5,627,862	$	57,078	$	-	$	-	$	5,684,940	$	15,425	$	5,700,365
2009		5,966,747		-		-		16,824		5,983,571		-		5,983,571

During 2010, Jackson reduced interest income by $0.4 million on commercial mortgage loans that had been placed on non-accrual. There were no comparable reductions during 2009.

Under Jackson's policy for monitoring commercial mortgage loans, all impaired commercial mortgage loans continue to carry some level of allowance subsequent to impairment.  The table below illustrates the unpaid balance, net carrying amount, related loan allowance, average recorded investment and interest income recognized on impaired loans during 2010 and 2009 (in thousands):

	2010		2009
Unpaid loan balance	$	98,161	$	15,210
Net carrying amount		75,613		10,439
Related loan allowance		4,081		21
Average recorded investment		89,235		13,911
Interest income recognized		3,649		1,051

Securitizations

In 2003, Jackson executed the Piedmont CDO Trust (“Piedmont”) securitization transaction.  In this transaction, Jackson contributed $1,159.6 million of asset-backed securities, ultimately to Piedmont, which issued several classes of debt to acquire such securities.  The transaction was recorded as a sale; however, Jackson retained beneficial interests in the contributed asset-backed securities of approximately 80% by acquiring certain securities issued by Piedmont.  Prior to 2010, Piedmont, a qualified special purpose entity, was not consolidated by Jackson.

In 2010, ASC 2009-16 eliminated the qualifying special-purpose entity exemption for consolidation.  Since Jackson was deemed to be the primary beneficiary of Piedmont, consolidation of Piedmont is now required.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

Effective January 1, 2010, as a result of adoption of ASC 2009-16, the Company recorded a decrease in retained earnings of $48.2 million upon consolidation of Piedmont.  As a result of this consolidation and after elimination, at December 31, 2010, Piedmont’s assets of $463.9 million and liabilities to external parties of $26.2 million are included in Jackson’s financial statements.  At the date of adoption, Jackson also elected to carry the assets and liabilities in the Piedmont trust at fair value, with changes in fair value reflected in the consolidated income statement.  The creditors of Piedmont do not have recourse to the general credit of Jackson.

In 2001, Jackson executed the Morgan Stanley Dean Witter Capital I, Series 2001-PPM (“MSDW”) securitization transaction.  Jackson contributed commercial mortgages with a total principal amount of $623.6 million to MSDW and retained beneficial interest.  Prior to 2010, MSDW, a qualified special purpose entity, was not consolidated by Jackson.

Effective January 1, 2010, as a result of adoption of ASC 2009-16, the Company was deemed to be the primary beneficiary of MSDW and, therefore, now consolidates MSDW.  The Company recorded an increase in retained earnings of $8.0 million due to the consolidation of MSDW.  As a result of this consolidation and after elimination, at December 31, 2010, MSDW’s assets of $80.6 million and liabilities to external parties of $14.7 million are included in Jackson’s consolidated financial statements.  The creditors of MSDW do not have recourse to the general credit of Jackson.

Other Invested Assets

Other invested assets primarily include investments in limited partnerships and real estate.  Investments in limited partnerships have carrying values of $865.8 million and $704.7 million at December 31, 2010 and 2009, respectively.  Real estate totaling $152.8 million and $136.9 million at December 31, 2010 and 2009, respectively, includes foreclosed properties with a book value of $13.8 million and $13.6 million, respectively.

Limited Purpose Enhanced Return Entities (“SERVES”)

In 2001, Jackson acquired a $71.3 million debt interest in a limited purpose entity, SERVES 2001-6 (“SERVES 2”) formed to pass through leveraged investment returns based on the performance of an underlying reference pool of syndicated bank loans totaling up to $400.0 million.  Jackson’s interest represented 95% of the capital structure of the entity.  Based on the Company’s initial analysis, it concluded that SERVES 2 was a VIE and that the Company was the primary beneficiary.  At December 31, 2009, the underlying assets of $48.2 million and net liabilities of $4.0 million were included in Jackson’s consolidated financial statements.  SERVES 2 was liquidated on August 12, 2010.

In 2004, Jackson acquired a $47.5 million debt interest in a limited purpose entity, SERVES 2004-1 (“SERVES 3”), formed to pass through leveraged investment returns based on the performance of an underlying reference pool of syndicated bank loans totaling up to $300.0 million.  Jackson’s interest represented 95% of the capital structure of the entity.  Based on the Company’s initial analysis, it concluded that SERVES 3 was a VIE and that the Company was not the primary beneficiary.  Thus, the Company’s investment was reported at the fair value of this debt instrument.

During 2008, Jackson entered into “Option Put and Forbearance Agreements” with the counterparty to the SERVES 3 entity in exchange for the counterparty forbearing its right to initiate forced liquidation of the entity under certain market value triggers.  During 2009, Jackson entered into revised forbearance agreements with this counterparty.  The support provided by the agreement at December 31, 2010 could potentially expose Jackson to maximum losses of $227.5 million, if circumstances allowed the forbearance period to cease.  Jackson believes that, so long as the forbearance period continues, the risk of loss under the agreement is remote.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

As a result of the additional exposure to SERVES 3 upon entering into the “Option Put and Forbearance Agreement”, Jackson determined during 2008 that it is the primary beneficiary of SERVES 3 and, accordingly, consolidated SERVES 3 in its financial statements.  As a result of this consolidation, Jackson recognized an extraordinary loss of $8.6 million in 2008, as the value of the net assets held by SERVES 3 were lower than the value of Jackson’s previous net holdings in SERVES 3.  The accompanying consolidated financial statements include the underlying assets of $42.8 million and $48.8 million and net liabilities of $8.4 million and $29.8 million in 2010 and 2009, respectively, of this entity.  The creditors of SERVES 3 do not have recourse to the general credit of Jackson.

In 2008, Jackson acquired $40.0 million of debt interests in a limited purpose entity, SERVES 2006-1 (“SERVES 4”), formed to pass through leveraged investment returns based on the performance of an underlying reference pool of syndicated bank loans totaling up to $500.0 million.   At the acquisition date, the Company performed an analysis, which produced return scenarios based on various assumptions for the reference pool, including spread income, default and recovery ratios, and holding period appreciation/depreciation, to determine whether the structure was a variable interest entity and, if so, whether Jackson was the primary beneficiary.  Based on the results of this analysis, the Company concluded that SERVES 4 was a VIE and that Jackson was not the primary beneficiary.  Thus, the Company’s investment is reported at the fair value of this debt instrument.

During 2009, Jackson entered into a forebearance agreement related to SERVES 4 similar to the agreement described above.  As a result of this forebearance agreement, Jackson’s maximum loss under SERVES 4 is $292.4 million.  Jackson believes that, so long as the forbearance period continues, the risk of loss under the agreement is remote.  At the date of this forebearance agreement, Jackson reevaluated the entity and confirmed that Jackson is not the primary beneficiary of SERVES 4.

Securities Lending

The Company has entered into securities lending agreements with an agent bank whereby blocks of securities are loaned to third parties, primarily major brokerage firms.  As of December 31, 2010 and 2009, the estimated fair value of loaned securities was $56.7 million and $83.3 million, respectively.  The agreements require a minimum of 102 percent of the fair value of the loaned securities to be held as collateral, calculated on a daily basis.  To further minimize the credit risks related to this program, the financial condition of counterparties is monitored on a regular basis.  At December 31, 2010 and 2009, cash collateral received in the amount of $58.1 million and $34.2 million, respectively, was invested by the agent bank and included in short-term investments of the Company.  Additionally, $52.2 million of non-cash collateral was received in 2009.  A securities lending payable is included in liabilities for the amount of cash collateral received.

Securities lending transactions are used to generate income.  Income and expenses associated with these transactions are reported as net investment income.

Investment Income

The sources of net investment income were as follows (in thousands):

	Years ended December 31,
	2010			2009			2008
Fixed maturities	$	2,258,099		$	2,242,491		$	2,283,388
Commercial mortgage loans		285,123			330,194			347,483
Limited partnerships		69,250			(89,829	)		10,618
Other investment income		124,630			158,717			85,555
Total investment income		2,737,102			2,641,573			2,727,044
Less investment expenses		(72,147	)		(63,779	)		(64,945	)
Net investment income	$	2,664,955		$	2,577,794		$	2,662,099

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

4.   Investments (continued)

During 2010, 2009 and 2008, $65.5 million, $57.2 million and $(85.7) million of investment income (loss) was recognized on trading securities held at December 31, 2010, 2009 and 2008, respectively.  During 2010, $54.7 million of investment income was recognized on securities carried at fair value with changes in value recorded through the income statement.

5.   Derivative Instruments

Jackson’s business model includes the acceptance, monitoring and mitigation of risk.  Specifically, Jackson considers, among other factors, exposures to interest rate and equity market movements, foreign exchange rates and other asset or liability prices.  The Company uses derivative instruments to mitigate or reduce these risks in accordance with established policies and goals.  Jackson’s derivative holdings, while effective in managing defined risks, are not structured to meet accounting requirements to be designated as hedging instruments.  As a result, derivatives are carried at fair value with changes recorded in income.

Cross-currency swaps, which embody spot and forward currency swaps and, in some cases, interest rate and equity index swaps, are entered into for the purpose of hedging the Company issued foreign currency denominated trust instruments supported by funding agreements.  Cross-currency swaps serve to hedge derivatives embedded in the funding agreements and are carried at fair value.  The fair value of derivatives embedded in funding agreements, as well as unrealized foreign currency translation gains and losses, are included in the carrying value of the trust instruments supported by funding agreements. Foreign currency translation gains and losses associated with funding agreement hedging activities are included in risk management activity.

Credit default swaps, with maturities up to five years, are agreements under which the Company has purchased default protection on certain underlying corporate bonds held in its portfolio.  These contracts allow the Company to sell the protected bonds at par value to the counterparty if a defined “default event” occurs, in exchange for periodic payments made by the Company for the life of the agreement.  Credit default swaps are carried at fair value.  The Company does not currently sell default protection using credit default swaps or other similar derivative instruments.

Spread cap options, with maturities of up to five years, are used as a macro-economic hedge against declining short-term interest rates.  Jackson receives quarterly settlements based on the spread between the 2-year and the 10-year constant maturity swap rates in excess of a specified spread.  Spread cap options are carried at fair value.

Put-swaption contracts provide the purchaser with the right, but not the obligation, to require the writer to pay the present value of a long-term interest rate swap at future exercise dates.  The Company purchases and writes put-swaptions for hedging purposes with original maturities of up to 10 years.  On a net basis, put-swaptions hedge against significant upward movements in interest rates.  Written put-swaptions are entered into in conjunction with associated put-swaptions purchased from the same counterparties (“linked put-swaptions”).  Linked put-swaptions have identical notional amounts and strike prices, but have different underlying swap terms.  Due to the right of offset, linked put-swaptions are presented at the fair value of the net position with each counterparty.  Non-linked put-swaptions are carried at fair value.

Equity index futures contracts and equity index options (including various call and put options and put spreads), which are used to hedge the Company’s obligations associated with its index linked annuities and guarantees in variable annuity products, are carried at fair value.  These insurance products contain embedded options whose fair value is reported in deposits on investment contracts.

Total return swaps, in which the Company receives equity returns or returns based on reference pools of assets in exchange for short-term floating rate payments based on notional amounts, are held for both hedging and investment purposes, and are carried at fair value.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

5.   Derivative Instruments (continued)

Interest rate swap agreements used for hedging purposes generally involve the exchange of fixed and floating payments based on a notional contract amount over the period for which the agreement remains outstanding without an exchange of the underlying notional amount.  Interest rate swaps are carried at fair value.  During 2010, the Company entered into various interest rate swap transactions to more closely match the overall asset and liability duration.

A summary of the aggregate contractual or notional amounts and fair values of freestanding derivative instruments outstanding were as follows (in thousands):

	December 31, 2010
	Assets				Liabilities
	Contractual/				Contractual/					Net
	Notional		Fair		Notional		Fair			Fair
	Amount (1)		Value		Amount (1)		Value			Value
Cross-currency swaps	$	593,451	$	175,454	$	270,906	$	(34,720	)	$	140,734
Credit default swaps		40,000		372		210,000		(19,730	)		(19,358	)
Equity index call
options		5,502,500		125,641		1,356,897		(462,209	)		(336,568	)
Equity index put
options		12,600,000		215,768		-		-			215,768
Put-swaptions		20,500,000		46,930		6,000,000		(34,387	)		12,543
Equity index futures		-		-		4,228,875		(117,450	)		(117,450	)
Total return swaps		-		-		300,000		(5,831	)		(5,831	)
Interest rate swaps		11,250,000		446,212		13,300,000		(576,480	)		(130,268	)
Total	$	50,485,951	$	1,010,377	$	25,666,678	$	(1,250,807	)	$	(240,430	)
	December 31, 2009
	Assets				Liabilities
	Contractual/				Contractual/					Net
	Notional		Fair		Notional		Fair			Fair
	Amount (1)		Value		Amount (1)		Value			Value
Cross-currency swaps	$	607,855	$	159,011	$	270,906	$	(25,809	)	$	133,202
Credit default swaps		-		-		305,000		(36,359	)		(36,359	)
Equity index call
options		1,241,600		48,811		906,897		(243,174	)		(194,363	)
Equity index put
options		14,650,000		337,777		-		-			337,777
Spread cap options		4,000,000		121,875		-		-			121,875
Put-swaptions		20,500,000		28,718		8,500,000		(4,424	)		24,294
Equity index futures		-		-		2,477,682		(21,393	)		(21,393	)
Total return swaps		400,000		3,679		300,000		(27,230	)		(23,551	)
Interest rate swaps		2,550,000		137,857		6,390,000		(386,825	)		(248,968	)
Total	$	43,949,455	$	837,728	$	19,150,485	$	(745,214	)	$	92,514

(1)  With respect to swaps, spread cap options and put-swaptions, the notional amount represents the stated principal balance used as a basis for calculating payments.  With respect to futures and options, the contractual amount represents the market exposure of open positions.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

5.   Derivative Instruments (continued)

Risk management activity, including gains (losses) and change in fair value of derivative instruments and embedded derivatives, was as follows (in thousands):

	Years ended December 31,
	2010			2009			2008
Interest rate swaps	$	100,830		$	407,233		$	(790,029	)
Put-swaptions		14,848			7,052			(20,493	)
Futures		(537,361	)		(396,329	)		353,607
Equity index call options		(63,733	)		(6,895	)		(103,769	)
Equity index put options		(524,671	)		(792,760	)		760,135
Total return swaps		30,408			74,470			(91,138	)
Spread cap options		13,701			101,520			76,414
Credit default swaps		(2,283	)		(24,990	)		(34,845	)
Fixed index annuity embedded derivatives		(211,684	)		(189,464	)		262,028
Variable annuity embedded derivatives		109,974			(91,917	)		(878,548	)
Risk management activity	$	(1,069,971	)	$	(912,080	)	$	(466,638	)

At December 31, 2010 and 2009, the fair value of Jackson’s net derivative assets by counterparty were $308.3 million and $387.5 million, respectively, and held collateral was $282.3 million and $348.6 million, respectively, related to these agreements.  At December 31, 2010 and 2009, the fair value of Jackson’s net derivative liabilities by counterparty were $548.7 million and $294.9 million, respectively, and provided collateral was $484.3 million and $341.4 million, respectively, related to these agreements.  All of Jackson’s master swap agreements contain credit downgrade provisions that allow a party to assign or terminate derivative transactions if the counterparty’s credit rating declines below an established limit.  If all of these provisions had been triggered at December 31, 2010 or 2009, Jackson would have to disburse $38.4 million and been able to claim $85.4 million, respectively, from counterparties.  These claims represent the net fair values of gains and losses by counterparty, less collateral held.

6.   Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees

The Company issues variable contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities).  The Company also issues variable annuity and life contracts through separate accounts where the Company contractually guarantees to the contract holder (variable contracts with guarantees) either a) return of no less than total deposits made to the contract adjusted for any partial withdrawals, b) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, or c) the highest contract value on a specified anniversary date adjusted for any withdrawals following the contract anniversary.  These guarantees include benefits that are payable in the event of death (GMDB), annuitization (GMIB), at specified dates during the accumulation period (GMWB) or at the end of a specified period (GMAB).

The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for separate account liabilities.  Liabilities for guaranteed benefits are general account obligations and are reported in policy reserves.  Amounts assessed against the contract holders for mortality, administrative, and other services are reported in revenue.  Changes in liabilities for minimum guarantees are reported in increase in reserves, net of reinsurance in the consolidated income statement, with the exception of changes in embedded derivatives, which are included in risk management activity.  Separate account net investment income, net investment gains and losses, and the related liability changes are offset within the same line item in the consolidated income statements.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

6.   Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees (continued)

At December 31, 2010 and 2009, the Company provided variable annuity contracts with guarantees, for which the net amount at risk (“NAR”) is the amount of guaranteed benefit in excess of current account value, as follows (dollars in millions):

					Average
					Period
				Weighted	until
December 31, 2010	Minimum	Account	Net Amount	Average	Expected

		Return			Value		at Risk		Attained Age	Annuitization
Return of net deposits plus a minimum return
	GMDB		0-6	%	$	39,987.3	$	3,297.3	64.0 years
	GMWB - Premium only		0	%		4,293.0		233.4
	GMWB - For life		0-5	%*		3,124.5		649.5
	GMAB - Premium only		0	%		74.8		1.6
Highest specified anniversary account value minus
withdrawals post-anniversary
	GMDB					5,858.8		730.0	63.3 years
	GMWB - Highest anniversary only					3,147.5		537.3
	GMWB - For life					1,333.7		306.3
Combination net deposits plus minimum return, highest
specified anniversary account value minus
withdrawals post-anniversary
	GMDB		0-6	%		2,767.8		486.9	65.7 years
	GMIB		0-6	%		3,026.4		654.6		5.1 years
	GMWB - For life		0-8	%*		23,525.1		1,052.8
										Average
										Period
									Weighted	until

December 31, 2009 Minimum Account Net Amount Average Expected

		Return			Value		at Risk		Attained Age	Annuitization
Return of net deposits plus a minimum return
	GMDB		0-6	%	$	27,316.2	$	4,575.9	63.8 years
	GMWB - Premium only		0	%		4,044.6		447.7
	GMWB - For life		0-5	%*		2,002.8		761.1
	GMAB - Premium only		0	%		43.2		3.3
Highest specified anniversary account value minus
withdrawals post-anniversary
	GMDB					4,736.8		1,116.6	62.8 years
	GMWB - Highest anniversary only					2,735.7		800.7
	GMWB - For life					1,310.0		416.7
Combination net deposits plus minimum return, highest
specified anniversary account value minus
withdrawals post-anniversary
	GMDB		0-6	%		2,110.1		620.5	65.1 years
	GMIB		0-6	%		2,930.8		787.8		5.9 years
	GMWB - For life		0-7	%*		11,198.0		916.6

* Ranges shown based on simple interest. The upper limits of 5%, 7%, or 8% simple interest are approximately equal to 4.1%, 5.5%, and 6%, respectively, on a compound interest basis over a typical 10-year bonus period.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

6.   Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees (continued)

Amounts shown as GMWB ‘for-life’ above include a ‘not-for-life’ component up to the point at which the guaranteed withdrawal benefit is exhausted, after which benefits paid are considered to be ‘for-life’ benefits.  The liability related to this ‘not-for-life’ portion is valued as an embedded derivative, while the ‘for-life’ benefits are valued as an insurance liability (see below).  For this table, the net amount at risk of the ‘not-for-life’ component is the undiscounted excess of the guaranteed withdrawal benefit over the account value, and that of the ‘for-life’ component is the estimated value of additional life contingent benefits paid after the guaranteed withdrawal benefit is exhausted.

Account balances of contracts with guarantees were invested in variable separate accounts as follows (in millions):

	December 31,
Fund type:	2010		2009
Equity	$	37,327.4	$	24,993.8
Bond		5,350.1		3,778.1
Balanced		5,237.9		3,529.8
Money market		705.7		843.8
Total	$	48,621.1	$	33,145.5

GMDB liabilities, before reinsurance, reflected in the general account were as follows (in millions):

	2010			2009			2008
Balance at January 1	$	308.7		$	434.3		$	118.0
Incurred guaranteed benefits		125.7			21.0			392.0
Paid guaranteed benefits		(92.4	)		(146.6	)		(75.7	)
Balance at December 31	$	342.0		$	308.7		$	434.3
Balance at December 31, net of reinsurance	$	342.0		$	308.7		$	301.0

The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments.  The Company regularly evaluates estimates used and adjusts the liability balance through the income statement within reserves, net of reinsurance, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the GMDB liability at both December 31, 2010 and 2009 (except where otherwise noted):

1)   Use of a series of deterministic investment performance scenarios, based on historical average market volatility.

2)   Mean investment performance assumption of ­­8.4% after investment management fees, but before investment advisory fees and mortality and expense charges.

3)   Mortality equal to 80.0% of the Annuity 2000 table.

4)   Lapse rates varying by contract type, duration and degree the benefit is in-the-money and ranging from 0.5% to 49.0%, with an average of 5.0% during the surrender charge period and 11.0% thereafter at December 31, 2010 and 2009.

5)   Discount rate of 8.4%.

Most GMWB reserves are considered to be derivatives under current accounting guidance and are recognized at fair value, with the change in fair value reported in risk management activity.  The fair value of these liabilities is determined using stochastic modeling and inputs as further described in Note 3.    The GMWB reserve totaled $313.5 million and $437.4 million at December 31, 2010 and 2009, respectively, and was included in reserves for future policy benefits.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

6.   Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees (continued)

Jackson has also issued certain GMWB products that guarantee payments over a lifetime.  Reserves for the portion of these benefits after the point where the guaranteed withdrawal balance is exhausted are calculated as required by ASC 944-20.  The reserve calculation uses a series of stochastic investment performance scenarios.  Otherwise, the methodology and assumptions used are consistent with those used for calculating the GMDB liability.  At December 31, 2010 and 2009, these GMWB reserves totaled $46.5 million and $29.1 million, respectively, and were included in reserves for future policy benefits.

GMAB benefits are offered on some variable annuity plans and issues have been minimal as of December 31, 2010.

The direct GMIB liability is determined at each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments.  The Company regularly evaluates estimates used and adjusts the liability balance through the income statement within reserves, net of reinsurance, if actual experience or other evidence suggests that earlier assumptions should be revised.  The assumptions used for calculating the direct GMIB liability at December 31, 2010 and 2009, are consistent with those used for calculating the GMDB liability.  At December 31, 2010 and 2009, GMIB reserves before reinsurance totaled $7.5 million and $5.1 million, respectively.

Other Liabilities – Insurance and Annuitization Benefits

The Company has established additional reserves for life insurance business for: universal life (“UL”) plans with secondary guarantees, interest-sensitive life (“ISWL”) plans that exhibit “profits followed by loss” patterns and account balance adjustments to tabular guaranteed cash values on one interest-sensitive life plan.  The Company also has a small closed block of two-tier annuities, where different crediting rates are used for annuitization and surrender benefit calculations.  A liability is established to cover future annuitization benefits in excess of surrender values.  The total liability for this block is the surrender value, plus the ASC 944-20 annuitization reserve.

Liabilities for these benefits have been established according to the methodology prescribed in ASC 944-20, as follows:

	December 31, 2010					December 31, 2009
Benefit Type	Liability (in millions)		Net Amount at Risk (NAR) (in millions)		Weighted Average Attained Age	Liability (in millions)		Net Amount at Risk (NAR) (in millions)		Weighted Average Attained Age
UL insurance benefit *	$	84.9	$	5,850.5	55.7 years	$	46.4	$	5,533.3	55.5 years
Two-tier annuitization		6.2		32.6	63.9 years		6.3		33.3	63.1 years
ISWL account balance
adjustment		66.3		n/a	n/a		61.4		n/a	n/a

* Amounts for the UL benefits are for the total of the plans containing any policies having projected non-zero excess benefits, and thus may include some policies with zero projected excess benefits.

The following assumptions and methodology were used to determine the UL insurance benefit liability at December 31, 2010 and 2009:

1)   Use of a series of deterministic premium persistency scenarios.

2)   Other experience assumptions similar to those used in amortization of deferred acquisition costs.

3)   Discount rates equal to the credited interest rates, approximately 4% to 5% projected.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

6.   Certain Nontraditional Long-Duration Contracts and Variable Annuity Guarantees (continued)

The following assumptions and methodology were used to determine the two-tier annuitization benefit liability at December 31, 2010 and 2009:

1)   Use of a series of deterministic scenarios, varying by surrender rate and annuitization rate.

2)   Other experience assumptions similar to those used in amortization of deferred acquisition costs.

3)   Discount rates are equal to credited interest rates, approximately 3% to 4%.

7.   Borrowings

The aggregate carrying value of borrowings was as follows (in thousands):

	December 31,
	2010		2009
	Carrying		Carrying
	Value		Value
Surplus notes	$	249,333	$	249,314
Tuscany notes		-		-
Mortgage loans		31,150		33,116
VIE related borrowings		43,322		6,250
FHLBI mortgage loan		15,000		-
Short-term borrowings from Parent		-		-
Total	$	338,805	$	288,680
Due in more than 1 to 5 years	$	58,007
Due after 5 years		280,798
Total	$	338,805

Surplus notes

On March 15, 1997, the Company issued 8.15% Surplus Notes (the “notes”) in the principal amount of $250.0 million due March 15, 2027.  The notes were issued pursuant to Rule 144A under the Securities Act of 1933, and are unsecured and subordinated to all present and future indebtedness, policy claims and other creditor claims.

Under Michigan Insurance law, for statutory reporting purposes, the notes are not part of the legal liabilities of the Company and are considered surplus funds.  Payments of interest or principal may only be made with the prior approval of the Commissioner of Insurance of the state of Michigan and only out of surplus earnings which the Commissioner determines to be available for such payments under Michigan insurance law.  The notes may not be redeemed at the option of the Company or any holder prior to maturity.

Interest is payable semi-annually on March 15 and September 15 of each year. Interest paid on the notes was $20.4 million in each of 2010, 2009 and 2008.

Mortgage loans

At December 31, 2010 and 2009, certain consolidated real estate VIEs had outstanding mortgage loans with a weighted average interest rate of 4.4% and 7.1%, respectively, with maturities through 2016.  Interest paid totaled $2.1 million, $2.2 million and $1.9 million in 2010, 2009 and 2008, respectively.

VIE related borrowings

Certain of the VIEs have “equity” classes issued in the form of non-investment grade debt maturing in 2013 and 2016.  Accordingly, these equity classes are classified as notes payable rather than minority interest in the consolidated balance sheets.  These notes accrue contingent interest in addition to the stated coupon.  The outstanding principal amounts accrued interest at a weighted average interest rate of 5.0% at December 31, 2010 and 2009.  Interest paid on the notes in 2010, 2009 and 2008 totaled $8.8 million, $0.4 million and $0.6 million, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

7.   Borrowings (continued)

Additionally, Piedmont and MSDW have issued debt to external parties of $26.2 million and $14.7 million, respectively, maturing in 2012 and 2031, respectively.  The outstanding principal amounts accrued interest at a weighted average interest rate of 3.1% at December 31, 2010.  Interest paid on the notes totaled $2.6 million in 2010, the only year these VIEs were consolidated in these financial statements.

Federal Home Loan Bank Advances

Jackson is a member of the FHLBI, as described in Note 2, primarily for the purpose of participating in its mortgage-collateralized loan advance program with short-term and long-term funding facilities.  Advances are in the form of short-term or long-term notes or funding agreements issued to FHLBI and are collateralized by CMBS and other structured securities.

In 2010, Jackson received a mortgage loan from the FHLBI, under its community investment program.  The loan accrues interest at 1.04% and the outstanding balance was $15.0 million as of December 31, 2010.  Jackson did not pay any interest on this mortgage loan during 2010, as the loan was executed in mid-December.  At December 31, 2010, the mortgage loan was collateralized by real estate with a carrying value of $17.3 million.

Jackson maintains short-term funding facilities with the FHLBI, securing advances made throughout the year.  Interest rates were either fixed or variable and based on the FHLBI cost of funds or market rates.  During 2010, Jackson did not utilize its short-term funding facility.  In 2009, Jackson’s short-term notes averaged $77.4 million at an average interest rate of 0.3%.  Jackson paid interest of $0.3 million and $7.0 million on its short-term notes during 2009 and 2008, respectively.

8.   Repurchase Agreements

During 2010 and 2009, the Company entered into repurchase agreements whereby the Company agreed to sell and repurchase securities.  These agreements are accounted for as financing transactions, with the assets and associated liabilities included in the consolidated balance sheets.  Short-term borrowings under such agreements averaged $289.1 million and $29.3 million during 2010 and 2009, respectively, at weighted average interest rates of 0.2% and 0.2%, respectively.  The outstanding balance was $552.5 million as of December 31, 2010.  There was no outstanding balance as of December 31, 2009.  Interest paid totaled $0.6 million, $0.1 million and $0.2 million in 2010, 2009 and 2008, respectively.  The highest level of short-term borrowings at any month end was $552.5 million in 2010 and $250.0 million in 2009.

9. Reinsurance

The Company assumes and cedes reinsurance from and to other insurance companies in order to limit losses from large exposures; however, if the reinsurer is unable to meet its obligations, the originating issuer of the coverage retains the liability.  The Company monitors the financial strength rating of reinsurers on a monthly basis.

The maximum amount of life insurance risk retained by the Company on any one life is generally $2.0 million.  Amounts not retained are ceded to other companies on either a yearly renewable-term or a coinsurance basis.

In connection with the purchase of Life of Georgia, Jackson acquired certain lines of business that are wholly ceded to non-affiliates.  These include both direct and assumed accident and health business, direct and assumed life insurance business, and certain institutional annuities.

Jackson’s GMIBs are reinsured through an unrelated party and, due to the net settlement provisions of the reinsurance agreement, this contract meets the definition of a derivative. Accordingly, the GMIB reinsurance agreement is recorded at fair value on the Company’s balance sheets, with changes in fair value recorded in risk management activity.

Jackson also ceded the GMDB coverage associated with certain variable annuities issued prior to 2003 to an affiliate, Prudential Atlantic Reinsurance Company, Dublin, Ireland (“PARC”).  PARC is a wholly owned subsidiary of Prudential.  Effective December 31, 2009, Jackson terminated the reinsurance agreement, paying a

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

9.   Reinsurance (continued)

premium of $30.5 million to settle the experience account as defined in the agreement.  The net effect of terminating the reinsurance agreement and recapturing reserves of $265.6 million was a loss of $10.3 million, net of deferred acquisition cost amortization.

The effect of reinsurance on premiums was as follows (in thousands):

	Years ended December 31,
	2010			2009			2008
Direct premiums:
Life	$	273,247		$	289,755		$	314,096
Accident and health		9,058			10,867			13,048
Plus reinsurance assumed:
Life		13,736			15,020			18,830
Accident and health		1,122			1,207			1,273
Less reinsurance ceded:
Life		(123,621	)		(125,084	)		(133,308	)
Accident and health		(10,180	)		(12,074	)		(14,321	)
Guaranteed annuity benefits		(20,641	)		(64,460	)		(29,457	)
Total net premiums	$	142,721		$	115,231		$	170,161

Premiums ceded for guaranteed annuity benefits included $44.4 million and $15.6 million to PARC during 2009 and 2008, respectively.  No premium was ceded to PARC in 2010.

Components of the reinsurance recoverable were as follows (in thousands):

	December 31,
	2010		2009
Reserves:
Life	$	874,904	$	851,802
Accident and health		18,966		21,114
Guaranteed minimum income benefits		127,534		141,459
Other annuity benefits		25,184		27,525
Claims liability		40,748		89,595
Other		2,203		1,623
Total	$	1,089,539	$	1,133,118

Included in the reinsurance recoverable were reserves ceded to Brooke Life of $47.7 million and $50.0 million at December 31, 2010 and 2009, respectively.  The largest amount ceded to any reinsurer at December 31, 2010 totaled $364.9 million.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

10.  Federal Income Taxes

The components of the provision for federal income taxes were as follows (in thousands):

	Years ended December 31,
	2010			2009			2008
Current tax benefit	$	(179,053	)	$	(227,312	)	$	(58,713	)
Deferred tax expense (benefit)		355,790			409,848			(113,368	)
Federal income tax expense (benefit)	$	176,737		$	182,536		$	(172,081	)

The federal income tax provisions differ from the amounts determined by multiplying pretax income attributable to Jackson by the statutory federal income tax rate of 35% for 2010, 2009 and 2008 as follows (in thousands):

	Years ended December 31,
	2010			2009			2008
Income taxes at statutory rate	$	238,858		$	213,748		$	(400,857	)
Dividends received deduction		(56,390	)		(27,331	)		(73,524	)
Deferred tax asset valuation allowance		-			-			302,731
Other		(5,731	)		(3,881	)		(431	)
Federal income tax expense (benefit)	$	176,737		$	182,536		$	(172,081	)
Effective tax rate		25.9	%		29.9	%		15.0	%

Federal income taxes (recovered) paid were $(517.8) million, $(48.6) million and $69.0 million in 2010, 2009 and 2008, respectively.  The 2010 tax recovery included $287.7 million due to Internal Revenue Service guidance issued in March 2010 related to the adoption of new statutory reserving requirements for variable annuities in 2009.  This new tax guidance required that the tax reserve decrease recognized upon implementation of the transition to the new reserving methodology be amortized over 10 years.  Approximately $822.1 million of the additional tax reserve deduction was available to carryback and offset the prior year’s taxable income.  For GAAP, this guidance resulted in a current tax recoverable, offset by a decrease in a deferred tax asset, with no impact on total tax expense.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

10.  Federal Income Taxes (continued)

The tax effects of significant temporary differences that gave rise to deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2010			2009
Gross deferred tax asset
Difference between financial reporting and the tax basis of:
Policy reserves and other insurance items	$	1,394,786		$	1,238,212
Other-than-temporary impairments and other investment items		202,358			255,863
Deferred compensation		41,498			47,670
Net unrealized losses on available for sale securities		-			152,665
Other, net		144,945			114,307
Total gross deferred tax asset		1,783,587			1,808,717
Gross deferred tax liability
Difference between financial reporting and the tax basis of:
Deferred acquisition costs and sales inducements		(1,796,823	)		(1,618,547	)
Other assets		(96,579	)		(94,282	)
Net unrealized gains on available for sale securities		(543,647	)		-
Other, net		(3,115	)		(6,210	)
Total gross deferred tax liability		(2,440,164	)		(1,719,039	)
Net deferred tax (liability) asset	$	(656,577	)	$	89,678

During 2008, Jackson recorded a valuation allowance, included in deferred tax expense, of $302.7 million against the deferred tax assets related to realized losses and losses on trading securities where management no longer believed that it was more likely than not that the full tax benefit of the losses would be realized. Jackson also recorded a valuation allowance against the deferred tax assets associated with certain equity securities in an unrealized loss position for which recovery in value could not be anticipated.  This valuation allowance, which was recorded in other comprehensive income (loss), totaled $16.0 million.  During 2009, management determined that it was now more likely than not that the full tax benefit of the losses would be realized.  Since the reversal of the valuation allowance was due to unrealized gains emerging in 2009, the valuation allowance was reversed with the offset being credited to other comprehensive income rather than net income.

Realization of Jackson’s deferred tax assets is dependent on generating sufficient taxable income.  Although realization is not assured, management believes that it is more likely than not that the results of future operations and investment activity will generate sufficient taxable income to realize gross deferred tax assets.

At December 31, 2010, the Company had no federal tax ordinary loss carryforwards.

At December 31, 2010, the Company had federal tax capital loss carryforwards totaling $24.8 million, which expire on December 31, 2014.

In August 2007, the Internal Revenue Service (“IRS”) issued Revenue Ruling 2007-54 that would have changed accepted industry and IRS interpretations of the statutes governing the computation of the Dividends Received Deduction ("DRD") on separate account assets held in connection with variable annuity and life contracts, but that ruling was suspended by Revenue Ruling 2007-61. Revenue Ruling 2007-61 also announced the Treasury Department's and the IRS's intention to issue regulations with respect to certain computational aspects of the DRD on separate account assets held in connection with variable contracts. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

10.  Federal Income Taxes (continued)

content, scope and application of such regulations. Although regulations that represent a substantial change in an interpretation of the law are generally given a prospective effective date, there is no assurance that the change will not be retrospectively applied.  As a result, depending on the ultimate timing and substance of any such regulations, which are unknown at this time, such future regulations could result in the elimination of some or all of the separate account DRD tax benefit that the Company receives.  In January 2010, Jackson received a formal Notice of Assessment from the IRS disallowing the separate account DRD for 2003, 2005 and 2006.  Jackson did not agree with the assessment and filed a protest with the Appellate Division of the IRS.  No reserve has been established for this potential exposure since Jackson believes its position is sustainable.  The Company recognized an income tax benefit related to the separate account DRD of $56.4 million, $27.3 million and $73.5 million during 2010, 2009 and 2008, respectively.

At December 31, 2010 and 2009, the Company had no reserve for an unrecognized tax benefit.

The Company has considered both permanent and temporary positions in determining the unrecognized tax benefit rollforward.  There were no unrecognized tax benefits that, if recognized, would have affected the effective tax rate at both December 31, 2010 and 2009.

Interest expense totaling $0.8 million related to unrecognized tax benefits is included in income tax expense in the consolidated income statement for 2008 with none in 2010 and 2009.  The Company has not recorded any amounts for penalties related to unrecognized tax benefits during 2010, 2009 or 2008.

Based on information available as of December 31, 2010, the Company believes that, in the next 12 months, there are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease.  The Company is generally no longer subject to United States federal, state or local income tax examinations by taxing authorities for tax years prior to 2007.

11.  Commitments and Contingencies

The Company and its subsidiaries are involved in litigation arising in the ordinary course of business.  It is the opinion of management that the ultimate disposition of such litigation will not have a material adverse affect on the Company's financial condition or results of operations.  Jackson has been named in civil litigation proceedings, which appear to be substantially similar to other class action litigation brought against many life insurers alleging misconduct in the sale of insurance products.  The Company accrues for legal contingencies once the contingency is deemed to be probable and estimable.  At December 31, 2010 and 2009, Jackson recorded accruals totaling $29.0 million and $16.0 million, respectively.  Additionally, in connection with the purchase of Life of Georgia, Jackson assumed a $9.4 million liability related to a class action lawsuit.  This liability has been fully indemnified by ING Groep, N.V. (“ING”) and an indemnification receivable equal to the liability has been recorded in other assets.  The liability and indemnification receivable, which are adjusted as claims are reported and payments are made by ING, totaled $0.4 million and $0.6 million at December 31, 2010 and 2009, respectively.

State guaranty funds provide payments for policyholders of insolvent life insurance companies. These guaranty funds are financed by assessing solvent insurance companies based on location, volume and types of business. The Company estimated its reserve for future state guaranty fund assessments based on data received from the National Organization of Life and Health Insurance Guaranty Associations. Based on data received, the Company’s reserve for future state guaranty fund assessments was $24.9 million at the end of both 2010 and 2009.  Related premium tax offsets were $14.6 million and $15.7 million at December 31, 2010 and 2009, respectively.  While Jackson cannot predict the amount and timing of any future assessments, the Company believes the reserve is adequate for all anticipated payments for known insolvencies.

At December 31, 2010, the Company had unfunded commitments related to its investments in limited partnerships and limited liability companies totaling $568.0 million.  At December 31, 2010, unfunded fixed-rate commercial mortgage loan commitments totaled $137.3 million.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

11.  Commitments and Contingencies (continued)

The Company leases office space, land and equipment under several operating leases that expire at various dates through 2051.  Certain leases include escalating lease rates, lease abatements and other incentives and, as a result, at December 31, 2010, Jackson recorded a liability of $7.9 million for future lease payments.  Lease expense was $22.3 million, $20.6 million and $22.7 million in 2010, 2009 and 2008, respectively. At December 31, 2010, future minimum payments under these noncancellable operating leases were as follows (in thousands):

2011	$	9,741
2012		11,518
2013		12,119
2014		10,528
2015		10,086
Thereafter		30,414
Total	$	84,406

12.  Statutory Accounting Capital and Surplus

Under Michigan Insurance Law, dividends on capital stock can only be distributed out of earned surplus, adjusted to exclude any unrealized capital gains and the effect of permitted practices, unless the Commissioner approves the dividend prior to payment.  At December 31, 2010, the adjusted earned surplus of Jackson National Life Insurance Company was $562.8 million.  Furthermore, without the prior approval of the Commissioner, dividends are also subject to restrictions relating to statutory surplus and/or statutory earnings.  The maximum dividend which can be paid in 2011, subject to the availability of earned surplus, without prior approval of the Commissioner is $769.6 million.

The Company received capital contributions from its parent of $150.1 million, $592.4 million and $34.1 million in 2010, 2009 and 2008, respectively.  The capital contributions included $20.1 million, $21.4 million and $34.1 million in 2010, 2009 and 2008, respectively, from Brooke Life’s forgiveness of intercompany tax liabilities.  Dividend payments from the Company to its parent were $275.0 million, $250.0 million and $313.1 million in 2010, 2009 and 2008, respectively.

Statutory capital and surplus of the Company, as reported in its Annual Statement, was $4.4 billion and $4.0 billion at December 31, 2010 and 2009, respectively.  Statutory net income (loss) of the Company, as reported in its Annual Statement, was $769.6 million, $373.6 million and $(623.4) million in 2010, 2009 and 2008, respectively.

The Commissioner has granted Jackson a permitted practice that allows Jackson to carry interest rate swaps at book value, as if statutory hedge accounting were in place, instead of at fair value as would have been otherwise required.  Jackson is required to demonstrate the effectiveness of its interest rate swap program pursuant to the Michigan Insurance Code.  This permitted practice expires on October 1, 2011.  At December 31, 2010 and 2009, the effect of the permitted practice increased statutory surplus by $130.3 million and $188.4 million, respectively.  The permitted practice had no impact on statutory net income.

13. Other Related Party Transactions

The Company's investment portfolio is managed by PPM America, Inc. (“PPMA”), a registered investment advisor, and PPM Finance, Inc. (collectively, “PPM”).  PPM is ultimately a wholly owned subsidiary of Prudential.  The Company paid $37.2 million, $36.8 million and $35.9 million to PPM for investment advisory services during 2010, 2009 and 2008, respectively.

National Planning Holdings, Inc. (“NPH”), Jackson’s affiliated broker-dealer network, distributes products issued by Jackson and receives commissions and fees from Jackson.  Commissions and fees paid by Jackson to NPH during 2010, 2009 and 2008 totaled $85.7 million, $76.7 million and $57.4 million, respectively.

Jackson National Life Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2010

13. Other Related Party Transactions (continued)

Jackson has entered into shared services administrative agreements with both, NPH and PPMA.  Under the shared services administrative agreements, Jackson charged $6.2 million, $4.5 million and $5.1 million of certain management and corporate services costs to these affiliates in 2010, 2009 and 2008, respectively.

Jackson provides a $40.0 million revolving credit facility to PPMA.  The loan is unsecured, matures in September 2013, accrues interest at LIBOR plus 2% per annum and has a commitment fee of 0.25% per annum.  There was no balance outstanding at December 31, 2010 or 2009.  The highest outstanding loan balance during 2010 and 2009 was $21.0 million and $10.0 million, respectively.  During 2010, 2009 and 2008, interest and commitment fees totaled $0.2 million, $0.1 million and $0.2 million, respectively.

Jackson provides a $20.0 million revolving credit facility to Brooke Holdings, LLC, an upstream holding company.  The loan is unsecured, matures in June 2014, accrues interest at LIBOR plus 2% per annum and has a commitment fee of 0.25% per annum.  There was $7.0 million outstanding at December 31, 2010.  The highest outstanding loan balance during 2010 and 2009 was $7.0 million and $1.4 million, respectively.  Interest and commitment fees totaled $0.1 million and $35 thousand during 2010 and 2009, respectively.

Jackson provides, through its PGDS subsidiary, information technology services to certain Prudential affiliates.  Jackson recognized $20.1 million, $19.2 million and $10.4 million of revenue associated with these services during 2010, 2009 and 2008, respectively.  This revenue is included in other income in the accompanying consolidated income statement.  This revenue is substantially equal to the costs incurred by PGDS to provide the services, which are reported in general and administrative expenses in the consolidated income statements.

14. Benefit Plans

The Company has a defined contribution retirement plan covering substantially all employees and certain affiliates.  To be eligible to participate in the Company’s contribution, an employee must have attained the age of 21, completed at least 1,000 hours of service in a 12-month period and passed their 12-month employment anniversary.  In addition, the employee must be employed on the applicable January 1 or July 1 entry date.  The Company's annual contributions, as declared by the board of directors, are based on a percentage of eligible compensation paid to participating employees during the year.  In addition, the Company matches a participant’s elective contribution, up to 6 percent of eligible compensation, to the plan during the year.  The Company’s expense related to this plan was $17.4 million, $16.3 million and $12.1 million in 2010, 2009 and 2008, respectively.

The Company maintains non-qualified voluntary deferred compensation plans for certain agents and employees.  At December 31, 2010 and 2009, the liability for such plans totaled $119.2 million and $136.3 million, respectively, and is reported in other liabilities.  Jackson invests general account assets in selected mutual funds in amounts similar to participant elections as a hedge against significant movement in the payout liability.  The Company’s expense (income) related to these plans, including a match of elective deferrals for the agents’ deferred compensation plan, was $22.5 million, $34.8 million and $(54.6) million in 2010, 2009 and 2008, respectively.  Investment income (expense) from the mutual funds totaled $15.5 million, $27.1 million and $(62.9) million in 2010, 2009 and 2008, respectively.

PART C

OTHER INFORMATION

Item 26. Exhibits

(a)   Resolution of Board of Directors of Jackson National Life Insurance Company authorizing the establishment of Jackson National Life Separate Account IV, incorporated herein by reference to Registrant's Registration Statement on Form S-6 (File Nos. 333-36506 and 811-09933) as filed on May 8, 2000.

(b)  Not applicable.

(c)

(1)   Distribution Agreement between Jackson National Life Insurance Company and Jackson National Life Distributors, Inc., incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(2) Form of Selling Agreement, incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 filed on November 25, 2003 (File Nos. 333-108433 and 811-09933).

(3) Form of Distribution Agreement between Jackson National Life Insurance Company of New York and Jackson National Life Distributors, Inc., incorporated herein by reference to Registrant's Post-Effective Amendment No. 2 filed on April 29, 2004 (File Nos. 333-108433 and 811-09933).

(4) Amended and Restated General Distributor Agreement dated October 25, 2005, incorporated herein by reference to the Registrants Post-Effective Amendment No. 20 filed on December 19, 2005 (File Nos. 333-70472 and 811-08664).

(5) Selling Agreement between Jackson National Life Insurance Company and Jackson National Life Distributors, LLC, attached hereto.

(d)

(1) Form of Flexible Premium Variable Life Insurance Policy, incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(2) Form of Child Insurance Rider, incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(3) Form of Scheduled Term Insurance Rider, incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(4) Form of Guaranteed Minimum Death Benefit Rider, incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(5) Form of Other Insured Term Insurance Rider, incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(6) Form of Waiver of Monthly Deductions Rider, incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(7) Form of Waiver of Specified Premium, incorporated herein by reference to Registrant's Registration Statement on form N-6 (File Nos. 333-108433 and 811-09933) filed via EDGAR on September 2, 2003.

(8) Form of Terminal Illness Benefit Rider, incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 filed on November 25, 2003 (File Nos. 333-108433 and 811-09933).

(9) Form of Waiver of Withdrawal Charge of Specified Conditions Rider, incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 filed on November 25, 2003 (File Nos. 333-108433 and 811-09933).

(10) Form of Loan and Reduced Paid-Up Option Endorsement, incorporated herein by reference to Registrant's Post-Effective Amendment No. 3 filed on October 27, 2004 (File Nos. 333-108433 and 811-09933).

(11) Form of Overloan Protection Benefit Rider, incorporated herein by reference to Registrant's Post-Effective Amendment No. 10 filed on January 18, 2008 (File Nos. 333-108433 and 811-09933).

(12) Form of Other Insured Term Insurance Rider, incorporated herein by reference to Registrant's Post- Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(13) Form of Guaranteed Death Benefit Rider, incorporated herein by reference to Registrant's Post- Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(14) Form of Renewable Term Insurance to Age 95 Rider, incorporated herein by reference to Registrant's Post- Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(15) Form of Flexible Premium Variable Life Insurance Policy, incorporated herein by reference to Registrant's Post- Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(e)

(1) Specimen Application, incorporated herein by reference to Registrant's Registration Statement on Form N-6 (File Nos. 333-108433 and 811-09933) filed on September 2, 2003.

(2) Specimen Supplemental Application, incorporated herein by reference to Registrant's Post-Effective Amendment No. 3 filed on October 27, 2004 (File Nos. 333-108433 and 811-09933).

(3) Flexible Premium Variable Life Insurance Premium Allocation/Benefit Selection, incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 filed on December 23, 2004 (File Nos. 333-118131 and 811-09933).

(4) Flexible Premium Variable Life Insurance Premium Allocation/Benefit Selection, incorporated herein by reference to Registrant's Post-Effective Amendment No. 12 filed on March 26, 2008 File Nos. 333-118131 and 811-09933).

(5) Specimen Application, incorporated herein by reference to Registrant's Post- Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(6) Flexible Premium Variable Life Insurance Premium Allocation/Benefit Selection, incorporated herein by reference to Registrant's Post- Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(7) Variable Universal Life Insurance Benefit Selection/Premium Allocation, attached hereto.

(f)

(1) Articles of Incorporation of Jackson National Life Insurance Company, incorporated herein by reference to the Registration Statement on Form N-4 (File Nos. 333-70697 and 811-09119) filed on January 15, 1999.

(2) Bylaws of Jackson National Life Insurance Company, incorporated herein by reference to Registration Statement on Form N-4 (File Nos. 333-70697 and 811-09119) filed on January 15, 1999.

(g)

(1) Reinsurance Agreement between Jackson National Life Insurance Company and Security Life of Denver Insurance Company, incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 filed on April 28, 2006 (File Nos. 333-108433 and 811-09933).

(2) Reinsurance Agreement between Jackson National Life Insurance Company and RGA Reinsurance Company, incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 filed on April 28, 2006 (File Nos. 333-108433 and 811-09933).

(3) Reinsurance Agreement between Jackson National Life Insurance Company and Transamerica Occidental Life Insurance Company, incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 filed on April 28, 2006 (File Nos. 333-108433 and 811-09933).

(4) Reinsurance Agreement between Jackson National Life Insurance Company and Swiss Re Life & Health America Inc., incorporated herein by reference to Registrant's Post-Effective Amendment No. 7 filed on December 22, 2006 (File Nos. 333-108433 and 811-09933).

(5) Reinsurance Agreement between Jackson National Life Insurance Company and Munich American Reassurance Company, incorporated herein by reference to Registrant's Post-Effective Amendment No. 7 filed on December 22, 2006 (File Nos. 333-108433 and 811-09933).

(6) Amendment No. 3 to Reinsurance Agreement No. I59599US-04(0782701) effective March 8, 2004 between JACKSON NATIONAL LIFE INSURANCE  COMPANY of Lansing, Michigan ("the  Company") and SWISS RE LIFE & HEALTH AMERICA INC. of Hartford, Connecticut ("the Reinsureer"), incorporated herein by reference to Registrant's Post- Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(7) Addendum 2 to Automatic and Facultative YRT Reinsurance Agreement between Jackson National Life Insurance Company and RGA Reinsurance Company effective July 30, 2007 #10917, Effective October 6, 2008, incorporated herein by reference to Registrant's Post- Effective Amendment No. 19 filed on April 2, 2009 (file Nos. 333-108433 and 811-09933).

(8) Automatic Yearly Renewable Term Reinsurance Agreement between Jackson National Life Insurance Company and Generali USA Life Reassurance Company, incorporated herein by reference to the Registrant’s Post-Effective Amendment No. 20 filed on September 24, 2009 (file Nos. 333-108433 and 811-09933).

(h)  Not applicable.

(i)  Not applicable.

(j)  Not applicable.

(k)  Legal Opinion and Consent of Counsel, attached hereto.

(l)

(1)Actuarial Opinion, incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 filed on November 25, 2003 (File Nos. 333-108433 and 811-09933).

(2)Actuarial Opinion, incorporated herein by reference to Registrant's Pre- Effective Amendment No. 12 filed on March 26, 2008 (File Nos. 333-108433 and 811-09933).

(3)Actuarial Opinion, incorporated herein by reference to Registrant's Post-Effective Amendment No. 18 filed on October 3, 2008 (file Nos.  333-108433 and 811-09933).

(4)Actuarial Opinion, incorporated herein by reference to Registrant's Post-Effective Amendment No. 19 filed on April 2, 2009 (file Nos. 333-108433 and 811-09933).

(5) Actuarial Opinion, incorporated herein by reference to Registrant’s Post-Effective Amendment No. 21 filed on April 30, 2010 (file Nos. 333-108433 and 811-09933).

(6) Actuarial Opinion, attached hereto.

(m)

(1)Sample Calculations, incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 filed on November 25, 2003 (File  Nos. 333-108433 and 811-09933).

(2)Sample Calculations, incorporated herein by reference to Registrant's Post-Effective Amendment No. 8 filed on April 27, 2007 (File Nos. 333-108433 and 811-09933).

(3)Sample Calculations, incorporated herein by reference to Registrant's Post-Effective Amendment No. 18 filed on October 3, 2008 (file Nos. 333-108433 and 811-09933).

(4) Sample Calculations, attached hereto.

(n)  Consent of Independent Registered Public Accounting Firm, attached hereto.

(o)  Not applicable.

(p)  Not applicable.

(q)

(1) Redeemability Exemption, incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 filed on November 25, 2003 (File Nos. 333-108433 and 811-09933).

(2) Redeemability Exemption, incorporated herein by reference to Registrant's Post-Effective Amendment No. 7 filed on December 22, 2006 (File Nos. 333-108433 and 811-09933).

(3) Redeemability Exemption, incorporated herein by reference to Registrant's Post-Effective Amendment No. 12 filed on March 26, 2008 (File Nos. 333-108433 and 811-09933).

(4) Redeemability Exemption, incorporated herein by reference to Registrant's Post-Effective Amendment No. 21  filed on April 30, 2010 (File Nos. 333-108433 and 811-09933).

(5) Redeemability Exemption, attached hereto.

Item 27.       Directors and Officers of the Depositor

Name and Principal Business Address	Positions and Offices with Depositor
Richard D. Ash	Vice President - Actuary & Appointed Actuary
1 Corporate Way
Lansing, MI 48951
James P. Binder	Senior Vice President & Treasurer
1 Corporate Way
Lansing, MI 48951
Steve P. Binioris	Vice President
1 Corporate Way
Lansing, MI 48951
Michele Binkley	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Dennis Blue	Vice President
1 Corporate Way
Lansing, MI 48951
Barrett Bonemer	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Jeff Borton	Vice President
1 Corporate Way
Lansing, MI 48951
Pamela L. Bottles	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
John H. Brown	Vice President
1 Corporate Way
Lansing, MI 48951
Teresa L. Caldwell	Senior Vice President
1 Corporate Way
Lansing, MI 48951
James Carter	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Joseph Mark Clark	Senior Vice President & Chief Information Officer
1 Corporate Way
Lansing, MI 48951
Michael A. Costello	Vice President
1 Corporate Way
Lansing, MI 48951
James B. Croom	Vice President
1 Corporate Way
Lansing, MI 48951
George D. Daggett	Assistant Vice President & Illustration Officer
7601 Technology Way
Denver, CO 80237
Tony L. Dowling	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Lisa C. Drake	Senior Vice President & Chief Actuary
1 Corporate Way
Lansing, MI 48951
Phillip Brian Eaves	Vice President
1 Corporate Way
Lansing, MI 48951
Charles F. Field	Vice President
1 Corporate Way
Lansing, MI 48951
Terence M. Finan	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Dana Malesky Flegler	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Robert A. Fritts	Senior Vice President & Controller
1 Corporate Way
Lansing, MI 48951
Patrick W. Garcy	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
James D. Garrison	Vice President
1 Corporate Way
Lansing, MI 48951
Julia A. Goatley	Vice President & Assistant Secretary
1 Corporate Way
Lansing, MI 48951
John A. Gorgenson	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Robert W. Hajdu	Vice President
1 Corporate Way
Lansing, MI 48951
Cliff S. Hale, M.D.	Vice President
1 Corporate Way
Lansing, MI 48951
Laura L. Hanson	Vice President
1 Corporate Way
Lansing, MI 48951
Robert L. Hill	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
H. Dean Hosfield	Vice President
1 Corporate Way
Lansing, MI 48951
Thomas J. Hruska	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Julie A. Hughes	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Clifford J. Jack	Executive Vice President & Director
7601 Technology Way
Denver, CO 80237
Scott Klus	Vice President
1 Corporate Way
Lansing, MI 48951
Leandra R. Knes	Director
225 W. Wacker Drive
Suite 1200
Chicago, IL 60606
Everett W. Kunzelman	Vice President
1 Corporate Way
Lansing, MI 48951
Richard Liphardt	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Lynn W. Lopes	Vice President
1 Corporate Way
Lansing, MI 48951
Ab B. Manning	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Jason McCallister	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Diahn McHenry	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Thomas J. Meyer	Senior Vice President,
1 Corporate Way	General Counsel & Secretary
Lansing, MI 48951
Dean M. Miller	Vice President
1 Corporate Way
Lansing, MI 48951
Keith R. Moore	Vice President
1 Corporate Way
Lansing, MI 48951
Jacky Morin	Vice President
1 Corporate Way
Lansing, MI 48951
P. Chad Myers	Executive Vice President & Chief Financial Officer & Director
1 Corporate Way
Lansing, MI 48951
Russell E. Peck	Vice President
1 Corporate Way
Lansing, MI 48951
Laura L. Prieskorn	Senior Vice President & Chief Administration Officer
1 Corporate Way
Lansing, Michigan 48951
Dana S. Rapier	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Gary J. Rudnicki	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
William R. Schulz	Vice President
1 Corporate Way
Lansing, MI 48951
Muhammad S. Shami	Vice President
1 Corporate Way
Lansing, MI 48951
Christian J. Shiemke	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Kathleen M. Smith	Vice President
1 Corporate Way
Lansing, MI 48951
James R. Sopha	Chief Operating Officer & Director
1 Corporate Way
Lansing, MI 48951
Kenneth Stewart	Senior Vice President
1 Corporate Way
Lansing, MI 48951
Gary L. Stone	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
Heather R. Strang	Vice President
1 Corporate Way
Lansing, MI 48951
Marcia L. Wadsten	Vice President
1 Corporate Way
Lansing, MI 48951
Michael A. Wells	President, Chief Executive Officer & Chairman
1 Corporate Way
Lansing, MI 48951
Toni Zvonar	Assistant Vice President
1 Corporate Way
Lansing, MI 48951
David A. Zyble	Assistant Vice President
1 Corporate Way
Lansing, MI 48951

Item 28.       Persons Controlled by or Under Common Control with the Depositor or Registrant.

Company	State of Organization	Control/Ownership
Alcona Funding LLC	Delaware	100% Jackson National Life Insurance Company
Ascent Insurance Brokers Limited	United Kingdom	50% Prudential Property Investment Managers Limited
BOCI – Prudential Asset Management Limited	Hong Kong	36% Prudential Corporation Holdings Limited
BOCI – Prudential Trustee Limited	Hong Kong	36% Prudential Corporation Holdings Limited
Berrien Funding LLC	Delaware	100% Jackson National Life Insurance Company
Brooke GP	Delaware	99% Brooke (Holdco 1) Inc. 1% Brooke (Holdco 2) Inc.
Brooke LLC	Delaware	77% Prudential (US Holdco2) Limited 23% Brooke (Jersey) Limited
Brooke (Holdco 1) Inc.	Delaware	100% Prudential (US Holdco 3) BV
Brooke (Holdco 2) Inc.	Delaware	100% Brooke (Holdco 1) Inc.
Brooke Holdings LLC	Delaware	100% Nicole Finance Inc.
Brooke Holdings (UK) Limited	United Kingdom	100% Brooke GP
Brooke Investment, Inc.	Delaware	100% Brooke Holdings LLC
Brooke (Jersey) Limited	Jersey	100%  Prudential (US Holdco 2) Limited
Brooke Life Insurance Company	Michigan	100% Brooke Holdings LLC
Buying Force Limited	United Kingdom	50% Prudential Property Investment Managers Limited
CIMPL Pty Limited	Australia	100% PPM Capital (Holdings) Limited
CITIC  Prudential Life Insurance Company Limited	China	50% Prudential Corporation Holdings Limited
CITIC – Prudential Fund Management Company Limited	China	49% Prudential Corporation Holdings Limited
CSU One Limited	United Kingdom	100% Prudential Group Holdings Limited
Calhoun Funding LLC	Delaware	100% Jackson National Life Insurance Company
Calvin Asset Management Limited	England	100% Calvin Capital Limited
Calvin Capital Limited (formerly Marlin Acquisitions Limited)	England	100% Marlin Acquisitions Holdings Limited
Canada Property (Trustee) No 1 Limited	Jersey	100% Canada Property Holdings Limited
Canada Property Holdings Limited	England	100% M&G Limited
Curian Capital, LLC	Michigan	100% Jackson National Life Insurance Company
Curian Clearing LLC (formerly, BH Clearing, LLC)	Michigan	100% Jackson National Life Insurance Company
Curian Series Trust	Massachusetts	100% Curian Capital, LLC
Earth and Wind Energias Removables, S.L.	Spain	100% Infracapital E&W B.V.
FA II Limited	England	100% FA III Limited
FA III Limited	England	100% Infracapital Nominees Limited
Falcon Acquisitions Limited	United Kingdom	100% FA II Limited
Falcon Acquisitions Holdings  Limited	United Kingdom	100% Infracapital Nominees Limited
Falcon Acquisitions Subholdings Limited	United Kingdom	90% Falcon Acquisitions Holdings Limited
First Dakota, Inc.	North Dakota	100% IFC Holdings, Inc.
First Dakota of Montana, Inc.	Montana	100% IFC Holdings, Inc.
First Dakota of New Mexico, Inc.	New Mexico	100% IFC Holdings, Inc.
First Dakota of Texas, Inc.	Texas	100% IFC Holdings, Inc.
First Dakota of Wyoming, Inc.	Wyoming	100% IFC Holdings, Inc.
Furnival Insurance Company Limited	Guernsey	100% Prudential Corporation Holdings Limited
GS Twenty Two Limited	United Kingdom	100% Prudential Group Holdings Limited
Geoffrey Snushall Limited	United Kingdom	!00% Snushalls Team Limited
Giang Vo Development JV Company	Vietnam	65% Prudential Vietnam Assurance Private Limited
Hermitage Management, LLC	Michigan	100% Jackson National Life Company Insurance
Holborn Bars Nominees Limited	United Kingdom	100% M&G Investment Management Limited
Holborn Delaware LLC	Delaware	100% Prudential Four Limited
Holborn Finance Holdco 2	United Kingdom	100% Prudential Group Holdings Limited
Holborn Finance Holding Company	United Kingdom	100% Prudential Securities Limited
Hyde Dollco S.a.r.l.	Luxembourg	100% Hyde Holdco 3 Limited
Hyde Holdco 1 Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Hyde Holdco 3 Limited	United Kingdom	100% Prudential Capital Holding Company  Limited
ICICI Prudential Asset Management Company Limited	India	49% Prudential Corporation Holdings Limited
ICICI Prudential Life Insurance Company Limited	India	25.96% Prudential Corporation Holdings Limited
ICICI Prudential Pension Funds Management Company Ltd.	India	100% ICICI Prudential Life Insurance Company Limited
ICICI Prudential Trust Limited	India	49% Prudential Corporation Holdings Limited
IFC Holdings, Inc. d/b/a INVEST Financial Corporation	Delaware	100% National Planning Holdings Inc.
INVEST Financial Corporation Insurance Agency Inc. of Alabama	Alabama	100% INVEST Financial Corporation Insurance Agency, Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Connecticut	Connecticut	100% INVEST Financial Corporation Insurance Agency, Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Delaware	Delaware	100% IFC Holdings, Inc. d/b/a INVEST Financial Corporation
INVEST  Financial Corporation Insurance Agency Inc. of Georgia	Georgia	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Illinois	Illinois	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Maryland	Maryland	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Massachusetts	Massachusetts	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Montana	Montana	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Nevada	Nevada	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of New Mexico	New Mexico	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Ohio	Ohio	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Oklahoma	Oklahoma	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of South Carolina	South Carolina	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Texas	Texas	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency Inc. of Wyoming	Wyoming	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
INVEST Financial Corporation Insurance Agency PA of Mississippi	Mississippi	100% INVEST Financial Corporation Insurance Agency Inc. of Delaware
Infracapital E&W B.V.	Netherlands	100% Infracapital F1 S.a.r.l.
Infracapital Employee Feeder GP Limited	Scotland	100% M&G Limited
Infracapital F1 S.a.r.l.	Luxembourg	100% Infracapital F1 Holdings S.a.r.l
Infracapital F1 Holdings S.a.r.l.	Luxembourg	100% Infracapital Nominees Limited
Infracapital GP Limited	United Kingdom	100% M&G Limited
Infracapital Nominees Limited	United Kingdom	100% M&G Limited
Infracapital SLP Limited	United Kingdom	100% M&G Limited
Innisfree M&G PPP LLP	United Kingdom	35% M&G IMPPP1 Limited
International Opportunities Shari’a Funds (OEIC) Limited	United Arab Emirates	100% Prudential Asset Management Limited
Investment Centers of America, Inc.	North Dakota	100% IFC Holdings, Inc.
JNL Investors Series Trust	Massachusetts	100% Jackson National Life Insurance Company
Jackson Investment Management LLC	Michigan	100% Brooke Holdings LLC
Jackson National Asset Management, LLC	Michigan	100% Jackson National Life Insurance Company
Jackson National Life (Bermuda) Ltd.	Bermuda	100% Jackson National Life Insurance Company
Jackson National Life Distributors LLC	Delaware	100% Jackson National Life Insurance Company
Jackson National Life Insurance Company of New York	New York	100% Jackson National Life Insurance Company
JNLI LLC	Delaware	100% Jackson National Life Insurance Company
JNL Series Trust	Massachusetts	Common Law Trust with contractual association with Jackson National Life Insurance Company of New York
JNL Southeast Agency, LLC	Michigan	100% Jackson National Life Insurance Company
JNL Variable Fund LLC	Delaware	100% Jackson National Separate Account – I
M&G (Guernsey) Limited	Guernsey	100% M&G Limited
M&G Financial Services Limited	United Kingdom	100% M&G Limited
M&G Founders 1 Limited	United Kingdom	100% M&G Limited
M&G General Partner Inc.	Cayman Islands	100% M&G Limited
M&G Group Limited	United Kingdom	100% Prudential plc
M&G IMPPP 1 Limited	United Kingdom	100% M&G Limited
M&G International Investments Limited	United Kingdom	100% M&G Limited
M&G International Investments Limited	France (Branch only)	100% M&G International Investments Limited
M&G International Investments Limited	Germany (Branch only)	100% M&G International Investments Limited
M&G International Investments Limited	Italy (Branch only)	100% M&G International Investments Limited
M&G International Investments Limited	Spain (Branch only)	100% M&G International Investments Limited
M&G International Investments Nominees Limited	United Kingdom	100% M&G International Investments Limited
M&G Investment Management Limited	United Kingdom	100% M&G Limited
M&G Life Assurance Company Limited	United Kingdom	100% M&G Limited
M&G Limited	United Kingdom	100% M&G Group Limited
M&G Management Services Limited	United Kingdom	100% M&G Limited
M&G Nominees Limited	United Kingdom	100% M&G Limited
M&G Pensions and Annuity Company Limited	United Kingdom	100% M&G Limited
M&G RED Employee Feeder GP Limited	Scotland	100% M&G Limited
M&G RED Employee Feeder LP	Scotland	100% M&G Limited
M&G RED GP Limited	Guernsey	100% M&G Limited
M&G RED SLP GP Limited	Scotland	100% M&G Limited
M&G RED SLP LP	Scotland	100% M&G Limited
M&G Securities Limited	United Kingdom	100% M&G Limited
M&G Support Services Limited	United Kingdom	100% M&G Limited
MM&S (2375) Limited	Scotland	100% The Prudential Assurance Company Limited
Marlin Acquisitions Holdings Limited	United Kingdom	100% Infracapital GP Limited
National Planning Corporation	Delaware	100% National Planning Holdings, Inc.
National Planning Corporation Insurance Agency Inc. of Nevada	Nevada	100% National Planning Corporation
National Planning Holdings, Inc.	Delaware	100% Brooke Holdings LLC
National Planning Insurance Agency Inc.	Alabama	100% National Planning Corporation
National Planning Insurance Agency Inc.	Florida	100% National Planning Corporation
National Planning Insurance Agency Inc.	Georgia	100% National Planning Corporation
National Planning Insurance Agency Inc.	Idaho	100% National Planning Corporation
National Planning Insurance Agency Inc.	Massachusetts	100% National Planning Corporation
National Planning Insurance Agency Inc.	Montana	100% National Planning Corporation
National Planning Insurance Agency Inc.	Oklahoma	100% National Planning Corporation
National Planning Insurance Agency Inc.	Texas	100% National Planning Corporation
National Planning Insurance Agency Inc.	Wyoming	100% National Planning Corporation
Nicole Finance Inc.	Delaware	100% Brooke GP
North Sathorn Holdings Company Limited	Thailand	100% Prudential Corporation Holdings Limited
Nova Sepadu Sdn Bhd	Malaysia	96% Sri Han Suria Sdn Berhad
P&A Holdco Limited	England	100% Prudential Four Limited
P&A Opco Limited	England	100% P&A Holdco Limited
PCA Asset Management Limited	Japan	100% Prudential Corporation Holdings Limited
PCA Investment Trust Management Company Limited	Korea	100% Prudential Corporation Holdings Limited
PCA Life Assurance Company Limited	Taiwan	99.66% Prudential Corporation Holdings Limited
PCA Life Insurance Company Limited (Japan)	Japan	100% Prudential Corporation Holdings Limited
PCA Life Insurance Company Limited (Korea)	Korea	100% Prudential Corporation Holdings Limited
PCA Securities Investment Trust Company Limited	Taiwan	99.54%  Prudential Corporation Holdings  Limited
PGDS (UK One) Limited	United Kingdom	100% Prudential IP Services Limited
PGDS (UK Two) Limited	United Kingdom	100% PDGS (UK One) Limited
PGDS (US One) LLC	Delaware	100% Jackson National Life Insurance Company
PGDS (US Two) LLC	Delaware	100% PGDS (US One) LLC
Piedmont CDO Trust	Delaware	100% Piedmont Funding LLC
Piedmont Funding LLC	Delaware	100% Jackson National Life Insurance Company
PPEM Pte. Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
PPM America, Inc.	Delaware	100% PPM Holdings, Inc.
PPM America Private Equity Fund LP	Delaware	54.775% Jackson National Life Insurance Company
PPM Capital (Holdings) Limited	United Kingdom	100% M&G Limited
PPM Finance, Inc.	Delaware	100% PPM Holdings, Inc.
PPM Holdings, Inc.	Delaware	100% Brooke Holdings LLC
PPM Ventures (Asia) Limited	Hong Kong	100% PPM Capital (Holdings) Limited
PPM Ventures Pty Limited	Australia	100% CIMPL Pty Limited
PPMC First Nominees Limited	United Kingdom	100% M&G Limited
PPS Five Limited	United Kingdom	100% Reeds Rains Prudential Limited
PPS Nine Limited	United Kingdom	100% Prudential Property Services Limited
PPS Twelve Limited	United Kingdom	100% Prudential Property Services Limited
PT  Paja Indonesia	Indonesia	100% PT Prudential Life Assurance
PT Prudential Life Assurance	Indonesia	94.6% Prudential Corporation Holdings  Limited
PVM Partnerships Limited	United Kingdom	100% The Prudential Assurance Company Limited
Pacus (UK) Limited	United Kingdom	100% The Prudential Assurance Company Limited
Park Avenue (Singapore Two) Limited	Gibraltar	100% Prudential Group Holdings Limited
Park Avenue Investments (Guernsey) Limited	Guernsey	50% Prudential (Netherlands) BV
Pru Life Assurance Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Pru Life Insurance Corporation of UK	Philippines	100% Prudential Corporation Holdings Limited
Pru Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential  (A1) Limited	Gibraltar	100% Prudential (Netherlands) BV
Prudential (AN) Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential (B1) Limited	Gibraltar	100% Prudential (Netherlands) BV
Prudential (B2) Limited	Gibraltar	100% Prudential (Netherlands) BV
Prudential (B3) Limited	Gibraltar	100% Prudential (Netherlands) BV
Prudential (B4) Limited	Gibraltar	100% Prudential (Netherlands) BV
Prudential (Gibraltar Five) Limited	Gibraltar	100% Prudential (Gibraltar Four) Limited
Prudential (Gibraltar Four) Limited	Gibraltar	100% Prudential (US Holdco 1) Limited
Prudential (Gibraltar Three)	Gibraltar	100% Prudential (Gibraltar Four) Limited
Prudential (Gibraltar Two) S.a.r.l.	Luxembourg	100% Prudential Capital Holding Company Limited
Prudential (Gibraltar) Limited	Gibraltar	100% Prudential Australia One Limited
Prudential (LPH One) Limited	Gibraltar	100% Prudential Group Holdings Limited
Prudential (LPH Two) Limited	Gibraltar	100% Prudential (LPH One) Limited
Prudential (Namibia) Unit Trusts Limited	Namibia	93% Prudential Portfolio Managers (Namibia) (Pty) Limited
Prudential (Netherlands One) Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential (Netherlands) BV	Netherlands	100% Prudential Corporation Holdings Limited
Prudential (TC) Limited	Guernsey	100% Prudential (Netherlands) BV
Prudential (US Holdco 1) BV	Netherlands	100% Prudential (US Holdco 1) Limited
Prudential (US Holdco 1) Limited	United Kingdom	76.72% Brooke LLC 23.28% Prudential Four Limited
Prudential (US Holdco 2) BV	Netherlands	100% Prudential (US Holdco 1) BV
Prudential (US Holdco 2) Limited	Gibraltar	100% Holborn Delaware LLC
Prudential (US Holdco 3) BV	Netherlands	100% Prudential (US Holdco 2) BV
Prudential – AA Office Joint Venture Company	Vietnam	70% Prudential Vietnam Assurance Private Limited
Prudential / M&G UKCF GP Limited	United Kingdom	100% M&G Limited
Prudential Al-Wara’ Asset Management Berhad	Malaysia	100% Prudential Corporation Holdings Limited
Prudential Annuities Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Asset Management (Hong Kong) Limited	Hong Kong	100% Prudential Corporation Holdings Limited
Prudential Asset  Management (Singapore) Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Asset Management Limited	United Arab Emirates	100% Prudential Corporation Holdings Limited
Prudential Assurance Company Singapore (Pte) Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Assurance Malaysia Bhd	Malaysia	100% Sri Han Suria Sdn Berhad
Prudential Assurance Singapore (Property Services) Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Atlantic Reinsurance Company Limited	Ireland	100% Prudential Corporation Holdings Limited
Prudential Australia Holdings (UK) Limited	United Kingdom	100% Prudential (Netherlands) BV
Prudential Australia Holdings (UK) Two Limited	United Kingdom	100% Prudential Australia Holdings (UK) Limited
Prudential Australia One Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Prudential BSN Takaful Berhad	Malaysia	49% Prudential Corporation Holdings Limited
Prudential Capital (Singapore) Pte.  Ltd. Prudential Tower	Singapore	100% Prudential Capital Holding Company Ltd.
Prudential Capital Holding Company Limited	United Kingdom	100% Prudential plc
Prudential Capital PLC	United Kingdom	100% Prudential Capital Holding Company Limited
Prudential Corporate Pensions Trustee Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Corporation Asia Limited	Hong Kong	100% Prudential Corporation Holdings Limited
Prudential Corporation Australasia Holdings Pty Limited	Australia	100% Prudential Group Holdings Limited
Prudential plc	United Kingdom	Publicly Traded
Prudential Corporation Holdings Limited	United Kingdom	100% Prudential Holdings Limited
Prudential Corporation Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Distribution Limited	United Kingdom	100% Prudential Financial Services Limited
Prudential Europe Assurance Holdings plc	Scotland	100% MM&S (2375) Limited
Prudential Finance BV	Netherlands	100% Prudential Corporation Holdings Limited
Prudential Financial Services Limited	United Kingdom	100% Prudential plc
Prudential Five Limited	United Kingdom	100% Prudential plc
Prudential Four Limited	United Kingdom	97.62% Prudential Corporation Holdings Limited 2.38% Prudential plc
Prudential Fund Management Berhad	Malaysia	100% Nova Sepadu Sdn Bhd
Prudential Fund Management Services Private Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential GP Limited	Scotland	100% M&G Limited
Prudential General Insurance Hong Kong Limited	Hong Kong	100% The Prudential Assurance Company Limited
Prudential Group Holdings Limited	United Kingdom	100% Prudential plc
Prudential Group Pensions Limited	United Kingdom	100% Prudential Financial Services Limited
Prudential Group Secretarial Services Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Health Holdings Limited	United Kingdom	25% The Prudential Assurance Company Limited
Prudential Health Limited	United Kingdom	100% Prudential Health Holdings Limited
Prudential Holborn Life Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Holdings Limited	Scotland	100% Prudential plc
Prudential Hong Kong Limited	Hong Kong	100% The Prudential Assurance Company Limited
Prudential IP Services Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Prudential International Assurance plc	Ireland	100% Prudential Europe Assurance Holdings plc
Prudential International Management Services Limited	Ireland	100% Prudential Europe Assurance Holdings plc
Prudential Investments (UK) Limited	United Kingdom	100% Prudential Capital Holding Company
Prudential Jersey (No 2) Limited	Jersey	100% Prudential Corporation Holdings Limited
Prudential Jersey Limited	Jersey	100% Prudential Corporation Holdings Limited
Prudential Lalondes Limited	United Kingdom	100% Prudential Property Services Limited
Prudential Life Assurance (Thailand) Public Company Limited	Thailand	42.59% North Sathorn Holdings Company Limited 32.11% Staple Limited 24.82% Prudential Corporation Holdings Limited 0.48% Others
Prudential Lifetime Mortgages Limited	Scotland	100% The Prudential Assurance Company Limited
Prudential Logistics Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Prudential Pensions Administration Limited	United Kingdom	100% Prudential Financial Services Limited
Prudential Pensions Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Personal Equity Plans Limited	United Kingdom	100% M&G Limited
Prudential Phoebus Lux S.a.r.l.	Luxembourg	100% Prudential Capital Holding Company Limited
Prudential Portfolio Managers (Namibia) (Pty) Limited	Namibia	75% Prudential Portfolio Managers (South Africa) (Pty) Limited
Prudential Portfolio Managers (South Africa) (Pty) Limited	South Africa	75% M&G Limited
Prudential Portfolio Managers (South Africa) Life Limited	South Africa	99.4% Prudential Portfolio Managers (South Africa) (Pty) Limited
Prudential Portfolio Managers Unit Trusts Limited	South Africa	94% Prudential Portfolio Managers (South Africa) (Pty) Limited
Prudential Process Management Services India Private Limited	India	99.97% Prudential Corporation Holdings Limited 0.03% Prudential UK Services Limited
Prudential Properties Trusty Pty Limited	Australia	100% The Prudential Assurance Company Limited
Prudential Property Investment Management (Singapore) Pte Limited	Singapore	50% Prudential Singapore Holdings Pte Limited 50% PruPIM Ltd
Prudential Property Investment Managers Limited	United Kingdom	100% M&G Limited
Prudential Property Services (Bristol) Limited	United Kingdom	100% Prudential Property Services Limited
Prudential Property Services Limited	United Kingdom	100% Prudential plc
Prudential Protect Limited	United Kingdom	100% Prudential Health Holdings Limited
Prudential Pte Ltd	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Quest Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Retirement Income Limited	United Kingdom	100% The Prudential Assurance Company Limited
Prudential Securities Limited	United Kingdom	50% Prudential (B1) Limited 50% Prudential (B2) Limited
Prudential Services Asia Sdn Bhd	Malaysia	100% Prudential Corporation Holdings Limited
Prudential Services Limited	United Kingdom	100% Prudential Corporation Holdings Limited
Prudential Services Singapore Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prudential Singapore Holdings Pte Limited	Singapore	100% Prudential Corporation Holdings Limited
Prudential Staff Pensions Limited	United Kingdom	100% Prudential Group Holdings Limited
Prudential Trustee Company Limited	United Kingdom	100% M&G Limited
Prudential UK Services Limited	United Kingdom	100% Prudential Financial Services Limited
Prudential Unit Trusts Limited	United Kingdom	100% M&G Limited
Prudential Vietnam Assurance Private Limited	Vietnam	100% Prudential Corporation Holdings Limited
Prudential Vietnam Finance Company Limited	Vietnam	100% Prudential Holborn Life Limited
Prudential Vietnam Fund Management Private Limited Company	Vietnam	100% Prudential Vietnam Assurance Private Limited
Prulink Pte Limited	Singapore	100% Prudential Singapore Holdings Pte Limited
Prutec Limited	United Kingdom	100% The Prudential Assurance Company Limited
Quinner AG	Germany	100% Prudential Corporation Holdings Limited
Reeds Rain Prudential Limited	United Kingdom	100% Prudential Property Services Limited
Securities Lending Cash Collateral Fund LLC	Delaware	100% Jackson Funds
Securities Lending Liquidating Fund LLC	Delaware	100% Jackson Funds
SII Insurance Agency, Inc.	Massachusetts	100% SII Investments, Inc.
SII Insurance Agency, Inc.	Wisconsin	100% SII Investments, Inc.
SII Investments, Inc.	Wisconsin	100% National Planning Holdings, Inc.
SII Ohio Insurance Agency, Inc.	Ohio	100% SII Investments, Inc.
Scottish Amicable Finance plc	Scotland	100% The Prudential Assurance Company Limited
Scottish Amicable ISA Managers Limited	Scotland	100% The Prudential Assurance Company Limited
Scottish Amicable Life Assurance Society	Scotland	100% The Prudential Assurance Company Limited
Scottish Amicable Life Limited	Scotland	100% The Prudential Assurance Company Limited
Scottish Amicable PEP and ISA Nominees Limited	Scotland	100% Scottish Amicable Life Assurance Society
Snushalls Team Limited	United Kingdom	100% Prudential Property Services Limited
Squire Reassurance Company LLC	Michigan	100% Jackson National Life Insurance Company
Squire Capital I LLC	Michigan	100% Jackson National Life Insurance Company
Squire Capital II LLC	Michigan	100% Jackson National Life Insurance Company
Sri Han Suria Sdn Berhad	Malaysia	51% Prudential Corporation Holdings Limited
Stableview Limited	United Kingdom	100% M&G Limited
Staple Limited	Thailand	100% Prudential Corporation Holdings Limited
Staple Nominees Limited	United Kingdom	100% Prudential Personal Equity Plans Limited
The First British Fixed Trust Company Limited	United Kingdom	100% M&G Limited
The Forum, Solent, Management Company Limited	United Kingdom	100% The Prudential Assurance Company Limited
The Prudential Assurance Company Limited	United Kingdom	100% Prudential plc
True Prospect Limited	British Virgin Islands	100% Prudential Corporation Holdings Limited
Wharfedale Acquisitions Limited	United Kingdom	100% Wharfedale Acquisitions Subholdings Limited
Wharfedale Acquisitions Holdings Limited	United Kingdom	100% Infracapital Nominees Limited
Wharfedale Acquisitions Subholdings Limited	United Kingdom	100% Wharfedale Acquisitions Holdings Limited
Yeslink Interco Limited	United Kingdom	100% Prudential Group Holdings Limited
Zelda Acquisitions Holdings Limited	United Kingdom	100% Infracapital Nominees Limited
Zelda Acquisitions Limited	United Kingdom	100% Zelda Acquisitions Holdings Limited

Item 29.         Indemnification

Provision is made in the Company's Amended By-Laws for indemnification by the Company of any person who was or is a party or is threatened to be made a party to a civil, criminal, administrative or investigative action by reason of the fact that such person is or was a director, officer or employee of the Company, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceedings, to the extent and under the circumstances permitted by the General Corporation Law of the State of Michigan.

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

Item 30.         Principal Underwriter

a)   Jackson National Life Distributors LLC acts as general distributor for the Jackson National Separate Account - I.  Jackson National Life Distributors LLC also acts as general distributor for the Jackson National Separate Account III, the Jackson National Separate Account IV, the Jackson National Separate Account V, the JNLNY Separate Account I, the JNLNY Separate Account II, and the JNLNY Separate Account IV.

b)   Directors and Officers of Jackson National Life Distributors LLC:

Name and Business Address	Positions and Offices with Underwriter
Greg Cicotte	Manager, President & Chief Executive Officer
7601 Technology Way
Denver, CO  80237
Clifford J. Jack	Manager
7601 Technology Way
Denver, CO 80237
Thomas J. Meyer	Manager and Secretary
1 Corporate Way
Lansing, MI 48951
Paul Chad Myers	Manager
1 Corporate Way
Lansing, MI  48951
Stephen M. Ash	Vice President
7601 Technology Way
Denver, CO 80237
Pamela Aurbach	Vice President
7601 Technology Way
Denver, CO 80237
Jeffrey Bain	Vice President
7601 Technology Way
Denver, CO 80237
Brad Baker	Vice President
7601 Technology Way
Denver, CO 80237
Lawrence Barredo	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Mercedes Biretto	Vice President
7601 Technology Way
Denver, CO 80237
James Bossert	Senior Vice President
7601 Technology Way
Denver, CO 80237
J. Edward Branstetter, Jr.	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Kristina Brendlinger	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Tori Bullen	Senior Vice President
210 Interstate North Parkway
Suite 401
Atlanta, GA 30339-2120
Bill J. Burrow	Senior Vice President
7601 Technology Way
Denver, CO  80237
Michelle L. Carroll	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Maura Collins	Executive Vice President, Chief Financial Officer and FinOP
7601 Technology Way
Denver, CO 80237
Christopher Cord	Assistant Vice President
7601 Technology Way
Denver, CO 80237
George Daggett	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Paul Fitzgerald	Senior Vice President
7601 Technology Way
Denver, CO 80237
Julia A. Goatley	Assistant Secretary
1 Corporate Way
Lansing, MI 48951
Luis Gomez	Vice President
7601 Technology Way
Denver, CO 80237
Kevin Grant	Senior Vice President
7601 Technology Way
Denver, CO 80237
Bonnie Howe	Vice President and General Counsel
7601 Technology Way
Denver, CO 80237
Thomas Hurley	Senior Vice President
7601 Technology Way
Denver, CO 80237
Mark Jones	Vice President
7601 Technology Way
Denver, CO 80237
Steve Kluever	Senior Vice President
7601 Technology Way
Denver, CO 80237
John Koehler	Vice President
7601 Technology Way
Denver, CO 80237
Doug Mantelli	Vice President
7601 Technology Way
Denver, CO 80237
James McCorkle	Vice President
7601 Technology Way
Denver, CO 80237
Tamu McCreary	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Brook Meyer	Vice President
1 Corporate Way
Lansing, MI 48951
Jack Mishler	Senior Vice President
7601 Technology Way
Denver, CO 80237
Diane Montana	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Steven O’Connor	Assistant Vice President
7601 Technology Way
Denver, CO  80237
Eric Palumbo	Vice President
7601 Technology Way
Denver, CO 80237
Allison Pearson	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Jeremy Rafferty	Vice President
7601 Technology Way
Denver, CO 80237
Alison Reed	Vice President
7601 Technology Way
Denver, CO 80237
Traci Reiter	Assistant Vice President
7601 Technology Way
Denver, CO 80237
Scott Romine	Executive Vice President
7601 Technology Way
Denver, CO  80237
Gregory B. Salsbury	Executive Vice President
7601 Technology Way
Denver, CO 80237
Marilynn Scherer	Vice President
7601 Technology Way
Denver, CO 80237
Kathleen Schofield	Vice President
7601 Technology Way
Denver, CO 80237
Barbara Logsdon Smith	Vice President
7601 Technology Way
Denver, CO 80237
Daniel Starishevsky	Senior Vice President
7601 Technology Way
Denver, CO 80237
Jeremy Swartz	Vice President
7601 Technology Way
Denver, CO 80237
Robin Tallman	Vice President and Controller
7601 Technology Way
Denver, CO 80237
Daniel W. Thomas	Vice President
7601 Technology Way
Denver, CO  80237
Doug Townsend	Executive Vice President
7601 Technology Way
Denver, CO 80237
Brad Whiting	Vice President
7601 Technology Way
Denver, CO  80237
Matt Witulski	Assistant Vice President
7601 Technology Way
Denver, CO  80237
Daniel Wright	Vice President and Chief Compliance Officer
7601 Technology Way
Denver, CO 80237
Phil Wright	Vice President
7601 Technology Way
Denver, CO 80237
Matthew Yellott	Assistant Vice President
7601 Technology Way
Denver, CO 80237

         (c)

Name of Principal Underwriter	Net Underwriting           Discounts and Commissions	Compensation on Redemption or               Annuitization	Brokerage Commissions	Compensation
Jackson National Life           Distributors LLC	Not Applicable	Not Applicable	Not Applicable	Not Applicable

Item. 31.        Location of Accounts and Records

         Jackson National Life Insurance Company

         1 Corporate Way

         Lansing, Michigan 48951

         Jackson National Life Insurance Company

         Institutional Marketing Group Service Center

         1 Corporate Way

         Lansing, Michigan 48951

         Jackson National Life Insurance Company

         7601 Technology Way

         Denver, Colorado 80237

         Jackson National Life Insurance Company

         225 West Wacker Drive, Suite 1200

         Chicago, IL  60606

Item. 32.        Management Services

         Not Applicable.

Item. 33.       Fee Representation

Jackson  National Life Insurance  Company  represents  that the fees and charges deducted under the contract, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred, and the risks assumed by Jackson National Life Insurance Company.

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this post-effective amendment and has caused this post-effective amendment to be signed on its behalf, in the City of Lansing, and State of Michigan, on this 29th day of April, 2011.

Jackson National Separate Account IV

(Registrant)

Jackson National Life Insurance Company

By:   /s/ Thomas J. Meyer                                                                           

Thomas J. Meyer

Senior Vice President, General Counsel

and Secretary

Jackson National Life Insurance Company

(Depositor)

By:    /s/ Thomas J. Meyer                                                                           

Thomas J. Meyer

Senior Vice President, General Counsel

and Secretary

As required by the Securities Act of 1933, this post-effective amendment to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

*
_  /s/ Thomas J. Meyer	April 29, 2011
Michael A. Wells, President, Chief
Executive Officer and Director
*
_  /s/ Thomas J. Meyer	April 29, 2011
James R. Sopha, Chief Operating Officer
and Director
*
_  /s/ Thomas J. Meyer	April 29, 2011
Clifford J. Jack, Executive Vice President
and Director
*
_  /s/ Thomas J. Meyer	April 29, 2011
P. Chad Myers, Executive Vice President, Chief Financial Officer and Director

*
_  /s/ Thomas J. Meyer	April 29, 2011
Clark P. Manning, Jr., Chairman
*
_  /s/ Thomas J. Meyer	April 29, 2011
Robert A. Fritts, Senior Vice President and
Controller

*
_  /s/ Thomas J. Meyer	April 29, 2011
Leandra R. Knes, Director

* Thomas J. Meyer, Senior Vice President,

Secretary, General Counsel and Attorney-in-Fact

pursuant to Power of Attorney effective

April 7, 2011

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as directors and/or officers of JACKSON NATIONAL LIFE INSURANCE COMPANY (the Depositor), a Michigan corporation, hereby appoint Michael A. Wells, P. Chad Myers, Thomas J. Meyer, Patrick W. Garcy, Susan S. Rhee, and Anthony L. Dowling (each with power to act without the others) his attorney-in-fact and agent, with full power of substitution and resubstitution, for and in his name, place and stead, in any and all capacities, to sign applications and registration  statements,  and any and all amendments, with power to affix the corporate seal and to attest it, and to file the applications, registration statements, and amendments, with all exhibits and  requirements, in accordance with the Securities Act of 1933, the Securities and Exchange Act of 1934, and/or the Investment Company Act of 1940.  This Power of Attorney concerns JNL Separate Account - I (File Nos. 033-82080, 333-70472, 333-73850, 333-118368, 333-119656, 333-132128, 333-136472, 333-155675, 333-172874, 333-172875 and 333-172877), JNL Separate Account III (File No. 333-41153), JNL Separate Account IV (File Nos. 333-108433 and 333-118131), and JNL Separate Account V (File No. 333-70697), as well as any future separate account(s) and/or future file number(s) within any separate account(s) that the Depositor establishes through which securities, particularly variable annuity contracts and variable universal life insurance policies, are to be offered for sale. The undersigned grant to each attorney-in-fact and agent full authority to take all necessary actions to effectuate the above as fully, to all intents and purposes, as he/she could do in person, thereby ratifying and confirming all that said attorneys-in-fact and agents, or any one of them, may lawfully do or cause to be done by virtue hereof.  This instrument may be executed in one or more counterparts.

IN WITNESS  WHEREOF,  the undersigned have executed this Power of Attorney effective as of the 7th day of April, 2011.

MICHAEL A. WELLS

______________________________________

Michael A. Wells, President, Chief

Executive Officer and Director

JAMES R. SOPHA

______________________________________

James R. Sopha, Chief Operating Officer

and Director

CLIFFORD J. JACK

______________________________________

Clifford J. Jack, Executive Vice President

and Director

P. CHAD MYERS

______________________________________

P. Chad Myers, Executive Vice President,

Chief Financial Officer and Director

CLARK P. MANNING, JR.

______________________________________

Clark P. Manning, Jr., Director

ROBERT A. FRITTS

______________________________________

Robert A. Fritts, Senior Vice President and

Controller

LEANDRA R. KNES

______________________________________

Leandra R. Knes, Director

EXHIBIT LIST

Exhibit No.  Description

c(5) Selling Agreement between Jackson National Life Insurance Company and Jackson National Life Distributors, LLC, attached hereto as EX-c(5).

e(7) Variable Universal Life Insurance Benefit Selection/Premium Allocation, attached hereto as EX-e(7).

k Opinion and Consent of Counsel, attached hereto as EX-k.

l(6) Actuarial Opinion, attached hereto as EX-l(6).

m(4) Sample Calculations, attached hereto as EX-m(4).

n Consent of Independent Registered Public Accounting Firm, attached hereto as EX-n.

q(5) Redeemability Exemption, attached hereto as EX-q(5).