485BPOS 1 nympvulregtofile.htm NJ MPVUL - 2005

As filed with the SEC on _________________.

Registration No. 333-117796

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM N-6

FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933

Post-Effective Amendment No. 1

_________________

PRUCO LIFE OF NEW JERSEY

VARIABLE APPRECIABLE ACCOUNT

(Exact Name of Registrant)

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

(Name of Depositor)

213 Washington Street

Newark, New Jersey 07102-2992

(800) 778-2255

(Address and telephone number of principal executive offices)

_________________

Thomas C. Castano

Assistant Secretary

Pruco Life Insurance Company of New Jersey

213 Washington Street

Newark, New Jersey 07102-2992

(Name and address of agent for service)

Copy to:

Christopher E. Palmer, Esq.

Goodwin Procter LLP

901 New York Avenue, N.W.

Washington, D.C. 20001

_________________

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

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

[x] on May 1, 2005 pursuant to paragraph (b) of Rule 485
date

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

on ____________ pursuant to paragraph (a)(1) of Rule 485
date

This Post-Effective Amendment designates a new effective date for a previously filed Post-Effective Amendment.

PART A:

INFORMATION REQUIRED IN THE PROSPECTUS

PROSPECTUS

May 1, 2005

PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

MPremier^SM VUL

This prospectus describes an individual flexible premium variable universal life insurance contract, the MPremier^SM VUL Contract (the “Contract”) offered by Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey,” “us,” “we,” or “our”), a stock life insurance company. Pruco Life of New Jersey is an indirect, wholly-owned subsidiary of The Prudential Insurance Company of America.

You may choose to invest your Contract’s premiums and its earnings in one or more of 28 available variable investment options of the Pruco Life of New Jersey Variable Appreciable Account (the “Account”):

The Prudential Series Fund Inc. (the “Series Fund’)
• Diversified Bond	• SP Davis Value
• Equity	• SP Goldman Sachs Small Cap Value
• Global	• SP Growth Asset Allocation
• High Yield Bond	• SP Large Cap Value
• Jennison	• SP LSV International Value
• Money Market	• SP Mid Cap Growth
• Stock Index	• SP PIMCO High Yield
• SP Aggressive Growth Asset Allocation	• SP PIMCO Total Return
• SP AIM Core Equity	• SP Prudential U.S. Emerging Growth
• SP AllianceBernstein Large Cap Growth	• SP Small Cap Growth
• SP Balanced Asset Allocation	• SP Strategic Partners Focused Growth
• SP Conservative Asset Allocation	• SP William Blair International Growth
M Fund, Inc.
• Brandes International Equity Fund	• Frontier Capital Appreciation Fund
• Business Opportunity Value Fund	• Turner Core Growth Fund

For a complete list of the 28 available variable investment options, their investment objectives, and their investment advisers, see The Funds.

You may also choose to invest your Contract’s premiums and its earnings in the fixed rate option, which pays a guaranteed interest rate. See The Fixed Rate Option.

Please Read this Prospectus. Please read this prospectus before purchasing an MPremier^SM VUL variable universal life insurance Contract and keep it for future reference. Current prospectuses for each of the underlying mutual funds accompany this prospectus. These prospectuses contain important information about the mutual funds. Please read these prospectuses and keep them for reference.

Neither the Securities and Exchange Commission (“SEC”) nor any state securities commission has approved or disapproved of these securities or determined that this Contract is a good investment, nor has the SEC determined that this prospectus is complete or accurate. It is a criminal offense to state otherwise.

The Contract may be purchased through registered representatives located in banks and other financial institutions. Investment in a variable life insurance contract is subject to risk, including the possible loss of your money. An investment in MPremier^SM VUL is not a bank deposit and is not insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other governmental agency.

Pruco Life Insurance Company of New Jersey

213 Washington Street

Newark, New Jersey 07102-2992

Telephone: (800) 782-5356

PROSPECTUS CONTENTS

Page

SUMMARY OF CHARGES AND EXPENSES		1
	Expenses other than Portfolio Expenses	1
	Portfolio Expenses	4

SUMMARY OF THE CONTRACT AND CONTRACT BENEFITS		4
	Brief Description of the Contract	4
	Supplemental Insurance Amount Summary	4
	Types of Death Benefit Available Under the Contract	4
	Limited No-Lapse Guarantee Information	5
	The Contract Fund	5
	Premium Payments	5
	Allocation of Premium Payments	5
	Investment Choices	6
	Transfers Among Investment Options	6
	Increasing or Decreasing Insurance Amount	6
	Access to Contract Values	7
	Contract Loans	7
	Canceling the Contract (“Free-Look”)	7

SUMMARY OF CONTRACT RISKS			7
	Contract Values are not Guaranteed		7
	Increase in Charges		8
	Contract Lapse		8
	Risks of Using the Contract as a Short-Term Savings Vehicle		8
	Risks of Taking Withdrawals		8
	Limitations on Transfers		9
	Limitations and Charges on Surrender of the Contract		9
	Risks of Taking a Contract Loan		9
	Tax Consequences of Buying this Contract	10
	Replacement of the Contract	10

SUMMARY OF RISKS ASSOCIATED WITH THE VARIABLE INVESTMENT OPTIONS		11
	Risks Associated with the Variable Investment Options	11
	Learn More about the Variable Investment Options	11

GENERAL DESCRIPTIONS OF THE REGISTRANT, DEPOSITOR, AND PORTFOLIO COMPANIES		11
	Pruco Life Insurance Company of New Jersey	11
	The Pruco Life of New Jersey Variable Appreciable Account	11
	The Funds	12
	Service Fees Payable to Pruco Life of New Jersey	16
	Voting Rights	16
	Substitution of Variable Investment Options	16
	The Fixed Rate Option	16

CHARGES AND EXPENSES		17
	Sales Load Charges	17
	Premium Based Administrative Charge	18
	Cost of Insurance	18
	Monthly Deductions from the Contract Fund	18
	Daily Deduction from the Variable Investment Options	19
	Surrender Charges	19
	Transaction Charges	20
	Allocated Charges	20
	Charges After Age 100	20
	Portfolio Charges	21

Charges for Optional Rider Coverage 21

PERSONS HAVING RIGHTS UNDER THE CONTRACT		21
	Contract Owner	21

Beneficiary

OTHER GENERAL CONTRACT PROVISIONS		22
	Assignment	22
	Incontestability	22
	Misstatement of Age or Sex	22
	Settlement Options	22
	Suicide Exclusion	22
	Supplemental Insurance Amount	22

RIDERS

REQUIREMENTS FOR ISSUANCE OF A CONTRACT

PREMIUMS		25
	Minimum Initial Premium	25
	Available Types of Premium	25
	Allocation of Premiums	26
	Transfers/Restrictions on Transfers	26
	Dollar Cost Averaging	27
	Auto-Rebalancing	28

DEATH BENEFITS		28
	Contract Date	28
	When Proceeds Are Paid	28
	Types of Death Benefit	28
	Changing the Type of Death Benefit	29
	Limited No-Lapse Guarantee	30
	Increases in Insurance Amount	32
	Decreases in Insurance Amount	33

CONTRACT VALUES		33
	Surrender of a Contract	33
	How a Contract's Cash Surrender Value Will Vary	33
	Loans	34
	Withdrawals	35

LAPSE AND REINSTATEMENT

TAXES		36
	Tax Treatment of Contract Benefits	36

DISTRIBUTION AND COMPENSATION

LEGAL PROCEEDINGS

ILLUSTRATIONS OF CASH SURRENDER VALUES, DEATH BENEFITS, AND ACCUMULATED PREMIUMS

ADDITIONAL INFORMATION

DEFINITIONS OF SPECIAL TERMS USED IN THIS PROSPECTUS

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

SUMMARY OF CHARGES AND EXPENSES

Capitalized terms used in this prospectus are defined where first used or in the DEFINITIONS OF SPECIAL TERMS USED IN THIS PROSPECTUS.

Expenses other than Portfolio Expenses

The following tables describe the maximum fees and expenses that you could pay when buying, owning, and surrendering the Contract. Generally, our current fees and expenses are lower than the maximum fees and expenses reflected in the following tables. For more information about fees and expenses, see CHARGES AND EXPENSES.

The first table describes the maximum fees and expenses that you will pay at the time you buy the Contract, surrender the Contract, or transfer amounts between investment options.

Transaction and Optional Rider Fees
Charge	When Charge is Deducted	Amount Deducted
Maximum Sales Charge on Premiums (Load)	Deducted from premium payments.	12% of premium payment.
Premium Based Administrative Charge	Deducted from premium payments.	7.5% of premium payment.
Surrender fees⁽¹⁾	Upon lapse, surrender, or decrease in basic insurance amount.	30% of the Sales Load Target Premium less premium for riders and extras.
Transfer fees	Each transfer exceeding 12 in any Contract year.	$25
Withdrawal fee	Upon withdrawal.	Lesser of $25 and 2% of withdrawal amount.
Insurance Amount Change fee	Upon change in basic insurance amount or supplemental insurance amount.	$25
Living Needs Benefit fee	When benefit is paid.	$150

(1)	The percentage varies by age and reduces to zero by the end of the fifth year.

The second table describes the maximum Contract fees and expenses that you will pay periodically during the time you own the Contract, not including the Funds’ fees and expenses.

Periodic Contract and Optional Rider Charges Other Than The Fund’s Operating Expenses
Charge	When Charge is Deducted	Amount Deducted
Cost of Insurance (“COI”) for the basic insurance amount and the supplemental insurance amount coverage. _____________ Minimum and Maximum Charges _____________ Initial COI for a representative Contract owner, male age 55 in the Preferred non-smoker underwriting class, no riders.	Monthly	From $0.08 to $83.34 per $1,000 of net amount at risk.⁽¹⁾⁽²⁾ _____________ $0.69 per $1,000 of net amount at risk.⁽³⁾
Mortality and Expense Risk fees	Daily	Effective annual rate of 0.45% of assets in variable investment options.
Additional Mortality fees for risk associated with certain health conditions, occupations, avocations, or aviation risks.	Monthly	From $0.10 to $2.08 per $1,000 of basic insurance amount.⁽⁴⁾
Net interest on loans⁽⁵⁾	Annually	1% for standard loans. 0.10% for preferred loans.
Fee for basic insurance amount _____________ Minimum and Maximum Charges _____________ Basic insurance amount fee for a representative Contract owner, male age 55 in the Preferred non-smoker underwriting class.	Monthly	$20 per Contract plus $0.07 to $1.87 per $1,000 of basic insurance amount. _____________ $20 plus $0.70 per $1,000 of basic insurance amount.
Fee for an increase to basic insurance amount _____________ Minimum and Maximum Charges _____________ Increase to basic insurance amount fee for a representative Contract owner, male age 55 in the Preferred non-smoker underwriting class, no riders.	Monthly	$12 per increase segment plus $0.07 to $1.87 per $1,000 of increase. _____________ $12 per increase segment plus $0.70 per $1,000 of increase.

Fee for the supplemental insurance amount or an increase to the supplemental insurance amount _____________ Minimum and Maximum Charges _____________ Supplemental insurance amount fee for a representative Contract owner, male age 55 in the Preferred non-smoker underwriting class.	Monthly	From $0.08 to $1.88 per $1,000 of supplemental insurance amount.⁽¹⁾ _____________ $0.71 per $1,000 of supplemental insurance amount.
Fee for Accidental Death Benefit Rider _____________ Minimum and Maximum Charges _____________ Accidental Death Benefit Rider fee for a representative Contract owner, male age 55 in the Preferred non-smoker underwriting class.	Monthly	From $0.05 to $0.28 per $1,000 of coverage.⁽¹⁾ _____________ $0.1218 per $1,000 of coverage.
Fee for Children Level Term Rider⁽⁶⁾	Monthly	$0.42 per $1,000 of coverage.
Fee for Enhanced Disability Benefit Rider _____________ Minimum and Maximum Charges _____________ Enhanced Disability Benefit Rider fee for a representative Contract owner, male age 55 in the Preferred non-smoker underwriting class.	Monthly	From 6.9% to 10% of the greater of: 9% of the policy target premium or the total of monthly deductions. ⁽¹⁾ _____________ 8.7% of the greater of: 9% of the policy target premium or the total of monthly deductions.

(1)	The charge varies based on the individual characteristics of the insured, including such characteristics as: age, sex, and underwriting class.

(2)	For example, the highest COI rate is for an insured who is a male/female age 99.

(3)	You may obtain more information about the particular COI charges that apply to you by contacting your Pruco Life of New Jersey representative.

(4)	Both the charge and the duration of the charge will vary based on individual circumstances including issue age, type of risk, and the frequency of exposure to the risk.

(5)	The maximum loan rate reflects the net difference between a standard loan with an effective annual interest rate of 4% and an effective annual interest credit equal to 3%. Preferred loans are charged a lower effective annual interest rate. See Loans.

(6)	Duration of charge is limited. See CHARGES AND EXPENSES.

Portfolio Expenses

This table shows the minimum and maximum total operating expenses charged by the Funds that you will pay periodically during the time you own the Contract. More detail concerning each Fund’s fees and expenses is contained in the prospectus for each of the Funds.

Total Annual Fund Operating Expenses	Minimum	Maximum
(expenses that are deducted from the Fund’s assets, including management fees, any distribution [and/or service] (12b-1) fees, and other expenses, but not including reductions for any fee waiver or other reimbursements.)	0.38%	1.48%

SUMMARY OF THE CONTRACT

AND CONTRACT BENEFITS

Brief Description of the Contract

MPremier VUL is a form of variable universal life insurance. A variable universal life insurance contract is a flexible form of life insurance. It has a death benefit and a Contract Fund, the value of which changes every day according to the investment performance of the investment options to which you have allocated your net premiums. You may invest net premiums in one or more of the 28 available variable investment options or in the fixed rate option. Although the value of your Contract Fund will increase if there is favorable investment performance in the variable investment options you select, investment returns in the variable investment options are NOT guaranteed. There is a risk that investment performance will be unfavorable and that the value of your Contract Fund will decrease. The risk will be different, depending upon which investment options you choose. You bear the risk of any decrease. If you select the fixed rate option, we credit your account with a declared rate of interest, but you assume the risk that the rate may change, although it will never be lower than an effective annual rate of 3%. The Contract is designed to be flexible to meet your specific life insurance needs. Within certain limits, the Contract will provide you with flexibility in determining the amount and timing of your premium payments.

Supplemental Insurance Amount Summary

This Contract is issued with a supplemental insurance amount that could have a significant effect on the performance of your Contract. The supplemental insurance amount provides an additional insurance benefit on the life of the insured. You specify the amount of coverage you desire, in addition to the Contract's basic insurance amount. The minimum supplemental insurance amount that you may request is $5,000 and the maximum is four times the Contract’s basic insurance amount payable. You may increase the supplemental insurance amount subject to a minimum increase amount of $50,000 and the underwriting requirements determined by us. The supplemental insurance amount after the increase, cannot exceed four times the Contract's basic insurance amount. You may also decrease your supplemental insurance amount after issue, subject to a minimum decrease amount of $10,000, but not to an amount below $5,000. The Accidental Death Benefit Rider does not apply to the portion of the death benefit that is attributable to the supplemental insurance amount. See Supplemental Insurance Amount.

Types of Death Benefit Available Under the Contract

There are three types of death benefit available. You may choose a Contract with a Type A (fixed) death benefit under which the death benefit generally remains at the basic insurance amount plus the supplemental insurance amount you initially chose. However, the Contract Fund (described below) may grow to a point where the death benefit may increase and vary with investment experience. If you choose a Type B (variable) Contract, your death benefit is generally equal to the basic insurance amount plus the Contract Fund plus the supplemental insurance amount and will vary with investment experience. For Type A and Type B death benefits, as long as the Contract is in-force, the death benefit will never be less than the basic insurance amount shown in your Contract. If you choose a Contract with a Type C (return of premium) death benefit, the death benefit is generally equal to the basic insurance amount plus the total premiums paid into the Contract, less withdrawals, accumulated at an interest rate (between 0% and 8%; in ½% increments) chosen by the Contract owner plus the supplemental insurance amount. The death benefit on a Type C Contract is limited to the basic insurance amount, the supplemental insurance amount, plus an amount equal to: the Contract Fund plus the Type C Limiting Amount (the sum of the initial basic insurance amount plus the initial supplemental insurance amount) multiplied by the Type C Death Benefit Factor, both located in the Contract Limitations section of your Contract.

With any type of death benefit, the death benefit may be increased to ensure that the Contract will satisfy the Internal Revenue Code's definition of life insurance.

You may change your Contract’s death benefit type after issue, however, if you choose a Type A or Type B death benefit at issue, you will not be able to change to a Type C death benefit thereafter. Also, if you change a Type C death benefit to a Type A or Type B death benefit after issue, you will not be able to change back to a Type C death benefit. See Types of Death Benefit and Changing the Type of Death Benefit.

Limited No-Lapse Guarantee Information

We agree to keep the Contract in-force for a specified period, regardless of the investment performance under your Contract, as long as your total premiums (reduced to reflect withdrawals) accumulated at 4% interest are at least equal to the Limited No-Lapse Guarantee Values shown in your Contract. If you have an outstanding Contract loan the Limited No-Lapse Guarantee will not keep the Contract in-force. See Withdrawals and Loans.

There are two separate guarantee periods, both associated with a corresponding level of premium payments. For example, payment of the Short-Term No-Lapse Guarantee Premium at the beginning of each Contract year guarantees that your Contract will not lapse during the first 10 Contract years, assuming no loans or withdrawals. If your Contract was issued with a Type A or Type B death benefit, and you are paying the Limited No-Lapse Guarantee Premium at the beginning of each Contract year, we will guarantee your Contract against lapse until the later of the insured's age 80 or for 10 years after issue, whichever comes later, assuming no loans or withdrawals. Contracts with a type C death benefit will only have a No Lapse Guarantee for the first five years. See Limited No-Lapse Guarantee and PREMIUMS.

Unless the Limited No-Lapse Guarantee is in effect, the Contract will go into default if the Contract Fund less any Contract debt and less any applicable surrender charges falls to zero or less. Your Pruco Life of New Jersey representative can tell you the premium amounts you will need to make to maintain these guarantees.

The Contract Fund

Your Contract Fund value changes daily, reflecting: (1) increases or decreases in the value of the variable investment options; (2) interest credited on any amounts allocated to the fixed rate option; (3) interest credited on any loan; and (4) the daily asset charge for mortality and expense risks assessed against the variable investment options. The Contract Fund value also changes to reflect the receipt of premium payments, charges deducted from premium payments, and the monthly deductions described under CHARGES AND EXPENSES.

Premium Payments

Except for the minimum initial premium, and subject to a minimum of $25 per subsequent payment, you choose the timing and amount of premium payments. The Contract will remain in-force if the Contract Fund less any applicable surrender charges is greater than zero and more than any Contract debt. Paying insufficient premiums, poor investment results, or the taking of loans or withdrawals from the Contract will increase the possibility that the Contract will lapse. However, if the premiums you paid, accumulated at an effective annual rate of 4%, less withdrawals also accumulated at 4% (“Accumulated Net Payments”) are at least equal to the amounts shown in the Table of Limited No-Lapse Guarantee Values in your Contract Data pages, and there is no Contract debt, we guarantee that your Contract will not lapse even if investment experience is very unfavorable and the Contract Fund drops below zero. See PREMIUMS, Limited No-Lapse Guarantee, and LAPSE AND REINSTATEMENT.

If you pay more premium than permitted under section 7702A of the Internal Revenue Code, your Contract would be classified as a Modified Endowment Contract, which would affect the federal income tax treatment of loans and withdrawals. For more information, see Modified Endowment Contracts.

Allocation of Premium Payments

When you apply for the Contract, you tell us how to allocate your premiums. You may change the way in which subsequent premiums are allocated by giving written notice to a Service Office or by telephoning a Service Office, provided you are enrolled to use the Telephone Transfer System. See Allocation of Premiums.

Contract date and the end of the valuation period in which it is received. After the tenth day, these funds, adjusted for any investment results, will be transferred out of the Money Market investment option and allocated among the variable investment options and/or the fixed rate option according to your current premium allocation.

Investment Choices

You may choose to invest your Contract's premiums and its earnings in one or more of 28 available variable investment options. You may also invest in the fixed rate option. See The Funds and The Fixed Rate Option. You may transfer money among your investment choices, subject to restrictions. See Transfers/Restrictions on Transfers.

We may add or remove variable investment options in the future.

Transfers Among Investment Options

Multiple transfers that occur during the same day, but prior to the end of the valuation period for that day, will be counted as a single transfer.

There is an administrative charge of up to $25 for each transfer made exceeding 12 in any Contract year.

While you also may transfer amounts from the fixed rate option, certain restrictions may apply.

You may also transfer amounts from the variable investment option to the fixed rate option at anytime within 18 months from the Contract date, and within the later of 60 days from the effective date of a material change in the investment policy of a variable investment option and 60 days from the notice of that change, with no restriction. Such transfers do not count toward the twelve transfers allowed in each Contract year.

We reserve the right to prohibit transfer requests we determine to be disruptive to the investment option or to the disadvantage of other Contract owners.

Restrictions will be applied uniformly and will not be waived.

In addition, you may use our dollar cost averaging feature or our automatic rebalancing feature. For additional information, please see Transfers/Restrictions on Transfers, Dollar Cost Averaging, and Auto-Rebalancing.

Increasing or Decreasing Insurance Amount

Subject to conditions determined by us, after the issue of the Contract and after the first Contract anniversary, you may increase the amount of insurance by increasing the basic insurance amount and/or the supplemental insurance amount of the Contract. When you do this, you create an additional coverage segment. Each coverage segment will be subject to its own monthly deductions and surrender charge and will have its own surrender charge period beginning on that segment’s effective date. Surrender charges do not apply to the supplemental insurance amount. See Increases in Insurance Amount and Surrender Charges.

Subject to certain limitations, you also have the option of decreasing the basic insurance amount and/or the supplemental insurance amount of your Contract after the issue of the Contract. You may increase your supplemental insurance amount coverage to an amount of up to four times the Contract's basic insurance amount. See Decreases in Insurance Amount.

For Contracts with more than one coverage segment, a decrease in basic insurance amount will reduce each basic insurance amount coverage segment based on the proportion of the basic insurance amount coverage segment amount to the total of all basic insurance amount coverage segment amounts in effect just before the change. A decrease in basic insurance amount may result in a surrender charge. See Surrender Charges. If there is more than one supplemental insurance amount coverage segment we will decrease the most recent supplemental insurance amount coverage segment first.

We may decline a decrease in the basic insurance amount and/or the supplemental insurance amount if we determine it would cause the Contract to fail to qualify as "life insurance" for purposes of Section 7702 of the Internal Revenue Code. In addition, if the basic insurance amount and/or the supplemental insurance amount is decreased, or a significant premium is paid in conjunction with an increase, there is a possibility that the Contract will be classified as a Modified Endowment Contract. See Tax Treatment of Contract Benefits. We may decline a decrease in the basic insurance amount if the Contract Fund value is less than any applicable partial surrender charges.

No administrative processing charge is currently being made in connection with either an increase or a decrease in basic insurance amount. However, we reserve the right to make such a charge in an amount of up to $25. See CHARGES AND EXPENSES.

Access to Contract Values

A Contract may be surrendered for its cash surrender value (the Contract Fund minus any Contract debt and minus any applicable surrender charge) while the insured is living. To surrender a Contract, we may require you to deliver or mail the Contract with a written request in a form that meets our needs, to a Service Office. The cash surrender value of a Contract will be determined as of the end of the valuation period in which such a request is received in a Service Office. Surrender of a Contract may have tax consequences. See Surrender of a Contract and Tax Treatment of Contract Benefits.

Under certain circumstances, you may withdraw a part of the Contract's cash surrender value without surrendering the Contract. The amount withdrawn must be at least $500. There is an administrative processing fee for each withdrawal which is the lesser of: (a) $25 and; (b) 2% of the withdrawal amount. Withdrawal of the cash surrender value may have tax consequences. See Withdrawals and Tax Treatment of Contract Benefits.

Contract Loans

You may borrow money from us using your Contract as security for the loan, provided the Contract is not in default. The maximum loan amount is equal to the sum of (1) 99% of the portion of the cash value attributable to the variable investment options and (2) the balance of the cash value, provided the Contract is not in default. The cash value is equal to the Contract Fund less any surrender charge. A Contract in default has no loan value. There is no minimum loan amount. See Loans.

Canceling the Contract (“Free-Look”)

Generally, you may return the Contract for a refund within 10 days (60 days for certain circumstances) after you receive it. In general, you will receive a refund of all premium payments made. A Contract returned according to this provision shall be deemed void from the beginning.

SUMMARY OF CONTRACT RISKS

Contract Values are not Guaranteed

Your benefits (including life insurance) are not guaranteed, but may be entirely dependent on the investment performance of the variable investment options you select. The value of your Contract Fund rises and falls with the performance of the investment options you choose and the charges that we deduct. Poor investment performance could cause your Contract to lapse and you could lose your insurance coverage. However, payment of the death benefit may be guaranteed under the Limited No-Lapse Guarantee feature. See Limited No-Lapse Guarantee.

The variable investment options you choose may not perform to your expectations. Investing in the Contract involves risks including the possible loss of your entire investment. Only the fixed rate option provides a guaranteed rate of return. For more detail, please see Risks Associated with the Variable Investment Options and The Fixed Rate Option.

Increase in Charges

In several instances we will use the terms “maximum charge” and “current charge.” The “maximum charge,” in each instance, is the highest charge that we may make under the Contract. The “current charge,” in each instance, is the amount that we now charge, which may be lower than the maximum charge. If circumstances change, we reserve the right to increase each current charge, up to the maximum charge, without giving any advance notice.

Contract Lapse

Each month we determine the value of your Contract Fund. If the Contract Fund less any applicable surrender charges is zero or less, the Contract is in default unless it remains in-force under the Limited No-Lapse Guarantee. See Limited No-Lapse Guarantee. Your Contract will also be in default if at any time the Contract debt equals or exceeds the Contract Fund less any applicable surrender charges. Should either event occur, we will notify you of the required payment to prevent your Contract from terminating. See Loans. Your payment must be received at the Payment Office within the 61-day grace period after the notice of default is mailed or the Contract will end and have no value. See LAPSE AND REINSTATEMENT. If you have an outstanding loan when your Contract lapses, you may have taxable income as a result. See Tax Treatment of Contract Benefits - Pre-Death Distributions.

Risks of Using the Contract as a Short-Term Savings Vehicle

Because the Contract provides for an accumulation of a Contract Fund as well as a death benefit, you may wish to use it for various insurance planning purposes. Purchasing the Contract for such purposes may involve certain risks.

For example, a life insurance contract could play an important role in helping you to meet the future costs of a child’s education. The Contract’s death benefit could be used to provide for education costs should something happen to you, and its investment features could help you accumulate savings. However, if the variable investment options you choose perform poorly, if you do not pay sufficient premiums, or if you access the values in your Contract through withdrawals or Contract loans, your Contract may lapse or you may not accumulate the funds you need.

The Contract is designed to provide benefits on a long-term basis. Consequently, you should not purchase the Contract as a short-term investment or savings vehicle. Because of the long-term nature of the Contract, you should consider whether purchasing the Contract is consistent with the purpose for which it is being considered.

Risks of Taking Withdrawals

If your Contract meets certain requirements, you may make withdrawals from your Contract’s cash surrender value while the Contract is in-force. The amount withdrawn must be at least $500. The withdrawal amount is limited by the requirement that the net cash value after withdrawal may not be less than or equal to zero after deducting any charges associated with the withdrawal and an amount that we estimate will be sufficient to cover the Contract Fund deductions for two Monthly dates following the date of withdrawal. There is a transaction fee for each withdrawal which is the lesser of: (a) $25 and; (b) 2% of the withdrawal amount. Withdrawal of the cash surrender value may have tax consequences. See Tax Treatment of Contract Benefits.

Whenever a withdrawal is made, the death benefit will immediately be reduced by at least the amount of the withdrawal. Withdrawals under Type B (variable) and Type C (return of premium) Contracts, will not change the basic insurance amount and/or the supplemental insurance amount. However, under a Type A (fixed) Contract, the withdrawal may require a reduction in the basic insurance amount, and if the death benefit was increased to meet the definition of life insurance, a reduction in the supplemental insurance amount may be required. A surrender charge may be deducted when any withdrawal causes a reduction in the basic insurance amount. See CHARGES AND EXPENSES. No withdrawal will be permitted under a Type A (fixed) Contract if it would result in a basic insurance amount of less than the minimum basic insurance amount or a supplemental insurance amount of less than the minimum supplemental insurance amount. See REQUIREMENTS FOR ISSUANCE OF A CONTRACT. It is important to note, however, that if the basic insurance amount and/or the supplemental insurance amount is decreased, there is a possibility that the Contract might be classified as a Modified Endowment Contract. Accessing the values in your Contract through withdrawals may significantly affect current and future Contract values or death benefit proceeds and may increase the chance that your Contract will lapse. Before making any withdrawal that causes a decrease in basic insurance amount and /or the supplemental insurance amount, you should consult with your tax adviser and your Pruco Life of New Jersey representative. See Withdrawals and Tax Treatment of Contract Benefits.

Limitations on Transfers

You may, up to 12 times each Contract year, transfer amounts among the variable investment options or to the fixed rate option. There is a transaction charge of up to $25 for each transfer made exceeding 12 in any Contract year.

Additional transfers may be made only with our consent. Currently, we allow you to make additional transfers. For the first 20 transfers in a calendar year, you may transfer amounts by proper written notice to a Service Office, or by telephone, provided you are enrolled to use the Telephone Transfer System. We use reasonable procedures to confirm that instructions given by telephone are genuine. However, we are not liable for following telephone instructions that we reasonably believe to be genuine. In addition, we cannot guarantee that you will be able to get through to complete a telephone transfer during peak periods such as periods of drastic economic or market change.

After you have submitted 20 transfers in a calendar year, we will accept subsequent transfer requests only if they are in a form acceptable to us, bear an original signature in ink, and are sent to us by U.S. regular mail. After you have submitted 20 transfers in a calendar year, a subsequent transfer request by telephone, fax, or electronic means will be rejected, even in the event that it is inadvertently processed.

Currently, certain transfers effected systematically under either a dollar cost averaging or an automatic rebalancing program described in this prospectus do not count towards the limit of 12 transfers per Contract year or the limit of 20 transfers per calendar year. In the future, we may count such transfers towards the limit.

Multiple transfers that occur during the same day, but prior to the end of the valuation period for that day, will be counted as a single transfer.

Generally, only one transfer from the fixed rate option is permitted during each Contract year. The maximum amount per Contract you may transfer out of the fixed rate option each year is the greater of: (a) 25% of the amount in the fixed rate option; and (b) $2,000.

We may modify your right to make transfers by restricting the number, timing and/or amount of transfers we find to be disruptive to the investment option or to the disadvantage of other Contract owners. We also reserve the right to prohibit transfer requests made by an individual acting under a power of attorney on behalf of more than one Contract owner. We will immediately notify you at the time of a transfer request if we exercise this right.

Restrictions will be applied uniformly and will not be waived. See Transfers/Restrictions on Transfers.

Limitations and Charges on Surrender of the Contract

You may surrender your Contract at any time for its cash surrender value while the insured is living. We deduct a surrender charge from the surrender proceeds. In addition, the surrender of your Contract may have tax consequences. See Tax Treatment of Contract Benefits.

We will assess a surrender charge if, during the first five Contract years (or during the first five years of a coverage segment representing an increase in basic insurance amount), the Contract lapses, is surrendered, or the basic insurance amount is decreased (including as a result of a withdrawal or a death benefit type change). The surrender charge varies and is calculated as described in Surrender Charges. While the amount of the surrender charge decreases over time, it may be a substantial portion or even equal to your Contract Fund.

Risks of Taking a Contract Loan

Accessing the values in your Contract through Contract loans may significantly affect current and future Contract values or death benefit proceeds and may increase the chance that your Contract will lapse. Your Contract will be in default if, at any time, the Contract debt equals or exceeds the Contract Fund less any applicable surrender charges even if the Limited No-Lapse Guarantee is in effect. If the Contract lapses or is surrendered, the amount of unpaid Contract debt will be treated as a distribution and will be immediately taxable to the extent of the gain in the Contract. In addition, if your Contract is a Modified Endowment Contract for tax purposes, taking a Contract loan may have tax consequences. See Tax Treatment of Contract Benefits.

Tax Consequences of Buying this Contract

Your Contract is structured to meet the definition of life insurance under Section 7702 of the Internal Revenue Code. At issue, the Contract owner chooses one of the following definition of life insurance tests: (1) Cash Value Accumulation Test or (2) Guideline Premium Test. Under the Cash Value Accumulation Test, there is a minimum death benefit to cash value ratio. Under the Guideline Premium Test, there is a limit to the amount of premiums that can be paid into the Contract, as well as a minimum death benefit to cash value ratio. Consequently, we reserve the right to refuse to accept a premium payment that would, in our opinion, cause this Contract to fail to qualify as life insurance. We also have the right to refuse to accept any payment that increases the death benefit by more than it increases the Contract Fund. Although we believe that the Contract should qualify as life insurance for tax purposes, there are some uncertainties, particularly because the Secretary of Treasury has not yet issued permanent regulations that bear on this question. Accordingly, we reserve the right to make changes -- which will be applied uniformly to all Contract owners after advance written notice -- that we deem necessary to insure that the Contract will qualify as life insurance.

Current federal tax law generally excludes all death benefits from the gross income of the beneficiary of a life insurance contract. However, your death benefit could be subject to estate tax. In addition, you generally are not subject to taxation on any increase in the Contract value until it is withdrawn. Generally, you are taxed on surrender proceeds and the proceeds of any partial withdrawals only if those amounts, when added to all previous distributions, exceed the total premiums paid. Amounts received upon surrender or withdrawal (including any outstanding Contract loans) in excess of premiums paid are treated as ordinary income.

Special rules govern the tax treatment of life insurance policies that meet the federal definition of a Modified Endowment Contract. The Contract could be classified as a Modified Endowment Contract if premiums in amounts that are too large are paid or a decrease in the basic insurance amount and/or the supplemental insurance amount is made (or a rider removed). The addition of a rider or an increase in the basic insurance amount and/or the supplemental insurance amount may also cause the Contract to be classified as a Modified Endowment Contract if a significant premium is paid in conjunction with an increase or the addition of a rider. We will notify you if a premium or a reduction in basic insurance amount and/or the supplemental insurance amount would cause the Contract to become a Modified Endowment Contract, and advise you of your options.

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. However, amounts you receive under the Contract before the insured's death, including loans and withdrawals, are included in income to the extent that the Contract Fund before surrender charges exceeds the premiums paid for the Contract increased by the amount of any loans previously included in income and reduced by any untaxed amounts previously received other than the amount of any loans excludible from income. An assignment of a Modified Endowment Contract is taxable in the same way. These rules also apply to pre-death distributions, including loans and assignments, made during the two-year period before the time that the Contract became a Modified Endowment Contract.

All Modified Endowment Contracts issued by us to you during the same calendar year are treated as a single Contract for purposes of applying these rules. See Tax Treatment of Contract Benefits.

Any taxable income on pre-death distributions (including full surrenders) is subject to a penalty of 10 percent unless the amount is received on or after age 59½, on account of your becoming disabled or as a life annuity. It is presently unclear how the penalty tax provisions apply to Contracts owned by businesses.

Replacement of the Contract

The replacement of life insurance is generally not in your best interest. In most cases, if you require additional coverage, the benefits of your existing Contract can be protected by purchasing additional insurance or a supplemental Contract. If you are considering replacing a Contract, you should compare the benefits and costs of supplementing your existing Contract with the benefits and costs of purchasing the Contract described in this prospectus and you should consult with a tax adviser.

SUMMARY OF RISKS ASSOCIATED WITH

THE VARIABLE INVESTMENT OPTIONS

You may choose to invest your Contract's premiums and its earnings in one or more of 28 available variable investment options. You may also invest in the fixed rate option. The fixed rate option is the only investment option that offers a guaranteed rate of return. See The Funds and The Fixed Rate Option.

Risks Associated with the Variable Investment Options

The separate account invests in the shares of one or more open-end management investment companies registered under the Investment Company Act of 1940. Each variable investment option has its own investment objective and associated risks, which are described in the accompanying Fund prospectuses. The income, gains, and losses of one variable investment option have no effect on the investment performance of any other variable investment option.

We do not promise that the variable investment options will meet their investment objectives. Amounts you allocate to the variable investment options may grow in value, decline in value or grow less than you expect, depending on the investment performance of the variable investment options you choose. You bear the investment risk that the variable investment options may not meet their investment objectives. It is possible to lose your entire investment in the variable investment options. Although the Series Fund Money Market Portfolio is designed to be a stable investment option, it is possible to lose money in that Portfolio. For example, when prevailing short-term interest rates are very low, the yield on the Money Market Portfolio may be so low that, when separate account and Contract charges are deducted, you experience a negative return. See The Funds.

Learn More about the Variable Investment Options

Before allocating amounts to the variable investment options, you should read the current Fund prospectuses for detailed information concerning their investment objectives, strategies, and investment risks.

GENERAL DESCRIPTIONS OF THE REGISTRANT, DEPOSITOR, AND PORTFOLIO COMPANIES

Pruco Life Insurance Company of New Jersey

Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey", “us”, “we”, or “our”) is a stock life insurance company, organized in 1982 under the laws of the state of New Jersey. It is licensed to sell life insurance and annuities only in the states of New Jersey and New York. Pruco Life of New Jersey’s principal Executive Office is located at 213 Washington Street, Newark, New Jersey 07102.

The Pruco Life of New Jersey Variable Appreciable Account

Pruco Life of New Jersey has established a separate account, the Pruco Life of New Jersey Variable Appreciable Account (the "Account") to hold the assets that are associated with the Contracts. The Account was established on January 13, 1984 under New Jersey law and is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940 as a unit investment trust, which is a type of investment company. The Account meets the definition of a "separate account" under the federal securities laws. The Account holds assets that are segregated from all of Pruco Life of New Jersey's other assets.

Pruco Life of New Jersey is the legal owner of the assets in the Account. Pruco Life of New Jersey will maintain assets in the Account with a total market value at least equal to the reserve and other liabilities relating to the variable benefits attributable to the Contracts. In addition to these assets, the Account's assets may include funds contributed by Pruco Life of New Jersey to commence operation of the Account and may include accumulations of the charges we make against the Account. From time to time these additional assets will be transferred to Pruco Life of New Jersey's general account. Pruco Life of New Jersey will consider any possible adverse impact the transfer might have on the Account before making any such transfer.

Income, gains and losses credited to, or charged against, the Account reflect the Account’s own investment experience and not the investment experience of Pruco Life of New Jersey’s other assets. The assets of the Account may not be charged with liabilities that arise from any other business Pruco Life of New Jersey conducts.

The obligations to Contract owners and beneficiaries arising under the Contracts are general corporate obligations of Pruco Life of New Jersey.

Currently, you may invest in one or a combination of 28 available variable investment options. When you choose a variable investment option, we purchase shares of a mutual fund or a separate investment series of a mutual fund which are held as an investment for that option. We hold these shares in the Account. We may remove or add additional variable investment options in the future. The Account’s financial statements are available in the Statement of Additional Information to this prospectus.

The Funds

Each of these Funds is detailed in separate prospectuses that are provided with this prospectus. You should read the Fund prospectuses before you decide to allocate assets to the variable investment options using that Fund. There is no assurance that the investment objectives of the variable investment options will be met.

Listed below are the variable investment options in which the Account invests, their investment objectives, investment advisers and investment subadvisers:

The Prudential Series Fund, Inc. (the “Series Fund”):

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Diversified Bond Portfolio: The investment objective is a high level of income over a longer term while providing reasonable safety of capital. The Portfolio normally invests at least 80% of its investable assets in higher grade debt obligations and high quality money market investments. The Portfolio may invest up to 20% of its total assets in debt securities issued outside the U.S., by U.S. or foreign issuers whether or not such securities are denominated in the U.S. dollar.

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Equity Portfolio (merged with SP MFS Capital Opportunities Portfolio): The investment objective is long-term growth of capital. The Portfolio normally invests at least 80% of its investable assets in common stocks of major established corporations as well as smaller companies that we believe offer attractive prospects of appreciation. The Portfolio may invest up to 30% of its total assets in foreign securities.

•	Global Portfolio: The investment objective is long-term growth of capital. The Portfolio invests primarily in common stocks (and their equivalents) of foreign and U.S. companies.

•	High Yield Bond Portfolio: The investment objective is a high total return. The Portfolio normally invests at least 80% of its investable assets in high yield/high risk debt securities. The Portfolio may invest up to 20% of its total assets in foreign debt obligations.

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Jennison Portfolio: The investment objective is long-term growth of capital. The Portfolio invests primarily in equity securities of major, established corporations that we believe offer above-average growth prospects. The Portfolio may invest up to 30% of its total assets in foreign securities.

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Money Market Portfolio: The investment objective is maximum current income consistent with the stability of capital and the maintenance of liquidity. The Portfolio invests in high quality short-term money market instruments issued by the U.S. Government or its agencies, as well as by corporations and banks, both domestic and foreign.

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Stock Index Portfolio: The investment objective is investment results that generally correspond to the performance of publicly-traded common stocks. The Portfolio attempts to duplicate the price and yield of the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”) by investing at least 80% of its investable assets in S&P 500 stocks.

•	SP Aggressive Growth Asset Allocation Portfolio: The investment objective is capital appreciation. The Portfolio invests primarily in domestic equity portfolios and international equity portfolios.

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SP AIM Core Equity Portfolio: The investment objective is growth of capital. The Portfolio invests at least 80% of its net assets in equity securities of established companies that have long-term above-average growth in earnings and dividends, and growth companies that the Portfolio managers believe have the potential for above-average growth in earnings.

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SP AllianceBernstein Large Cap Growth Portfolio (formerly SP Alliance Large Cap Growth Portfolio): The investment objective is long-term growth of capital. The Portfolio invests at least 80% of its investable assets in stocks of companies considered to have large capitalizations. The Portfolio may invest up to 15% of its total assets in foreign securities.

•	SP Balanced Asset Allocation Portfolio: The investment objective is to provide a balance between current income and growth of capital. The Portfolio invests primarily in domestic equity portfolios, fixed income portfolios, and international equity portfolios.

•	SP Conservative Asset Allocation Portfolio: The investment objective is to provide current income with low to moderate capital appreciation. The Portfolio invests primarily in domestic equity portfolios, fixed income portfolios, and international equity portfolios.

•	SP Davis Value Portfolio: The investment objective is long-term growth of capital. The Portfolio invests primarily in common stock of U.S. companies with market capitalizations of at least $10 billion.

•	SP Goldman Sachs Small Cap Value Portfolio: The investment objective is long-term growth of capital. The Portfolio normally invests at least 80% of its investable assets in small capitalization companies with a capitalization of $4 billion or less.

•	SP Growth Asset Allocation Portfolio: The investment objective is long-term growth of capital with consideration also given to current income. The Portfolio invests primarily in domestic equity portfolios, fixed income portfolios, and international equity portfolios.

•	SP Large Cap Value Portfolio: The investment objective is long-term growth of capital. The Portfolio normally invests at least 80% of its investable assets in common stocks and securities convertible into common stock of companies with a total market capitalization of $5 billion or more.

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SP LSV International Value Portfolio (formerly SP Deutsche International Equity Portfolio): The investment objective is long-term capital appreciation. The Portfolio normally invests at least 80% of its investable assets in the stocks and other equity securities of companies in developed countries outside the United States that are represented in the MSCI EAFE Index.

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SP Mid Cap Growth Portfolio (merged with SP AIM Aggressive Growth Portfolio): The investment objective is long-term growth of capital. The Portfolio normally invests at least 80% of its investable assets in common stocks and related securities, such as preferred stocks, convertible securities, and depositary receipts for those securities of companies with medium market capitalizations equaling or exceeding $250 million, but not exceeding the Russell MidcapTM Growth Index range at the time of investment.

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SP PIMCO High Yield Portfolio: The investment objective is maximum total return, consistent with preservation of capital and prudent investment management. The Portfolio normally invests at least 80% of its investable assets in a diversified portfolio of high yield/high risk securities rated below investment grade, but rated at least CCC by Moody’s Investor Service, Inc. or Standard & Poor’s Ratings Group, or, if unrated, determined by Pacific Investment Management Company (“PIMCO”) to be of comparable quality. The Portfolio may invest up to 15% of its assets in non - U.S. denominated securities.

•	SP PIMCO Total Return Portfolio: The investment objective is maximum total return, consistent with preservation of capital and prudent investment management. The Portfolio normally invests at least 65% of its assets in a diversified portfolio of fixed income instruments of varying maturities.

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SP Prudential U.S. Emerging Growth Portfolio (merged with SP Technology Portfolio): The investment objective is long-term capital appreciation. The Portfolio normally invests at least 80% of its investable assets in equity securities of small and medium sized U.S. companies that the adviser believes have the potential for above-average growth.

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SP Small Cap Growth Portfolio (formerly SP State Street Small Cap Growth Portfolio): The investment objective is long-term capital growth. The Portfolio normally invests at least 80% of its investable assets in common stocks of small-capitalization companies - those which have market capitalizations no larger than the largest capitalized company included in the Russell 2000 Index during the most recent 11- month period.

•	SP Strategic Partners Focused Growth Portfolio: The investment objective is long-term growth of capital. The Portfolio normally invests at least 65% of its total assets in equity-related securities of U.S. companies that the adviser believes to have strong capital appreciation potential.

•	SP William Blair International Growth Portfolio: The investment objective is long-term growth of capital. The Portfolio normally invests at least 65% of its total assets in the common stock of foreign companies operating or based in at least five different countries.

Prudential Investments LLC (“PI”), a wholly-owned subsidiary of Prudential Financial, Inc., serves as the overall investment adviser for the Series Fund. PI will furnish investment advisory services in connection with the management of the Series Fund portfolios under a “manager-of-managers” approach. Under this structure, PI is authorized to select (with approval of the Series Fund’s independent directors) one or more subadvisers to handle the actual day-to-day investment management of each Portfolio. PI is located at Gateway Center Three, 100 Mulberry Street, Newark, New Jersey 07102-4077.

Jennison Associates LLC (“Jennison”), an indirect, wholly-owned subsidiary of Prudential Financial, Inc., serves as the subadviser for the Global Portfolio, the Jennison Portfolio, and the SP Prudential U.S. Emerging Growth Portfolio. Jennison serves as a subadviser for a portion of the assets of the Equity Portfolio and the SP Strategic Partners Focused Growth Portfolio. Jennison is located at 466 Lexington Avenue, New York, New York 10017.

Prudential Investment Management, Inc. (“PIM”), a wholly-owned subsidiary of Prudential Financial, Inc., serves as the subadviser for the Diversified Bond Portfolio, the High Yield Bond Portfolio, the Money Market Portfolio, and the Stock Index Portfolio. PIM is located at Gateway Center Two, 100 Mulberry Street, Newark, New Jersey 07102.

A I M Capital Management, Inc. ("A I M Capital") serves as the subadviser for the SP AIM Core Equity Portfolio. A I M Capital is located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173.

Alliance Capital Management, L.P. ("Alliance") serves as the subadviser for the SP AllianceBernstein Large Cap Growth Portfolio and a portion of the SP Strategic Partners Focused Growth Portfolio. Alliance is located at 1345 Avenue of the Americas, New York, New York 10105.

Calamos Asset Management, Inc. (“Calamos”) serves as the subadviser for the SP Mid Cap Growth Portfolio. Calamos, a registered investment advisor, is a wholly-owned subsidiary of Calamos Holdings, Inc. Calamos’ address is 1111 E. Warrenville Road, Naperville, Illinois 60563-1463.

Davis Selected Advisers, L.P. (“Davis”) serves as the subadviser for the SP Davis Value Portfolio. Davis is located at 2949 East Elvira Road, Suite 101, Tucson, Arizona 85706.

Eagle Asset Management (“Eagle”) serves as subadviser for approximately 50% of the assets of the SP Small Cap Growth Portfolio. Eagle is a wholly-owned subsidiary of Raymond James Financial, Inc. The address of Eagle is 880 Carillon Parkway, St. Petersburg, Florida 33733.

GE Asset Management Incorporated (“GEAM”) serves as the subadviser for a portion of the assets of the Equity Portfolio. GEAM’s ultimate parent is General Electric Company. GEAM is located at 3003 Summer Street, Stamford, Connecticut 06904.

Goldman Sachs Asset Management, L.P. (“GSAM”) serves as the subadviser for the SP Goldman Sachs Small Cap Value Portfolio. GSAM is a unit of the Investment Management Division of Goldman, Sachs & Co. (“Goldman Sachs”). GSAM is located at 32 Old Slip, 23rd Floor, New York, New York 10005.

Hotchkis and Wiley Capital Management LLC (“Hotchkis and Wiley”) serves as the subadviser for approximately 50% of the assets of the SP Large Cap Value Portfolio. Hotchkis and Wiley is a registered investment adviser. Hotchkis and Wiley is located at 725 South Figueroa Street, Suite 3900, Los Angeles, California 90017-5439.

J.P. Morgan Investment Management, Inc. (“J.P. Morgan”) serves as the subadviser for approximately 50% of the assets of the SP Large Cap Value Portfolio. J.P. Morgan is an indirect, wholly-owned subsidiary of J.P. Morgan Chase & Co., a publicly held bank holding company and global financial services firm. J.P. Morgan is located at 522 Fifth Avenue, New York, NY 10036.

LSV Asset Management (“LSV”) serves as the subadviser for the SP LSV International Value Portfolio. LSV is located at One North Wacker Drive, Suite 4000, Chicago, Illinois 60606.

Neuberger Berman Management, Inc. (“Neuberger Berman”) serves as subadviser for approximately 50% of the assets of the SP Small Cap Growth Portfolio. Neuberger Berman is a wholly owned subsidiary of Neuberger Berman Inc. (“NBI”), which is a wholly owned subsidiary of Lehman Brothers Holdings Inc. ("LBHI"). The address of Neuberger Berman is 605 Third Avenue, New York, NY 10158.

Pacific Investment Management Company LLC (“PIMCO”) serves as the subadviser for the SP PIMCO High Yield Portfolio and the SP PIMCO Total Return Portfolio. PIMCO is a subsidiary of Allianz Dresdner Asset Management of America L.P., formerly PIMCO Advisors L.P. PIMCO is located at 840 Newport Center Drive, Newport Beach, California 92660.

Salomon Brothers Asset Management, Inc. (“SaBAM”) serves as the subadviser for a portion of the assets of the Equity Portfolio. SaBAM is a wholly-owned subsidiary of Citigroup, Inc. SaBAM is located at 399 Park Avenue, New York, New York 10022.

William Blair & Company LLC (“William Blair”) serves as the subadviser for SP William Blair International Equity Portfolio. William Blair is located at 222 West Adams Street, Chicago, Illinois 60606.

The SP Aggressive Growth Asset Allocation Portfolio, the SP Balanced Asset Allocation Portfolio, the SP Conservative Asset Allocation Portfolio, and the SP Growth Asset Allocation Portfolio, each invests only in shares of other underlying Fund portfolios, which are managed by the subadvisers of those portfolios.

As an investment adviser, PI charges the Series Fund a daily investment management fee as compensation for its services. PI pays each subadviser out of the fee that PI receives from the Series Fund.

M Fund, Inc.:

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Brandes International Equity Fund: The investment objective is long term capital appreciation. The fund invests primarily in equity securities of foreign issuers, including common stocks, preferred stock and securities that are convertible into common stocks. The fund focuses on stocks with capitalizations of $1 billion or more. The fund also may invest in emerging market securities and non-dollar securities. The fund’s sub-adviser is Brandes Investment Partners, LLC.

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Business Opportunity Value Fund: The investment objective is long-term capital appreciation. The fund invests primarily in equity securities of U.S. issuers in the large-to-medium capitalization segment of the U.S. stock market. The fund may invest up to 15% of the value of its total assets in securities of foreign issuers that are listed on U.S. exchanges or are represented by American Depositary Receipts (ADRs). The fund’s sub-adviser is Iridian Asset Management LLC.

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Frontier Capital Appreciation Fund: The investment objective is to seek the maximum capital appreciation. The fund invests primarily in the common stocks of U.S. companies of all sizes, with emphasis on stock companies with capitalizations that are consistent with the capitalizations of those companies found in the Russell 2500 Stock Index. The fund may invest up to 15% of the value of its total assets in securities of foreign issuers that are listed on U.S. exchanges or are represented by American Depositary Receipts (ADRs). The fund’s sub-adviser is Frontier Capital Management Company, LLC.

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Turner Core Growth Fund: The investment objective is long-term capital appreciation. The fund invests primarily in the common stocks of U.S. companies that the sub-advisor believes have strong earnings growth potential. The fund may invest up to 10% of the value of its total assets in securities of foreign issuers that are listed on U.S. exchanges or are represented by American Depositary Receipts (ADRs). The fund’s sub-adviser is Turner Investment Partners, Inc.

M Financial Investment Advisers, Inc. (“MFIA”) is the investment adviser of the M Fund, Inc. MFIA’s business address is M Financial Plaza, Suite 900, 1125 NW Couch Street, Portland, Oregon 97209.

The investment advisers or subadvisers for the Funds charge a daily investment management fee as compensation for their services. These fees are more fully described in the prospectus for each Fund.

In the future, it may become disadvantageous for separate accounts of variable life insurance and variable annuity contracts to invest in the same underlying variable investment options. Neither the companies that invest in the Funds nor the Funds currently foresee any such disadvantage. The Board of Directors for each Fund intends to monitor events in order to identify any material conflict between variable life insurance and variable annuity Contract owners and to determine what action, if any, should be taken. Material conflicts could result from such things as:

(1)	changes in state insurance law;
(2)	changes in federal income tax law;
(3)	changes in the investment management of any variable investment option; or
(4)	differences between voting instructions given by variable life insurance and variable annuity Contract owners.

A fund or portfolio may have a similar name, investment objective, or investment policy resembling those of a mutual fund managed by the same investment adviser or subadviser that is sold directly to the public. Despite such similarities, there can be no assurance that the investment performance of any such fund or portfolio will resemble that of the publicly available mutual fund.

Service Fees Payable to Pruco Life of New Jersey

Pruco Life of New Jersey has entered into agreements with the investment adviser or distributor of the underlying funds. Under the terms of these agreements, Pruco Life of New Jersey provides administrative and support services to the portfolios for which it receives an annual fee that ranges from zero to 0.05%, as of May 1, 2005, of the average assets allocated to the Fund or portfolio under the Contract from the investment adviser, distributor and/or the Fund. These agreements, including the fees paid and services provided, can vary for each underlying mutual fund whose portfolios are offered as investment options.

Voting Rights

We are the legal owner of the shares of the mutual funds associated with the variable investment options. However, we vote the shares of the mutual funds according to voting instructions we receive from Contract owners. We will mail you a proxy, which is a form you need to complete and return to us, to tell us how you wish us to vote. When we receive those instructions, we will vote all of the shares we own on your behalf in accordance with those instructions. We vote shares for which we do not receive instructions, and any other shares that we own in our own right, in the same proportion as the shares for which instructions are received. We may change the way your voting instructions are calculated if it is required by federal or state regulation. We may also elect to vote shares that we own in our own right if the applicable federal securities laws or regulations, or their current interpretation, change so as to permit us to do so.

We may, if required by state insurance regulations, disregard voting instructions if they would require shares to be voted so as to cause a change in the sub-classification or investment objectives of one or more variable investment options or to approve or disapprove an investment advisory contract for the Fund. In addition, we may disregard voting instructions that would require changes in the investment policy or investment adviser of one or more of the variable investment options, provided that we reasonably disapprove such changes in accordance with applicable federal or state regulations. If we disregard Contract owner voting instructions, we will advise Contract owners of our action and the reasons for such action in the next available annual or semi-annual report.

Substitution of Variable Investment Options

We may substitute one or more of the variable investment options. We may also cease to allow investments in any existing variable investment options. We do this only if events such as investment policy changes or tax law changes make a variable investment option unsuitable. We would not do this without the approval of the Securities and Exchange Commission and necessary state insurance department approvals. You will be given specific notice in advance of any substitution we intend to make.

The Fixed Rate Option

You may choose to invest, initially or by transfer, all or part of your Contract Fund to the fixed rate option. This amount becomes part of Pruco Life of New Jersey's general account. The general account consists of all assets owned by Pruco Life of New Jersey other than those in the Account and in other separate accounts that have been or may be established by Pruco Life of New Jersey. Subject to applicable law, Pruco Life of New Jersey has sole discretion over the investment of the general account assets, and Contract owners do not share in the investment experience of those assets. Instead, Pruco Life of New Jersey guarantees that the part of the Contract Fund allocated to the fixed rate option will accrue interest daily at an effective annual rate that Pruco Life of New Jersey declares periodically, but not less than an effective annual rate of 3%. Pruco Life of New Jersey is not obligated to credit interest at a rate higher than an effective annual rate of 3%, although we may do so.

Transfers out of the fixed rate option are subject to strict limits. See Transfers/Restrictions on Transfers. The payment of any cash surrender value attributable to the fixed rate option may be delayed up to six months. See When Proceeds Are Paid.

Because of exemptive and exclusionary provisions, interests in the fixed rate option under the Contract have not been registered under the Securities Act of 1933 and the general account has not been registered as an investment company under the Investment Company Act of 1940. Accordingly, interests in the fixed rate option are not subject to

the provisions of these Acts, and Pruco Life of New Jersey has been advised that the staff of the SEC has not reviewed the disclosure in this prospectus relating to the fixed rate option. Any inaccurate or misleading disclosure regarding the fixed rate option may, however, be subject to certain generally applicable provisions of federal securities laws.

CHARGES AND EXPENSES

The total amount invested in the Contract Fund, at any time, consists of the sum of the amount credited to the variable investment options, the amount allocated to the fixed rate option, plus any interest credited on amounts allocated to the fixed rate option, and the principal amount of any Contract loan plus the amount of interest credited to the Contract upon that loan. See Loans. Most charges, although not all, are made by reducing the Contract Fund.

In several instances we use the terms "maximum charge" and "current charge." The "maximum charge", in each instance, is the highest charge that we may make under the Contract. The "current charge", in each instance, is the amount that we now charge, which may be lower than maximum charges. If circumstances change, we reserve the right to increase each current charge, up to the maximum charge, without giving any advance notice.

Current charges deducted from premium payments and the Contract Fund may change from time to time, subject to maximum charges. In deciding whether to change any of these current charges, we will periodically consider factors such as mortality, persistency, expenses, taxes and interest and/or investment experience to see if a change in our assumptions is needed. Premium based administrative charges will be set at one rate for all Contracts like this one. Changes in other charges will be by class. We will not recoup prior losses or distribute prior gains by means of these changes.

This section provides a more detailed description of each charge that is described briefly in the charts beginning on page 1.

Sales Load Charges

We may charge up to 12% of premiums paid for sales expenses in all Contract years. This charge, often called a “sales load”, is deducted to compensate us for the costs of selling the Contracts, including commissions, advertising and the printing and distribution of prospectuses and sales literature.

Our current sales load charge is 9.75% of premiums paid up to the amount of the Sales Load Target Premium and 4% of premiums paid in excess of this amount for the first 10 Contract years (or the first 10 years of a coverage segment representing an increase in basic insurance amount); and 3% thereafter. The Sales Load Target Premium may vary from the Limited No-Lapse Guarantee Premium, depending on the issue age and rating class of the insured, any extra risk charges, or additional riders. See PREMIUMS.

Paying more than the Sales Load Target Premium in any of the first 10 Contract years, could reduce your total sales load. For example, assume that a Contract with no riders or extra insurance charges has a Sales Load Target Premium of $884.00 and the Contract owner would like to pay 10 premiums. If the Contract owner paid $1,768 (two times the amount of the Sales Load Target Premium) in every other Contract year up to the ninth year (i.e. in years 1, 3, 5, 7, 9), the total sales load charge would be $607.75. If the Contract owner paid $884.00 in each of the first 10 Contract years, the total sales load would be $861.90.

Attempting to structure the timing and amount of premium payments to reduce the potential sales load may increase the risk that your Contract will lapse without value. Delaying the payment of premium amounts to later years will adversely affect the Limited No-Lapse Guarantee if the accumulated premium payments do not reach the Limited No-Lapse Guarantee Values shown on your Contract Data pages. See Limited No-Lapse Guarantee. In addition, there are circumstances where payment of premiums that are too large may cause the Contract to be characterized as a Modified Endowment Contract, which could be significantly disadvantageous. See Tax Treatment of Contract Benefits.

Premium Based Administrative Charge

We may charge up to 7.5% for a premium based administrative charge, which includes any federal, state or local income, premium, excise, business tax or any other type of charge (or component thereof) measured by or based upon the amount of premium we receive.

This charge is made up of two parts, which currently equal a total of 3.75% of the premiums received.

The first part is a charge for state and local premium taxes. The current amount for this first part is 2.5% of the premium and is our estimate of the average burden of state taxes generally. The rate applies uniformly to all Contract owners without regard to location of residence. We may collect more for this charge than we actually pay for state and local premium taxes.

The second part is a charge for federal income taxes measured by premiums. The current amount for this second part is 1.25% of the premium. We believe that this charge is a reasonable estimate of an increase in Pruco Life of New Jersey’s federal income taxes resulting from a change in the Internal Revenue Code. It is intended to recover this increased tax.

Under current law, we may incur state and local taxes (in addition to premium taxes) in several states. Currently, these taxes are not significant and they are not charged against the Account. If there is a material change in the applicable state or local tax laws, we may impose a corresponding charge against the Account.

Cost of Insurance

We deduct, monthly, a cost of insurance ("COI") charge proportionately (or as you directed, see Allocated Charges) from the dollar amounts held in each of the chosen investment options. The purpose of this charge is to provide insurance coverage. When an insured dies, the amount payable to the beneficiary (assuming there is no Contract debt) is larger than the Contract Fund - significantly larger if the insured dies in the early years of a Contract. The cost of insurance charges collected from all Contract owners enables us to pay this larger death benefit. The maximum COI charge is determined by multiplying the amount by which the Contract’s death benefit exceeds the Contract Fund ("net amount at risk") under a Contract by maximum COI rates.

The net amount at risk is affected by factors such as: investment performance, premium payments, and charges. The maximum COI rates are based upon the 1980 Commissioners Standard Ordinary ("CSO") Mortality Tables and an insured's current attained age, sex (except where unisex rates apply), smoker/non-smoker status, and extra rating class, if any. At most ages, our current COI rates are lower than the maximum rates. Current COI charges range from $0.46 to $83.34 per $1,000 of net amount at risk. For additional information regarding COI charges where there are two or more coverage segments in effect, see Increases in Insurance Amount.

Monthly Deductions from the Contract Fund

We deduct the following monthly charges proportionately from the dollar amounts held in each of the chosen investment option[s] or you may select up to two variable investment options from which we deduct your Contract's monthly charges. See Allocated Charges.

(a)

We deduct an administrative charge based on the basic insurance amount and/or the supplemental insurance amount. This charge is made up of two parts and is intended to compensate us for things like processing claims, keeping records, and communicating with Contract owners. Currently, the first part is $20 per Contract for the first two Contract years and $8 per Contract thereafter. However, we may charge up to $20 per Contract for all years. Currently, the second part is an amount of up to $1.87 per $1,000 of the basic insurance amount for the first five Contract years and zero thereafter. Currently, there is no per $1,000 charge for the supplemental insurance amount. The amount per $1,000 of basic insurance amount varies by sex, issue age, smoker/nonsmoker status, and extra rating class, if any.

(b)

If the Contract includes a coverage segment representing an increase in basic insurance amount, we deduct $12 per segment representing an increase in basic insurance amount for the first two years of each coverage segment and zero thereafter; plus, we currently charge up to $1.87 per $1,000 of each coverage segment for each increase in basic insurance amount for the first five years from the effective date of the increase and zero thereafter. Currently, there is no monthly administrative charge for the increase in supplemental insurance amount. The amount per $1,000 varies by sex, issue age, smoker/nonsmoker status, extra rating class, if any, and the effective date of the increase.

In either of the instances described above, the highest charge per $1,000 is $1.87 of the basic insurance amount and $1.88 of the supplemental insurance amount in all years and applies to male age 75. The lowest charge per $1,000 is $0.07 of the basic insurance amount and $0.08 of the supplemental insurance amount and applies to female age 18, non-smoker at certain rating classes. The amount of the maximum charge that applies to a particular Contract is shown on the Contract Data pages under the heading “Adjustments to the Contract Fund.”

The following table provides sample per thousand charges:

Issue Age	Male Non-Smoker	Male Smoker	Female Non-Smoker	Female Smoker
35	$0.23	$0.27	$0.19	$0.21
45	$0.40	$0.48	$0.32	$0.36
55	$0.70	$0.86	$0.56	$0.61
65	$1.22	$1.50	$0.94	$1.04

(c)	You may add one or more riders to the Contract. Some riders are charged for separately. If you add such a rider to the basic Contract, additional charges will be deducted. See Charges for Optional Rider Coverage.

(d)	If an insured is in a substandard risk classification (for example, a person with a health condition), additional charges will be deducted.

The earnings of the Account are taxed as part of the operations of Pruco Life of New Jersey. Currently, no charge is being made to the Account for Pruco Life of New Jersey’s federal income taxes, other than the 1.25% charge for federal income taxes measured by premiums. See Premium Based Administrative Charge. We periodically review the question of a charge to the Account for Pruco Life of New Jersey’s federal income taxes. We may make such a charge in the future for any federal income taxes that would be attributable to the Contracts.

Daily Deduction from the Variable Investment Options

Each day we deduct a charge from the assets of the variable investment options in an amount equivalent to an effective annual rate of up to 0.45%. Currently, we charge 0%. This charge is intended to compensate us for assuming mortality and expense risks under the Contract. The mortality risk we assume is that insureds may live for shorter periods of time than we estimated when mortality charges were determined. The expense risk we assume is that expenses incurred in issuing and administering the Contract will be greater than we estimated in fixing our administrative charges. This charge is not assessed against amounts allocated to the fixed rate option.

Surrender Charges

We assess a surrender charge if, during the first five Contract years (or during the first five years of a coverage segment representing an increase in basic insurance amount), the Contract lapses, is surrendered, or the basic insurance amount is decreased (including as a result of a withdrawal or a death benefit type change). These surrender charges compensate us for costs associated with the Contracts, such as: processing applications, conducting examinations, determining insurability and the insured’s rating class, and establishing records. The surrender charge is a percentage of the first year’s Sales Load Target Premium, less premiums for riders, and is determined at the time the Contract is issued. A separate surrender charge is based on the first year’s Sales Load Target Premium for each new basic insurance amount coverage segment and is determined at the time each new coverage segment is issued. The percentage and duration of a surrender charge vary by issue age. The maximum first year percentage is 30% of the Sales Load Target Premium, less premiums for riders, and is reduced to zero by the end of the 5^th Contract year. While the amount of the surrender charge decreases over time, it may be a substantial portion of, or even equal to your Contract Fund.

The chart below shows maximum percentages for all ages at the beginning of the first Contract year and the end of the last Contract year that a surrender charge may be payable. We do not deduct a surrender charge from the death benefit if the insured dies during this period. A schedule showing maximum surrender charges for a full surrender occurring each year that a surrender charge may be payable is found in the Contract Data pages of your Contract.

Percentages for Determining Surrender Charges
Issue Age	Percentage at start of year 1	Percentage at start of year 2	Percentage at start of year 3	Percentage at start of year 4	Percentage at start of year 5	Percentage at start of year 6
18-39	30%	30%	15%	15%	10%	0%
40	30%	20%	15%	15%	10%	0%
41-42	25%	20%	15%	15%	10%	0%
43	20%	20%	15%	15%	10%	0%
44	20%	15%	15%	15%	10%	0%
45	15%	15%	15%	15%	10%	0%
46	15%	15%	15%	15%	0%	0%
47-48	15%	15%	10%	10%	0%	0%
49-60	15%	15%	10%	0%	0%	0%
61-62	15%	15%	5%	0%	0%	0%
63-68	15%	10%	5%	0%	0%	0%
69 and above	15%	10%	0%	0%	0%	0%

We will show a surrender charge threshold for each basic insurance amount coverage segment in the Contract Data pages. This threshold amount is the segment’s lowest coverage amount since its effective date. If during the first five Contract years (or during the first five years of a coverage segment representing an increase in basic insurance amount), the basic insurance amount is decreased (including as a result of a withdrawal or a change in type of death benefit), and the new basic insurance amount for any coverage segment is below the threshold for that segment, we will deduct a percentage of the surrender charge for that segment. The percentage will be the amount by which the new coverage segment is less than the threshold, divided by the basic insurance amount at issue. After this transaction, the threshold will be updated and a corresponding new surrender charge schedule will also be determined to reflect that portion of surrender charges deducted in the past.

Transaction Charges

(a)	We currently charge a transaction fee of $25 for each transfer exceeding 12 in any Contract year.

(b)	We currently charge a transaction fee equal to the lesser of $25 and 2% of the withdrawal amount in connection with each withdrawal.

(c)	We may charge a transaction fee of up to $25 for any change in basic insurance amount.

(d)	We may charge a transaction fee of up to $25 for any change in supplemental insurance amount.

(e)	We may charge a transaction fee of up to $150 for Living Needs Benefit payments.

Allocated Charges

You may select up to two variable investment options from which we deduct your Contract's monthly charges. Monthly charges include: (1) monthly administrative charges, (2) COI charges, (3) any rider charges, and (4) any charge for substandard risk classification. Allocations must be designated in whole percentages and total 100%. For example, 33% can be selected but 331/3% cannot. The fixed rate option is not available as one of your allocation options. See Monthly Deductions from the Contract Fund.

If there are insufficient funds in one or both of your selected variable investment options to cover the monthly charges, the selected variable investment option(s) will be reduced to zero. Any remaining charge will be deducted from your other variable investment options and the fixed rate option proportionately to the dollar amount in each. Furthermore, if you do not specify an allocation of monthly charges, we will deduct monthly charges proportionately from all your variable investment options and the fixed rate option.

Charges After Age 100

Beginning on the first Contract anniversary on or after the insured’s 100^th birthday, we will no longer accept premiums or deduct monthly charges from the Contract Fund. You may continue the Contract until the insured's death, or until you surrender the Contract for its cash surrender value. You may continue to make transfers, loans and withdrawals, subject to the limitations on these transactions described elsewhere in this prospectus. We will continue to make daily

deductions for mortality and expense risk charges, and investment advisory fees if you have amounts in the variable investment options. Any Contract loan will remain outstanding and continue to accrue interest until it is repaid.

Portfolio Charges

We deduct charges from and pay expenses out of the variable investment options as described in the Fund prospectuses.

Charges for Optional Rider Coverage

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Accidental Death Benefit Rider - We deduct a monthly charge for this rider, which provides an additional death benefit if the insured’s death is accidental. The current charge ranges from $0.05 to $0.28 per $1,000 of coverage based on issue age and sex of the insured, and is charged until the first Contract anniversary on or after the insured’s 100^th birthday.

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Children Level Term Rider - We deduct a monthly charge for this rider, which provides term life insurance on all dependent children that are covered under this rider. The current charge is $0.42 per $1,000 of coverage and is charged until the earliest of: the primary insured’s death, and the first Contract anniversary on or after the primary insured’s 75^th birthday.

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Enhanced Disability Benefit Rider - We deduct a monthly charge for this rider, which provides invested premium amounts while the insured is totally disabled. The current charge is based on issue age, sex, and underwriting class. It ranges from 6.9% to 10% of the greater of: 9% of the Contract’s Limited No-Lapse Guarantee Premium and the total of all monthly deductions, and is charged until the first Contract anniversary on or after the insured’s 60^thbirthday.

•	Living Needs Benefit Rider - We deduct a $150 fee for this rider only if benefits are paid.

PERSONS HAVING RIGHTS UNDER THE CONTRACT

Contract Owner

Generally, the Contract owner is the insured. There are circumstances when the Contract owner is not the insured. There may also be more than one Contract owner. If the Contract owner is not the insured or there is more than one Contract owner, they will be named in an endorsement to the Contract. This ownership arrangement will remain in effect unless you ask us to change it.

You may change the ownership of the Contract by sending us a request in a form that meets our needs. We may ask you to send us the Contract to be endorsed. If we receive your request in a form that meets our needs, and the Contract if we ask for it, we will file and record the change, and it will take effect as of the date we receive your request.

While the insured is living, the Contract owner is entitled to any Contract benefit and value. Only the Contract owner is entitled to exercise any right and privilege granted by the Contract or granted by us. For example, the Contract owner is entitled to surrender the Contract, access Contract values through loans or withdrawals, assign the Contract, and to name or change the beneficiary.

Beneficiary

The beneficiary is entitled to receive any benefit payable on the death of the insured. You may designate or change a beneficiary by sending us a request in a form that meets our needs. We may ask you to send us the Contract to be endorsed. If we receive your request in a form that meets our needs, and the Contract if we ask for it, we will file and record the change and it will take effect as of the date we receive your request. However, if we make any payment(s) before we receive the request, we will not have to make the payment(s) again. When we are made aware of an assignment, we will recognize the assignee’s rights before any claim payments are made to the beneficiary. When a beneficiary is designated, any relationship shown is to the insured, unless otherwise stated.

OTHER GENERAL CONTRACT PROVISIONS

Assignment

This Contract may not be assigned if the assignment would violate any federal, state or local law or regulation prohibiting sex distinct rates for insurance. Generally, the Contract may not be assigned to an employee benefit plan or program without our consent. We assume no responsibility for the validity or sufficiency of any assignment. We will not be obligated to comply with any assignment unless we receive a copy at a Service Office.

Incontestability

We will not contest the Contract after it has been in-force during the insured’s lifetime for two years from the issue date, the reinstatement date, or the effective date of any change made to the Contract that requires our approval and would increase our liability.

Misstatement of Age or Sex

If the insured's stated age or sex or both are incorrect in the Contract, we will adjust the death benefit payable and any amount to be paid, as required by law, to reflect the correct age and sex. Any such benefit will be based on what the most recent deductions from the Contract Fund would have provided at the insured's correct age and sex.

Settlement Options

The Contract grants to most Contract owners, or to the beneficiary, a variety of optional ways of receiving Contract proceeds, other than in a lump sum. In addition to the contractual guaranteed options, Pruco Life of New Jersey and Prudential have entered into an agreement under which Prudential furnishes Pruco Life of New Jersey the same administrative support services that it provides in the operation of its own business with regard to the payment of death claim proceeds by way of Prudential’s Alliance Account. Pruco Life of New Jersey transfers to Prudential an amount equal to the amount of the death claim, and Prudential establishes an individual account within its Alliance Account in the name of the beneficiary and makes all payments necessary to satisfy such obligations. The Alliance Account is the default settlement option in states where it is approved. Any Pruco Life of New Jersey representative authorized to sell this Contract can explain these options upon request.

Suicide Exclusion

Generally, if the insured, whether sane or insane, dies by suicide within two years from the Contract date, the Contract will end and we will return the premiums paid, less any Contract debt, and less any withdrawals. Generally, if the insured, whether sane or insane, dies by suicide after two years from the issue date, but within two years of the effective date of an increase in the basic insurance amount and/or the supplemental insurance amount, we will pay, as to the increase in amount, no more than the sum of the premiums paid on and after the effective date of an increase.

Supplemental Insurance Amount

The supplemental insurance amount provides an additional insurance benefit on the life of the insured. You specify the amount of coverage you desire, in addition to the Contract's basic insurance amount. The minimum supplemental insurance amount that you may request is $5,000 and the maximum is four times the Contract’s basic insurance amount. You may increase the supplemental insurance amount subject to a minimum increase amount of $50,000 and the underwriting requirements determined by Pruco Life of New Jersey. The supplemental insurance amount after the increase, cannot exceed four times the Contract's basic insurance amount. You may also decrease your supplemental insurance amount after issue, subject to a minimum decrease amount of $10,000.

The supplemental insurance amount death benefit fluctuates as the basic insurance amount death benefit changes. When the Contract Fund has not grown to the point where the basic insurance amount death benefit is increased to satisfy the Internal Revenue Code’s definition of life insurance, the coverage amount and death benefit associated with the supplemental insurance amount are equal. However, if the Contract Fund has grown to the point where the basic insurance amount death benefit begins to vary as required by the Internal Revenue Code's definition of life insurance, the supplemental insurance amount death benefit will decrease (or increase) dollar for dollar as the basic insurance amount death benefit increases (or decreases). The supplemental insurance amount death benefit will never exceed the supplemental insurance amount. It is possible, however, for the Contract Fund and, consequently, the basic insurance amount death benefit to grow to the point where the supplemental insurance amount death benefit is reduced to zero. If you have a Type A death benefit and you take a withdrawal, the supplemental insurance amount

may require a reduction if the basic insurance amount death benefit was increased to meet the definition of life insurance. We will not reduce the supplemental insurance amount below $5,000.

When selecting how much of your Target Insurance Amount (basic insurance amount plus supplemental insurance amount) will be for supplemental insurance amount and how much Target Insurance Amount will be for basic insurance amount, you should be aware of the following:

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A Target Insurance Amount with a larger supplemental insurance amount will offer a higher cash value and death benefit than a Target Insurance Amount with a smaller supplemental insurance amount if we do not change our current charges. This is because: (1) the Sales Load Target Premium will be lower for a Target Insurance Amount with a larger supplemental insurance amount than for a Target Insurance Amount with a smaller supplemental insurance amount, and this may result in lower current sales expense charges, (2) the monthly administrative charge will be lower for a Target Insurance Amount with a larger supplemental insurance amount than for a Target Insurance Amount with a smaller supplemental insurance amount, and (3) we currently take lower current Cost of Insurance charges for the supplemental insurance amount than for the basic insurance amount.

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However, a Target Insurance Amount with a larger supplemental insurance amount offers the potential for lower cash values and death benefits than a Target Insurance Amount with a smaller supplemental insurance amount if we raise our current charges to the maximum contractual level. This is because the guaranteed maximum per $1,000 charges are higher for the supplemental insurance amount. The surrender charge does not apply to the supplemental insurance amount.

Other factors to consider are:

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The Accidental Death Benefit does not apply to any portion of the death benefit that is attributable to a supplemental insurance amount. If it is important to you to have the maximum amount of Accidental Death Benefit allowed under your Contract, you may want to purchase a Contract with the minimum supplemental insurance amount of $5,000. See RIDERS.

Some of the factors outlined above can have effects on the financial performance of a Contract, including the amount of the Contract's cash value and death benefit. It is important that you ask your Pruco Life of New Jersey representative to provide illustrations based on different combinations of basic insurance amount and supplemental insurance amount. You and your Pruco Life of New Jersey representative can then discuss how these combinations may address your objectives.

RIDERS

Contract owners may be able to obtain extra fixed benefits, which may require additional charges. These optional insurance benefits will be described in what is known as a "rider" to the Contract. Charges applicable to the riders will be deducted from the Contract Fund on each Monthly date. The amounts of these benefits do not depend on the performance of the Account, although they will no longer be available if the Contract lapses. Certain restrictions may apply and are clearly described in the applicable rider. A Pruco Life of New Jersey representative can explain all of these extra benefits further. We will provide samples of the provisions upon receiving a written request.

Accidental Death Benefit Rider - The Accidental Death Benefit Rider provides an additional death benefit that is payable if the insured's death is accidental, as defined in the benefit provision. This benefit will end on the earliest of: the end of the day before the first Contract anniversary on or after the insured’s 100^th birthday and the first Monthly date on or after the date a request to discontinue the Rider is received in Good Order at a Service Office.

Children Level Term Rider - The Children Level Term Rider provides term life insurance coverage on the life of the insured's children. The rider coverage will end on the earliest of: (1) the primary insured’s death, (2) the first Contract anniversary on or after the primary insured’s 75^thbirthday, (3) the first Monthly date on or after the date a request to discontinue the Rider is received in Good Order at a Service Office, (4) the first Contract anniversary on or after the child’s 25^th birthday, and (5) the date a rider is converted to a new Contract.

Enhanced Disability Benefit Rider - The Enhanced Disability Benefit Rider pays certain amounts into the Contract if the insured is totally disabled, as defined in the benefit provision. This rider is not available with death benefit Type C (return of premium) Contracts. The rider coverage will end as of the first Contract anniversary on or after the insured’s 60^th birthday.

Living Needs Benefit Rider - The Living Needs Benefit^SM Rider is available on your Contract. There is no charge for adding the benefit to a Contract. However, an administrative charge (not to exceed $150) will be made at the time the Living Needs Benefit is paid. The Living Needs Benefit does apply to the portion of the death benefit that is attributable to the supplemental insurance amount.

The Living Needs Benefit allows you to elect to receive an accelerated payment of all or part of the Contract's death benefit, adjusted to reflect current value, at a time when certain special needs exist. The adjusted death benefit will always be less than the death benefit, but will not be less than the Contract’s cash surrender value.

The Terminal Illness Option is available on the Living Needs Benefit Rider if the insured is diagnosed as terminally ill with a life expectancy of six months or less. When satisfactory evidence is provided, we will provide an accelerated payment of the portion of the death benefit selected by the Contract owner as a Living Needs Benefit. The Contract owner will receive this benefit in a single lump sum.

All or part of the Contract's death benefit may be accelerated under the Living Needs Benefit. If the benefit is only partially accelerated, a death benefit of at least $25,000 must remain under the Contract. We reserve the right to determine the minimum amount that may be accelerated.

No benefit will be payable if you are required to elect it in order to meet the claims of creditors or to obtain a government benefit. We can furnish details about the amount of Living Needs Benefit that is available to an eligible Contract owner, and the effect on the Contract if less than the entire death benefit is accelerated.

You should consider whether adding this settlement option is appropriate in your given situation. Adding the Living Needs Benefit to the Contract has no adverse consequences; however, electing to use it could. With the exception of certain business-related Contracts, the Living Needs Benefit is excluded from income if the insured is terminally ill or chronically ill as defined in any applicable tax law (although the exclusion in the latter case may be limited). You should consult a tax adviser before electing to receive this benefit. Receipt of a Living Needs Benefit payment may also affect your eligibility for certain government benefits or entitlements.

REQUIREMENTS FOR ISSUANCE OF A CONTRACT

The Contract may generally be issued on insureds age 18 through age 90 for death benefit Types A and B, through age 85 for death benefit Type C. Currently, for issue age 18 through age 80 the minimum basic insurance amount is $95,000. For issue age 81 through age 90 the minimum basic insurance amount is $245,000. The minimum supplemental insurance amount is $5,000 for all issue ages. See Types of Death Benefit. The minimum total Target Insurance Amount (basic insurance amount plus supplemental insurance amount combined) is $100,000 for death benefit Type A and B, and $250,000 for death benefit Type C. We may change the minimum basic insurance amounts of the Contracts we will issue.

We require evidence of insurability, which may include a medical examination, before issuing any Contract. Preferred Best non-smokers are offered more favorable cost of insurance rates than smokers. We charge a higher cost of insurance rate and/or an extra amount if an additional mortality risk is involved. These are the current underwriting requirements. We reserve the right to change them on a non-discriminatory basis.

PREMIUMS

Minimum Initial Premium

The Contract offers flexibility in paying premiums. The minimum initial premium is due on or before the Contract date. It is the premium needed to start the Contract. The minimum initial premium is equal to 9% of the Short-Term No-Lapse Guarantee Premium, including all extras, riders, and Enhanced Disability Benefit premium. There is no insurance under the Contract unless the minimum initial premium is paid. Thereafter, you decide when to make premium payments and, subject to a $25 minimum, in what amounts.

We may require an additional premium if adjustments to premium payments exceed the minimum initial premium or there are Contract Fund charges due on or before the payment date. We reserve the right to refuse to accept any payment that increases the death benefit by more than it increases the Contract Fund. Furthermore, there are circumstances under which the payment of premiums in amounts that are too large may cause the Contract to be characterized as a Modified Endowment Contract, which could be significantly disadvantageous. If you make a payment that would cause the Contract to be characterized as a Modified Endowment Contract, we will send you a letter to advise you of your options. Generally, you have 60 days from when we received your payment to remove the excess premiums and any accrued interest. If you choose not to remove the excess premium and accrued interest, your Contract will become permanently characterized as a Modified Endowment Contract. We will not accept a premium payment that exceeds the Guideline Premium limit if your Contract uses the Guideline Premium definition of life insurance. See Tax Treatment of Contract Benefits.

Generally, your initial net premium is applied to your Contract as of the Contract date. If we do not receive your initial premium before the Contract date, we apply the initial premium to your Contract as of the end of the valuation period in which it is received in Good Order at the Payment Office.

Available Types of Premium

After the minimum initial premium is paid, no other specific premiums are required and you have a certain amount of flexibility with respect to the amount and timing for future premium payments. Two suggested patterns of premiums are described below. Understanding them may help you understand how the Contract works.

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Short-Term No-Lapse Guarantee Premiums are premiums that, if paid at the beginning of each Contract year, will keep the Contract in-force during the first 10 Contract years, regardless of investment performance and assuming no loans or withdrawals. If you choose to continue the Limited No-Lapse Guarantee beyond this period, you will have to begin paying premiums higher than the Short-Term No-Lapse Guarantee Premium. However, not all Contracts offer the Limited No-Lapse Guarantee beyond 10 Contract years.

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Limited No-Lapse Guarantee Premiums are premiums that, if paid at the beginning of each Contract year, will keep the Contract in-force until the insured's age 80, or if later, during the first 10 Contract years, regardless of investment performance and assuming no loans or withdrawals. However, not all Contracts offer the Limited No-Lapse Guarantee for this period.

The length of the Limited No-Lapse Guarantee depends on your Contract’s death benefit type. See Limited No-Lapse Guarantee. When you purchase a Contract, your Pruco Life of New Jersey representative can tell you the Limited No-Lapse Guarantee and Short-Term No-Lapse Guarantee Premium amounts. Contracts with no riders or extra risk charges will have level premiums.

We can bill you for the amount you select annually, semi-annually, or quarterly. Because the Contract is a flexible premium Contract, there are no scheduled premium due dates. When you receive a premium notice, you are not required to pay this amount. The Contract will remain in-force if: (1) the Contract Fund, less any applicable surrender charges, is greater than zero and more than any Contract debt or (2) you have paid sufficient premiums, on an accumulated basis, to meet the Limited No-Lapse Guarantee conditions and Contract debt is not equal to or greater than the Contract Fund, less any applicable surrender charges. You may also pay premiums automatically through pre-authorized monthly electronic fund transfers from a bank checking account. If you elect to use this feature, you choose the day of the month on which premiums will be paid and the premium amount. We will then draft the same amount from your account on the same date each month. When you apply for the Contract, you and your Pruco Life of New Jersey representative should discuss how frequently you would like to be billed (if at all) and for what amount.

Allocation of Premiums

On the Contract date, we deduct the charge for sales expenses and the premium based administrative charge from the initial premium. Then the first monthly deductions are made. The remainder of the initial premium and any other net premium received in Good Order at the Payment Office during the 10 day period following your receipt of the Contract will be allocated to the Money Market investment option as of the later of the Contract date and the end of the valuation period in which it is received. After the tenth day, these funds, adjusted for any investment results, will be transferred out of the Money Market investment option and allocated among the variable investment options and/or the fixed rate option according to your current premium allocation. The transfer from the Money Market investment option on the tenth day following receipt of the Contract will not be counted as one of your 12 free transfers per Contract year or the 20 transfers per calendar year described under Transfers/Restrictions on Transfers. If the first premium is received before the Contract date, there will be a period during which the Contract owner's initial premium will not be invested.

The charge for sales expenses and the premium based administrative charge will also apply to all subsequent premium payments. The remainder of each subsequent premium payment will be invested as of the end of the valuation period in which it is received in Good Order at the Payment Office, in accordance with the allocation you previously designated. The “valuation period” means the period of time from one determination of the value of the amount invested in a variable investment options to the next. Such determinations are made when the net asset values of the portfolios of the variable investment options are calculated, which would be as of the close of regular trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time).

Provided the Contract is not in default, you may change the way in which subsequent premiums are allocated by giving written notice to a Service Office or by telephoning a Service Office, provided you are enrolled to use the Telephone Transfer System. There is no charge for reallocating future premiums. All percentage allocations must be in whole numbers. For example, 33% can be selected but 33?% cannot. Of course, the total allocation to all selected investment options must equal 100%.

Transfers/Restrictions on Transfers

You may, up to 12 times each Contract year, transfer amounts among the variable investment options or to the fixed rate option. Additional transfers may be made only with our consent. Currently, we will allow you to make additional transfers. For the first 20 transfers in a calendar year, you may transfer amounts by proper written notice to a Service Office, or by telephone, provided you are enrolled to use the Telephone Transfer System. You will automatically be enrolled to use the Telephone Transfer System unless the Contract is jointly owned or you elect not to have this privilege. Telephone transfers may not be available on Contracts that are assigned, depending on the terms of the assignment. See Assignment.

After you have submitted 20 transfers in a calendar year, we will accept subsequent transfer requests only if they are in a form acceptable to us, bear an original signature in ink, and are sent to us by U.S. regular mail. After you have submitted 20 transfers in a calendar year, a subsequent transfer request by telephone, fax or electronic means will be rejected, even in the event that it is inadvertently processed.

Multiple transfers that occur during the same day, but prior to the end of the valuation period for that day, will be counted as a single transfer.

There is no transaction charge for the first 12 transfers per Contract year among investment options. There is a transaction charge of $25 for each transfer after the first 12 transfers per Contract year.

Currently, certain transfers effected systematically under a dollar cost averaging or an automatic rebalancing program do not count towards the limit of 12 transfers per Contract year or the limit of 20 transfers per calendar year. In the future, we may count such transfers towards the limit.

Transfers out of the Money Market investment option will not be made until 10 days after you receive the Contract. Such transfers and any transfers due to any fund closures or mergers will not be considered towards the 12 transfers per Contract year or the 20 transfers per calendar year.

Transfers among variable investment options will take effect as of the end of the valuation period in which a transfer request is received in Good Order at a Service Office. The request may be in terms of dollars, such as a request to transfer $5,000 from one variable investment option to another, or may be in terms of a percentage reallocation among variable investment options. In the latter case, as with premium reallocations, the percentages must be in whole numbers.

We will use reasonable procedures, such as asking you to provide certain personal information provided on your application for insurance, to confirm that instructions given by telephone are genuine. We will not be held liable for following telephone instructions that we reasonably believe to be genuine. We cannot guarantee that you will be able to get through to complete a telephone transfer during peak periods such as periods of drastic economic or market change.

Only one transfer from the fixed rate option will be permitted during each Contract year. The maximum amount per Contract you may transfer out of the fixed rate option each year is the greater of: (a) 25% of the amount in the fixed rate option; and (b) $2,000. We may change these limits in the future or waive these restrictions for limited periods of time in a non-discriminatory way, (e.g., when interest rates are declining).

The Contract was not designed for professional market timing organizations, other organizations, or individuals using programmed, large, or frequent transfers. Large or frequent transfers among variable investment options in response to short-term fluctuations in markets, sometimes called “market timing”, can make it very difficult for Fund advisers/sub-advisers to manage the variable investment options. Large or frequent transfers may cause the Fund to hold more cash than otherwise necessary, disrupt management strategies, increase transaction costs, or affect performance to the disadvantage of other Contract owners. If we (in our own discretion) believe that a pattern of transfers or a specific transfer request, or group of transfer requests, may have a detrimental effect on the performance of the variable investment options, or we are informed by a Fund (e.g., by the Fund’s adviser/sub-advisers) that the purchase or redemption of shares in the variable investment option must be restricted because the Fund believes the transfer activity to which such purchase or redemption relates would have a detrimental effect on the performance of the affected variable investment option, we may modify your right to make transfers by restricting the number, timing, and amount of transfers. We reserve the right to prohibit transfer requests made by an individual acting under a power of attorney on behalf of more than one Contract owner. We will immediately notify you at the time of a transfer request if we exercise this right.

Any restrictions on transfers will be applied uniformly to all persons who own Contracts like this one, and will not be waived, except as described above with respect to transfers from the fixed rate option. However, due to the discretion involved in any decision to exercise our right to restrict transfers, it is possible that some Contract owners may be able to effect transactions that could affect Fund performance to the disadvantage of other Contract owners.

In addition, Contract owners who own variable life insurance or variable annuity Contracts that do not impose the above-referenced transfer restrictions, might make more numerous and frequent transfers than Contract owners who are subject to such limitations. Contract owners who are not subject to the same transfer restrictions may have the same underlying variable investment options available to them, and unfavorable consequences associated with such frequent trading within the underlying variable investment option (e.g., greater portfolio turnover, higher transaction costs, or performance or tax issues) may affect all Contract owners.

Although our transfer restrictions are designed to prevent excessive transfers, they are not capable of preventing every potential occurrence of excessive transfer activity.

Dollar Cost Averaging

As an administrative practice, we are currently offering a feature called Dollar Cost Averaging ("DCA"). Under this feature, either fixed dollar amounts or a percentage of the amount designated for use under the DCA option will be transferred periodically from the DCA Money Market investment option into other variable investment options available under the Contract, excluding the fixed rate option. You may choose to have periodic transfers made monthly or quarterly. DCA transfers will not begin until the Monthly date on or after 10 days following your receipt of the Contract.

Each automatic transfer will take effect as of the end of the valuation period on the date coinciding with the periodic timing you designate provided the New York Stock Exchange is open on that date. If the New York Stock Exchange is not open on that date, or if the date does not occur in that particular month, the transfer will take effect as of the end of the valuation period, which immediately follows that date. Automatic transfers will continue until: (1) $50 or less remains of the amount designated for Dollar Cost Averaging, at which time the remaining amount will be transferred; or (2) you give us notification of a change in DCA allocation or cancellation of the feature. Currently, a transfer that occurs under the DCA feature is not counted towards the 20 transfers permitted each calendar year or the 12 free

transfers permitted each Contract year. We reserve the right to change this practice, modify the requirements, or discontinue the feature.

Auto-Rebalancing

As an administrative practice, we are currently offering a feature called Auto-Rebalancing. This feature allows you to automatically rebalance variable investment option assets at specified intervals based on percentage allocations that you choose. For example, suppose your initial investment allocation of variable investment options X and Y is split 40% and 60%, respectively. Then, due to investment results, that split changes. You may instruct that those assets be rebalanced to your original or different allocation percentages. Auto-Rebalancing is not available until the Monthly date on or after 10 days following your receipt of the Contract.

Auto-Rebalancing can be performed on a quarterly, semi-annual, or annual basis. Each rebalance will take effect as of the end of the valuation period on the date coinciding with the periodic timing you designate, provided the New York Stock Exchange is open on that date. If the New York Stock Exchange is not open on that date, or if the date does not occur in that particular month, the transfer will take effect as of the end of the valuation period immediately following that date. The fixed rate option cannot participate in this administrative procedure. Currently, a transfer that occurs under the Auto-Rebalancing feature is not counted towards the 20 transfers permitted each calendar year or the 12 free transfers permitted each Contract year. We reserve the right to change this practice, modify the requirements, or discontinue the feature.

DEATH BENEFITS

Contract Date

There is no insurance under this Contract until the minimum initial premium is paid. If a medical examination is required, the Contract date will ordinarily be the date the examination is completed. Under certain circumstances, we may allow the Contract to be backdated up to six months prior to the application date for the purpose of lowering the insured's issue age. This may be advantageous for some Contract owners as a lower issue age may result in lower current charges.

When Proceeds Are Paid

Generally, we will pay any death benefit, cash surrender value, loan proceeds or withdrawal within seven days after all the documents required for such a payment are received at a Service Office. Other than the death benefit, which is determined as of the date of death, the amount will be determined as of the end of the valuation period in which the necessary documents are received at a Service Office. However, we may delay payment of proceeds from the variable investment option[s] and the variable portion of the death benefit due under the Contract if the disposal or valuation of the Account's assets is not reasonably practicable because the New York Stock Exchange is closed for other than a regular holiday or weekend, trading is restricted by the SEC, or the SEC declares that an emergency exists.

We have the right to delay payment of the cash surrender value attributable to the fixed rate option for up to six months (or a shorter period if required by applicable law), including surrenders of fixed reduced paid-up Contracts. We will pay interest of at least 1.5% per year if such a payment is delayed for more than 10 days (or a shorter period if required by applicable law).

Types of Death Benefit

You may select from three types of death benefit at issue. A Contract with a Type A (fixed) death benefit has a death benefit, which will generally equal the basic insurance amount plus the supplemental insurance amount. Favorable investment results and additional premium payments will generally increase the cash surrender value and decrease the net amount at risk and result in lower charges. This type of death benefit does not vary with the investment performance of the investment options you selected, except when the premiums you pay or favorable investment performance causes the Contract Fund to grow to the point where we may increase the death benefit to ensure that the Contract will satisfy the Internal Revenue Code’s definition of life insurance. See How a Contract's Cash Surrender Value Will Vary.

A Contract with a Type B (variable) death benefit has a death benefit, which will generally equal the basic insurance amount plus the Contract Fund plus the supplemental insurance amount. Favorable investment performance and additional premium payments will generally increase your Contract's death benefit and cash surrender value.

However, the increase in the cash surrender value for Type B (variable) Contract may be less than the increase in cash surrender value for a Type A (fixed) Contract because a Type B Contract has a greater cost of insurance charge due to a greater net amount at risk. As long as the Contract is not in default there have been no withdrawals, and there is no Contract debt, the death benefit may not fall below the basic insurance amount stated in the Contract. We may increase the death benefit to ensure that the Contract will satisfy the Internal Revenue Code’s definition of life insurance. See How a Contract's Cash Surrender Value Will Vary.

A Contract with a Type C (return of premium) death benefit has a death benefit, which will generally equal the basic insurance amount plus the total premiums paid into the Contract less withdrawals, both accumulated at an interest rate (between 0% and 8%; in ½% increments) chosen by the Contract owner to the date of death plus the supplemental insurance amount. The death benefit on a Type C Contract is limited to the basic insurance amount, the supplemental insurance amount, plus an amount equal to the: Type C Limiting Amount multiplied by the Type C Death Benefit Factor plus the Contract Fund. See the Contract Limitations section of your Contract. Within limits, this death benefit type allows the beneficiary, in effect, to recover the cost of the Contract, plus a predetermined rate of return, upon the death of the insured. Favorable investment performance and payment of additional premiums will generally increase the Contract's cash surrender value. However, the increase in the cash surrender value for a Type C (return of premium) Contract may be less than the increase in cash surrender value for a Type A (fixed) Contract because a Type C Contract has a greater cost of insurance charge due to a greater net amount at risk. The increase in cash surrender value for a Type C (return of premium) Contract may be more or less than the increase in cash surrender value for a Type B (variable) Contract depending on earnings, the Type C interest rate you chose, and the amount of any withdrawals. If you take a withdrawal it is possible for a Type C Contract’s death benefit to fall below the basic insurance amount. We may increase the death benefit to ensure that the Contract will satisfy the Internal Revenue Code’s definition of life insurance. See How a Contract’s Cash Surrender Value Will Vary.

Contract owners of Type A (fixed) Contracts should note that any withdrawal may result in a reduction of the basic insurance amount, a reduction in the supplemental insurance amount, and the deduction of any applicable surrender charges. We will not allow you to make a withdrawal that will decrease the basic insurance amount below the minimum basic insurance amount. For Type B (variable) Contracts and Type C (return of premium) Contracts, withdrawals will not change the basic insurance amount. See Withdrawals.

The way in which the cash surrender value and death benefit will change depends significantly upon the investment results that are actually achieved.

Changing the Type of Death Benefit

You may change the type of death benefit any time after issue and subject to our approval. We will increase or decrease the basic insurance amount so that the death benefit immediately after the change matches the death benefit immediately before the change. The basic insurance amount after a change may not be lower than the minimum basic insurance amount applicable to the Contract. See REQUIREMENTS FOR ISSUANCE OF A CONTRACT. We may deduct a transaction charge of up to $25 for any change in the basic insurance amount, although we do not currently do so. A type change that reduces the basic insurance amount may result in the assessment of surrender charges. See CHARGES AND EXPENSES.

If you are changing your Contract’s type of death benefit from a Type A (fixed) to a Type B (variable) death benefit, we will reduce the basic insurance amount by the amount in your Contract Fund on the date the change takes place.

If you are changing from a Type B (variable) to a Type A (fixed) death benefit, we will increase the basic insurance amount by the amount in your Contract Fund on the date the change takes place.

If you are changing from a Type C (return of premium) to a Type A (fixed) death benefit, we will change the basic insurance amount by adding the lesser of (a) the total premiums paid minus total withdrawals to this Contract, both accumulated with interest at the rate(s) displayed in your Contract Data pages and (b) the Contract Fund before deduction of any monthly charge due on that date plus the product of the Type C Limiting Amount multiplied by the Type C Death Benefit Factor. The Type C Limiting Amount and the Type C Death Benefit Factor are both found in the Contract Limitations section of your Contract Data pages.

If you are changing from a Type C (return of premium) to a Type B (variable) death benefit, we first find the difference between: (1) the Contract Fund and (2) the lesser of (a) the total premiums paid minus total withdrawals to this Contract both accumulated with interest at the rate(s) displayed in your Contract Data pages and (b) the Contract Fund before deduction of any monthly charge due on that date plus the product of the Type C Limiting Amount multiplied by the Type C Death Benefit Factor. The Type C Limiting Amount and the Type C Death Benefit Factor are both found in the Contract Limitations section of your Contract Data pages. If (2) is larger than (1), we will increase the

basic insurance amount by that difference. If (1) is larger than (2), we will reduce the basic insurance amount by that difference.

You may change your Contract’s death benefit type after issue, however, if you choose a Type A or Type B death benefit at issue, you will not be able to change to a Type C death benefit thereafter. If you change a Type C death benefit to a Type A or Type B death benefit after issue, you will not be able to change back to a Type C death benefit.

The following chart illustrates the changes in basic insurance amount with each change of death benefit type described above. The chart assumes a $50,000 Contract Fund and a $300,000 death benefit. For changes from a Type C death benefit, the chart assumes $40,000 in total premiums minus total withdrawals and the rate chosen to accumulate premiums is 0%.

Basic Insurance Amount

FROM

Type A

$300,000

Type B

$250,000

Type C

N/A

Type B

$250,000

Type A

$300,000

Type C

N/A

Type C

$260,000

Type A

$300,000

Type B

$250,000

To request a change, fill out an application for change, which can be obtained from your Pruco Life of New Jersey representative or a Service Office. If the change is approved, we will recompute the Contract's charges and appropriate tables and send you new Contract Data pages. We may require you to send us your Contract before making the change. There may be circumstances under which a change in the death benefit type may cause the Contract to be classified as a Modified Endowment Contract, which could be significantly disadvantageous. See Tax Treatment of Contract Benefits.

Limited No-Lapse Guarantee

If you pay a sufficient amount of premium on an accumulated basis, we will guarantee that your Contract will not lapse and a death benefit will be paid upon the death of the insured. We will guarantee your Contract‘s death benefit even if your Contract Fund value drops to zero because of unfavorable investment experience. Withdrawals and outstanding Contract loans may adversely affect the status of the Limited No-Lapse Guarantee. See Withdrawals and Loans.

At the Contract date and on each Monthly date, during the Limited No-Lapse Guarantee period shown on your Contract Data pages, we calculate your Contract's “Accumulated Net Payments” as of that date. Accumulated Net Payments equal the premiums you paid, accumulated at an effective annual rate of 4%, less withdrawals also accumulated at 4%.

We also calculate Limited No-Lapse Guarantee Values. These are values used solely to determine if a Limited No-Lapse Guarantee is in effect. These are not cash values that you can realize by surrendering the Contract, nor are they payable death benefits. The Contract Data pages in your Contract contain a table of Limited No-Lapse Guarantee Values, calculated as of Contract anniversaries. Values for non-anniversary Monthly dates will reflect the number of months elapsed between Contract anniversaries.

On each Monthly date, we will compare your Accumulated Net Payments to the Limited No-Lapse Guarantee Value during the Limited No-Lapse Guarantee period shown on your Contract Data pages. If your Accumulated Net Payments equal or exceed the Limited No-Lapse Guarantee Value, and the Contract debt does not equal or exceed the Contract Fund less any applicable surrender charges, then the Contract is kept in-force, regardless of the amount in the Contract Fund.

Short-Term No-Lapse Guarantee Premiums, and Limited No-Lapse Guarantee Premiums are payments that correspond to the Limited No-Lapse Guarantee Values shown on your Contract Data pages. For example, payment of the Short-Term No-Lapse Guarantee Premium at the beginning of each Contract year guarantees that your Contract will not lapse during the first 10 Contract years, assuming no loans or withdrawals. However, continued payment of the Short-Term No-Lapse Guarantee Premium after year 10 will not assure that your Contract's Accumulated Net

Payments will continue to meet the Limited No-Lapse Guarantee Values and prevent the Contract from lapsing. See PREMIUMS.

If you want a Limited No-Lapse Guarantee to last longer than 10 years, you should expect to pay at least the Limited No-Lapse Guarantee Premium at the start of each Contract year. Paying the Limited No-Lapse Guarantee Premium at the beginning of each Contract year guarantees your Contract against lapse until the insured's age 80 or for 10 years after issue, whichever comes later, assuming no loans or withdrawals.

The following table provides sample Short-Term No-Lapse Guarantee Premiums and Limited No-Lapse Guarantee Premiums (to the nearest dollar) for basic insurance amounts. The examples assume: (1) the insured is a male, Preferred Best, with no extra risk or substandard ratings; (2) a $245,000 basic insurance amount and $5,000 of supplemental insurance amount; (3) no extra benefit riders have been added to the Contract.

 ----------------------------------------------------------------------------------------

                              Illustrative Annual Premiums
 ----------------------------------------------------------------------------------------
 ----------------------------------------------------------------------------------------

 Age of insured            Type of                 Short-Term             Limited
    at issue                                   No-Lapse Guarantee   No-Lapse Guarantee
                     Death Benefit Chosen
                                                     Premium              Premium
 ----------------------------------------------------------------------------------------
 ----------------------------------------------------------------------------------------

       40               Type A (Fixed)              $1,482.50            $3,460.00
 ----------------------------------------------------------------------------------------

       40             Type B (Variable)             $1,670.00            $4,897.50
 ----------------------------------------------------------------------------------------

       40         Type C (Return of Premium)        $1,690.00               N/A
 ----------------------------------------------------------------------------------------

       60               Type A (Fixed)              $4,397.50            $8,352.50
 ----------------------------------------------------------------------------------------

       60             Type B (Variable)             $5,040.00           $10,258.00
 ----------------------------------------------------------------------------------------

       60         Type C (Return of Premium)        $8,222.50               N/A
 ----------------------------------------------------------------------------------------

       80               Type A (Fixed)             $20,822.50           $20,822.50
 ----------------------------------------------------------------------------------------

       80             Type B (Variable)            $22,870.00           $22,870.00
 ----------------------------------------------------------------------------------------

       80         Type C (Return of Premium)       $100,820.00              N/A
 ----------------------------------------------------------------------------------------

Paying the Short-Term No-Lapse Guarantee Premiums or Limited No-Lapse Guarantee Premiums at the start of each Contract year is one way of reaching the Limited No-Lapse Guarantee Values; it is certainly not the only way. The Limited No-Lapse Guarantee allows considerable flexibility as to the timing of premium payments. Your Pruco Life of New Jersey representative can supply sample illustrations of various premium amount and frequency combinations that correspond to the Limited No-Lapse Guarantee Values.

When determining what premium amounts to pay and the frequency of your payments, you should consider carefully the value of maintaining the Limited No-Lapse Guarantee. If you desire the Limited No-Lapse Guarantee until the later of the insured's age 80 or 10 years after issue, you may prefer to pay at least the Limited No-Lapse Guarantee Premium in all years, rather than paying the lower Short-Term No-Lapse Guarantee Premium in the first 10 years. If you pay only the Short-Term No-Lapse Guarantee Premium in the first 10 years, you will need to pay more than the Limited No-Lapse Guarantee Premium at the beginning of the 11th year in order to continue the Limited No-Lapse Guarantee.

Not all Contracts will have the Limited No-Lapse Guarantee available until the later of the insured's age 80 or 10 years after issue. Type C Contracts will have a Limited No-Lapse Guarantee for only 10 Contract years. Your Contract Data pages will show Limited No-Lapse Guarantee Values for the duration available with your Contract. See Types of Death Benefit and Tax Treatment of Contract Benefits.

Increases in Insurance Amount

After your first Contract anniversary, you may increase the amount of insurance by increasing the basic insurance amount and/or the supplemental insurance amount of the Contract, thus, creating an additional coverage segment. The increase will be subject to the underwriting requirements we determine.

The following conditions must be met:

(1)		you must ask for the change in a form that meets our needs;
	(2)		the amount of the increase in basic insurance amount must be at least equal to the minimum increase in basic insurance amount shown under Contract Limitations in your Contract Data pages;
	(3)		the amount of the increase in supplemental insurance amount must be at least equal to the minimum increase in supplemental insurance amount shown under Contract Limitations in your Contract Data pages;
(4)		the supplemental insurance amount after an increase can not exceed four times the basic insurance amount.
(5)		you must prove to us that the insured is insurable for any increase;
(6)		the Contract must not be in default;
(7)		we must not be paying premiums into the Contract as a result of the insured's total disability; and
(8)		if we ask you to do so, you must send us the Contract to be endorsed.

If we approve the change, we will send you new Contract Data pages showing the amount and effective date of the change and the recomputed charges, values and limitations. If the insured is not living on the effective date, the change will not take effect. Currently, no transaction charge is being made in connection with an increase in basic insurance amount or an increase in supplemental insurance amount. However, we reserve the right to make such a charge in an amount of up to $25.

The Sales Load Target Premium is calculated separately for each basic insurance amount coverage segment. When premiums are paid, each payment is allocated to each coverage segment based on the proportion of the Sales Load Target Premium in each segment to the total Sales Load Target Premiums of all segments. Currently, the sales load charge for each segment is equal to 9.75% of the allocated premium paid in each Contract year up to the Sales Load Target Premium and 4% of allocated premiums paid in excess of this amount for the first 10 Contract years; 3% thereafter. See the definition of Contract year for an increase under DEFINITIONS OF SPECIAL TERMS USED IN THIS PROSPECTUS.

Each basic insurance amount coverage segment will have its own surrender charge period beginning on that segment’s effective date and its own surrender charge threshold. The surrender charge threshold is the segment’s lowest coverage amount since its effective date. See Decreases in Insurance Amount and Surrender Charges.

The maximum COI rates for a coverage segment representing an increase in basic insurance amount and/or supplemental insurance amount are based upon 1980 CSO Mortality Tables, the age at the effective date of the increase and the number of years since then, total basic insurance amount and/or supplemental insurance amount, sex, underwriting class, smoker/nonsmoker status, and extra rating class, if any. The net amount at risk for the whole Contract (the basic insurance amount death benefit minus the Contract Fund) is allocated to each basic insurance amount coverage segment based on the proportion of its basic insurance amount to the total of all basic insurance amount coverage segments. In addition, the attained age factor for a Contract with an increase in basic insurance amount and/or supplemental insurance amount is based on the insured's attained age for the initial coverage segment.

If you elect to increase the basic insurance amount and/or the supplemental insurance amount of your Contract, you will receive a "free-look" right that will apply only to the increase in basic insurance amount, not the entire Contract. This right is comparable to the right afforded to the purchaser of a new Contract, except that, any cost of insurance charge for the increase in the basic insurance amount will be returned to the Contract Fund instead of a refund of premium. Generally, the "free-look" right must be exercised no later than 10 days after receipt of the Contract with an increase.

Payment of a significant premium in conjunction with an increase in basic insurance amount and/or supplemental insurance amount may cause the Contract to be classified as a Modified Endowment Contract. See Tax Treatment of Contract Benefits. Therefore, before increasing the basic insurance amount and/or the supplemental insurance amount, you should consult with your tax adviser and your Pruco Life of New Jersey representative.

Decreases in Insurance Amount

You have the option of decreasing the basic insurance amount and/or the supplemental insurance amount of your Contract without withdrawing any cash surrender value. If a change in circumstances causes you to determine that your amount of insurance is greater than needed, a decrease will reduce your insurance protection and the monthly deductions for the cost of insurance.

The following conditions must be met:

	(1)		the amount of the decrease must be at least equal to the minimum decrease in the basic insurance amount shown under Contract Limitations in your Contract Data pages;
	(2)		the basic insurance amount and the supplemental insurance amount after the decrease must be at least equal to the minimum basic insurance amount and the minimum supplemental insurance amount shown under Contract Limitations in your Contract Data pages;
(3)		the Contract Fund, after the decrease, must be at least equal to any applicable surrender charges; and
(4)		if we ask you to do so, you must send us the Contract to be endorsed.

If we approve the decrease, we will send you new Contract Data pages showing the amount and effective date of the change and the recomputed charges, values, and limitations. Currently, no transaction charge is being made in connection with a decrease in the basic insurance amount / supplemental insurance amount. However, we reserve the right to make such a charge in an amount of up to $25.

For Contracts with more than one basic insurance amount coverage segment, a decrease in basic insurance amount will reduce each coverage segment based on the proportion of each coverage segment amount to the total of all coverage segment amounts before the decrease. Each basic insurance amount coverage segment will have its own surrender charge threshold equal to the segment’s lowest coverage amount since its effective date. If the decrease in basic insurance amount reduces a coverage segment to an amount less than its surrender charge threshold, we will deduct a surrender charge. See Surrender Charges.

It is important to note, however, that if the basic insurance amount and/or the supplemental insurance amount are decreased, there is a possibility that the Contract will be classified as a Modified Endowment Contract. See Tax Treatment of Contract Benefits. You should consult with your tax adviser and your Pruco Life of New Jersey representative before requesting any decrease in basic insurance amount or supplemental insurance amount.

CONTRACT VALUES

Surrender of a Contract

You may surrender your Contract at any time for its cash surrender value (referred to as net cash value in the Contract) while the insured is living. To surrender a Contract, we may require you to deliver or mail the following items in Good Order to a Service Office; the Contract, a signed request for surrender, and any tax withholding information required under federal or state law. Generally, we will pay your Contract’s cash surrender value within seven days after all the documents required for such a payment are received in Good Order at a Service Office. Surrender of a Contract may have tax consequences. See Tax Treatment of Contract Benefits.

Fixed reduced paid-up insurance is an alternative to surrendering your Contract. Fixed reduced paid-up insurance provides paid-up insurance, the amount of which will be paid when the insured dies. There will be cash values and loan values. The loan interest rate for fixed reduced paid-up insurance is 5%. Upon surrender of the Contract, the amount of fixed reduced paid-up insurance depends upon the net cash value and the insured’s issue age, sex, smoker/non-smoker status, and the length of time since the Contract date.

How a Contract's Cash Surrender Value Will Vary

The cash surrender value will be determined as of the end of the valuation period in which a surrender request is received in Good Order at a Service Office. The Contract's cash surrender value on any date will be the Contract Fund less any applicable surrender charges and less any Contract debt. The Contract Fund value changes daily, reflecting:

(1)	increases or decreases in the value of the variable investment option[s];

(2)	interest credited on any amounts allocated to the fixed rate option;
(3)	interest credited on any loan; and
(4)	the daily asset charge for mortality and expense risks assessed against the variable investment options.

The Contract Fund value also changes to reflect the receipt of premium payments after any charges are deducted and the monthly deductions described under CHARGES AND EXPENSES. Upon request, we will tell you the cash surrender value of your Contract. It is possible for the cash surrender value of a Contract to decline to zero because of unfavorable investment performance or outstanding Contract debt.

The tables on pages T1 through T4 in this prospectus illustrate approximately what the cash surrender values would be for representative Contracts paying certain premium amounts and assuming hypothetical uniform investment results in the Fund portfolios. All four of the tables assume maximum charges will be used throughout the lifetime of the insured. See ILLUSTRATIONS OF CASH SURRENDER VALUES, DEATH BENEFITS, AND ACCUMULATED PREMIUMS.

Loans

You may borrow an amount up to the current loan value of your Contract less any existing Contract debt using the Contract as the only security for the loan. The loan value at any time is equal to the sum of (1) 99% of the portion of the cash value attributable to the variable investment options, and (2) the balance of the cash value, provided the Contract is not in default. The cash value is equal to the Contract Fund less any surrender charge. A Contract in default has no loan value. There is no minimum loan amount.

Interest charged on a loan accrues daily. We charge interest on the full loan amount, including all unpaid interest. Interest is due on each Contract anniversary or when the loan is paid back, whichever comes first. If interest is not paid when due, we will increase the loan amount by any unpaid interest. We charge interest at an effective annual rate of 4% for standard loans.

A portion of any amount you borrow on or after the 10th Contract anniversary may be considered a preferred loan. The maximum preferred loan amount is the total amount you may borrow minus the total net premiums paid (net premiums equal premiums paid less total withdrawals, if any). If the net premium amount is less than zero, we will, for purposes of this calculation, consider it to be zero. Only new loans borrowed after the 10th Contract anniversary may be considered preferred loans. Standard loans will not automatically be converted into preferred loans. Preferred loans are charged interest at an effective annual rate of 3.10%.

When a loan is made, an amount equal to the loan proceeds is transferred out of the variable investment options and/or the fixed rate option, as applicable. Unless you ask us to take the loan amount from specific variable investment options and we agree, the reduction will be made in the same proportions as the value in each variable investment option and the fixed rate option bears to the total value of the Contract. While a loan is outstanding, the amount that was transferred will continue to be treated as part of the Contract Fund. It will be credited with interest at an effective annual rate of 3%. On each Monthly date, we will increase the portion of the Contract Fund in the investment options by interest credits accrued on the loan since the last Monthly date. The net interest rate spread of a standard loan is 1% and the net interest rate spread of a preferred loan is 0.10%.

The Contract debt is the amount of all outstanding loans plus any interest accrued but not yet due. If, on any Monthly date, the Contract debt equals or exceeds the Contract Fund less any applicable surrender charges, the Contract will go into default. The Limited No-Lapse Guarantee will not prevent default under those circumstances. We will notify you of a 61-day grace period, within which time you may repay all or enough of the loan to obtain a positive cash surrender value and thus keep the Contract in-force. If the Contract lapses or is surrendered, the amount of unpaid Contract debt will be treated as a distribution and will be immediately taxable to the extent of gain in the Contract. Reinstatement of the Contract after lapse will not eliminate the taxable income, which we are required to report to the Internal Revenue Service. See LAPSE AND REINSTATEMENT and Tax Treatment of Contract Benefits - Pre-Death Distributions.

Loans you take against the Contract are ordinarily treated as debt and are not considered distributions subject to tax. However, you should know that the Internal Revenue Service may take the position that the loan should be treated as a distribution for tax purposes because of the relatively low differential between the loan interest rate and the Contract’s crediting rate. Distributions are subject to income tax. Were the Internal Revenue Service to take this position, we would take reasonable steps to attempt to avoid this result, including modifying the Contract’s loan provisions, but cannot guarantee that such efforts would be successful.

A loan will not cause the Contract to lapse as long as Contract debt does not equal or exceed the Contract Fund, less any applicable surrender charges. Loans from Modified Endowment Contracts may be treated for tax purposes as distributions of income. See Tax Treatment of Contract Benefits.

Any Contract debt will directly reduce a Contract's cash surrender value and will be subtracted from the death benefit to determine the amount payable. In addition, even if the loan is fully repaid, it may have an effect on future death benefits because the investment results of the selected investment options will apply only to the amount remaining invested under those options. The longer the loan is outstanding, the greater the effect is likely to be. The effect could be favorable or unfavorable. If investment results are greater than the rate being credited on the amount of the loan while the loan is outstanding, values under the Contract will not increase as rapidly as they would have if no loan had been made. If investment results are below that rate, Contract values will be higher than they would have been had no loan been made.

When you repay all or part of a loan, we will increase the portion of the Contract Fund in the investment options by the amount of the loan you repay plus interest credits accrued on the loan since the last transaction date. We will use the investment option you designate or the investment allocation for future premium payments as of the loan payment date. If loan interest is paid when due, it will not change the portion of the Contract Fund allocated to the investment options. We reserve the right to change the manner in which we allocate loan repayments.

Withdrawals

You may withdraw a portion of the Contract's cash surrender value without surrendering the Contract, subject to the following restrictions:

	(a)		Your Contract’s net cash value after the withdrawal may not be less than or equal to zero after deducting any charges associated with the withdrawal.
	(b)		The net cash value after the withdrawal must be an amount that we estimate will be sufficient to cover two months of Contract Fund deductions.
(c)		The withdrawal amount must be at least $500.

There is a transaction fee for each withdrawal, which is the lesser of: (a) $25 and; (b) 2% of the withdrawal amount. A withdrawal may not be repaid except as a premium subject to the applicable charges. Upon request, we will tell you how much you may withdraw. Withdrawal of the cash surrender value may have tax consequences. See Tax Treatment of Contract Benefits.

Whenever a withdrawal is made, the death benefit will immediately be reduced by at least the amount of the withdrawal. Withdrawals under Type B (variable) and Type C (return of premium) Contracts, will not change the basic insurance amount. However, under a Type A (fixed) Contract, the withdrawal may require a reduction in the basic insurance amount and supplemental insurance amount. If a decrease in basic insurance amount reduces a coverage segment below its surrender charge threshold, a surrender charge may be deducted. See Surrender Charges. No withdrawal will be permitted under a Type A (fixed) Contract if it would result in a basic insurance amount of less than the minimum basic insurance amount or a supplemental insurance amount of less than the minimum supplemental insurance amount shown under Contract Limitations in your Contract Data pages. It is important to note, however, that if the basic insurance amount and/or the supplemental insurance amount is decreased, there is a possibility that the Contract might be classified as a Modified Endowment Contract. Before making any withdrawal that causes a decrease in basic insurance amount and/or supplemental insurance amount, you should consult with your tax adviser and your Pruco Life of New Jersey representative. See Tax Treatment of Contract Benefits.

Currently, we will provide an authorization form if your withdrawal request causes a decrease in basic insurance amount and/or supplemental insurance amount that results in your Contract being classified as a Modified Endowment Contract. The authorization form will confirm that you are aware of your Contract becoming a Modified Endowment Contract if the transaction is completed. We will complete the transaction and send a confirmation notice after we receive the completed authorization form in Good Order at a Service Office.

When a withdrawal is made, the Contract Fund is reduced by the withdrawal amount and any charges associated with the withdrawal. An amount equal to the reduction in the Contract Fund will be withdrawn proportionally from the investment options unless you direct otherwise. Withdrawal of any portion of the cash surrender value increases the risk that the Contract Fund may be insufficient to provide Contract benefits. If such a withdrawal is followed by unfavorable investment experience, the Contract may go into default. Withdrawals may also affect whether a Contract is kept in-force under the Limited No-Lapse Guarantee, since withdrawals decrease your Accumulated Net Payments. See Limited No-Lapse Guarantee.

Generally, we will pay any withdrawal amount within seven days after all the documents required for such a payment are received in Good Order at a Service Office. See When Proceeds Are Paid.

A Contract returned during the “free-look” period shall be deemed void from the beginning, and not considered a surrender or withdrawal.

LAPSE AND REINSTATEMENT

We will determine the value of the Contract Fund on each Monthly date. If the Contract Fund less any applicable surrender charges is zero or less, the Contract is in default unless it remains in-force under the Limited No-Lapse Guarantee, assuming there are no outstanding loans. See Limited No-Lapse Guarantee. Separately, if the Contract debt ever grows to be equal to or more than the Contract Fund less any applicable surrender charges, the Contract will be in default. Should this happen, we will send you a notice of default setting forth the payment which we estimate will keep the Contract in-force for three months from the date of default. This payment must be received at the Payment Office within the 61-day grace period after the notice of default is mailed or the Contract will end and have no value. A Contract that lapses with an outstanding Contract loan may have tax consequences. See Tax Treatment of Contract Benefits.

A Contract that ended in default may be reinstated within five years after the date of default, if the following conditions are met:

(1)		renewed evidence of insurability is provided on the insured;
	(2)		submission of certain payments sufficient to bring the Contract up to date plus a premium that we estimate will cover all charges and deductions for the next three months; and
	(3)		any Contract debt with interest to date is restored or paid back. If the Contract debt is restored and the debt with interest would exceed the loan value of the reinstated Contract, the excess must be paid to us before reinstatement.

The reinstatement date will be the date we approve your request. We will deduct all required charges from your payment and the balance will be placed into your Contract Fund. If we approve the reinstatement, we will credit the Contract Fund with an amount equal to the surrender charge applicable as of the date of reinstatement.

TAXES

Tax Treatment of Contract Benefits

This summary provides general information on the federal income tax treatment of the Contract. It is not a complete statement of what the federal income taxes will be in all circumstances. It is based on current law and interpretations, which may change. It does not cover state taxes or other taxes. It is not intended as tax advice. You should consult your own tax adviser for complete information and advice.

Treatment as Life Insurance. The Contract must meet certain requirements to qualify as life insurance for tax purposes. These requirements include certain definitional tests and rules for diversification of the Contract’s investments. For further information on the diversification requirements, see Taxation of the Fund in the statement of additional information for the Series Fund.

In order to meet the definition of life insurance rules for federal income tax purposes, the Contract must satisfy one of the two following tests: (1) Cash Value Accumulation Test or (2) Guideline Premium Test. At issue, the Contract owner chooses which of these two tests will apply to their Contract. This choice cannot be changed thereafter.

Under the Cash Value Accumulation Test, the Contract must maintain a minimum ratio of death benefit to cash value. Therefore, in order to ensure that the Contract qualifies as life insurance, the Contract's death benefit may increase as the Contract Fund value increases. The death benefit, at all times, must be at least equal to the Contract Fund multiplied by the applicable attained age factor. A listing of attained age factors can be found on your Contract Data pages.

Under the Guideline Premium Test, there is a limit as to the amount of premium that can be paid into the Contract in relation to the death benefit. In addition, there is a minimum ratio of death benefit to cash value associated with this test. This ratio, however, is less than the required ratio under the Cash Value Accumulation Test. Therefore, the death benefit required under this test is generally lower than that of the Cash Value Accumulation Test.

The selection of the definition of life insurance test most appropriate for you is dependent on several factors, including the insured’s age at issue, actual Contract earnings, and whether or not the Contract is classified as a Modified

Endowment Contract. You should consult your own tax adviser for complete information and advice with respect to the selection of the definition of life insurance test.

We believe we have taken adequate steps to insure that the Contract qualifies as life insurance for tax purposes. Generally speaking, this means that:

•	you will not be taxed on the growth of the funds in the Contract, unless you receive a distribution from the Contract, or if the Contract lapses or is surrendered, and

•	the Contract's death benefit will generally be income tax free to your beneficiary. However, your death benefit may be subject to estate taxes

•	we may refuse to accept any payment that increases the death benefit by more than it increases the Contract Fund

Although we believe that the Contract should qualify as life insurance for tax purposes, there are some uncertainties, particularly because the Secretary of Treasury has not yet issued permanent regulations that bear on this question. Accordingly, we reserve the right to make changes -- which will be applied uniformly to all Contract owners after advance written notice -- that we deem necessary to insure that the Contract will qualify as life insurance.

Pre-Death Distributions. The tax treatment of any distribution you receive before the insured’s death depends on whether the Contract is classified as a Modified Endowment Contract.

Contracts Not Classified as Modified Endowment Contracts

•

If you surrender the Contract or allow it to lapse, you will be taxed on the amount you received in excess of the premiums you paid less the untaxed portion of any prior withdrawals. For this purpose, you will be treated as receiving any portion of the cash surrender value used to repay Contract debt. In other words, you will immediately have taxable income to the extent of gain in the Contract. Reinstatement of the Contract after lapse will not eliminate the taxable income, which we are required to report to the Internal Revenue Service. The tax consequences of a surrender may differ if you take the proceeds under an income payment settlement option.

•

Generally, you will be taxed on a withdrawal to the extent the amount you receive exceeds the premiums you paid for the Contract less the untaxed portion of any prior withdrawals. However, under some limited circumstances, in the first 15 Contract years, all or a portion of a withdrawal may be taxed if the Contract Fund exceeds the total premiums paid less the untaxed portions of any prior withdrawals, even if total withdrawals do not exceed total premiums paid.

•	Extra premiums for optional benefits and riders generally do not count in computing the premiums paid for the Contract for the purposes of determining whether a withdrawal is taxable.

•

Loans you take against the Contract are ordinarily treated as debt and are not considered distributions subject to tax. However, you should know that the Internal Revenue Service may take the position that the preferred loan should be treated as a distribution for tax purposes because of the relatively low differential between the loan interest rate and Contract’s crediting rate. Were the Internal Revenue Service to take this position, we would take reasonable steps to avoid this result, including modifying the Contract’s loan provisions.

Modified Endowment Contracts

•

The rules change if the Contract is classified as a Modified Endowment Contract. The Contract could be classified as a Modified Endowment Contract if premiums in amounts that are too large are paid or a decrease in the basic insurance amount and/or the supplemental insurance amount is made (or a rider removed). The addition of a rider or an increase in the basic insurance amount and/or the supplemental insurance amount may also cause the Contract to be classified as a Modified Endowment Contract if a significant premium is paid in conjunction with an increase or the addition of a rider. We will notify you if a premium or a change in basic insurance amount would cause the Contract to become a Modified Endowment Contract, and advise you of your options. You should first consult a tax adviser and your Pruco Life of New Jersey representative if you are contemplating any of these steps.

•

If the Contract is classified as a Modified Endowment Contract, then amounts you receive under the Contract before the insured's death, including loans and withdrawals, are included in income to the extent that the Contract Fund before surrender charges exceeds the premiums paid for the Contract increased by the amount

of any loans previously included in income and reduced by any untaxed amounts previously received other than the amount of any loans excludible from income. An assignment of a Modified Endowment Contract is taxable in the same way. These rules also apply to pre-death distributions, including loans and assignments, made during the two-year period before the time that the Contract became a Modified Endowment Contract.

•

•	All Modified Endowment Contracts issued by us to you during the same calendar year are treated as a single Contract for purposes of applying these rules.

Investor Control. Treasury Department regulations do not provide specific guidance concerning the extent to which you may direct your investment in the particular variable investment options without causing you, instead of Pruco Life of New Jersey, to be considered the owner of the underlying assets. Because of this uncertainty, we reserve the right to make such changes as we deem necessary to assure that the Contract qualifies as life insurance for tax purposes. Any such changes will apply uniformly to affected Contract owners and will be made with such notice to affected Contract owners as is feasible under the circumstances.

Withholding. You must affirmatively elect that no taxes be withheld from a pre-death distribution. Otherwise, the taxable portion of any amounts you receive will be subject to withholding. You are not permitted to elect out of withholding if you do not provide a social security number or other taxpayer identification number. You may be subject to penalties under the estimated tax payment rules if your withholding and estimated tax payments are insufficient to cover the tax due.

Other Tax Considerations. If you transfer or assign the Contract to someone else, there may be gift, estate and/or income tax consequences. If you transfer the Contract to a person two or more generations younger than you (or designate such a younger person as a beneficiary), there may be Generation Skipping Transfer tax consequences. Deductions for interest paid or accrued on Contract debt or on other loans that are incurred or continued to purchase or carry the Contract may be denied. Your individual situation or that of your beneficiary will determine the federal estate taxes and the state and local estate, inheritance and other taxes due if you or the insured dies.

Business-Owned Life Insurance. If a business, rather than an individual, is the owner of the Contract, there are some additional rules. Business Contract owners generally cannot deduct premium payments. Business Contract owners generally cannot take tax deductions for interest on Contract debt paid or accrued after October 13, 1995. An exception permits the deduction of interest on policy loans on Contracts for up to 20 key persons. The interest deduction for Contract debt on these loans is limited to a prescribed interest rate and a maximum aggregate loan amount of $50,000 per key insured person. The corporate alternative minimum tax also applies to business-owned life insurance. This is an indirect tax on additions to the Contract Fund or death benefits received under business-owned life insurance policies.

DISTRIBUTION AND COMPENSATION

Pruco Securities, LLC (“Prusec”), an indirect wholly-owned subsidiary of Prudential Financial, acts as the principal underwriter of the Contract. Prusec, organized in 2003 under New Jersey law, is registered as a broker and dealer under the Securities Exchange Act of 1934 and is a member of the National Association of Securities Dealers, Inc. (Prusec is a successor company to Pruco Securities Corporation, established in 1971.) Prusec’s principal business address is 751 Broad Street, Newark, New Jersey 07102-3777. Prusec serves as principal underwriter of the variable insurance Contracts issued by Pruco Life of New Jersey. The Contract is sold by registered representatives of Prusec who are also our appointed insurance agents under state insurance law. The Contract may also be sold through other broker-dealers authorized by Prusec and applicable law to do so. Prusec received gross distribution revenue for its individual variable life products of $114,496,331 in 2004, $116,853,430 in 2003 and $147,577,922 in 2002. Prusec passes through the gross distribution revenue it receives to selling firms for their sales and does not retain any portion of it in return for its services as distributor for the policies. However, Prusec does retain a portion of compensation it receives with respect to sales by its representatives. Prusec retained compensation of $10,572,253 in 2004, $12,087,173 in 2003, and $16,553,533 in 2002. Prusec offers the Contract on a continuous basis.

Compensation (commissions, overrides, and any expense reimbursement allowance) is paid to broker-dealers that are registered under the Exchange Act and/or entities that are exempt from such registration (“firms”) according to one or more schedules. The individual representative will receive all or a portion of the compensation, depending on the practice of the firm. Compensation is based on a premium value referred to as the Commissionable Target Premium. The Commissionable Target Premium is equal to the first year's surrender charge (which is found in your Contract

Data pages) divided by the Percentage of Sales Load Target Premium at start of year one from the table in the Surrender Charges section of this prospectus, plus the premium for any riders other than the Target Term Rider. The Commissionable Target Premium will vary by issue age, sex, smoker/non smoker, substandard rating class, and any riders selected by the Contract owner, with the exception of the Target Term Rider.

Broker-dealers will receive compensation of up to 99% of premiums received in the first 12 months following the Contract Date on total premiums received since issue up to the Commissionable Target Premium, 16% on premiums received in years two and three, 15% on premiums received in year 4, 12.75% on premiums received in years 5 through 10, and 3% on premiums received in years 11 and beyond up to the Commissionable Target Premium in each Contract year. Moreover, broker-dealers will receive compensation of up to 5.5% on premiums received in any of the first 10 years, and 3% on premiums received in years 11 and beyond to the extent that premiums in that year exceed the Commissionable Target Premium. Broker-dealers will also receive compensation in years four through 10 of up to 0.22% of the Contract Fund net of Contract debt, and 0.10% in years 11 and beyond.

If the basic insurance amount is increased, broker-dealers will receive compensation of up to 99% on premiums received up to the Commissionable Target Premium for the increase received in the first 12 months following the effective date of the increase, 16% of premiums received in years two and three, 15% on premiums received in year 4, 12.75% on premiums received in years 5 through 10, and 3% on premiums received in years 11 and beyond up to the Commissionable Target Premium for the increase. Moreover, broker-dealers will receive compensation of up to 5.5% on premiums received in any of the first 10 years, and 3% on premiums received in years 11 and beyond following the effective date of the increase to the extent that premiums in that year exceed the Commissionable Target Premium.

Prusec registered representatives who sell the Contract are also our life insurance agents, and may be eligible for various cash bonuses and insurance benefits and non-cash compensation programs that we or our affiliates offer such as conferences, trips, prizes and awards, subject to applicable regulatory requirements. In some circumstances and to the extent permitted by applicable regulatory requirements, we may also reimburse certain sales and marketing expenses.

In addition, in an effort to promote the sale of our variable products (which may include the placement of our Contracts on a preferred or recommended company or product list and / or access to a broker-dealer’s registered representatives), we or Prusec may enter into compensation arrangements with certain broker-dealer firms authorized by Prusec to sell the Contract, or branches of such firms, with respect to certain or all registered representatives of such firms under which such firms may receive separate compensation or reimbursement for, among other things, training of sales personnel, marketing and / or administrative and / or other services they provide to us or our affiliates. To the extent permitted by NASD rules and other applicable laws and regulations, Prusec may pay or allow other promotional incentives or payments in the form of cash or non-cash compensation. These arrangements may not be offered to all firms, and the terms of such arrangements may differ between firms. You should note that firms and individual registered representatives and branch managers within some firms participating in one of these compensation arrangements might receive greater compensation for selling the Contract than for selling a different Contract that is not eligible for these compensation arrangements.

While compensation is taken into account as an expense in considering the charges applicable to a variable life insurance product, any such compensation will be paid by us, and will not result in any additional charge to you or to the separate account. Your registered representative can provide you with more information about the compensation arrangements that apply upon the sale of the Contract.

LEGAL PROCEEDINGS

Pruco Life of New Jersey is subject to legal and regulatory actions in the ordinary course of its businesses, which may include class action lawsuits. Pending legal and regulatory actions include proceedings relating to aspects of the businesses and operations that are specific to Pruco Life of New Jersey and that are typical of the businesses in which Pruco Life of New Jersey operates. Class action and individual lawsuits may involve a variety of issues and/or allegations, which include sales practices, underwriting practices, claims payment and procedures, premium charges, policy servicing and breach of fiduciary duties to customers. We may also be subject to litigation arising out of our general business activities, such as our investments and third party contracts. In certain of these matters, the plaintiffs may seek large and/or indeterminate amounts, including punitive or exemplary damages.

Pruco Life of New Jersey has received formal requests for information relating to its variable annuity business from regulators, including, among others, the Securities and Exchange Commission and the State of New York Attorney General’s Office. As part of a broad initiative by the National Association of Insurance Commissioners, Pruco Life of New Jersey has received a request for information from the New Jersey Department of Banking and Insurance related to producer compensation and fee arrangements. It is possible that other regulators will issue similar requests.

Pruco Life of New Jersey’s litigation is subject to many uncertainties, and given the complexity and scope, the outcomes cannot be predicted. It is possible that the results of operations or the cash flow of Pruco Life of New Jersey in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of litigation and regulatory matters. Management believes, however, that the ultimate outcome of all pending litigation and regulatory matters should not have a material adverse effect on Pruco Life of New Jersey’s financial position.

ILLUSTRATIONS OF CASH SURRENDER VALUES, DEATH BENEFITS, AND ACCUMULATED PREMIUMS

The following tables (pages T1 through T4) show how a Contract’s death benefit and cash surrender values change with the investment experience of the Account. They are "hypothetical" because they are based, in part, upon several assumptions, which are described below. All four tables assume the following:

•	a Contract bought by a 55 year old male, Preferred non-smoker, with no extra risks or substandard ratings, and no extra benefit riders added to the Contract.

•	a given premium amount is paid on each Contract anniversary and no loans are taken.

•	maximum contractual charges, before any fee waivers, reimbursement of expenses, or expense reductions, if any, have been made since issue.

•	the Contract Fund has been invested in equal amounts in each of the 28 portfolios of the Funds and no portion of the Contract Fund has been allocated to the fixed-rate option.

The first table (page T1) assumes: (1) a Type A (fixed) Contract has been purchased, (2) a $995,000 basic insurance amount, a $5,000 supplemental insurance amount, and (3) a Cash Value Accumulation Test has been elected for definition of life insurance testing.

The second table (page T2) assumes: (1) a Type B (variable) Contract has been purchased, (2) a $995,000 basic insurance amount, a $5,000 supplemental insurance amount, and (3) a Guideline Premium Test has been elected for definition of life insurance testing.

The third table (page T3) assumes: (1) a Type B (variable) Contract has been purchased, (2) a $995,000 basic insurance amount, a $5,000 supplemental insurance amount, and (3) a Cash Value Accumulation Test has been elected for definition of life insurance testing.

The fourth table (page T4) assumes: (1) a Type C (return of premium) Contract has been purchased with premiums accumulating at 6%, (2) a $995,000 basic insurance amount, a $5,000 supplemental insurance amount, and (3) a Cash Value Accumulation Test has been elected for definition of life insurance testing.

Finally, there are three assumptions, shown separately, about the average investment performance of the portfolios. The first is that there will be a uniform 0% gross rate of return with the average value of the Contract Fund uniformly adversely affected by very unfavorable investment performance. The other two assumptions are that investment performance will be at a uniform gross annual rate of 6% and 12%. Actual returns will fluctuate from year to year. In addition, death benefits and cash surrender values would be different from those shown if investment returns averaged 0%, 6%, and 12% but fluctuated from those averages throughout the years. Nevertheless, these assumptions help show how the Contract values will change with investment experience.

The first column in the following tables shows the Contract year. The second column, to provide context, shows what the aggregate amount would be if the premiums had been invested to earn interest, after taxes, at 4% compounded annually. The next three columns show the death benefit payable in each of the years shown for the three different assumed investment returns. The last three columns show the cash surrender value payable in each of the years shown for the three different assumed investment returns. The death benefits and cash surrender values shown reflect the deduction of all expenses and charges both from the Funds and under the Contract.

A gross return (as well as the net return) is shown at the top of each column. The gross return represents the combined effect of investment income and capital gains and losses, realized or unrealized, of the portfolios before any reduction is made for investment advisory fees or other Fund expenses. The net return reflects average total annual expenses of the 28 portfolios of 0.87%, and the daily deduction from the Contract Fund of 0.45% per year. Assuming maximum charges, gross returns of 0%, 6%, and 12% are the equivalent of net returns of -1.32%, 4.68% and 10.68%, respectively. The actual fees and expenses of the portfolios associated with a particular Contract may be more or less than 0.87% and will depend on which variable investment options are selected.

The Contract allows you to invest your net premium dollars in a variety of professionally managed funds. Fluctuating investment returns in these funds, together with the actual pattern of your premium payments, our Contract charges, and any loans and withdrawals you may make will generate different Contract values than those illustrated, even if the averages of the investment rates of return over the years were to match those illustrated. We strongly recommend periodic Contract reviews with your Pruco Life of New Jersey representative. Reviews are an excellent way to monitor the performance of the Contract against your expectations and to identify adjustments that may be necessary to meet your needs.

If you are considering the purchase of a variable life insurance contract from another insurance company, you should not rely upon these tables for comparison purposes. A comparison between two tables, each showing values for a 55 year old man using maximum charges, may be useful for a 55 year old man, but would be inaccurate if made for insureds of other issue ages, sex, or rating class. Your Pruco Life of New Jersey representative can provide you with a hypothetical illustration using current charges for your own issue age, sex, and rating class.


                                                                                    ILLUSTRATIONS

                                                                                      MPREMIER VUL
                                                                              CASH VALUE ACCUMULATION TEST
                                                                              TYPE A (FIXED) DEATH BENEFIT
                                                                         MALE PREFERRED NON-SMOKER ISSUE AGE 55
                                        $1,000,000 TARGET COVERAGE AMOUNT($995,000 BASIC INSURANCE AMOUNT, $5,000 SUPPLEMENTAL INSURANCE AMOUNT)
                                                                ASSUME PAYMENT OF $76,330 ANNUAL PREMIUMS FOR SEVEN YEARS
                                                                                  USING MAXIMUM CHARGES


                                                                        Death Benefit (1)                                               Cash Surrender Value (1)

                                                               Assuming Hypothetical Gross (and Net)                             Assuming Hypothetical Gross (and Net)
                                                                    Annual Investment Return of                                       Annual Investment Return of
                           Premiums
       End of             Accumulated
       Policy           at 4% Interest           0% Gross           6% Gross             12% Gross              0% Gross           6% Gross           12% Gross
        Year               Per Year            (-1.32% Net)        (4.68% Net)          (10.68% Net)          (-1.32% Net)        (4.68% Net)        (10.68% Net)
      ..........        ..................     ...............  ..................   ..................      ..............  ..................  ...................
      1                       $79,383             $1,000,000       $1,000,000            $1,000,000             $39,984             $43,153              $46,332
      2                      $161,942             $1,000,000       $1,000,000            $1,000,000             $83,351             $92,530             $102,112
      3                      $247,803             $1,000,000       $1,000,000            $1,000,000            $127,229            $145,368             $165,081
      4                      $337,098             $1,000,000       $1,000,000            $1,000,000            $171,614            $201,795             $235,950
      5                      $429,965             $1,000,000       $1,000,000            $1,000,000            $212,135            $257,591             $311,175
      6                      $526,547             $1,000,000       $1,000,000            $1,000,000            $251,696            $315,836             $394,632
      7                      $626,992             $1,000,000       $1,000,000            $1,000,000            $290,298            $376,738             $487,462
      8                      $652,072             $1,000,000       $1,000,000            $1,000,000            $266,281            $375,138             $521,872
      9                      $678,154             $1,000,000       $1,000,000            $1,000,000            $240,853            $372,276             $559,699
      10                     $705,281             $1,000,000       $1,000,000            $1,040,173            $213,763            $367,927             $601,256
      15                     $858,082             $1,000,000       $1,000,000            $1,333,282             $42,678            $314,114             $865,767
      20                   $1,043,988             $1,000,000       $1,000,000            $1,736,855                  $0            $155,146           $1,249,536
      25                   $1,270,171             $1,000,000       $1,000,000            $2,293,078                  $0                  $0           $1,791,468
      30                   $1,545,357                     $0 (2)           $0 (2)        $3,065,135                  $0 (2)              $0 (2)       $2,554,280
      35                   $1,880,163                     $0               $0            $4,132,933                  $0                  $0           $3,625,380
      40                   $2,287,505                     $0               $0            $5,648,759                  $0                  $0           $5,182,347
      45                   $2,783,100                     $0               $0            $7,798,196                  $0                  $0           $7,645,290


      (1)    Assumes no Contract loan has been made.

      (2)    Based on a gross return of 0%, the contract would go into default in policy year 26, unless an additional premium payment was made.
             Based on a gross return of 6%, the contract would go into default in policy year 26, unless an additional premium payment was made.

        The hypothetical investment rates of return shown above and elsewhere in this prospectus are illustrative only and should not be deemed a representation
        of past or future investment rates of return.  Actual rates of return may be more or less than those shown and will depend on a number of factors including
        the investment allocations made by an owner, prevailing interest rates, and rates of inflation.  The death benefit and cash surrender value for a contract
        would be different from those shown if the actual rates of return averaged 0%, 6%, 12% over a period of years, but also fluctuated above or below those averages
        for individual contract years. No representations can be made by Pruco Life of New Jersey or the Series Fund that these hypothetical rates of return can be
        achieved for any one year or sustained over any period of time.


                                                                                T1



                                                                                      MPREMIER VUL
                                                                                 GUIDELINE PREMIUM TEST
                                                                            TYPE B (VARIABLE) DEATH BENEFIT
                                                                         MALE PREFERRED NON-SMOKER ISSUE AGE 55
                                        $1,000,000 TARGET COVERAGE AMOUNT($995,000 BASIC INSURANCE AMOUNT, $5,000 SUPPLEMENTAL INSURANCE AMOUNT)
                                                               ASSUME PAYMENT OF $76,330 ANNUAL PREMIUMS FOR SEVEN YEARS
                                                                                 USING MAXIMUM CHARGES


                                                                         Death Benefit (1)                                              Cash Surrender Value (1)

                                                               Assuming Hypothetical Gross (and Net)                             Assuming Hypothetical Gross (and Net)
                                                                    Annual Investment Return of                                       Annual Investment Return of
                            Premiums
       End of             Accumulated
       Policy           at 4% Interest             0% Gross            6% Gross             12% Gross               0% Gross            6% Gross             12% Gross
        Year               Per Year              (-1.32% Net)        (4.68% Net)          (10.68% Net)            (-1.32% Net)         (4.68% Net)         (10.68% Net)
      .........        ..................     .................    ................     ................        ..................  ..................  ..................
      1                       $79,383             $1,043,916         $1,047,058            $1,050,210                $39,553             $42,695             $45,847
      2                      $161,942             $1,086,421         $1,095,461            $1,104,898                $82,058             $91,098            $100,535
      3                      $247,803             $1,127,485         $1,145,220            $1,164,489               $124,577            $142,311            $161,581
      4                      $337,098             $1,167,028         $1,196,297            $1,229,404               $167,028            $196,297            $229,404
      5                      $429,965             $1,204,951         $1,248,631            $1,300,084               $204,951            $248,631            $300,084
      6                      $526,547             $1,241,148         $1,302,150            $1,377,008               $241,148            $302,150            $377,008
      7                      $626,992             $1,275,502         $1,356,765            $1,460,698               $275,502            $356,765            $460,698
      8                      $652,072             $1,247,193         $1,347,989            $1,483,644               $247,193            $347,989            $483,644
      9                      $678,154             $1,217,475         $1,336,964            $1,507,146               $217,475            $336,964            $507,146
      10                     $705,281             $1,186,168         $1,323,378            $1,531,053               $186,168            $323,378            $531,053
      15                     $858,082             $1,000,030         $1,205,542            $1,650,602                    $30            $205,542            $650,602
      20                   $1,043,988                     $0 (2)             $0 (2)        $1,733,835                     $0 (2)              $0 (2)        $733,835
      25                   $1,270,171                     $0                 $0            $1,680,987                     $0                  $0            $680,987
      30                   $1,545,357                     $0                 $0            $1,314,119                     $0                  $0            $314,119
      35                   $1,880,163                     $0                 $0                    $0 (2)                 $0                  $0                  $0 (2)
      40                   $2,287,505                     $0                 $0                    $0                     $0                  $0                  $0
      45                   $2,783,100                     $0                 $0                    $0                     $0                  $0                  $0

      (1)    Assumes no Contract loan has been made.

      (2)    Based on a gross return of 0%, the contract would go into default in policy year 19, unless an additional premium payment was made.
             Based on a gross return of 6%, the contract would go into default in policy year 20, unless an additional premium payment was made.
             Based on a gross return of 12%, the contract would go into default in policy year 33, unless an additional premium payment was made.


        The hypothetical investment rates of return shown above and elsewhere in this prospectus are illustrative only and should not be deemed a representation of past
        or future investment rates of return.  Actual rates of return may be more or less than those shown and will depend on a number of factors including the investment
        allocations made by an owner, prevailing interest rates, and rates of inflation.  The death benefit and cash surrender value for a contract would be different from
        those shown if the actual rates of return averaged 0%, 6%, 12% over a period of years, but also fluctuated above or below those averages for individual contract
        years. No representations can be made by Pruco Life of New Jersey or the Series Fund that these hypothetical rates of return can be achieved for any one year or
        sustained over any period of time.


                                                                                     T2



                                                                                      MPREMIER VUL
                                                                              CASH VALUE ACCUMULATION TEST
                                                                            TYPE B (VARIABLE) DEATH BENEFIT
                                                                         MALE PREFERRED NON-SMOKER ISSUE AGE 55
                                        $1,000,000 TARGET COVERAGE AMOUNT($995,000 BASIC INSURANCE AMOUNT, $5,000 SUPPLEMENTAL INSURANCE AMOUNT)
                                                               ASSUME PAYMENT OF $76,330 ANNUAL PREMIUMS FOR SEVEN YEARS
                                                                                 USING MAXIMUM CHARGES


                                                                         Death Benefit (1)                                              Cash Surrender Value (1)

                                                               Assuming Hypothetical Gross (and Net)                             Assuming Hypothetical Gross (and Net)
                                                                    Annual Investment Return of                                       Annual Investment Return of
                            Premiums
       End of             Accumulated
       Policy           at 4% Interest             0% Gross            6% Gross              12% Gross                   0% Gross            6% Gross             12% Gross
        Year               Per Year              (-1.32% Net)         (4.68% Net)           (10.68% Net)               (-1.32% Net)         (4.68% Net)         (10.68% Net)
      ..........        ..................     ...................  .................... ....................        ..................  ..................  ..................
      1                       $79,383               $1,043,916        $1,047,058            $1,050,210                   $39,553             $42,695             $45,847
      2                      $161,942               $1,086,421        $1,095,461            $1,104,898                   $82,058             $91,098            $100,535
      3                      $247,803               $1,127,485        $1,145,220            $1,164,489                  $124,577            $142,311            $161,581
      4                      $337,098               $1,167,028        $1,196,297            $1,229,404                  $167,028            $196,297            $229,404
      5                      $429,965               $1,204,951        $1,248,631            $1,300,084                  $204,951            $248,631            $300,084
      6                      $526,547               $1,241,148        $1,302,150            $1,377,008                  $241,148            $302,150            $377,008
      7                      $626,992               $1,275,502        $1,356,765            $1,460,698                  $275,502            $356,765            $460,698
      8                      $652,072               $1,247,193        $1,347,989            $1,483,644                  $247,193            $347,989            $483,644
      9                      $678,154               $1,217,475        $1,336,964            $1,507,146                  $217,475            $336,964            $507,146
      10                     $705,281               $1,186,168        $1,323,378            $1,531,053                  $186,168            $323,378            $531,053
      15                     $858,082               $1,000,030        $1,205,542            $1,650,602                       $30            $205,542            $650,602
      20                   $1,043,988                       $0 (2)            $0 (2)        $1,733,835                        $0 (2)              $0 (2)        $733,835
      25                   $1,270,171                       $0                $0            $1,680,987                        $0                  $0            $680,987
      30                   $1,545,357                       $0                $0            $1,314,119                        $0                  $0            $314,119
      35                   $1,880,163                       $0                $0                    $0 (2)                    $0                  $0                  $0 (2)
      40                   $2,287,505                       $0                $0                    $0                        $0                  $0                  $0
      45                   $2,783,100                       $0                $0                    $0                        $0                  $0                  $0


      (1)    Assumes no Contract loan has been made.

      (2)    Based on a gross return of 0%, the contract would go into default in policy year 19, unless an additional premium payment was made.
             Based on a gross return of 6%, the contract would go into default in policy year 20, unless an additional premium payment was made.
             Based on a gross return of 12%, the contract would go into default in policy year 33, unless an additional premium payment was made.


        The hypothetical investment rates of return shown above and elsewhere in this prospectus are illustrative only and should not be deemed a representation of past
        or future investment rates of return.  Actual rates of return may be more or less than those shown and will depend on a number of factors including the investment
        allocations made by an owner, prevailing interest rates, and rates of inflation.  The death benefit and cash surrender value for a contract would be different from
        those shown if the actual rates of return averaged 0%, 6%, 12% over a period of years, but also fluctuated above or below those averages for individual contract
        years. No representations can be made by Pruco Life of New Jersey or the Series Fund that these hypothetical rates of return can be achieved for any one year or
        sustained over any period of time.


                                                                                    T3


                                                                                      MPREMIER VUL
                                                                              CASH VALUE ACCUMULATION TEST
                                                                     TYPE C (RETURN OF PREMIUM AT X%) DEATH BENEFIT
                                                                         MALE PREFERRED NON-SMOKER ISSUE AGE 55
                                        $1,000,000 TARGET COVERAGE AMOUNT($995,000 BASIC INSURANCE AMOUNT, $5,000 SUPPLEMENTAL INSURANCE AMOUNT)
                                                               ASSUME PAYMENT OF $76,330 ANNUAL PREMIUMS FOR SEVEN YEARS
                                                                                 USING MAXIMUM CHARGES


                                                                        Death Benefit (1)                                              Cash Surrender Value (1)

                                                               Assuming Hypothetical Gross (and Net)                             Assuming Hypothetical Gross (and Net)
                                                                    Annual Investment Return of                                       Annual Investment Return of
                            Premiums
       End of             Accumulated
       Policy           at 4% Interest           0% Gross               6% Gross            12% Gross                 0% Gross            6% Gross             12% Gross
        Year               Per Year            (-1.32% Net)           (4.68% Net)          (10.68% Net)              (-1.32% Net)         (4.68% Net)         (10.68% Net)
      ..........        ..................     ...................  ..................   ....................     ..................  ..................  ..................
      1                       $79,383               $1,080,910        $1,080,910            $1,080,910                  $39,343             $42,492             $45,650
      2                      $161,942               $1,166,674        $1,166,674            $1,166,674                  $81,258             $90,329             $99,802
      3                      $247,803               $1,257,584        $1,257,584            $1,257,584                 $122,672            $140,490            $159,870
      4                      $337,098               $1,353,949        $1,353,949            $1,353,949                 $163,332            $192,777            $226,143
      5                      $429,965               $1,456,096        $1,456,096            $1,456,096                 $198,560            $242,561            $294,546
      6                      $526,547               $1,564,372        $1,564,372            $1,564,372                 $230,878            $292,415            $368,274
      7                      $626,992               $1,679,144        $1,679,144            $1,679,144                 $259,825            $341,921            $447,614
      8                      $652,072               $1,719,892        $1,719,892            $1,719,892                 $224,399            $326,411            $465,001
      9                      $678,154               $1,763,086        $1,763,086            $1,763,086                 $185,435            $306,571            $481,416
      10                     $705,281               $1,808,871        $1,808,871            $1,808,871                 $142,253            $281,530            $496,311
      15                     $858,082                       $0 (2)    $2,082,452            $2,082,452                       $0 (2)         $36,010            $519,351
      20                   $1,043,988                       $0                $0 (2)        $2,448,565                       $0                  $0 (2)        $278,812
      25                   $1,270,171                       $0                $0                    $0 (2)                   $0                  $0                  $0 (2)
      30                   $1,545,357                       $0                $0                    $0                       $0                  $0                  $0
      35                   $1,880,163                       $0                $0                    $0                       $0                  $0                  $0
      40                   $2,287,505                       $0                $0                    $0                       $0                  $0                  $0
      45                   $2,783,100                       $0                $0                    $0                       $0                  $0                  $0


      (1)    Assumes no Contract loan has been made.

      (2)    Based on a gross return of 0%, the contract would go into default in policy year 13, unless an additional premium payment was made.
             Based on a gross return of 6%, the contract would go into default in policy year 16, unless an additional premium payment was made.
             Based on a gross return of 12%, the contract would go into default in policy year 22, unless an additional premium payment was made.


        The hypothetical investment rates of return shown above and elsewhere in this prospectus are illustrative only and should not be deemed a representation of past
        or future investment rates of return.  Actual rates of return may be more or less than those shown and will depend on a number of factors including the investment
        allocations made by an owner, prevailing interest rates, and rates of inflation.  The death benefit and cash surrender value for a contract would be different from
        those shown if the actual rates of return averaged 0%, 6%, 12% over a period of years, but also fluctuated above or below those averages for individual contract
        years. No representations can be made by Pruco Life of New Jersey or the Series Fund that these hypothetical rates of return can be achieved for any one year or
        sustained over any period of time.


                                                                                  T4

ADDITIONAL INFORMATION

Pruco Life of New Jersey has filed a registration statement with the SEC under the Securities Act of 1933, relating to the offering described in this prospectus. This prospectus does not include all the information set forth in the registration statement. Certain portions have been omitted pursuant to the rules and regulations of the SEC. The omitted information may, however, be obtained from the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549-0102, or by telephoning (800) 732-0330, upon payment of a prescribed fee.

To reduce costs, we now generally send only a single copy of prospectuses and shareholder reports to each household ("householding"), in lieu of sending a copy to each Contract owner that resides in the household. You should be aware that you can revoke or "opt out" of householding at any time by calling 1-877-778-5008.

You may contact us directly for further information. Our address and telephone number are on the inside front cover of this prospectus.

DEFINITIONS OF SPECIAL TERMS

USED IN THIS PROSPECTUS

Accumulated Net Payments - The actual premium payments you make, accumulated at an effective annual rate of 4%, less any withdrawals you make, also accumulated at an effective annual rate of 4%.

attained age - The insured's age on the Contract date plus the number of years since then. For any coverage segment effective after the Contract date, the insured's attained age is the issue age of that segment plus the length of time since its effective date.

basic insurance amount - The amount of life insurance as shown in the Contract, not including riders.

cash surrender value - The amount payable to the Contract owner upon surrender of the Contract. It is equal to the Contract Fund minus any Contract debt and minus any applicable surrender charge. Also referred to in the Contract as “Net Cash Value.”

Contract - The variable universal life insurance Contract described in this prospectus.

Contract anniversary - The same date as the Contract date in each later year.

Contract date - The date the Contract is effective, as specified in the Contract.

Contract debt - The principal amount of all outstanding loans plus any interest accrued thereon.

Contract Fund - The total amount credited to a specific Contract. On any date it is equal to the sum of the amounts in all the variable investment options and the fixed rate option, and the principal amount of any Contract debt plus any interest earned thereon.

Contract owner - You. Unless a different owner is named in the application, the owner of the Contract is the insured.

Contract year - A year that starts on the Contract date or on a Contract anniversary. For any coverage segment representing an increase, “Contract year” is a year that starts on the effective date of the increase (referred to as “Target year” in the Contract).

coverage segment - The basic insurance amount and the supplemental insurance amount at issue are the first two coverage segments. For each increase, a new coverage segment is created for the amount of the increase.

death benefit - If the Contract is not in default, this is the amount we will pay upon the death of the insured, assuming no Contract debt.

fixed rate option - An investment option under which interest is accrued daily at a rate that we declare periodically, but not less than an effective annual rate of 3%.

Funds - Mutual funds with separate portfolios. One or more of the available Fund portfolios may be chosen as an underlying investment for the Contract.

Good Order - An instruction received at our Service Office utilizing such forms, signatures, and dating as we require, which is sufficiently clear and complete and for which we do not need to exercise any discretion to follow such instructions.

Limited No-Lapse Guarantee - Sufficient premium payments, on an accumulated basis, will guarantee that your Contract will not lapse for a specified duration and a death benefit will be paid upon the death of the insured, regardless of investment experience and assuming no loans. See Limited No-Lapse Guarantee.

Limited No-Lapse Guarantee Premiums - Premiums that, if paid at the beginning of each Contract year, will keep a Type A or Type B Contract in-force until the insured’s age 80, or if later, during the first 10 Contract years, regardless of investment performance and assuming no loans or withdrawals.

Monthly date - The Contract date and the same date in each subsequent month.

Pruco Life Insurance Company of New Jersey - Pruco Life of New Jersey, us, we, our. The company offering the Contract.

Sales Load Target Premium - A premium that is used to determine sales load based on issue age and rating class of the insured, and any extra risk charges or riders, if applicable.

separate account - Amounts under the Contract that are allocated to the variable investment options held by us in a separate account called the Pruco Life of New Jersey Variable Appreciable Account (the "Account"). The separate account is set apart from all of the general assets of Pruco Life Insurance Company of New Jersey.

Short-Term No-Lapse Guarantee Premiums -Premiums that, if paid at the beginning of each Contract year, will keep the Contract in-force during the first 10 Contract years regardless of investment performance and assuming no loans or withdrawals.

supplemental insurance amount - An additional insurance amount on the life of the insured.

valuation period - The period of time from one determination of the value of the amount invested in a variable investment option to the next. Such determinations are made when the net asset values of the portfolios of the Funds are calculated, which would be as of the close of regular trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time).

variable investment options - The portfolios of the mutual funds available under this Contract, whose shares are held in the separate account.

you - The owner of the Contract.

To Learn More About MPremier^SM VUL

To learn more about the MPremier^SMVUL variable universal life Contract, you can request a copy of the Statement of Additional Information (“SAI”), dated May 1, 2005, or view it online at www.prudential.com. See the Table of Contents of the SAI below.

TABLE OF CONTENTS OF THE

STATEMENT OF ADDITIONAL INFORMATION

Page

GENERAL INFORMATION AND HISTORY		1
	Description of Pruco Life Insurance Company of New Jersey	1
	Control of Pruco Life Insurance Company of New Jersey	1
	State Regulation	1
	Records	1
	Services and Third Party Administration Agreements	1

INITIAL PREMIUM PROCESSING

ADDITIONAL INFORMATION ABOUT OPERATION OF CONTRACTS		3
	Legal Considerations Relating to Sex-Distinct Premiums and Benefits	3
	How a Type A (Fixed) Contract's Death Benefit Will Vary	3
	How a Type B (Variable) Contract's Death Benefit Will Vary	4
	How a Type C (Return of Premium) Contract’s Death Benefit Will Vary	5
	Reports to Contract Owners	6

UNDERWRITING PROCEDURES

ADDITIONAL INFORMATION ABOUT CHARGES		7
	Charges for Increases in Basic Insurance Amount	7

ADDITIONAL INFORMATION ABOUT CONTRACTS IN DEFAULT

SERVICE FEES PAYABLE TO PRUCO LIFE

DISTRIBUTION AND COMPENSATION

EXPERTS

PERFORMANCE DATA		8
	Average Annual Total Return	8
	Non-Standard Total Return	8
	Money Market Subaccount Yield	8

FINANCIAL STATEMENTS 9

The SAI is legally a part of this prospectus, both of which are filed with the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, Registration No. 333-117796. All of these filings can be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the public reference room may be obtained by calling the Commission at (800) 732-0330. The SEC also maintains a Web site (http://www.sec.gov) that contains the MPremier^SM VUL SAI, material incorporated by reference, and other information about Pruco Life of New Jersey. Copies of these materials can also be obtained, upon payment of duplicating fees, from the SEC’s Public Reference Room, 450 Fifth Street N.W., Washington, D.C. 20549-0102.

You can call us at 1-800-782-5356 to ask us questions, request information about the Contract, and obtain copies of the Statement of Additional Information, personalized illustrations, or other documents. You can also view the Statement of Additional Information located with the prospectus at www.prudential.com, or request a copy by writing to us at:

Pruco Life Insurance Company of New Jersey

213 Washington Street

Newark, New Jersey 07102-2992

Investment Company Act of 1940: Registration No. 811-3974

PART B:

INFORMATION REQUIRED IN THE STATEMENT OF ADDITIONAL INFORMATION

STATEMENT OF ADDITIONAL INFORMATION

Pruco Life of New Jersey Variable Appreciable Account

Pruco Life Insurance Company of New Jersey

MPremier^SM VUL

VARIABLE UNIVERSAL LIFE INSURANCE CONTRACTS

This Statement of Additional Information is not a prospectus. Please review the prospectus, which contains information concerning the Contracts described above. You may obtain a copy of the prospectus without charge by calling us at 1-800-782-5356. You can also view the Statement of Additional Information located with the prospectus at www.prudential.com, or request a copy by writing to us.

The defined terms used in this Statement of Additional Information are as defined in the prospectus.

Pruco Life Insurance Company of New Jersey

213 Washington Street

Newark, New Jersey 07102

The Date of this Statement of Additional Information and of the related prospectus is May 1, 2005.

TABLE OF CONTENTS

Page

GENERAL INFORMATION AND HISTORY		1
	Description of Pruco Life Insurance Company of New Jersey	1
	Control of Pruco Life Insurance Company of New Jersey	1
	State Regulation	1
	Records	1
	Services and Third Party Administration Agreements	1

INITIAL PREMIUM PROCESSING

ADDITIONAL INFORMATION ABOUT OPERATION OF CONTRACTS		3
	Legal Considerations Relating to Sex-Distinct Premiums and Benefits	3
	How a Type A (Fixed) Contract's Death Benefit Will Vary	3
	How a Type B (Variable) Contract's Death Benefit Will Vary	4
	How a Type C (Return of Premium) Contract’s Death Benefit Will Vary	5
	Reports to Contract Owners	6

UNDERWRITING PROCEDURES

ADDITIONAL INFORMATION ABOUT CHARGES		7
	Charges for Increases in Insurance Amount	7

ADDITIONAL INFORMATION ABOUT CONTRACTS IN DEFAULT

SERVICE FEES PAYABLE TO PRUCO LIFE OF NEW JERSEY

DISTRIBUTION AND COMPENSATION

EXPERTS

PERFORMANCE DATA		8
	Average Annual Total Return	8
	Non-Standard Total Return	8
	Money Market Subaccount Yield	8

FINANCIAL STATEMENTS

GENERAL INFORMATION AND HISTORY

Description of Pruco Life Insurance Company of New Jersey

Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey") is a stock life insurance company, organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities only in the states of New Jersey and New York. Pruco Life of New Jersey’s principal Executive Office is located at 213 Washington Street, Newark, New Jersey 07102.

Control of Pruco Life Insurance Company of New Jersey

Pruco Life of New Jersey is an indirect, wholly-owned subsidiary of The Prudential Insurance Company of America ("Prudential"), a New Jersey stock life insurance company that has been doing business since 1875. Prudential is an indirect wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”), a New Jersey insurance holding company for financial services businesses offering a wide range of insurance, investment management, and other financial products and services. The principal Executive Office each of Prudential and Prudential Financial is Prudential Plaza, 751 Broad Street, Newark, New Jersey 07102-3777.

As Pruco Life of New Jersey’s ultimate parent, Prudential Financial exercises significant influence over the operations and capital structure of Pruco Life of New Jersey and Prudential. However, neither Prudential Financial, Prudential, nor any other related company has any legal responsibility to pay amounts that Pruco Life of New Jersey may owe under the Contract.

State Regulation

Pruco Life of New Jersey is subject to regulation and supervision by the Department of Insurance of the State of New Jersey, which periodically examines its operations and financial condition. It is also subject to the insurance laws and regulations of the New York State Insurance Department.

Pruco Life of New Jersey is required to submit annual statements of its operations, including financial statements, to the insurance departments of the various jurisdictions in which it does business to determine solvency and compliance with local insurance laws and regulations.

In addition to the annual statements referred to above, Pruco Life of New Jersey is required to file with New Jersey and other jurisdictions, a separate statement with respect to the operations of all of its variable contract accounts, in a form promulgated by the National Association of Insurance Commissioners.

Records

We maintain all records and accounts relating to the Account at our Home Office. As presently required by the Investment Company Act of 1940, as amended, and regulations promulgated thereunder, reports containing such information as may be required under the Act or by any other applicable law or regulation will be sent to you semi-annually at your last address known to us.

Services and Third Party Administration Agreements

Pruco Life of New Jersey and Prudential have entered into a Service Agreement pursuant to which Prudential furnishes to Pruco Life of New Jersey various services, including preparation, maintenance, and filing of accounts, books, records, and other documents required under federal or state law, and various other accounting, administrative, and legal services, which are customarily performed by the officers and employees of Prudential. Pruco Life of New Jersey reimburses Prudential for its costs in providing such services. Under this Agreement, Pruco Life of New Jersey has reimbursed Prudential $57,941,313 in 2004, $66,686,211 in 2003, and $63,004,185 in 2002.

Pruco Life of New Jersey and Prudential have entered into an agreement under which Prudential furnishes Pruco Life of New Jersey the same administrative support services that it provides in the operation of its own business with regard to the payment of death claim proceeds by way of Prudential’s Alliance Account, Prudential’s retained asset settlement option. Pruco Life of New Jersey transfers to Prudential an amount equal to the amount of the death claim, and Prudential establishes a retained asset settlement option for the beneficiary within its General Account and makes all payments necessary to satisfy such obligations. As soon as the Pruco Life of New Jersey death claim is processed, the beneficiaries are furnished with an information kit that describes the settlement option and a check

book on which they may write checks. Pruco Life of New Jersey pays no fees or other compensation to Prudential under this agreement.

Pruco Life of New Jersey and Prudential entered into a Reinsurance Agreement under which Pruco Life of New Jersey may offer and Prudential may accept reinsurance of life insurance benefits in excess of stated limits of retention.

Our individual life reinsurance treaties covering MPremier^SM VUL Contracts provide for the reinsurance of the mortality risk on a Yearly Renewable Term basis. Reinsurance is on a first-dollar quota share basis with 90% of the risk reinsured up to a maximum retention of $100,000 per policy.

Pruco Life of New Jersey and Prudential entered into an administrative agreement with First Tennessee Bank National Association (“First Express”), in which First Express provides remittance processing expertise and research and development capabilities providing Pruco Life of New Jersey and Prudential with the benefits of remittance processing, improved quality, increased productivity, decreased costs, and improved service levels. Fees for such services vary monthly, depending on the number of remittances and processing methods used for varying types of remittance. Under this Agreement, First Express received $4,078,758 in 2004, $3,729,173 in 2003, and $4,400,848 in 2002 from Pruco Life of New Jersey and Prudential for services rendered. First Tennessee Bank National Association’s principal business address is 165 Madison Avenue, Memphis, Tennessee 38103. A chart showing fees that Pruco Life of New Jersey and Prudential pay for remittance processing is shown below.

Remittance Processing Fees
Total # of remittances per month	Less than 4,500,000	4,500,001 to 5,600,000	Greater than 5,600,000
Power Encode and single item payments	$0.1004	$0.0963	$0.0905
Multiple item payments	$0.1172	$0.1022	$0.0961
Unprocessable payments	$0.0924	$0.0924	$0.0924
Express mail payments	$0.4109	$0.4109	$0.4109
Cash payments	$1.2830	$1.2830	$1.2830

INITIAL PREMIUM PROCESSING

In general, the invested portion of the minimum initial premium will be placed in the Contract Fund as of the later of the Contract Date and the date we receive the premium.

Upon receipt of a request for life insurance from a prospective Contract owner, we will follow certain insurance underwriting (i.e. evaluation of risk) procedures designed to determine whether the proposed insured is insurable. The process may involve such verification procedures as medical examinations and may require that further information be provided by the proposed insured before a determination can be made. A Contract cannot be issued until this underwriting procedure has been completed.

These processing procedures are designed to provide temporary life insurance coverage to every prospective owner who pays the minimum initial premium at the time the request for coverage is submitted, subject to the terms of the Limited Insurance Agreement. Since a Contract cannot be issued until after the underwriting process has been completed, we will provide temporary life insurance coverage through use of the Limited Insurance Agreement. This coverage is for the total death benefit applied for, up to the maximum described by the Limited Insurance Agreement.

The Contract Date is the date we determine the proposed insured’s issue age. It represents the first day of the Contract year and the commencement of the suicide and contestable periods for purposes of the basic insurance amount.

If the minimum initial premium is received on or before the Contract is issued, the premium will be applied as of the Contract date. If an unusual delay is encountered in the underwriting procedure (for example, if a request for further information is not met promptly), the Contract Date will be 21 days prior to the date on which the Contract is physically

issued. If a medical examination is required, the Contract Date will ordinarily be the date the examination is completed, subject to the same qualification as that noted above.

If the initial premium paid is less than the minimum initial premium, the Contract Date will be determined as described above. Upon receipt of the balance of the minimum initial premium, the total premiums received will be applied as of the date that the minimum initial premium was satisfied.

If the minimum initial premium is received after the Contract Date, it will be applied as of the date of receipt.

There is one principal variation from the foregoing procedure. If permitted by the insurance laws of the state in which the Contract is issued, the Contract may be backdated up to six months.

In situations where the Contract Date precedes the date that the minimum initial premium is received, charges due prior to the initial premium receipt date will be deducted from the initial premium.

ADDITIONAL INFORMATION ABOUT

OPERATION OF CONTRACTS

Legal Considerations Relating to Sex-Distinct Premiums and Benefits

The Contract generally employs mortality tables that distinguish between males and females. Thus, premiums and benefits differ under Contracts issued on males and females of the same age. However, in those states that have adopted regulations prohibiting sex-distinct insurance rates, premiums and cost of insurance charges will be based on male rates, whether the insureds are male or female. In addition, employers and employee organizations considering purchase of a Contract should consult their legal advisers to determine whether purchase of a Contract based on sex-distinct actuarial tables is consistent with Title VII of the Civil Rights Act of 1964 or other applicable law.

How a Type A (Fixed) Contract's Death Benefit Will Vary

There are three types of death benefit available under the Contract: (1) Type A, a generally fixed death benefit; (2) Type B, a variable death benefit; and (3) Type C, a return of premium death benefit. A Type C (return of premium) death benefit generally varies by the amount of premiums paid, a Type B (variable) death benefit varies with investment performance, and a Type A (fixed) death benefit does not vary unless it must be increased to comply with the Internal Revenue Code's definition of life insurance.

Under the Type A (fixed) Contract, the death benefit is generally equal to the basic insurance amount, before the reduction of any Contract debt plus the supplemental insurance amount. If the Contract is kept in-force for several years, depending on how much premium you pay, and/or if investment performance is reasonably favorable, the Contract Fund may grow to the point where we will increase the death benefit in order to ensure that the Contract will satisfy the Internal Revenue Code's definition of life insurance.

Assuming no Contract debt, the death benefit of a Type A (fixed) Contract will always be the greater of:

(1)			the basic insurance amount plus the supplemental insurance amount; and
	(2)	the Contract Fund before the deduction of any monthly charges due on that date, multiplied by the attained age factor that applies.

A listing of attained age factors can be found on your Contract Data pages. The latter provision ensures that the Contract will always have a death benefit large enough so that the Contract will be treated as life insurance for tax purposes under current law. Before the Contract is issued, the Contract owner may choose between two methods that we use to determine the tax treatment of the Contract.

The following table illustrates at different ages how the attained age factor affects the death benefit for different Contract Fund amounts. The table assumes a $250,000 Type A (fixed) Contract was issued when the insured was a male nonsmoker, age 35, and there is no Contract debt.

Type A (Fixed) Death Benefit

------------------------------------------- -----------------------------------------------------------------------------------
                    IF                                                             THEN
------------------------------------------- -----------------------------------------------------------------------------------
                        and the Contract      the attained age    the Contract Fund multiplied by the   and the Death Benefit
 the insured is age          Fund is            factor is**              attained age factor is                   is
---------------------- -------------------- --------------------- ------------------------------------- -----------------------

         40                 $ 25,000                3.57                         89,250                        $250,000
         40                 $ 75,000                3.57                        267,750                        $267,750*
         40                 $100,000                3.57                        357,000                        $357,000*
---------------------- -------------------- --------------------- ------------------------------------- -----------------------
---------------------- -------------------- --------------------- ------------------------------------- -----------------------

         60                 $ 75,000                1.92                        144,000                        $250,000
         60                 $125,000                1.92                        240,000                        $250,000
         60                 $150,000                1.92                        288,000                        $288,000*
---------------------- -------------------- --------------------- ------------------------------------- -----------------------

         80                 $150,000                1.26                        189,000                        $250,000
         80                 $200,000                1.26                        252,000                        $252,000*
         80                 $225,000                1.26                        283,500                        $283,500*
---------------------- -------------------- --------------------- ------------------------------------- -----------------------
*  Note that the death benefit has been increased to comply with the Internal Revenue Code's definition of life insurance.
** Assumes the Contract owner selected the Cash Value Accumulation Test.
-------------------------------------------------------------------------------------------------------------------------------

This means, for example, that if the insured has reached the age of 60, and the Contract Fund is $150,000, the death benefit will be $288,000, even though the basic insurance amount is $250,000. In this situation, for every $1 increase in the Contract Fund, the death benefit will be increased by $1.92. We reserve the right to refuse to accept any premium payment that increases the death benefit by more than it increases the Contract Fund. If we exercise this right, in certain situations it may result in the loss of the Limited No-Lapse Guarantee.

How a Type B (Variable) Contract's Death Benefit Will Vary

Under the Type B (variable) Contract, while the Contract is in-force, the death benefit will never be less than the basic insurance amount, before the reduction of any Contract debt plus the supplemental insurance amount, but will also vary immediately after it is issued, with the investment results of the selected variable investment options. The death benefit may be increased to ensure that the Contract will satisfy the Internal Revenue Code's definition of life insurance.

Assuming no Contract debt, the death benefit of a Type B (variable) Contract will always be the greater of:

(1)	the basic insurance amount plus the supplemental insurance amount plus the Contract Fund before the deduction of any monthly charges due on that date; and
(2)	the Contract Fund before the deduction of any monthly charges due on that date, multiplied by the attained age factor that applies.

For purposes of computing the death benefit, if the Contract Fund is less than zero we will consider it to be zero. A listing of attained age factors can be found on your Contract Data pages. The latter provision ensures that the Contract will always have a death benefit large enough so that the Contract will be treated as life insurance for tax purposes under current law. Before the Contract is issued, the Contract owner may choose between two methods that we use to determine the tax treatment of the Contract.

The following table illustrates various attained age factors and Contract Funds and the corresponding death benefits. The table assumes a $250,000 Type B (variable) Contract was issued when the insured was a male nonsmoker, age 35, and there is no Contract debt.

Type B (Variable) Death Benefit

-------------------------------------------- ---------------------------------------------------------------------------------
                    IF                                                             THEN
-------------------------------------------- ---------------------------------------------------------------------------------
                         and the Contract      the attained age      the Contract Fund multiplied by        and the Death
 the insured is age          Fund is             factor is**           the attained age factor is            Benefit is
---------------------- --------------------- --------------------- ------------------------------------ ----------------------

         40                  $25,000                 3.57                         89,250                      $275,000
         40                  $75,000                 3.57                        267,750                      $325,000
         40                  $100,000                3.57                        357,000                      $357,000*
---------------------- --------------------- --------------------- ------------------------------------ ----------------------
---------------------- --------------------- --------------------- ------------------------------------ ----------------------

         60                  $ 75,000                1.92                        144,000                      $325,000
         60                  $125,000                1.92                        240,000                      $375,000
         60                  $150,000                1.92                        288,000                      $400,000
---------------------- --------------------- --------------------- ------------------------------------ ----------------------

         80                  $150,000                1.26                        189,000                      $400,000
         80                  $200,000                1.26                        252,000                      $450,000
         80                  $225,000                1.26                        283,500                      $475,000
---------------------- --------------------- --------------------- ------------------------------------ ----------------------
*  Note that the death benefit has been increased to comply with the Internal Revenue Code's definition of life insurance.
** Assumes the Contract owner selected the Cash Value Accumulation Test.
------------------------------------------------------------------------------------------------------------------------------

This means, for example, that if the insured has reached the age of 40, and the Contract Fund is $100,000, the death benefit will be $357,000, even though the basic insurance amount is $250,000. In this situation, for every $1 increase in the Contract Fund, the death benefit will be increased by $3.57. We reserve the right to refuse to accept any premium payment that increases the death benefit by more than it increases the Contract Fund. If we exercise this right, in certain situations it may result in the loss of the Limited No-Lapse Guarantee.

How a Type C (Return of Premium) Contract’s Death Benefit Will Vary

Under the Type C (return of premium) Contract, while the Contract is in-force, the death benefit will vary by the amount of premiums paid, less any withdrawals, both accumulated with interest at the rate(s) chosen by the Contract owner and shown in the Contract Data pages. The interest rate will range from 0% to 8%; in ½% increments. The death benefit on a Type C Contract is limited to the basic insurance amount, the supplemental insurance amount, plus an amount equal to: the Contract Fund plus the Type C Limiting Amount (the sum of the initial basic insurance amount plus the supplemental insurance amount) multiplied by the Type C Death Benefit Factor, both located in the Contract Limitations section of your Contract. The death benefit may be increased to ensure that the Contract will satisfy the Internal Revenue Code's definition of life insurance. Unlike Type A and Type B Contracts, the death benefit of a Type C Contract may be less than the basic insurance amount plus the supplemental insurance amount in the event total withdrawals are greater than total premiums paid.

Assuming no Contract debt, the death benefit of a Type C (return of premium) Contract will always be the lesser of:

(1)	the basic insurance amount plus the supplemental insurance amount plus the total premiums paid into the Contract less any withdrawals, both accumulated with interest at the rate(s) displayed in the Contract Data pages; and
(2)	the basic insurance amount and supplemental insurance amount plus the Contract Fund before deduction of any monthly charges due on that date plus the product of the Type C Limiting Amount multiplied by the Type C Death Benefit Factor, both found in the Contract Limitations section of the Contract Data pages.

However, if the product of the Contract Fund, before any monthly charges, multiplied by the attained age factor is greater than either (1) or (2), described above, then it will become the death benefit.

The following table illustrates various attained age factors and Contract Funds and the corresponding death benefits. The table assumes a $250,000 Type C (return of premium) Contract with an interest rate of 0% was issued when the insured was a male nonsmoker, age 35, and there is no Contract debt.

Type C (Return of Premium) Death Benefit

  ----------------------------------------------------------------------------------------------------------------------------------------
                                 IF                                                                 THEN
  ----------------------------------------------------------------------------------------------------------------------------------------
  ----------------------------------------------------------------------------------------------------------------------------------------
                                        and the premiums paid less                         the Contract Fund
         the         and the Contract       any withdrawals is       the attained age      multiplied by the
       insured           Fund is                                       factor is**       attained age factor is  and the Death Benefit is
       is age
  ----------------------------------------------------------------------------------------------------------------------------------------
------------------- ------------------- -------------------------- -------------------- ------------------------ -----------------------

        40               $25,000                 $15,000                  3.57                   89,250                 $265,000
        40               $75,000                 $60,000                  3.57                  267,750                 $310,000
        40               $100,000                $80,000                  3.57                  357,000                 $357,000*
------------------- ------------------- -------------------------- -------------------- ------------------------ -----------------------
------------------- ------------------- -------------------------- -------------------- ------------------------ -----------------------

        60               $75,000                $ 60,000                  1.92                  144,000                 $310,000
        60               $125,000               $100,000                  1.92                  240,000                 $350,000
        60               $150,000               $125,000                  1.92                  288,000                 $375,000
------------------- ------------------- -------------------------- -------------------- ------------------------ -----------------------

        80               $150,000               $125,000                  1.26                  189,000                 $375,000
        80               $200,000               $150,000                  1.26                  252,000                 $400,000
        80               $225,000               $175,000                  1.26                  283,500                 $425,000
------------------- ------------------- -------------------------- -------------------- ------------------------ -----------------------
----------------------------------------------------------------------------------------------------------------------------------------

* Note that the death benefit has been increased to comply with the Internal Revenue Code's definition of life insurance.
** Assumes the Contract owner selected the Cash Value Accumulation Test.
----------------------------------------------------------------------------------------------------------------------------------------

This means, for example, that if the insured has reached the age of 40, and the premiums paid less any withdrawals equals $80,000, the death benefit will be $357,000, even though the basic insurance amount is $250,000. In this situation, for every $1 increase in the Contract Fund, the death benefit will be increased by $3.57. We reserve the right to refuse to accept any premium payment that increases the death benefit by more than it increases the Contract Fund. If we exercise this right, in certain situations it may result in the loss of the Limited No-Lapse Guarantee.

Reports to Contract Owners

Once each year, we will send you a statement that provides certain information pertinent to your Contract. This statement will detail values, transactions made, and specific Contract data that apply only to your particular Contract.

You will also be sent annual and semi-annual reports of the Funds showing the financial condition of the portfolios and the investments held in each portfolio.

UNDERWRITING PROCEDURES

When you express interest in obtaining insurance from us, you may apply for coverage in one of two ways, via a paper application or through our Client Acquisition Process (“CAP”). When using the paper application, a registered representative completes a full application and submits it to our underwriting unit to commence the underwriting process. A registered representative may be an agent/broker who is a representative of Pruco Securities, LLC (“Prusec”), a broker dealer affiliate of Prudential, or in some cases, a broker dealer not directly affiliated with Prudential.

When using CAP, a registered representative typically collects enough applicant information to start the underwriting process. The representative will forward the information to our underwriting unit, which will call the applicant directly to obtain medical information, and to confirm other data.

Regardless of which of the two underwriting processes is followed, once we receive the necessary information, which may include doctors’ statements, medical examinations from physicians or paramedical vendors, test results, and other information, we will make a decision regarding our willingness to accept the risk, and the price at which we will accept the risk. We will issue the Contract when the risk has been accepted and priced.

ADDITIONAL INFORMATION ABOUT CHARGES

Charges for Increases in Insurance Amount

The Sales Load Target Premium is calculated separately for each coverage segment. When premiums are paid, each payment is allocated to each coverage segment based on the proportion of the Sales Load Target Premium in each segment to the total Sales Load Target Premiums of all segments. Currently, the sales load charge for each coverage segment is equal to 9.75% of the allocated premium paid in each Contract year up to the Sales Load Target Premium and 4% of allocated premiums paid in excess of this amount for the first 10 Contract years; 3% thereafter.

ADDITIONAL INFORMATION ABOUT CONTRACTS IN DEFAULT

When your Contract is in default, no part of your Contract Fund is available to you. Consequently, you are not able to take any loans, partial withdrawals or surrenders, or make any transfers among the investment options. In addition, during any period in which your Contract is in default, you may not change the way in which subsequent premiums are allocated or increase the amount of your insurance by increasing the basic insurance amount of the Contract.

SERVICE FEES PAYABLE TO PRUCO LIFE OF NEW JERSEY

Pruco Life of New Jersey has entered into agreements with the investment adviser or distributor of many of the underlying Funds. Under the Terms of these agreements, Pruco Life of New Jersey provides administrative and support services to the portfolios for which it receives an annual fee that ranges from 0.05% to 0.40%, as of May 1, 2005, of the average assets allocated to the Fund or portfolio under the Contract from the investment adviser, distributor and/or the Fund. These agreements, including the fees paid and services provided, can vary for each underlying mutual fund whose portfolios are offered as investment options.

DISTRIBUTION AND COMPENSATION

In an effort to promote the sale of our variable products (which may include the placement of our Contracts on a preferred or recommended company or product list and/or access to a broker-dealer’s registered representatives), we or Prusec may enter into compensation arrangements with certain broker-dealer firms authorized by Prusec to sell the Contract, or branches of such firms, with respect to certain or all registered representatives of such firms under which such firms may receive separate compensation or reimbursement for, among other things, training of sales personnel, marketing and / or administrative and / or other services they provide to us or our affiliates. To the extent permitted by NASD rules and other applicable laws and regulations, Prusec may pay or allow other promotional incentives or payments in the form of cash or non-cash compensation. These arrangements may not be offered to all firms, and the terms of such arrangements may differ between firms. You should note that firms and individual registered representatives and branch managers within some firms participating in one of these compensation arrangements might receive greater compensation for selling the Contract than for selling a different Contract that is not eligible for these compensation arrangements.

Pruco Life of New Jersey makes these promotional payments directly to or in sponsorship of the firm (or its affiliated broker/dealers). Examples of arrangements under which such payments may be made currently include, but are not limited to, sponsorships, conferences (national, regional and top producer), speaker fees, promotional items and reimbursements to firms for marketing activities or services paid by the firms and/or their individual representatives. The amount of these payments varies widely because some payments may encompass only a single event, such as a conference, and others have a much broader scope.

Your registered representative can provide you with more information about the compensation arrangements that apply upon the sale of the Contract.

EXPERTS

The financial statements of Pruco Life of New Jersey as of December 31, 2004 and 2003 and for each of the three years in the period ended December 31, 2004 and the financial statements of the Pruco Life of New Jersey Variable Appreciable Account as of December 31, 2004 and for each of the two years in the period then ended included in this Statement of Additional Information have been so included in reliance on the reports of PricewaterhouseCoopers LLP, independent registered public accounting firm, given on the authority of said firm as experts in auditing and

accounting. PricewaterhouseCoopers LLP's principal business address is 300 Madison Avenue, New York, New York, 10017.

Actuarial matters included in this Statement of Additional Information have been examined by Nancy D. Davis, MAAA, FSA, Vice President and Actuary of Prudential, whose opinion is filed as an exhibit to the registration statement.

PERFORMANCE DATA

Average Annual Total Return

The Account may advertise average annual total return information calculated according to a formula prescribed by the U.S. Securities and Exchange Commission (“SEC”). Average annual total return shows the average annual percentage increase, or decrease, in the value of a hypothetical contribution allocated to a Subaccount from the beginning to the end of each specified period of time. The SEC standardized version of this performance information is based on an assumed contribution of $1,000 allocated to a Subaccount at the beginning of each period and full withdrawal of the value of that amount at the end of each specified period. This method of calculating performance further assumes that (i) a $1,000 contribution was allocated to a Subaccount and (ii) no transfers or additional payments were made. Premium taxes are not included in the term “charges” for purposes of this calculation. Average annual total return is calculated by finding the average annual compounded rates of return of a hypothetical contribution that would compare the Unit Value on the first day of a specified period to the ending redeemable value at the end of the period according to the following formula:

P(1+T)ⁿ = ERV

Where T equals average annual total return, where ERV (the ending redeemable value) is the value at the end of the applicable period of a hypothetical contribution of $1,000 made at the beginning of the applicable period, where P equals a hypothetical contribution of $1,000, and where n equals the number of years.

Non-Standard Total Return

In addition to the standardized average annual total return information described above, we may present total return information computed on bases different from that standardized method. The Account may also present aggregate total return figures for various periods, reflecting the cumulative change in value of an investment in the Account for the specified period.

For the periods prior to the date the Subaccounts commenced operations, non-standard performance information for the Contracts will be calculated based on the performance of the Funds and the assumption that the Subaccounts were in existence for the same periods as those indicated for the Funds, with the level of Contract charges that were in effect at the inception of the Subaccounts (this is referred to as “hypothetical performance data”). Standard and non-standard average annual return calculations include the mortality and expense risk charge under the Contract, but do not reflect other life insurance contract charges (sales, administration, and actual cost of insurance) nor any applicable surrender or lapse charges, which would significantly lower the returns. Information stated for any given period does not indicate or represent future performance.

Money Market Subaccount Yield

The “total return” figures for the Money Market Subaccount are calculated using historical investment returns of the Money Market Portfolio of The Prudential Series Fund, Inc. as if MPremier^SMVUL had been investing in that subaccount during a specified period. Fees associated with the Series Fund are reflected; however, all fees, expenses, and charges associated with MPremier^SMVUL are not reflected.

The yield is computed by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one accumulation unit of the Money Market Subaccount at the beginning of a specified period, subtracting a hypothetical charge reflecting deductions from Contract owner accounts, and dividing the difference by the value of the subaccount at the beginning of the base period to obtain the base period return, and then multiplying the base period return by (365/7), with the resulting figure carried to the nearest ten-thousandth of 1%. The effective yield is obtained by taking the base period return, adding 1, raising the sum to a power equal to 365 divided by 7, and subtracting 1 from the result, according to the following formula: Effective Yield ([base period return + 1] ^365/7)-1.

The yields on amounts held in the Money Market Subaccount will fluctuate on a daily basis. Therefore, the stated yields for any given period are not an indication of future yields.

FINANCIAL STATEMENTS

The financial statements of the Account should be distinguished from the financial statements of Pruco Life of New Jersey, which should be considered only as bearing upon the ability of Pruco Life of New Jersey to meet its obligations under the Contracts.

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF NET ASSETS
December 31, 2004

				SUBACCOUNTS


		Prudential			Prudential						Prudential			Prudential
		Money			Diversified			Prudential			Flexible			Conservative
		Market			Bond			Equity			Managed			Balanced
		Portfolio			Portfolio			Portfolio			Portfolio			Portfolio

ASSETS
Investment in the portfolios, at value	$	69,341,883		$	98,785,133		$	147,593,986		$	230,434,940		$	109,012,137

Net Assets	$	69,341,883		$	98,785,133		$	147,593,986		$	230,434,940		$	109,012,137


NET ASSETS, representing:
Accumulation units	$	69,341,883		$	98,785,133		$	147,593,986		$	230,434,940		$	109,012,137

	$	69,341,883		$	98,785,133		$	147,593,986		$	230,434,940		$	109,012,137


Units outstanding		58,081,087			58,128,115			20,948,552			43,005,800			24,809,841


Portfolio shares held		6,934,189			8,757,547			6,615,598			13,898,368			7,219,347
Portfolio net asset value per share	$	10.00		$	11.28		$	22.31		$	16.58		$	15.10
Investment in portfolio shares, at cost	$	69,341,883		$	95,886,352		$	146,947,501		$	218,611,935		$	101,848,085

STATEMENT OF OPERATIONS
For the period ended December 31, 2004
				SUBACCOUNTS


		Prudential			Prudential						Prudential			Prudential
		Money			Diversified			Prudential			Flexible			Conservative
		Market			Bond			Equity			Managed			Balanced
		Portfolio			Portfolio			Portfolio			Portfolio			Portfolio

INVESTMENT INCOME
Dividend income	$	676,287		$	6,429,519		$	1,798,160		$	3,076,913		$	2,020,329


EXPENSES
Charges to contract owners for assuming mortality
risk and expense risk and for administration		160,881			408,973			818,808			1,344,572			654,093
Reimbursement for excess expenses		(3,345	)		(12,336	)		(141,456	)		(452,998	)		(174,531	)


NET EXPENSES		157,536			396,637			677,352			891,574			479,562


NET INVESTMENT INCOME (LOSS)		518,751			6,032,882			1,120,808			2,185,339			1,540,767


NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received		0			0			0			0			604,597
Realized gain (loss) on shares redeemed		0			2,322,525			(260,439	)		(114,314	)		67,358
Net change in unrealized gain (loss) on investments		0			(339,248	)		11,845,613			19,553,792			5,475,047


NET GAIN (LOSS) ON INVESTMENTS		0			1,983,277			11,585,174			19,439,478			6,147,002


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	518,751		$	8,016,159		$	12,705,982		$	21,624,817		$	7,687,769

The accompanying notes are an integral part of these financial statements.
A1

SUBACCOUNTS (Continued)

	Prudential						Prudential					Prudential						Prudential
	High Yield		Prudential		Prudential		Natural		Prudential			Government			Prudential			Small
	Bond		Stock Index		Value		Resources		Global			Income			Jennison			Capitalization
	Portfolio		Portfolio		Portfolio		Portfolio		Portfolio			Portfolio			Portfolio			Stock Portfolio

$	398,744,202	$	74,785,896	$	14,617,877	$	9,051,833	$	7,965,168		$	3,390,881		$	18,987,736		$	16,504,364

$	398,744,202	$	74,785,896	$	14,617,877	$	9,051,833	$	7,965,168		$	3,390,881		$	18,987,736		$	16,504,364


$	398,744,202	$	74,785,896	$	14,617,877	$	9,051,833	$	7,965,168		$	3,390,881		$	18,987,736		$	16,504,364

$	398,744,202	$	74,785,896	$	14,617,877	$	9,051,833	$	7,965,168		$	3,390,881		$	18,987,736		$	16,504,364

	196,781,440		43,962,734		2,469,676		1,159,050		4,755,774			1,165,604			10,067,452			5,086,467

	73,569,041		2,390,089		733,461		283,935		484,794			291,063			1,046,733			773,763
$	5.42	$	31.29	$	19.93	$	31.88	$	16.43		$	11.65		$	18.14		$	21.33
$	374,654,284	$	71,572,009	$	13,432,288	$	6,308,993	$	8,535,044		$	3,517,525		$	24,574,340		$	11,943,451

SUBACCOUNTS (Continued)

	Prudential						Prudential					Prudential						Prudential
	High Yield		Prudential		Prudential		Natural		Prudential			Government			Prudential			Small
	Bond		Stock Index		Value		Resources		Global			Income			Jennison			Capitalization
	Portfolio		Portfolio		Portfolio		Portfolio		Portfolio			Portfolio			Portfolio			Stock Portfolio

$	24,376,101	$	1,157,678	$	187,030	$	260,388	$	61,941		$	135,768		$	83,269		$	87,644


	1,578,970		296,808		79,575		46,080		36,536			21,945			97,853			86,158
	0		0		0		0		0			0			0			0

	1,578,970		296,808		79,575		46,080		36,536			21,945			97,853			86,158

	22,797,131		860,870		107,455		214,308		25,405			113,823			(14,584	)		1,486


	0		1,210,356		0		282,095		0			59,835			0			53,082
	324,050		2,688,008		2,449		140,685		(63,856	)		(28,513	)		(403,989	)		110,210
	7,798,154		3,287,500		1,859,263		1,086,688		662,567			(54,442	)		1,983,155			2,718,594

	8,122,204		7,185,864		1,861,712		1,509,468		598,711			(23,120	)		1,579,166			2,881,886


$	30,919,335	$	8,046,734	$	1,969,167	$	1,723,776	$	624,116		$	90,703		$	1,564,582		$	2,883,372

The accompanying notes are an integral part of these financial statements.
A2

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF NET ASSETS
December 31, 2004

				SUBACCOUNTS


		T. Rowe Price			AIM V.I.			Janus			MFS			American
		International			Premier			Aspen			Emerging			Century
		Stock			Equity			Growth			Growth			VP Value
		Portfolio			Fund			Portfolio			Series			Fund

ASSETS
Investment in the portfolios, at value	$	83,707		$	177,019		$	316,309		$	136,827		$	119,262

Net Assets	$	83,707		$	177,019		$	316,309		$	136,827		$	119,262


NET ASSETS, representing:
Accumulation units	$	83,707		$	177,019		$	316,309		$	136,827		$	119,262

	$	83,707		$	177,019		$	316,309		$	136,827		$	119,262


Units outstanding		105,640			241,252			514,131			212,176			70,785


Portfolio shares held		6,228			8,311			15,752			7,810			13,630
Portfolio net asset value per share	$	13.44		$	21.30		$	20.08		$	17.52		$	8.75
Investment in portfolio shares, at cost	$	84,205		$	174,251		$	367,573		$	126,254		$	97,255

STATEMENT OF OPERATIONS
For the period ended December 31, 2004
				SUBACCOUNTS


		T. Rowe Price			AIM V.I.			Janus			MFS			American
		International			Premier			Aspen			Emerging			Century
		Stock			Equity			Growth			Growth			VP Value
		Portfolio			Fund			Portfolio			Series			Fund

INVESTMENT INCOME
Dividend income	$	863		$	800		$	450		$	0		$	1,013


EXPENSES
Charges to contract owners for assuming mortality
risk and expense risk and for administration		720			938			2,755			534			886
Reimbursement for excess expenses		0			0			0			0			0


NET EXPENSES		720			938			2,755			534			886


NET INVESTMENT INCOME (LOSS)		143			(138	)		(2,305	)		(534	)		127


NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received		0			0			0			0			786
Realized gain (loss) on shares redeemed		(2,533	)		(124,769	)		(9,171	)		(8,349	)		3,653
Net change in unrealized gain (loss) on investments		11,705			131,387			22,355			23,653			8,927


NET GAIN (LOSS) ON INVESTMENTS		9,172			6,618			13,184			15,304			13,366


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	9,315		$	6,480		$	10,879		$	14,770		$	13,493

The accompanying notes are an integral part of these financial statements.
A3

SUBACCOUNTS (Continued)

	Franklin			Prudential			Prudential		Prudential			Prudential SP			Janus Aspen			Janus Aspen		Prudential
	Templeton			SP Alliance			SP Davis		SP Goldman Sachs			State Street Research			Mid Cap Growth			Balanced		SP PIMCO
	Small Cap			Large Cap Growth			Value		Small Cap Value			Small Cap Growth			Portfolio-			Portfolio-		Total Return
	Fund			Portfolio			Portfolio		Portfolio			Portfolio			Service Shares			Service Shares		Portfolio

$	246,093		$	587,435		$	2,508,407	$	2,627,332		$	475,364		$	123,504		$	130,466	$	2,954,339

$	246,093		$	587,435		$	2,508,407	$	2,627,332		$	475,364		$	123,504		$	130,466	$	2,954,339


$	246,093		$	587,435		$	2,508,407	$	2,627,332		$	475,364		$	123,504		$	130,466	$	2,954,339

$	246,093		$	587,435		$	2,508,407	$	2,627,332		$	475,364		$	123,504		$	130,466	$	2,954,339

	323,312			691,606			2,189,343		1,859,312			546,651			231,294			121,856		2,349,443

	12,666			88,871			228,452		169,396			73,586			4,870			5,169		252,940
$	19.43		$	6.61		$	10.98	$	15.51		$	6.46		$	25.36		$	25.24	$	11.68
$	214,744		$	522,320		$	2,026,180	$	2,006,211		$	436,601		$	94,455		$	118,014	$	2,889,546

SUBACCOUNTS (Continued)

	Franklin			Prudential			Prudential		Prudential			Prudential SP			Janus Aspen			Janus Aspen		Prudential
	Templeton			SP Alliance			SP Davis		SP Goldman Sachs			State Street Research			Mid Cap Growth			Balanced		SP PIMCO
	Small Cap			Large Cap Growth			Value		Small Cap Value			Small Cap Growth			Portfolio-			Portfolio-		Total Return
	Fund			Portfolio			Portfolio		Portfolio			Portfolio			Service Shares			Service Shares		Portfolio

$	0		$	0		$	7,870	$	3,024		$	0		$	0		$	2,780	$	49,426


	1,172			1,804			6,655		5,397			972			209			235		7,810
	0			0			0		0			0			0			0		0

	1,172			1,804			6,655		5,397			972			209			235		7,810

	(1,172	)		(1,804	)		1,215		(2,373	)		(972	)		(209	)		2,545		41,616


	0			0			0		511			0			0			0		42,493
	(330	)		7,286			41,074		29,945			4,021			397			198		8,341
	24,803			24,319			206,388		373,699			(5,892	)		19,601			6,688		32,664

	24,473			31,605			247,462		404,155			(1,871	)		19,998			6,886		83,498


$	23,301		$	29,801		$	248,677	$	401,782		$	(2,843	)	$	19,789		$	9,431	$	125,114

The accompanying notes are an integral part of these financial statements.
A4

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF NET ASSETS
December 31, 2004

			SUBACCOUNTS


		Prudential		Janus Aspen			Prudential		Prudential		Prudential
		SP PIMCO		Growth			SP Large		SP AIM		SP MFS Capital
		High Yield		Portfolio–			Cap Value		Core Equity		Opportunities
		Portfolio		Service Shares			Portfolio		Portfolio		Portfolio

ASSETS
Investment in the portfolios, at value	$	779,317	$	459,550		$	966,415	$	231,992	$	307,094

Net Assets	$	779,317	$	459,550		$	966,415	$	231,992	$	307,094


NET ASSETS, representing:
Accumulation units	$	779,317	$	459,550		$	966,415	$	231,992	$	307,094

	$	779,317	$	459,550		$	966,415	$	231,992	$	307,094


Units outstanding		582,048		518,879			819,666		222,520		373,288


Portfolio shares held		73,038		23,151			83,600		31,521		43,253
Portfolio net asset value per share	$	10.67	$	19.85		$	11.56	$	7.36	$	7.10
Investment in portfolio shares, at cost	$	734,086	$	403,409		$	766,358	$	201,759	$	260,771

STATEMENT OF OPERATIONS
For the period ended December 31, 2004
			SUBACCOUNTS


		Prudential		Janus Aspen			Prudential		Prudential		Prudential
		SP PIMCO		Growth			SP Large		SP AIM		SP MFS Capital
		High Yield		Portfolio–			Cap Value		Core Equity		Opportunities
		Portfolio		Service Shares			Portfolio		Portfolio		Portfolio

INVESTMENT INCOME
Dividend income	$	50,558	$	0		$	5,205	$	803	$	374


EXPENSES
Charges to contract owners for assuming mortality
risk and expense risk and for administration		2,982		915			2,042		452		542
Reimbursement for excess expenses		0		0			0		0		0


NET EXPENSES		2,982		915			2,042		452		542


NET INVESTMENT INCOME (LOSS)		47,576		(915	)		3,163		351		(168	)


NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Capital gains distributions received		5,605		0			0		0		0
Realized gain (loss) on shares redeemed		16,367		5,096			17,514		4,878		5,448
Net change in unrealized gain (loss) on investments		5,049		15,553			108,446		11,363		23,714


NET GAIN (LOSS) ON INVESTMENTS		27,021		20,649			125,960		16,241		29,162


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	74,597	$	19,734		$	129,123	$	16,592	$	28,994

The accompanying notes are an integral part of these financial statements.
A5

SUBACCOUNTS (Continued)

	Prudential			Prudential			SP Prudential			Prudential						Prudential		Prudential		Prudential
	SP Strategic			SP Mid			U.S. Emerging			SP AIM			Prudential			SP Conservative		SP Balanced		SP Growth
	Partners Focused			Cap Growth			Growth			Aggressive Growth			SP Technology			Asset Allocation		Asset Allocation		Asset Allocation
	Growth Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio		Portfolio		Portfolio

$	209,826		$	1,022,776		$	1,113,917		$	526,079		$	417,271		$	1,285,164	$	3,386,572	$	5,527,472

$	209,826		$	1,022,776		$	1,113,917		$	526,079		$	417,271		$	1,285,164	$	3,386,572	$	5,527,472


$	209,826		$	1,022,776		$	1,113,917		$	526,079		$	417,271		$	1,285,164	$	3,386,572	$	5,527,472

$	209,826		$	1,022,776		$	1,113,917		$	526,079		$	417,271		$	1,285,164	$	3,386,572	$	5,527,472

	219,017			1,274,246			1,068,461			538,288			566,022			1,085,167		2,886,504		4,815,183

	29,975			149,310			138,032			72,463			87,478			114,747		318,586		564,028
$	7.00		$	6.85		$	8.07		$	7.26		$	4.77		$	11.20	$	10.63	$	9.80
$	178,328		$	795,892		$	867,646		$	441,556		$	395,556		$	1,181,682	$	3,004,394	$	4,773,032

SUBACCOUNTS (Continued)

	Prudential			Prudential			SP Prudential			Prudential						Prudential		Prudential		Prudential
	SP Strategic			SP Mid			U.S. Emerging			SP AIM			Prudential			SP Conservative		SP Balanced		SP Growth
	Partners Focused			Cap Growth			Growth			Aggressive Growth			SP Technology			Asset Allocation		Asset Allocation		Asset Allocation
	Growth Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio		Portfolio		Portfolio

$	0		$	0		$	0		$	0		$	0		$	12,444	$	16,887	$	13,555


	470			3,145			2,330			1,084			1,127			2,949		7,491		11,119
	0			0			0			0			0			0		0		0

	470			3,145			2,330			1,084			1,127			2,949		7,491		11,119

	(470	)		(3,145	)		(2,330	)		(1,084	)		(1,127	)		9,495		9,396		2,436


	0			0			189			0			0			2,416		1,482		0
	3,308			15,318			21,096			8,521			11,792			11,234		30,889		44,640
	16,572			140,425			149,275			42,583			(8,945	)		66,324		243,166		504,347

	19,880			155,743			170,560			51,104			2,847			79,974		275,537		548,987


$	19,410		$	152,598		$	168,230		$	50,020		$	1,720		$	89,469	$	284,933	$	551,423

The accompanying notes are an integral part of these financial statements.
A6

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF NET ASSETS
December 31, 2004

				SUBACCOUNTS

		Prudential			Prudential		Prudential			Janus Aspen
		SP Aggressive Growth			SP William Blair		SP LSV			International
		Asset Allocation			International Growth		International Value			Growth Portfolio–
		Portfolio			Portfolio		Portfolio			Service Shares

ASSETS
Investment in the portfolios, at value	$	1,719,626		$	672,130		$	807,479	$	55,843

Net Assets	$	1,719,626		$	672,130		$	807,479	$	55,843


NET ASSETS, representing:
Accumulation units	$	1,719,626		$	672,130		$	807,479	$	55,843

	$	1,719,626		$	672,130		$	807,479	$	55,843



Units outstanding		1,545,489			598,730			791,060		69,276


Portfolio shares held		191,495			98,121			91,344		2,073
Portfolio net asset value per share	$	8.98		$	6.85		$	8.84	$	26.94
Investment in portfolio shares, at cost	$	1,430,136		$	532,884		$	633,656	$	43,641

STATEMENT OF OPERATIONS
For the period ended December 31, 2004
				SUBACCOUNTS

		Prudential			Prudential		Prudential			Janus Aspen
		SP Aggressive Growth			SP William Blair		SP LSV			International
		Asset Allocation			International Growth		International Value			Growth Portfolio–
		Portfolio			Portfolio		Portfolio			Service Shares

INVESTMENT INCOME
Dividend income	$	515		$	940		$	2,593	$	424


EXPENSES
Charges to contract owners for assuming mortality
risk and expense risk and for administration		2,988			1,681			1,792		95
Reimbursement for excess expenses		0			0			0		0


NET EXPENSES		2,988			1,681			1,792		95


NET INVESTMENT INCOME (LOSS)		(2,473	)		(741	)		801		329


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital gains distributions received		0			0			0		0
Realized gain (loss) on shares redeemed		23,055			17,335			13,124		166
Net change in unrealized gain (loss) on investments		174,332			68,304			88,971		7,623


NET GAIN (LOSS) ON INVESTMENTS		197,387			85,639			102,095		7,789


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS	$	194,914		$	84,898		$	102,896	$	8,118

The accompanying notes are an integral part of these financial statements.
A7

This page intentionally left blank.

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF CHANGES IN NET ASSETS
For the periods ended December 31, 2004 and 2003

								SUBACCOUNTS


		Prudential						Prudential						Prudential
		Money Market						Diversified Bond						Equity
		Portfolio						Portfolio						Portfolio

		01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
		to			to			to			to			to			to
		12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003

OPERATIONS
Net investment income (loss)	$	518,751		$	963,533		$	6,032,882		$	3,793,811		$	1,120,808		$	621,303
Capital gains distributions received		0			0			0			0			0			0
Realized gain (loss) on shares redeemed		0			0			2,322,525			738,565			(260,439	)		(1,696,246	)
Net change in unrealized gain (loss)
on investments		0			0			(339,248	)		2,936,963			11,845,613			33,780,886


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS		518,751			963,533			8,016,159			7,469,339			12,705,982			32,705,943


CONTRACT OWNER TRANSACTIONS
Contract owner net payments		11,330,106			29,685,590			2,362,761			1,985,919			7,432,215			7,701,552
Policy loans		(157,461	)		(174,810	)		(534,534	)		(612,722	)		(2,673,076	)		(2,687,563	)
Policy loan repayments and interest		118,754			602,940			1,022,021			1,607,323			3,456,767			3,784,186
Surrenders, Withdrawals and Death Benefits		(251,515	)		(476,193	)		(822,778	)		(1,246,490	)		(4,595,462	)		(5,392,068	)
Net transfers between other subaccounts
or fixed rate option		15,061,681			(181,547,304	)		(65,868,484	)		110,979,351			(1,141,829	)		(1,588,219	)
Withdrawal and other charges		(2,108,402	)		(2,256,489	)		(2,178,574	)		(1,477,897	)		(4,996,589	)		(4,936,829	)


NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CONTRACT
OWNER TRANSACTIONS		23,993,163			(154,166,266	)		(66,019,588	)		111,235,484			(2,517,974	)		(3,118,941	)


TOTAL INCREASE (DECREASE) IN
NET ASSETS		24,511,914			(153,202,733	)		(58,003,429	)		118,704,823			10,188,008			29,587,002

NET ASSETS
Beginning of period		44,829,969			198,032,702			156,788,562			38,083,739			137,405,978			107,818,976


End of period	$	69,341,883		$	44,829,969		$	98,785,133		$	156,788,562		$	147,593,986		$	137,405,978


Beginning units		36,522,826			172,737,737			105,172,670			10,678,553			20,519,014			19,923,233

Units issued		83,384,541			54,609,352			1,806,968			99,850,226			3,164,031			4,030,496
Units redeemed		(61,826,280	)		(190,824,263	)		(48,851,523	)		(5,356,109	)		(2,734,493	)		(3,434,715	)

Ending units		58,081,087			36,522,826			58,128,115			105,172,670			20,948,552			20,519,014

The accompanying notes are an integral part of these financial statements.
A9

SUBACCOUNTS (Continued)


	Prudential						Prudential						Prudential						Prudential
	Flexible Managed						Conservative Balanced						High Yield Bond						Stock Index
	Portfolio						Portfolio						Portfolio						Portfolio

	01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
	to			to			to			to			to			to			to			to
	12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003


$	2,185,339		$	2,984,205		$	1,540,767		$	2,100,591		$	22,797,131		$	19,116,368		$	860,870		$	673,708
	0			0			604,597			0			0			0			1,210,356			2,018,997
	(114,314	)		(2,689,249	)		67,358			(375,027	)		324,050			12,966			2,688,008			(4,694,422	)

	19,553,792			39,662,946			5,475,047			14,323,601			7,798,154			32,645,242			3,287,500			18,428,010



	21,624,817			39,957,902			7,687,769			16,049,165			30,919,335			51,774,576			8,046,734			16,426,293


	12,057,488			12,718,081			6,279,060			6,574,150			641,755			608,392			27,690,438			22,275,041
	(4,096,706	)		(4,066,768	)		(1,542,528	)		(1,801,231	)		(102,764	)		(141,606	)		(738,669	)		(670,158	)
	5,220,528			5,766,628			2,202,046			2,540,776			125,402			96,713			1,800,275			1,557,778
	(7,743,335	)		(8,533,974	)		(3,644,401	)		(4,187,271	)		(267,097	)		(185,332	)		(1,154,505	)		(852,416	)

	(2,189,715	)		2,584,151			(922,382	)		(1,535,544	)		63,057,740			70,520,530			(31,064,098	)		(15,010,127	)
	(7,875,036	)		(8,128,781	)		(4,094,471	)		(4,272,969	)		(1,888,791	)		(1,336,879	)		(2,616,395	)		(2,315,305	)



	(4,626,776	)		339,337			(1,722,676	)		(2,682,089	)		61,566,245			69,561,818			(6,082,954	)		4,984,813


	16,998,041			40,297,239			5,965,093			13,367,076			92,485,580			121,336,394			1,963,780			21,411,106


	213,436,899			173,139,660			103,047,044			89,679,968			306,258,622			184,922,228			72,822,116			51,411,010


$	230,434,940		$	213,436,899		$	109,012,137		$	103,047,044		$	398,744,202		$	306,258,622		$	74,785,896		$	72,822,116


	43,863,559			43,783,047			25,171,032			25,819,049			146,818,849			81,584,506			50,484,694			46,575,357

	3,650,800			5,743,696			2,205,459			2,667,516			52,163,293			66,155,429			94,629,518			50,931,807
	(4,508,559	)		(5,663,184	)		(2,566,650	)		(3,315,533	)		(2,200,702	)		(921,086	)		(101,151,478	)		(47,022,470	)

	43,005,800			43,863,559			24,809,841			25,171,032			196,781,440			146,818,849			43,962,734			50,484,694

The accompanying notes are an integral part of these financial statements.
A10

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF CHANGES IN NET ASSETS
For the periods ended December 31, 2004 and 2003

								SUBACCOUNTS


		Prudential						Prudential						Prudential
		Value						Natural Resources						Global
		Portfolio						Portfolio						Portfolio

		01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
		to			to			to			to			to			to
		12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003

OPERATIONS
Net investment income (loss)	$	107,455		$	107,501		$	214,308		$	182,477		$	25,405		$	(11,260	)
Capital gains distributions received		0			0			282,095			331,093			0			0
Realized gain (loss) on shares redeemed		2,449			(184,846	)		140,685			42,052			(63,856	)		(191,268	)
Net change in unrealized gain (loss)
on investments		1,859,263			2,772,000			1,086,688			1,334,516			662,567			1,700,634


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS		1,969,167			2,694,655			1,723,776			1,890,138			624,116			1,498,106


CONTRACT OWNER TRANSACTIONS
Contract owner net payments		523,045			558,400			250,040			221,595			869,452			748,534
Policy loans		(236,283	)		(143,278	)		(171,934	)		(143,902	)		(97,105	)		(80,321	)
Policy loan repayments and interest		238,175			251,134			138,565			152,867			100,626			96,263
Surrenders, withdrawals and death benefits		(436,719	)		(446,458	)		(292,587	)		(201,179	)		(229,692	)		(204,941	)
Net transfers between other subaccounts
or fixed rate option		318,496			(73,299	)		750,563			375,564			1,000,125			75,051
Withdrawal and other charges		(359,372	)		(361,218	)		(208,043	)		(181,303	)		(438,890	)		(401,377	)


NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CONTRACT
OWNER TRANSACTIONS		47,342			(214,719	)		466,604			223,642			1,204,516			233,209


TOTAL INCREASE (DECREASE) IN
NET ASSETS		2,016,509			2,479,936			2,190,380			2,113,780			1,828,632			1,731,315

NET ASSETS
Beginning of period		12,601,368			10,121,432			6,861,453			4,747,673			6,136,536			4,405,221


End of period	$	14,617,877		$	12,601,368		$	9,051,833		$	6,861,453		$	7,965,168		$	6,136,536


Beginning units		2,469,758			2,623,251			1,093,197			1,045,158			3,888,523			3,616,814

Units issued		261,086			276,805			240,066			271,750			1,600,810			1,151,159
Units redeemed		(261,168	)		(430,298	)		(174,213	)		(223,711	)		(733,559	)		(879,450	)

Ending units		2,469,676			2,469,758			1,159,050			1,093,197			4,755,774			3,888,523

The accompanying notes are an integral part of these financial statements.
A11

SUBACCOUNTS (Continued)


	Prudential						Prudential						Prudential						T. Rowe Price
	Government Income						Jennison						Small Capitalization Stock						International Stock
	Portfolio						Portfolio						Portfolio						Portfolio

	01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
	to			to			to			to			to			to			to			to
	12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003


$	113,823		$	144,889		$	(14,584	)	$	(45,068	)	$	1,486		$	6,978		$	143		$	287
	59,835			154,362			0			0			53,082			38,162			0			74
	(28,513	)		(10,254	)		(403,989	)		(847,503	)		110,210			399,179			(2,533	)		(2,297	)

	(54,442	)		(211,285	)		1,983,155			4,713,173			2,718,594			2,285,594			11,705			22,217



	90,703			77,712			1,564,582			3,820,602			2,883,372			2,729,913			9,315			20,281


	252,260			216,216			2,496,773			2,333,780			332,621			(2,697	)		2,645			2,889
	(98,922	)		(43,798	)		(358,503	)		(302,221	)		(182,787	)		(199,812	)		0			0
	100,034			49,461			374,714			542,247			171,375			132,253			0			0
	(159,702	)		(190,427	)		(655,712	)		(922,962	)		(295,024	)		(141,470	)		(1,902	)		(1,160	)

	(814,782	)		328,485			(168,430	)		(57,988	)		451,693			5,846,079			(12,263	)		0
	(115,061	)		(146,130	)		(1,278,447	)		(1,205,401	)		(238,052	)		(206,715	)		(3,474	)		(3,680	)



	(836,173	)		213,807			410,395			387,455			239,826			5,427,638			(14,994	)		(1,951	)


	(745,470	)		291,519			1,974,977			4,208,057			3,123,198			8,157,551			(5,679	)		18,330


	4,136,351			3,844,832			17,012,759			12,804,702			13,381,166			5,223,615			89,386			71,056


$	3,390,881		$	4,136,351		$	18,987,736		$	17,012,759		$	16,504,364		$	13,381,166		$	83,707		$	89,386


	1,457,365			1,379,673			9,379,546			8,733,363			5,002,866			2,684,228			127,191			130,786

	226,950			557,919			2,821,489			3,228,510			497,296			2,893,289			3,733			5,105
	(518,711	)		(480,227	)		(2,133,583	)		(2,582,327	)		(413,695	)		(574,651	)		(25,284	)		(8,700	)

	1,165,604			1,457,365			10,067,452			9,379,546			5,086,467			5,002,866			105,640			127,191

The accompanying notes are an integral part of these financial statements.
A12

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF CHANGES IN NET ASSETS
For the periods ended December 31, 2004 and 2003

								SUBACCOUNTS


								Janus
		AIM V.I.						Aspen						MFS
		Premier Equity						Growth						Emerging Growth
		Fund						Portfolio						Series

		01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004		01/01/2003
		to			to			to			to			to			to
		12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004		12/31/2003

OPERATIONS
Net investment income (loss)	$	(138	)	$	(1,125	)	$	(2,305	)	$	(2,909	)	$	(534	)	$	(530	)
Capital gains distributions received		0			0			0			0			0			0
Realized gain (loss) on shares redeemed		(124,769	)		(18,033	)		(9,171	)		(54,752	)		(8,349	)		(37,620	)
Net change in unrealized gain (loss)
on investments		131,387			87,061			22,355			154,459			23,653			66,278


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS		6,480			67,903			10,879			96,798			14,770			28,128


CONTRACT OWNER TRANSACTIONS
Contract owner net payments		28,201			46,803			19,760			32,697			21,831			33,098
Policy loans		0			0			0			0			0			0
Policy loan repayments and interest		0			0			0			0			0			0
Surrenders, withdrawals and death benefits		(470	)		(3,047	)		(22,988	)		(2,465	)		(2,807	)		(453	)
Net transfers between other subaccounts
or fixed rate option		(208,997	)		(1,392	)		0			(122,084	)		(20,885	)		(50,895	)
Withdrawal and other charges		(6,272	)		(10,272	)		(18,250	)		(21,553	)		(3,524	)		(4,355	)


NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CONTRACT
OWNER TRANSACTIONS		(187,538	)		32,092			(21,478	)		(113,405	)		(5,385	)		(22,605	)


TOTAL INCREASE (DECREASE) IN
NET ASSETS		(181,058	)		99,995			(10,599	)		(16,607	)		9,385			5,523

NET ASSETS
Beginning of period		358,077			258,082			326,908			343,515			127,442			121,919


End of period	$	177,019		$	358,077		$	316,309		$	326,908		$	136,827		$	127,442


Beginning units		552,133			502,694			550,461			755,177			231,358			308,805

Units issued		47,306			93,571			33,326			68,090			61,535			73,517
Units redeemed		(358,187	)		(44,132	)		(69,656	)		(272,806	)		(80,717	)	(150,964		)

Ending units		241,252			552,133			514,131			550,461			212,176			231,358

The accompanying notes are an integral part of these financial statements.
A13

SUBACCOUNTS (Continued)


	American Century						Franklin						Prudential SP Alliance						Prudential SP
	VP Value						Templeton Small						Large Cap Growth						Davis Value
	Fund						Cap Fund						Portfolio						Portfolio

	01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
	to			to			to			to			to			to			to			to
	12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003


$	127		$	281		$	(1,172	)	$	(909	)	$	(1,804	)	$	(1,064	)	$	1,215		$	147
	786			0			0			0			0			0			0			0
	3,653			1			(330	)		(7,553	)		7,286			553			41,074			17,687

	8,927			21,228			24,803			61,025			24,319			57,529			206,388			301,842



	13,493			21,510			23,301			52,563			29,801			57,018			248,677			319,676


	24,197			27,266			31,404			45,951			279,969			249,925			1,048,680			839,658
	0			0			0			0			(1,564	)		(700	)		(16,982	)		(2,225	)
	0			0			0			0			45			0			378			4
	0			(41,075	)		(4,669	)		(6,516	)		(22,083	)		(7,901	)		(40,519	)		(26,675	)

	(10,296	)		(3,937	)		120			2,319			18,069			95,519			167,518			348,431
	(2,246	)		(3,217	)		(12,928	)		(12,072	)		(131,470	)		(116,518	)		(490,320	)		(395,403	)



	11,655			(20,963	)		13,927			29,682			142,966			220,325			668,755			763,790


	25,148			547			37,228			82,245			172,767			277,343			917,432			1,083,466


	94,114			93,567			208,865			126,620			414,668			137,325			1,590,975			507,509


$	119,262		$	94,114		$	246,093		$	208,865		$	587,435		$	414,668		$	2,508,407		$	1,590,975


	63,294			80,428			304,291			251,394			522,093			212,842			1,556,902			638,722

	24,220			23,310			44,542			91,818			420,634			495,474			1,273,903			1,514,357
	(16,729	)		(40,444	)		(25,521	)		(38,921	)		(251,121	)		(186,223	)		(641,462	)		(596,177	)

	70,785			63,294			323,312			304,291			691,606			522,093			2,189,343			1,556,902

The accompanying notes are an integral part of these financial statements.
A14

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF CHANGES IN NET ASSETS
For the periods ended December 31, 2004 and 2003

								SUBACCOUNTS


		Prudential						Prudential						Janus Aspen
		SP Goldman Sachs						SP State Street						Mid Cap Growth
		Small Cap Value						Research Small Cap Growth						Portfolio–
		Portfolio						Portfolio						Service Shares

		01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
		to			to			to			to			to			to
		12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003

OPERATIONS
Net investment income (loss)	$	(2,373	)	$	(2,538	)	$	(972	)	$	(443	)	$	(209	)	$	(128	)
Capital gains distributions received		511			0			0			0			0			0
Realized gain (loss) on shares redeemed		29,945			8,545			4,021			2,453			397			(389	)
Net change in unrealized gain (loss)
on investments		373,699			292,781			(5,892	)		52,466			19,601			20,367


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS		401,782			298,788			(2,843	)		54,476			19,789			19,850


CONTRACT OWNER TRANSACTIONS
Contract owner net payments		1,269,774			950,857			265,131			197,044			16,437			31,214
Policy loans		(16,751	)		(3,687	)		(2,491	)		(132	)		0			0
Policy loan repayments and interest		633			31			37			0			0			0
Surrenders, withdrawals and death benefits .		(65,537	)		(17,880	)		(17,389	)		(3,487	)		0			0
Net transfers between other subaccounts
or fixed rate option		281,591			129,301			60,606			51,460			0			(376	)
Withdrawal and other charges		(625,534	)		(461,328	)		(113,885	)		(93,810	)		(2,774	)		(2,330	)


NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CONTRACT
OWNER TRANSACTIONS		844,176			597,294			192,009			151,075			13,663			28,508


TOTAL INCREASE (DECREASE) IN
NET ASSETS		1,245,958			896,082			189,166			205,551			33,452			48,358

NET ASSETS
Beginning of period		1,381,374			485,292			286,198			80,647			90,052			41,694


End of period	$	2,627,332		$	1,381,374		$	475,364		$	286,198		$	123,504		$	90,052


Beginning units		1,176,321			551,045			313,415			118,669			202,770			126,265

Units issued		1,264,055			1,161,847			403,564			330,573			34,453			87,366
Units redeemed		(581,064	)		(536,571	)		(170,328	)		(135,827	)		(5,929	)		(10,861	)

Ending units		1,859,312			1,176,321			546,651			313,415			231,294			202,770

The accompanying notes are an integral part of these financial statements.
A15

SUBACCOUNTS (Continued)


	Janus Aspen						Prudential						Prudential						Janus
	Balanced						SP PIMCO						SP PIMCO						Aspen Growth
	Portfolio–						Total Return						High Yield						Portfolio–
	Service Shares						Portfolio						Portfolio						Service Shares

	01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
	to			to			to			to			to			to			to			to
	12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003


$	2,545		$	1,446		$	41,616		$	33,835		$	47,576		$	22,254		$	(915	)	$	(463	)
	0			0			42,493			25,713			5,605			0			0			0
	198			(38	)		8,341			4,192			16,367			3,130			5,096			(341	)

	6,688			9,071			32,664			11,188			5,049			39,352			15,553			53,770



	9,431			10,479			125,114			74,928			74,597			64,736			19,734			52,966



	21,133			39,554			1,352,261			1,163,665			310,744			201,120			260,046			216,204
	0			0			(18,098	)		(5,747	)		(2,237	)		(59	)		(6,610	)		(4,239	)
	0			0			459			13			25			0			392			31
	0			0			(64,863	)		(34,198	)		(35,713	)		(8,181	)		(5,584	)		(2,197	)

	0			8,670			2,093			674,824			61,261			185,199			15,056			39,989
	(3,127	)		(2,715	)		(636,598	)		(524,853	)		(164,285	)		(98,513	)		(117,394	)		(104,385	)




	18,006			45,509			635,254			1,273,704			169,795			279,566			145,906			145,403



	27,437			55,988			760,368			1,348,632			244,392			344,302			165,640			198,369


	103,029			47,041			2,193,971			845,339			534,925			190,623			293,910			95,541


$	130,466		$	103,029		$	2,954,339		$	2,193,971		$	779,317		$	534,925		$	459,550		$	293,910


	104,009			53,895			1,835,190			737,892			433,776			188,324			344,945			147,070

	20,960			53,089			1,537,518			1,778,842			479,242			352,181			338,958			371,011
	(3,113	)		(2,975	)		(1,023,265	)		(681,544	)		(330,970	)		(106,729	)		(165,024	)		(173,136	)

	121,856			104,009			2,349,443			1,835,190			582,048			433,776			518,879			344,945

The accompanying notes are an integral part of these financial statements.
A16

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF CHANGES IN NET ASSETS
For the periods ended December 31, 2004 and 2003

								SUBACCOUNTS


		Prudential						Prudential						Prudential
		SP Large						SP AIM						SP MFS Capital
		Cap Value						Core Equity						Opportunities
		Portfolio						Portfolio						Portfolio

		01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
		to			to			to			to			to			to
		12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003

OPERATIONS
Net investment income (loss)	$	3,163		$	(1,130	)	$	351		$	82		$	(168	)	$	(155	)
Capital gains distributions received		0			0			0			0			0			0
Realized gain (loss) on shares redeemed		17,514			4,886			4,878			924			5,448			656
Net change in unrealized gain (loss)
on investments		108,446			104,759			11,363			23,301			23,714			25,117


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS		129,123			108,515			16,592			24,307			28,994			25,618


CONTRACT OWNER TRANSACTIONS
Contract owner net payments		462,652			394,289			135,651			112,907			148,593			106,152
Policy loans		(2,263	)		(151	)		(2,961	)		0			(1,808	)		(31	)
Policy loan repayments and interest		257			2			25			0			42			1
Surrenders, withdrawals and death benefits		(44,713	)		(10,055	)		(7,960	)		(5,040	)		(4,048	)		(926	)
Net transfers between other subaccounts
or fixed rate option		98,230			90,812			9,557			5,717			26,900			37,624
Withdrawal and other charges		(250,279	)		(208,087	)		(64,589	)		(61,677	)		(64,955	)		(50,124	)


NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CONTRACT
OWNER TRANSACTIONS		263,884			266,810			69,723			51,907			104,724			92,696


TOTAL INCREASE (DECREASE) IN
NET ASSETS		393,007			375,325			86,315			76,214			133,718			118,314

NET ASSETS
Beginning of period		573,408			198,083			145,677			69,463			173,376			55,062


End of period	$	966,415		$	573,408		$	231,992		$	145,677		$	307,094		$	173,376


Beginning units		571,837			249,654			151,763			89,284			237,329			95,349

Units issued		539,293			708,892			161,715			147,553			253,528			222,864
Units redeemed		(291,464	)		(386,709	)		(90,958	)		(85,074	)		(117,569	)		(80,884	)

Ending units		819,666			571,837			222,520			151,763			373,288			237,329

The accompanying notes are an integral part of these financial statements.
A17

SUBACCOUNTS (Continued)


	Prudential SP						Prudential						SP Prudential						Prudential
	Strategic Partners						SP Mid Cap						U.S. Emerging						SP AIM Aggressive
	Focused Growth						Growth						Growth						Growth
	Portfolio						Portfolio						Portfolio						Portfolio

	01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
	to			to			to			to			to			to			to			to
	12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003


$	(470	)	$	(248	)	$	(3,145	)	$	(1,165	)	$	(2,330	)	$	(1,084	)	$	(1,084	)	$	(580	)
	0			0			0			0			189			0			0			0
	3,308			466			15,318			2,740			21,096			5,068			8,521			3,224

	16,572			19,781			140,425			102,241			149,275			115,387			42,583			47,081



	19,410			19,999			152,598			103,816			168,230			119,371			50,020			49,725



	110,667			90,836			397,245			345,703			513,295			352,360			338,385			234,526
	(3,551	)		0			(8,015	)		(589	)		(24,164	)		(642	)		(4,575	)		(1,268	)
	24			0			67			3			32,016			2			250			5
	(2,388	)		(1,592	)		(15,561	)		(5,047	)		(18,250	)		(8,059	)		(16,122	)		(8,796	)

	(34	)		20,392			90,783			134,672			119,721			122,449			32,346			67,435
	(49,536	)		(39,107	)		(192,769	)		(127,192	)		(262,310	)		(181,025	)		(172,257	)		(129,064	)




	55,182			70,529			271,750			347,550			360,308			285,085			178,027			162,838



	74,592			90,528			424,348			451,366			528,538			404,456			228,047			212,563


	135,234			44,706			598,428			147,062			585,379			180,923			298,032			85,469


$	209,826		$	135,234		$	1,022,776		$	598,428		$	1,113,917		$	585,379		$	526,079		$	298,032


	155,802			64,582			895,416			307,678			681,337			298,078			341,373			123,685

	135,323			145,912			714,639			832,323			826,070			652,186			431,809			416,110
	(72,108	)		(54,692	)		(335,809	)		(244,585	)		(438,946	)		(268,927	)		(234,894	)		(198,422	)

	219,017			155,802			1,274,246			895,416			1,068,461			681,337			538,288			341,373

The accompanying notes are an integral part of these financial statements.
A18

FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT

STATEMENT OF CHANGES IN NET ASSETS
For the periods ended December 31, 2004 and 2003

								SUBACCOUNTS


								Prudential						Prudential
		Prudential						SP Conservative						SP Balanced Asset
		SP Technology						Asset Allocation						Allocation
		Portfolio						Portfolio						Portfolio

		01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
		to			to			to			to			to			to
		12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003

OPERATIONS
Net investment income (loss)	$	(1,127	)	$	(401	)	$	9,495		$	2,239		$	9,396		$	3,791
Capital gains distributions received		0			0			2,416			281			1,482			0
Realized gain (loss) on shares redeemed		11,792			10,410			11,234			10,908			30,889			15,201
Net change in unrealized gain (loss)
on investments		(8,945	)		35,358			66,324			34,853			243,166			144,094


NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS		1,720			45,367			89,469			48,281			284,933			163,086


CONTRACT OWNER TRANSACTIONS
Contract owner net payments		172,842			155,460			609,337			360,510			2,051,220			964,779
Policy loans		(8,367	)		(1,833	)		(3,465	)		(49,664	)		(12,107	)		(65,791	)
Policy loan repayments and interest		253			0			41,125			75			41,735			292
Surrenders, withdrawals and death benefits		(2,405	)		(2,494	)		(19,815	)		(4,919	)		(46,071	)		(7,344	)
Net transfers between other subaccounts
or fixed rate option		55,334			80,420			332,961			223,704			774,700			548,947
Withdrawal and other charges		(72,999	)		(50,355	)		(307,327	)		(187,255	)		(1,091,204	)		(479,831	)


NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CONTRACT
OWNER TRANSACTIONS		144,658			181,198			652,816			342,451			1,718,273			961,052


TOTAL INCREASE (DECREASE) IN
NET ASSETS		146,378			226,565			742,285			390,732			2,003,206			1,124,138

NET ASSETS
Beginning of period		270,893			44,328			542,879			152,147			1,383,366			259,228

End of period	$	417,271		$	270,893		$	1,285,164		$	542,879		$	3,386,572		$	1,383,366


Beginning units		373,785			87,589			497,231			161,912			1,301,654			298,712

Units issued		683,501			490,962			912,251			700,978			2,704,419			1,789,095
Units redeemed		(491,264	)		(204,766	)		(324,315	)		(365,659	)		(1,119,569	)		(786,153	)

Ending units		566,022			373,785			1,085,167			497,231			2,886,504			1,301,654

The accompanying notes are an integral part of these financial statements.
A19

SUBACCOUNTS (Continued)


	Prudential						Prudential						Prudential						Prudential						Janus Aspen
	SP Growth Asset						SP Aggressive Growth						SP William Blair						SP LSV						International Growth
	Allocation						Asset Allocation						International Growth						International Value						Portfolio-
	Portfolio						Portfolio						Portfolio						Portfolio						Service Shares

	01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003			01/01/2004			01/01/2003
	to			to			to			to			to			to			to			to			to			to
	12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003			12/31/2004			12/31/2003


$	2,436		$	1,497		$	(2,473	)	$	(981	)	$	(741	)	$	(833	)	$	801		$	1,187		$	329		$	227
	0			0			0			0			0			0			0			0			0			0
	44,640			9,616			23,055			7,212			17,335			1,500			13,124			6,013			166			(2,801	)

	504,347			263,177			174,332			121,875			68,304			86,747			88,971			95,925			7,623			12,295



	551,423			274,290			194,914			128,106			84,898			87,414			102,896			103,125			8,118			9,721


	3,795,940			1,755,343			1,041,566			591,163			322,026			224,343			385,682			341,793			7,044			14,484
	(27,843	)		(1,000	)		(945	)		(484	)		(8,109	)		(717	)		(6,246	)		(1,038	)		0			0
	322			3			33			0			287			1			242			3			0			0
	(55,908	)		(15,206	)		(20,818	)		(4,668	)		(19,537	)		(7,634	)		(23,996	)		(6,777	)		0			0

	800,081			738,694			269,607			93,097			76,420			33,877			34,016			62,750			0			(11,012	)
	(1,808,538	)		(833,043	)		(483,407	)		(247,771	)		(156,680	)		(113,592	)		(185,556	)		(152,947	)		(1,261	)		(1,204	)



	2,704,054			1,644,791			806,036			431,337			214,407			136,278			204,142			243,784			5,783			2,268


	3,255,477			1,919,081			1,000,950			559,443			299,305			223,692			307,038			346,909			13,901			11,989


	2,271,995			352,914			718,676			159,233			372,825			149,133			500,441			153,532			41,942			29,953

$	5,527,472		$	2,271,995		$	1,719,626		$	718,676		$	672,130		$	372,825		$	807,479		$	500,441		$	55,843		$	41,942


	2,232,177			443,009			741,596			217,547			386,264			215,024			566,572			219,450			61,632			59,096

	4,408,122			2,763,842			1,312,794			834,697			474,023			330,794			472,251			616,143			9,429			28,314
	(1,825,116	)		(974,674	)		(508,901	)		(310,648	)		(261,557	)		(159,554	)		(247,763	)		(269,021	)		(1,785	)		(25,778	)

	4,815,183			2,232,177			1,545,489			741,596			598,730			386,264			791,060			566,572			69,276			61,632

The accompanying notes are an integral part of these financial statements.
A20

NOTES TO FINANCIAL STATEMENTS OF
PRUCO LIFE OF NEW JERSEY VARIABLE APPRECIABLE ACCOUNT
DECEMBER 31, 2004

Note 1: General

Pruco Life of New Jersey Variable Appreciable Account (the “Account”) was established on January 13, 1984 under New Jersey law as a separate investment account of Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey”) which is a wholly-owned subsidiary of Pruco Life Insurance Company (an Arizona domiciled company) and is indirectly wholly-owned by The Prudential Insurance Company of America (“Prudential”), which is a wholly-owned subsidiary of Prudential Financial, Inc. (“PFI”). Under applicable insurance law, the assets and liabilities of the Account are clearly identified and distinguished from Prudential’s other assets and liabilities. The portion of the Account’s assets applicable to the variable life contracts is not chargeable with liabilities arising out of any other business Prudential may conduct. Proceeds from the purchases of Pruco Life of New Jersey Variable Appreciable Life (“VAL”), Pruco Life of New Jersey PRUvider Variable Appreciable Life (“PRUvider”), effective November 10, 1999 Pruco Life of New Jersey PruSelect III (“PSEL III”), effective May 1, 2000 Pruco Life of New Jersey Survivorship Variable Universal Life (“SVUL”), effective February 12, 2001 Pruco Life of New Jersey PruLife Custom Premier (“VUL”) and effective May 17, 2004 Pruco Life of New Jersey PruLife Custom Premier II (“ENVUL”) contracts are invested in the Account.

The Account is registered under the Investment Company act of 1940, as amended, as a unit investment trust. The Account is a funding vehicle for individual life insurance contracts. Each contract offers the option to invest in various subaccounts, each of which invests in either a corresponding portfolio of The Prudential Series Fund, Inc. (the “Series Fund”) or one of the non-Prudential administered funds (collectively, the “portfolios”). Investment options vary by contract. Options available to the Variable Appreciable Account contracts which invest in a corresponding portfolio of the Series Fund are: Prudential Money Market Portfolio, Prudential Diversified Bond Portfolio, Prudential Equity Portfolio, Prudential Flexible Managed Portfolio, Prudential Conservative Balanced Portfolio, Prudential High Yield Bond Portfolio, Prudential Stock Index Portfolio, Prudential Value Portfolio, Prudential Natural Resources Portfolio, Prudential Global Portfolio, Prudential Government Income Portfolio, Prudential Jennison Portfolio, Prudential Small Capitalization Stock Portfolio, Prudential SP Alliance Large Cap Growth Portfolio, Prudential SP Davis Value Portfolio, Prudential SP Goldman Sachs Small Cap Value Portfolio, Prudential SP State Street Research Small Cap Growth Portfolio, Prudential SP PIMCO Total Return Portfolio, Prudential SP PIMCO High Yield Portfolio, Prudential SP Large Cap Value Portfolio, Prudential SP AIM Core Equity Portfolio, Prudential SP MFS Capital Opportunities Portfolio, Prudential SP Strategic Partners Focused Growth Portfolio, Prudential SP Mid Cap Growth Portfolio, SP Prudential U.S. Emerging Growth Portfolio, Prudential SP AIM Aggressive Growth Portfolio, Prudential SP Technology Portfolio, Prudential SP Conservative Asset Allocation Portfolio, Prudential SP Balanced Asset Allocation Portfolio, Prudential SP Growth Asset Allocation Portfolio, Prudential SP Aggressive Growth Asset Allocation Portfolio, Prudential SP William Blair International Growth Portfolio and Prudential SP LSV International Value Portfolio. Options available to the Variable Appreciable Account contracts which invest in a corresponding portfolio of the non-Prudential administered funds are:T. Rowe Price International Stock Portfolio, AIM V.I. Premier Equity Series Fund, Janus Aspen Growth Portfolio, MFS Emerging Growth Series Portfolio, American Century VP Value Fund, Franklin Templeton Small Cap Fund, American Century VP Income and Growth Portfolio, Dreyfus Midcap Growth Portfolio, Dreyfus Small Cap Portfolio, Goldman Sachs Core Small Cap Equity, AIM V.I. Utilities Series, AIM V.I. Technology Series, Janus Aspen Mid Cap Growth Portfolio — Service Shares, Janus Aspen Balanced Portfolio - Service Shares, Oppenheimer Aggressive Growth Fund/VA, Janus Aspen Growth Portfolio - Service Shares and Janus Aspen International Growth Portfolio - Service Shares.These financial statements relate only to the subaccounts available to the Variable Appreciable Account contract owners.

The Series Fund is a diversified open-end management investment company, and is managed by an affiliate of Prudential.

At December 31, 2004 and 2003 there were no balances or transactions for the periods then ended pertaining to the Oppenheimer Aggressive Growth Fund/VA, American Century VP Income and Growth Portfolio, Dreyfus Midcap Growth Portfolio, Dreyfus Small Cap Portfolio, Goldman Sachs Core Small Cap Equity, AIM V.I. Utilities Series and AIM V.I. Technology Series.

Note 2: Significant Accounting Policies

The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates.

A21

Note 2: Significant Accounting Policies (continued)

Investments—The investments in shares of the portfolios are stated at the net asset value of the respective portfolio, which value their investment securities at fair market value.

Security Transactions—Realized gains and losses on security transactions are determined based upon an average cost. Purchase and sale transactions are recorded as of the trade date of the security being purchased or sold.

Distributions Received—Dividend and capital gain distributions received are reinvested in additional shares of the portfolios and are recorded on the ex distribution date.

Note 3: Taxes

Pruco Life of New Jersey is taxed as a “life insurance company” as defined by the Internal Revenue Code. The results of operations of the Account form a part of PFI’s consolidated federal tax return. Under current federal law, no federal income taxes are payable by the Account. As such, no provision for tax liability has been recorded in these financial statements. Pruco Life of New Jersey management will review periodically the status of the policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the contracts.

Note 4: Purchases and Sales of Investments

The aggregate costs of purchases and proceeds from sales, excluding distributions received and reinvested, of investments in the portfolios for the year ended December 31, 2004 were as follows:

	Purchases		Sales

Prudential Money Market Portfolio	$	91,072,122	$	(67,236,496	)
Prudential Diversified Bond Portfolio	$	1,792,488	$	(68,208,712	)
Prudential Equity Portfolio	$	1,634,500	$	(4,829,826	)
Prudential Flexible Managed Portfolio	$	1,307,488	$	(6,825,837	)
Prudential Conservative Balanced Portfolio	$	1,167,627	$	(3,369,865	)
Prudential High Yield Bond Portfolio	$	66,019,600	$	(6,032,325	)
Prudential Stock Index Portfolio	$	81,837,160	$	(88,216,922	)
Prudential Value Portfolio	$	594,552	$	(626,786	)
Prudential Natural Resources Portfolio.	$	1,098,928	$	(678,404	)
Prudential Global Portfolio	$	1,632,440	$	(464,460	)
Prudential Government Income Portfolio.	$	313,577	$	(1,171,695	)
Prudential Jennison Portfolio	$	1,547,324	$	(1,234,783	)
Prudential Small Capitalization Stock Portfolio	$	777,298	$	(623,629	)
T. Rowe Price International Stock Portfolio	$	2,558	$	(18,272	)
AIM V.I. Premier Equity Fund	$	32,104	$	(220,580	)
Janus Aspen Growth Portfolio	$	17,319	$	(41,553	)
MFS Emerging Growth Series	$	31,993	$	(37,911	)
American Century VP Value Fund	$	36,851	$	(26,083	)
Franklin Templeton Small Cap Fund	$	30,793	$	(18,037	)
Prudential SP Alliance Large Cap Growth Portfolio	$	254,394	$	(113,232	)
Prudential SP Davis Value Portfolio	$	931,351	$	(269,250	)
Prudential SP Goldman Sachs Small Cap Value Portfolio	$	1,014,939	$	(176,160	)
Prudential SP State Street Research Small Cap Growth Portfolio	$	259,731	$	(68,694	)
Janus Aspen Mid Cap Growth Portfolio - Service Shares	$	16,436	$	(2,982	)
Janus Aspen Balanced Portfolio - Service Shares	$	21,132	$	(3,360	)
Prudential SP PIMCO Total Return Portfolio	$	1,317,102	$	(689,659	)
Prudential SP PIMCO High Yield Portfolio	$	467,317	$	(300,504	)
Janus Aspen Growth Portfolio - Service Shares	$	199,590	$	(54,598	)
Prudential SP Large Cap Value Portfolio	$	377,917	$	(116,076	)

A22

Note 4: Purchases and Sales of Investments (continued)

	Purchases		Sales

Prudential SP AIM Core Equity Portfolio	$	115,977	$	(46,706	)
Prudential SP MFS Capital Opportunities Portfolio	$	156,139	$	(51,957	)
Prudential SP Strategic Partners Focused Growth Portfolio	$	88,076	$	(33,364	)
Prudential SP Mid Cap Growth Portfolio	$	367,616	$	(99,012	)
SP Prudential U.S. Emerging Growth Portfolio	$	519,036	$	(161,059	)
Prudential SP AIM Aggressive Growth Portfolio	$	254,032	$	(77,090	)
Prudential SP Technology Portfolio	$	445,399	$	(301,867	)
Prudential SP Conservative Asset Allocation Portfolio	$	919,294	$	(269,425	)
Prudential SP Balanced Asset Allocation Portfolio	$	2,162,895	$	(452,113	)
Prudential SP Growth Asset Allocation Portfolio	$	3,220,092	$	(527,156	)
Prudential SP Aggressive Growth Asset Allocation Portfolio	$	995,502	$	(192,453	)
Prudential SP William Blair International Growth Portfolio	$	342,462	$	(129,736	)
Prudential SP LSV International Value Portfolio	$	288,984	$	(86,634	)
Janus Aspen International Growth Portfolio — Service Shares	$	7,043	$	(1,355	)

Note 5: Related Party Transactions

Prudential and its affiliates perform various services on behalf of the mutual fund company that administers the portfolios in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, preparation, postage, fund transfer agency and various other record keeping and customer service functions.

The Series Fund has a management agreement with Prudential Investment LLC (“PI”), an indirect, wholly-owned subsidiary of Prudential. Pursuant to this agreement PI has responsibility for all investment advisory services and supervises the subadvisors’ performance of such services. PI has entered into subadvisory agreements with several subadvisors, including Prudential Investment Management, Inc. and Jennison Associates LLC, which are indirect, wholly-owned subsidiaries of Prudential.

The Series Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), an indirect, wholly-owned subsidiary of Prudential, which acts as the distributor of the Class I and Class II shares of the Series Fund.

PI has agreed to reimburse certain portfolios of the Series Fund the portion of the management fee for that Portfolio equal to the amount that the aggregate annual ordinary operating expenses (excluding interest, taxes, and brokerage commissions) exceeds various agreed upon percentages of the portfolio’s average daily net assets.

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Series Fund’s transfer agent.

Prudential has purchased multiple individual PSELIII contracts of the Account insuring the lives of certain employees. Prudential is the owner and beneficiary of the contracts.There were no premium payments for the year ended December 31, 2004 and $16.5 million in premium payments for the year ended December 31, 2003. Equity of contract owners relating to these contracts includes approximately $220.5 million owned by Prudential at December 31, 2004 and $208.7 million owned by Prudential at December 31, 2003.

Note 6: Financial Highlights

The Pruco Life of New Jersey sells a number of variable life insurance products that are funded by the Account. These products have unique combinations of features and fees that are charged against the contract owner’s account balance. Differences in the fee structures result in a variety of unit values, expense ratios and total returns.

The following table was developed by determining which products offered by Pruco Life of New Jersey have the lowest and highest expense ratio. Only product designs within the Account that had units outstanding throughout the respective periods, were considered when determining the lowest and highest total expense ratio. The summary may not reflect the minimum and maximum contract charges offered by the Pruco Life of New Jersey as contract owners may not have selected all available and applicable contract options.

A23

Note 6: Financial Highlights (continued)

	At year ended				For year ended

	Units	Unit Value	Net Assets		Investment		Expense Ratio	Total Return
	(000s)	Lowest to Highest	(000s)		Income Ratio*		Lowest to Highest**	Lowest to Highest***


	Prudential Money Market Portfolio

December 31, 2004	58,081	$1.05537 to $2.23582	$	69,342	1.02	%	0.10% to 0.90%	0.12% to 0.84%
December 31, 2003	36,523	$1.04751 to $2.22537	$	44,830	0.88	%	0.20% to 0.90%	-0.05% to 0.65%
December 31, 2002	172,738	$1.04174 to $2.21945	$	198,032	1.36	%	0.20% to 0.90%	0.63% to 1.31%
December 31, 2001	3,851	$1.02864 to $2.19874	$	7,981	4.04	%	0.20% to 0.90%	3.17% to 3.88%

	Prudential Diversified Bond Portfolio

December 31, 2004	58,128	$1.24831 to $4.15252	$	98,785	4.25	%	0.10% to 0.90%	4.66% to 5.37%
December 31, 2003	105,173	$1.18525 to $3.95454	$	156,789	4.73	%	0.20% to 0.90%	6.52% to 7.26%
December 31, 2002	10,679	$1.10563 to $3.69970	$	38,084	10.60	%	0.25% to 0.90%	6.11% to 6.79%
December 31, 2001	7,430	$1.03535 to $3.47473	$	25,730	6.10	%	0.25% to 0.90%	6.22% to 6.38%

	Prudential Equity Portfolio

December 31, 2004	20,949	$1.02288 to $8.10824	$	147,594	1.30	%	0.10% to 0.90%	8.95% to 9.69%
December 31, 2003	20,519	$0.93887 to $7.41271	$	137,406	1.01	%	0.25% to 0.90%	30.48% to 31.33%
December 31, 2002	19,923	$0.71954 to $5.65783	$	107,819	0.89	%	0.25% to 0.90%	-23.04% to -22.54%
December 31, 2001	20,140	$0.93072 to $7.32260	$	146,420	0.83	%	0.25% to 0.90%	-11.97% to -11.62%

	Prudential Flexible Managed Portfolio

December 31, 2004	43,006	$1.07944 to $5.57016	$	230,435	1.42	%	0.37% to 0.90%	9.75% to 10.33%
December 31, 2003	43,864	$0.98351 to $5.04879	$	213,437	2.01	%	0.38% to 0.90%	22.65% to 23.29%
December 31, 2002	43,783	$0.80187 to $4.09497	$	173,139	2.99	%	0.37% to 0.90%	-13.52% to -13.06%
December 31, 2001	45,115	$0.92720 to $4.71001	$	205,958	3.75	%	0.35% to 0.90%	-6.52% to -6.01%

	Prudential Conservative Balanced Portfolio

December 31, 2004	24,810	$1.10095 to $4.61756	$	109,012	1.94	%	0.41% to 0.90%	7.07% to 7.59%
December 31, 2003	25,171	$1.02824 to $4.29166	$	103,047	2.69	%	0.42% to 0.90%	17.70% to 18.27%
December 31, 2002	25,819	$0.87358 to $3.62885	$	89,680	0.00	%	0.42% to 0.90%	-9.79% to -9.36%
December 31, 2001	26,398	$0.96841 to $4.00354	$	101,516	3.40	%	0.40% to 0.90%	-2.88% to -2.41%

	Prudential High Yield Bond Portfolio

December 31, 2004	196,781	$1.25182 to $3.09272	$	398,744	7.55	%	0.10% to 0.90%	9.31% to 10.06%
December 31, 2003	146,819	$1.14520 to $2.82099	$	306,259	8.54	%	0.20% to 0.90%	23.90% to 24.78%
December 31, 2002	81,585	$0.92426 to $2.26950	$	184,922	13.32	%	0.25% to 0.90%	0.60% to 1.23%
December 31, 2001	14,583	$0.91872 to $2.24949	$	32,793	12.05	%	0.25% to 0.90%	-1.30% to -1.03%

	Prudential Stock Index Portfolio

December 31, 2004	43,963	$0.86390 to $5.30560	$	74,786	1.64	%	0.10% to 0.90%	9.47% to 10.23%
December 31, 2003	50,485	$0.78920 to $4.83241	$	72,822	1.48	%	0.20% to 0.90%	27.05% to 27.93%
December 31, 2002	46,575	$0.62117 to $3.79264	$	51,411	1.13	%	0.20% to 0.90%	-22.90% to -22.35%
December 31, 2001	38,189	$0.80562 to $4.90359	$	92,151	1.08	%	0.20% to 0.90%	-12.83% to -12.23%

	Prudential Value Portfolio

December 31, 2004	2,470	$1.30775 to $6.01243	$	14,618	1.41	%	0.60% to 0.90%	15.28% to 15.62%
December 31, 2003	2,470	$1.13442 to $5.20021	$	12,601	1.60	%	0.60% to 0.90%	26.93% to 27.30%
December 31, 2002	2,623	$0.89376 to $4.08489	$	10,121	1.41	%	0.60% to 0.90%	-22.66% to -22.12%
December 31, 2001	2,639	$0.93072 to $7.32260	$	13,505	1.57	%	0.60% to 0.90%	-2.95% to -2.66%

	Prudential Natural Resources Portfolio

December 31, 2004	1,159	$7.80970 to $7.80970	$	9,052	3.37	%	0.60% to 0.60%	24.43% to 24.43%
December 31, 2003	1,093	$6.27650 to $6.27650	$	6,861	3.96	%	0.60% to 0.60%	38.17% to 38.17%
December 31, 2002	1,045	$4.54254 to $4.54254	$	4,748	0.74	%	0.60% to 0.60%	18.21% to 18.21%
December 31, 2001	2,244	$3.84290 to $3.84290	$	8,624	2.94	%	0.60% to 0.60%	-10.62% to -10.62%

	Prudential Global Portfolio

December 31, 2004	4,756	$0.72784 to $1.87418	$	7,965	0.95	%	0.10% to 0.90%	8.61% to 9.37%
December 31, 2003	3,889	$0.67013 to $1.72057	$	6,137	0.36	%	0.25% to 0.90%	32.87% to 33.72%
December 31, 2002	3,617	$0.50434 to $1.29103	$	4,406	2.47	%	0.25% to 0.90%	-25.80% to -25.33%
December 31, 2001	33,174	$0.67974 to $1.73500	$	57,397	0.35	%	0.25% to 0.90%	-18.34% to -18.10%

	Prudential Government Income Portfolio

December 31, 2004	1,166	$2.90912 to $2.90912	$	3,391	3.71	%	0.60% to 0.60%	2.50% to 2.50%
December 31, 2003	1,457	$2.83824 to $2.83824	$	4,136	3.86	%	0.60% to 0.60%	1.85% to 1.85%
December 31, 2002	1,380	$2.78677 to $2.78677	$	3,845	7.15	%	0.60% to 0.60%	11.38% to 11.38%
December 31, 2001	599	$2.50199 to $2.50199	$	1,499	6.06	%	0.60% to 0.60%	7.42% to 7.42%

	Prudential Jennison Portfolio

December 31, 2004	10,067	$0.62184 to $2.32869	$	18,988	0.48	%	0.10% to 0.90%	8.67% to 9.43%
December 31, 2003	9,380	$0.57225 to $2.13674	$	17,013	0.27	%	0.25% to 0.90%	29.09% to 29.92%
December 31, 2002	8,733	$0.44328 to $1.65033	$	12,805	0.21	%	0.25% to 0.90%	-31.57% to -31.13%
December 31, 2001	8,389	$0.64774 to $2.40452	$	19,499	0.16	%	0.25% to 0.90%	-18.97% to -18.73%

	Prudential Small Capitalization Stock Portfolio

December 31, 2004	5,086	$3.24476 to $3.24476	$	16,504	0.61	%	0.60% to 0.60%	21.31% to 21.31%
December 31, 2003	5,003	$2.67470 to $2.67470	$	13,381	0.69	%	0.60% to 0.60%	37.44% to 37.44%
December 31, 2002	2,684	$1.94604 to $1.94604	$	5,224	1.24	%	0.60% to 0.60%	-15.43% to -15.43%
December 31, 2001	25,176	$2.30107 to $2.30107	$	57,931	0.51	%	0.60% to 0.60%	4.92% to 4.92%

A24

Note 6: Financial Highlights (continued)

	At year ended				For year ended

	Units	Unit Value	Net Assets		Investment		Expense Ratio	Total Return
	(000s)	Lowest to Highest	(000s)		Income Ratio*		Lowest to Highest**	Lowest to Highest***


	T. Rowe Price International Stock Portfolio

December 31, 2004	106	$0.79238 to $0.79238	$	84	1.07	%	0.90% to 0.90%	12.75% to 12.75%
December 31, 2003	127	$0.70277 to $0.70277	$	89	1.28	%	0.90% to 0.90%	29.35% to 29.35%
December 31, 2002	131	$0.54330 to $0.54330	$	71	0.99	%	0.90% to 0.90%	-19.01% to -19.01%
December 31, 2001	124	$0.67086 to $0.67086	$	83	2.32	%	0.90% to 0.90%	-22.91% to -22.91%

	AIM V.I. Premier Equity Fund

December 31, 2004	241	$0.64987 to $0.75191	$	177	0.38	%	0.20% to 0.90%	4.83% to 5.56%
December 31, 2003	552	$0.61995 to $0.71231	$	358	0.32	%	0.20% to 0.90%	23.97% to 24.82%
December 31, 2002	503	$0.50008 to $0.57069	$	258	0.38	%	0.20% to 0.90%	-30.89% to -30.40%
December 31, 2001	433	$0.72355 to $0.82001	$	317	0.13	%	0.20% to 0.90%	-12.74% to -12.74%

	Janus Aspen Growth Portfolio

December 31, 2004	514	$0.61523 to $0.61523	$	316	0.15	%	0.90% to 0.90%	3.60% to 3.60%
December 31, 2003	550	$0.59388 to $0.59388	$	327	0.08	%	0.90% to 0.90%	30.56% to 30.56%
December 31, 2002	755	$0.45488 to $0.45488	$	344	0.00	%	0.90% to 0.90%	-27.17% to -27.17%
December 31, 2001	648	$0.62457 to $0.62457	$	405	0.08	%	0.90% to 0.90%	-25.41% to -25.41%

	MFS Emerging Growth Series

December 31, 2004	212	$0.51747 to $0.71936	$	137	0.00	%	0.20% to 0.90%	11.94% to 12.73%
December 31, 2003	231	$0.46227 to $0.63811	$	127	0.00	%	0.20% to 0.90%	29.04% to 29.96%
December 31, 2002	309	$0.35823 to $0.49100	$	122	0.00	%	0.20% to 0.90%	-34.35% to -33.89%
December 31, 2001	217	$0.54567 to $0.74275	$	131	0.00	%	0.20% to 0.90%	-34.07% to -34.07%

	American Century VP Value Fund

December 31, 2004	71	$1.68484 to $1.68484	$	119	1.02	%	0.90% to 0.90%	13.31% to 13.31%
December 31, 2003	63	$1.48693 to $1.48693	$	94	1.21	%	0.90% to 0.90%	27.81% to 27.81%
December 31, 2002	80	$1.16337 to $1.16337	$	94	0.68	%	0.90% to 0.90%	-13.40% to -13.40%
December 31, 2001	44	$1.34339 to $1.34339	$	60	0.00	%	0.90% to 0.90%	3.68% to 3.68%

	Franklin Templeton Small Cap Fund

December 31, 2004	323	$0.75958 to $0.76243	$	246	0.00	%	0.20% to 0.90%	10.47% to 11.25%
December 31, 2003	304	$0.68532 to $0.68757	$	209	0.00	%	0.20% to 0.90%	36.00% to 36.97%
December 31, 2002	251	$0.50033 to $0.50555	$	126	0.27	%	0.20% to 0.90%	-29.32% to -28.82%
December 31, 2001	203	$0.70289 to $0.71530	$	144	0.45	%	0.20% to 0.90%	-16.00% to -16.00%

	Prudential SP Alliance Large Cap Growth Portfolio

December 31, 2004	692	$0.83552 to $0.85150	$	587	0.00	%	0.10% to 0.90%	5.16% to 5.82%
December 31, 2003	522	$0.78954 to $0.80974	$	415	0.00	%	0.25% to 0.90%	22.76% to 23.57%
December 31, 2002	213	$0.63892 to $0.65960	$	138	0.00	%	0.25% to 0.90%	-31.81% to -31.36%
December 31, 2001	7	$0.93088 to $0.96725	$	7	0.00	%	0.25% to 0.90%	-8.20% to -8.20%

	Prudential SP Davis Value Portfolio

December 31, 2004	2,189	$1.14376 to $1.15901	$	2,508	0.38	%	0.10% to 0.90%	11.51% to 12.30%
December 31, 2003	1,557	$1.01900 to $1.03934	$	1,591	0.39	%	0.25% to 0.90%	28.25% to 29.07%
December 31, 2002	639	$0.78949 to $0.81040	$	508	0.00	%	0.25% to 0.90%	-16.44% to -15.91%
December 31, 2001	33	$0.93883 to $0.96984	$	32	0.48	%	0.25% to 0.90%	-6.12% to -6.12%

	Prudential SP Goldman Sachs Small Cap Value Portfolio

December 31, 2004	1,859	$1.29903 to $1.59242	$	2,627	0.16	%	0.10% to 0.90%	19.61% to 20.44%
December 31, 2003	1,176	$1.08604 to $1.18169	$	1,381	0.03	%	0.25% to 0.90%	31.92% to 32.77%
December 31, 2002	551	$0.82323 to $0.89000	$	485	0.98	%	0.25% to 0.90%	-15.14% to -14.60%
December 31, 2001	15	$0.97015 to $1.04214	$	15	1.19	%	0.25% to 0.90%	3.84% to 3.84%

	Prudential SP State Street Research Small Cap Growth Portfolio

December 31, 2004	547	$0.65467 to $0.90247	$	475	0.00	%	0.10% to 0.90%	-1.80% to -1.10%
December 31, 2003	313	$0.90630 to $0.91323	$	286	0.00	%	0.25% to 0.90%	33.51% to 34.38%
December 31, 2002	119	$0.67884 to $0.67960	$	81	0.00	%	0.25% to 0.90%	-30.89% to -30.43%
December 31, 2001	1	$0.97681 to $0.97681	$	1	0.00	%	0.25% to 0.25%	-1.90% to -1.90%

	Janus Aspen Mid Cap Growth Portfolio — Service Shares

December 31, 2004	231	$0.53397 to $0.53397	$	124	0.00	%	0.20% to 0.20%	20.23% to 20.23%
December 31, 2003	203	$0.44411 to $0.44411	$	90	0.00	%	0.20% to 0.20%	34.49% to 34.49%
December 31, 2002	126	$0.33021 to $0.33021	$	42	0.00	%	0.20% to 0.20%	-28.25% to -28.25%
December 31, 2001	58	$0.46024 to $0.46024	$	27	0.00	%	0.20% to 0.20%	-17.80% to -17.80%

	Janus Aspen Balanced Portfolio — Service Shares

December 31, 2004	122	$1.07066 to $1.07066	$	130	2.36	%	0.20% to 0.20%	8.08% to 8.08%
December 31, 2003	104	$0.99058 to $0.99058	$	103	2.11	%	0.20% to 0.20%	13.49% to 13.49%
December 31, 2002	54	$0.87282 to $0.87282	$	47	2.17	%	0.20% to 0.20%	-6.85% to -6.85%
December 31, 2001	42	$0.93075 to $0.93075	$	40	2.80	%	0.20% to 0.20%	-1.48% to -1.48%

	Prudential SP PIMCO Total Return Portfolio

December 31, 2004	2,349	$1.21784 to $1.36023	$	2,954	1.94	%	0.10% to 0.90%	4.33% to 5.06%
December 31, 2003	1,835	$1.16728 to $1.29466	$	2,194	2.50	%	0.20% to 0.90%	4.91% to 5.65%
December 31, 2002	738	$1.11264 to $1.22547	$	845	3.75	%	0.20% to 0.90%	8.40% to 9.15%
December 31, 2001	30	$1.02645 to $1.12277	$	31	4.10	%	0.20% to 0.90%	8.40% to 8.40%

A25

Note 6: Financial Highlights (continued)

	At year ended				For year ended

	Units	Unit Value	Net Assets		Investment		Expense Ratio	Total Return
	(000s)	Lowest to Highest	(000s)		Income Ratio*		Lowest to Highest**	Lowest to Highest***


		Prudential SP PIMCO High Yield Portfolio

December 31, 2004	582	$1.32262 to $1.35167	$	779	6.89	%	0.10% to 0.90%	8.36% to 9.05%
December 31, 2003	434	$1.22063 to $1.23945	$	535	6.85	%	0.25% to 0.90%	21.32% to 22.11%
December 31, 2002	188	$1.00616 to $1.01499	$	191	9.68	%	0.25% to 0.90%	-0.74% to -0.11%
December 31, 2001	10	$1.01365 to $1.01611	$	10	10.70	%	0.25% to 0.90%	1.27% to 1.51%

		Janus Aspen Growth Portfolio — Service Shares						(August 6, 2001)

December 31, 2004	519	$0.88566 to $0.88566	$	460	0.00	%	0.25% to 0.25%	3.94% to 3.94%
December 31, 2003	345	$0.85205 to $0.85205	$	294	0.00	%	0.25% to 0.25%	31.16% to 31.16%
December 31, 2002	147	$0.64963 to $0.64963	$	96	0.00	%	0.25% to 0.25%	-26.90% to -26.90%
December 31, 2001	1	$0.88873 to $0.88873	$	1	0.00	%	0.25% to 0.25%	-10.24% to -10.24%

		Prudential SP Large Cap Value Portfolio						(August 6, 2001)

December 31, 2004	820	$1.15350 to $1.25106	$	966	0.72	%	0.10% to 0.90%	16.70% to 17.51%
December 31, 2003	572	$0.98843 to $1.00384	$	573	0.00	%	0.25% to 0.90%	25.64% to 26.43%
December 31, 2002	250	$0.78673 to $0.79398	$	198	2.28	%	0.25% to 0.90%	-17.12% to -16.58%
December 31, 2001	1	$0.95177 to $0.95177	$	1	0.06	%	0.25% to 0.25%	-4.05% to -4.05%

		Prudential SP AIM Core Equity Portfolio						(August 6, 2001)

December 31, 2004	223	$1.04168 to $1.04168	$	232	0.44	%	0.10% to 0.25%	8.52% to 8.52%
December 31, 2003	152	$0.95989 to $0.95989	$	146	0.33	%	0.25% to 0.25%	23.38% to 23.38%
December 31, 2002	89	$0.77800 to $0.77800	$	69	0.00	%	0.25% to 0.25%	-15.42% to -15.42%
December 31, 2001	1	$0.91988 to $0.91988	$	1	0.00	%	0.25% to 0.25%	-6.82% to -6.82%

		Prudential SP MFS Capital Opportunities Portfolio						(February 12, 2001)

December 31, 2004	373	$0.81901 to $1.09706	$	307	0.17	%	0.10% to 0.25%	12.11% to 12.15%
December 31, 2003	237	$0.73053 to $0.73053	$	173	0.09	%	0.25% to 0.25%	26.50% to 26.50%
December 31, 2002	95	$0.57748 to $0.57748	$	55	0.00	%	0.25% to 0.25%	-28.86% to -28.86%
December 31, 2001	1	$0.81172 to $0.81172	$	0	0.77	%	0.25% to 0.25%	-19.57% to -19.57%

		Prudential SP Strategic Partners Focused Growth Portfolio						(August 6, 2001)

December 31, 2004	219	$0.93791 to $0.95843	$	210	0.00	%	0.10% to 0.90%	9.62% to 10.30%
December 31, 2003	156	$0.85560 to $0.86896	$	135	0.00	%	0.25% to 0.90%	24.72% to 25.52%
December 31, 2002	64	$0.68600 to $0.69228	$	44	0.00	%	0.25% to 0.90%	-25.93% to -25.44%
December 31, 2001	2	$0.92854 to $0.92854	$	2	0.00	%	0.25% to 0.25%	-6.11% to -6.11%

		Prudential SP Mid Cap Growth Portfolio						(February 12, 2001)

December 31, 2004	1,274	$0.78166 to $0.82851	$	1,023	0.00	%	0.10% to 0.90%	18.48% to 19.27%
December 31, 2003	895	$0.65537 to $0.69929	$	598	0.00	%	0.25% to 0.90%	38.86% to 39.76%
December 31, 2002	307	$0.46893 to $0.50358	$	147	0.00	%	0.25% to 0.90%	-46.80% to -46.46%
December 31, 2001	6	$0.87586 to $0.94666	$	6	0.00	%	0.25% to 0.90%	-12.01% to -12.01%

		SP Prudential U.S. Emerging Growth Portfolio						(February 12, 2001)

December 31, 2004	1,068	$1.03828 to $1.05677	$	1,114	0.00	%	0.10% to 0.90%	20.31% to 21.09%
December 31, 2003	681	$0.85748 to $0.87838	$	585	0.00	%	0.25% to 0.90%	40.82% to 41.72%
December 31, 2002	298	$0.60504 to $0.62375	$	181	0.00	%	0.25% to 0.90%	-32.68% to -32.24%
December 31, 2001	14	$0.89289 to $0.92649	$	13	0.00	%	0.25% to 0.90%	-11.06% to -11.06%

		Prudential SP AIM Aggressive Growth Portfolio						(February 12, 2001)

December 31, 2004	538	$0.97314 to $0.98623	$	526	0.00	%	0.10% to 0.90%	10.88% to 11.59%
December 31, 2003	341	$0.87210 to $0.88948	$	298	0.00	%	0.25% to 0.90%	25.37% to 26.20%
December 31, 2002	124	$0.69102 to $0.69102	$	85	0.00	%	0.25% to 0.25%	-21.15% to -21.15%
December 31, 2001	0	$0.87641 to $0.87641	$	0	0.00	%	0.25% to 0.25%	-11.64% to -11.64%

		Prudential SP Technology Portfolio						(February 12, 2001)

December 31, 2004	566	$0.71749 to $0.74741	$	417	0.00	%	0.10% to 0.90%	-0.90% to -0.23%
December 31, 2003	374	$0.71918 to $0.75416	$	271	0.00	%	0.25% to 0.90%	41.13% to 42.11%
December 31, 2002	88	$0.50609 to $0.50609	$	44	0.00	%	0.25% to 0.25%	-41.47% to -41.47%
December 31, 2001	2	$0.86466 to $0.86466	$	1	0.00	%	0.25% to 0.25%	-14.83% to -14.83%

		Prudential SP Conservative Asset Allocation Portfolio						(August 6, 2001)

December 31, 2004	1,085	$1.16226 to $1.18776	$	1,285	1.29	%	0.10% to 0.90%	7.92% to 8.60%
December 31, 2003	497	$1.07699 to $1.09372	$	543	1.04	%	0.25% to 0.90%	15.45% to 16.20%
December 31, 2002	162	$0.93287 to $0.94126	$	152	0.00	%	0.25% to 0.90%	-6.71% to -6.11%
December 31, 2001	0	$1.00256 to $1.00256	$	0	8.40	%	0.25% to 0.25%	0.66% to 0.66%

		Prudential SP Balanced Asset Allocation Portfolio						(August 6, 2001)

December 31, 2004	2,887	$1.15290 to $1.17831	$	3,387	0.72	%	0.10% to 0.90%	10.09% to 10.80%
December 31, 2003	1,302	$1.04724 to $1.06350	$	1,383	0.78	%	0.25% to 0.90%	21.78% to 22.55%
December 31, 2002	299	$0.86782 to $0.86782	$	259	0.00	%	0.25% to 0.25%	-11.89% to -11.89%
December 31, 2001	0	$0.98498 to $0.98498	$	0	0.00	%	0.25% to 0.25%	-0.93% to -0.97%

		Prudential SP Growth Asset Allocation Portfolio						(August 6, 2001)

December 31, 2004	4,815	$1.12461 to $1.14931	$	5,527	0.36	%	0.10% to 0.90%	12.04% to 12.75%
December 31, 2003	2,232	$1.00377 to $1.01931	$	2,272	0.40	%	0.25% to 0.90%	27.14% to 27.95%
December 31, 2002	443	$0.79663 to $0.79663	$	353	0.00	%	0.25% to 0.90%	-17.47% to -17.47%
December 31, 2001	1	$0.96529 to $0.96529	$	1	0.00	%	0.25% to 0.25%	-2.79% to -2.79%

A26

Note 6: Financial Highlights (continued)

	At year ended				For year ended

	Units	Unit Value	Net Assets		Investment		Expense Ratio	Total Return
	(000s)	Lowest to Highest	(000s)		Income Ratio*		Lowest to Highest**	Lowest to Highest***


		Prudential SP Aggressive Growth Asset Allocation Portfolio

December 31, 2004	1,545	$1.08568 to $1.10980	$	1,720	0.05	%	0.10% to 0.90%	13.73% to 14.47%
December 31, 2003	742	$0.95462 to $0.96951	$	719	0.02	%	0.25% to 0.90%	31.58% to 32.43%
December 31, 2002	218	$0.72551 to $0.73212	$	159	0.00	%	0.25% to 0.90%	-22.86% to -22.36%
December 31, 2001	0	$ — to $ —	$	0	0.00	%	0.00% to 0.00%	0.00% to 0.00%

		Prudential SP William Blair International Growth Portfolio						(August 6, 2001)

December 31, 2004	599	$1.10066 to $1.12481	$	672	0.18	%	0.10% to 0.90%	15.51% to 16.25%
December 31, 2003	386	$0.95286 to $0.96758	$	373	0.00	%	0.25% to 0.90%	38.33% to 39.23%
December 31, 2002	215	$0.68881 to $0.69495	$	149	0.00	%	0.25% to 0.90%	-23.26% to -22.77%
December 31, 2001	12	$0.89755 to $0.89989	$	11	0.00	%	0.25% to 0.90%	-9.34% to -9.11%

		Prudential SP LSV International Value Portfolio						(August 6, 2001)

December 31, 2004	791	$1.01469 to $1.08592	$	807	0.42	%	0.10% to 0.90%	14.77% to 15.51%
December 31, 2003	567	$0.87846 to $0.94613	$	500	0.69	%	0.25% to 0.90%	26.23% to 27.05%
December 31, 2002	220	$0.69143 to $0.74954	$	153	0.00	%	0.25% to 0.90%	-17.91% to -17.38%
December 31, 2001	6	$0.83687 to $0.91304	$	5	0.00	%	0.25% to 0.90%	-16.41% to -16.41%

		Janus Aspen International Growth Portfolio - Service Shares						(February 12, 2001)

December 31, 2004	69	$0.80610 to $0.80610	$	56	0.89	%	0.20% to 0.20%	18.45% to 18.45%
December 31, 2003	62	$0.68052 to $0.68052	$	42	0.91	%	0.20% to 0.20%	34.26% to 34.26%
December 31, 2002	59	$0.50685 to $0.50685	$	30	0.77	%	0.20% to 0.20%	-25.91% to -25.91%
December 31, 2001	36	$0.68406 to $0.68406	$	25	1.11	%	0.20% to 0.20%	-9.43% to -9.43%

*These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. This ratio excludes those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

**These ratios represent the annualized contract expenses of the separate account, net of reimbursement of excess expenses, 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 fund are excluded.

***These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect 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. Investment options with a date notation indicate the effective date of that investment option in the Account, the total return is calculated for the years ended December 31, 2004, 2003, 2002 and 2001 or from the effective date of the subaccount through the end of the reporting period. Product designs within a subaccount with an effective date during a period were excluded from the range of total return for that period.

Charges and Expenses

A. Mortality Risk and Expense Risk Charges

The mortality risk and expense risk charges, at an effective annual rate of up to 0.60%, 0.90%, 0.50%, 0.90%, 0.45% and 0.10%, are applied daily against the net assets of VAL, PRUvider, PSEL III, SVUL, VUL, and ENVUL contract owners held in each subaccount, respectively. Mortality risk is that contract owners may not live as long as estimated and expense risk is that the cost of issuing and administering the policies may exceed related charges by Pruco Life of New Jersey. Pruco Life of New Jersey currently intends to charge only 0.20% on PSEL III contracts but reserves the right to make the full 0.50% charge. For VUL contracts Pruco Life of New Jersey intends to charge only 0.25% but reserves the right to charge 0.45% .The mortality risk and expense risk charges are assessed through reduction in unit values.

B. Deferred Sales Charge

A deferred sales charge is imposed upon surrenders of certain VAL, PRUvider and SVUL contracts to compensate Pruco Life of New Jersey for sales and other marketing expenses. The amount of any sales charge will depend on the number of years that have elapsed since the contract was issued but will not exceed 45% of one scheduled annual premium for VAL contracts, 50% of the first year’s primary annual premium for PRUvider contracts and 0.8% of the basic insurance amount for SVUL contracts. No sales charge will be imposed after the tenth year of the contract. No sales charge will be imposed on death benefits. The deferred sales charge is assessed through the redemption of units.

A27

Note 6: Financial Highlights (continued)

Charges and Expenses (continued)

C. Partial Withdrawal Charge

A charge is imposed by Pruco Life of New Jersey on partial withdrawals of the cash surrender value. A charge equal to the lesser of $15 or 2% and $25 or 2% will be made in connection with each partial withdrawal of the cash surrender value of a VAL or PRUvider contract and PSEL III, SVUL, VUL or ENVUL contract, respectively. The range for withdrawal charges is 0% - 2%. This charge is assessed through the redemption of units.

D. Expense Reimbursement

The Account is reimbursed by Pruco Life of New Jersey for expenses in excess of 0.40% of the VAL product’s average daily net assets incurred by the Prudential Money Market, Prudential Diversified Bond, Prudential Equity, Prudential Flexible Managed and Prudential Conservative Balanced Portfolios of the Series Fund.This reimbursement is applied through an increase in unit values.

E. Cost of Insurance and Other Related Charges

Contract owner contributions are subject to certain deductions prior to being invested in the Account. The deductions are for (1) transaction costs which are deducted from each premium payment to cover premium collection and processing costs; (2) state premium taxes; and (3) sales charges for VAL, PRUvider, VUL, SVUL, PSEL III and ENVUL contracts which are deducted in order to compensate Pruco Life of New Jersey for the cost of selling the contract. Sales charges will not exceed 5% of each premium payment for VAL, 0.5% of the primary annual premium for PRUvider, 6% of premiums paid for VUL, 12% of premiums paid for PRUvider,15% of premiums received for PSEL III and 6% of premiums paid for ENVUL contracts. Contracts are also subject to monthly charges for the costs of administering the contract and to compensate Pruco Life of New Jersey for the guaranteed minimum death benefit risk. These charges are assessed through the redemption of units.

A28

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Contract Owners of
Pruco Life of New Jersey Variable Appreciable Account
and the Board of Directors of
Pruco Life Insurance Company of New Jersey

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of the subaccounts listed in Note 1 of the Variable Appreciable Life Account at December 31, 2004, and the results of each of their operations and the changes in each of their net assets for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.These financial statements are the responsibility of the management of Pruco Life Insurance Company of New Jersey; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of fund shares owned at December 31, 2004 with the transfer agents of the investee mutual funds, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
New York, New York
March 31, 2005

A29

Pruco Life Insurance Company of New Jersey

Statements of Financial Position

As of December 31, 2004 and December 31, 2003 (in thousands, except share amounts)

	2004	2003

ASSETS
Fixed maturities available for sale, at fair value (amortized cost, 2004 - $874,200; and 2003 - $746,370)	$ 903,685	$ 782,685
Policy loans	153,359	154,659
Short-term investments	44,549	44,571
Other long-term investments	1,977	2,765
Total investments	1,103,570	984,680
Cash and cash equivalents	108,117	72,547
Deferred policy acquisition costs	183,219	176,529
Accrued investment income	15,045	13,635
Reinsurance recoverables	67,411	17,850
Receivables from affiliates	17,152	17,173
Other assets	13,789	9,954
Separate account assets	2,112,866	1,926,301
TOTAL ASSETS	$ 3,621,169	$ 3,218,669

LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES
Policyholders’ account balances	$ 796,421	$ 675,823
Future policy benefits and other policyholder liabilities	189,673	158,752
Cash collateral for loaned securities	74,527	78,855
Securities sold under agreements to repurchase	24,754	14,483
Income taxes payable	76,878	51,383
Other liabilities	27,788	20,317
Separate account liabilities	2,112,866	1,926,301
Total liabilities	3,302,907	2,925,914

CONTINGENCIES (See Note 12)

STOCKHOLDER’S EQUITY
Common stock, ($5 par value; 400,000 shares, authorized; issued and outstanding at December 31, 2004 and December 31, 2003)	2,000	2,000
Additional paid-in-capital	168,810	168,742
Deferred compensation	(152)	(108)
Accumulated other comprehensive income	13,246	13,178
Retained earnings	134,358	108,943
Total stockholder’s equity	318,262	292,755
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$ 3,621,169	$ 3,218,669

See Notes to Financial Statements

Pruco Life Insurance Company of New Jersey

Statements of Operations and Comprehensive Income

Years Ended December 31, 2004, 2003 and 2002 (in thousands)

		2004	2003	2002
REVENUES

Premiums		$ 31,822	$ 38,141	$ 28,321
Policy charges and fee income		77,872	70,060	70,444
Net investment income		52,499	45,148	44,812
Realized investment gains (losses), net		1,885	(838)	(14,204)
Asset management fees		4,976	4,029	1,264
Other income		1,947	1,717	1,709

Total revenues		171,001	158,257	132,346

BENEFITS AND EXPENSES

Policyholders’ benefits		44,968	50,898	45,543
Interest credited to policyholders’ account balances		29,324	22,641	20,449
General, administrative and other expenses		60,742	55,167	56,145

Total benefits and expenses		135,034	128,706	122,137

Income from operations before income taxes and cumulative effect of accounting change		35,967	29,551	10,209

Income taxes:
Current		14,584	(15,103)	(8,717)
Deferred		(4,216)	24,037	3,558
Total income tax expense (benefit)		10,368	8,934	(5,159)

Net Income from Operations Before Cumulative Effect of Accounting Change		25,599	20,617	15,368

Cumulative effect of change in accounting principle, net of taxes		(184)	-	-

NET INCOME		25,415	20,617	15,368

	Other comprehensive income, net of tax
Increase (decrease) in net unrealized investment gains, net of taxes		(479)	3,483	5,971
Cumulative effect of accounting change, net of tax		547	-	-

Other comprehensive income, net of tax		68	3,483	5,971

COMPREHENSIVE INCOME		$ 25,483	$ 24,100	$ 21,339

See Notes to Financial Statements

Pruco Life Insurance Company of New Jersey

Statements of Stockholder’s Equity

Periods Ended December 31, 2004, 2003 and 2002 (in thousands)

	Common Stock	Paid – in Capital	Retained Earnings	Deferred Compensation	Accumulated Other Comprehensive Income (Loss)	Total Stockholder’s Equity
Balance, January 1, 2002	$ 2,000	$ 128,689	$ 72,959	$ -	$ 3,724	$ 207,372
Net income	-	-	15,368	-	-	15,368
Adjustments to policy credits issued to eligible policyholders	-	-	(1)	-	-	(1)
Change in net unrealized investment gains, net of taxes	-	-	-	-	5,971	5,971
Balance, December 31, 2002	2,000	128,689	88,326	-	9,695	228,710
Net income	-	-	20,617	-	-	20,617
Contribution from Parent	-	40,000	-	-	-	40,000
Stock-based compensation programs	-	53	-	(108)	-	(55)
Change in net unrealized investment gains, net of taxes	-	-	-	-	3,483	3,483
Balance, December 31, 2003	2,000	168,742	108,943	(108)	13,178	292,755
Net income	-	-	25,415	-	-	25,415
Stock-based compensation programs	-	68	-	(44)	-	24
Cumulative effect of accounting change, net of taxes	-	-	-	-	547	547
Change in net unrealized investment gains, net of taxes	-	-	-	-	(479)	(479)
Balance, December 31, 2004	$ 2,000	$ 168,810	$ 134,358	$ (152)	$ 13,246	$ 318,262

See Notes to Financial Statements

Pruco Life Insurance Company of New Jersey

Statements of Cash Flows

Years Ended December 31, 2004, 2003 and 2002 (in thousands)

	2004	2003	2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 25,415	$ 20,617	$ 15,368
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Policy charges and fee income	(19,556)	(15,786)	(12,057)
Interest credited to policyholders’ account balances	29,324	22,641	20,449
Realized investment (gains) losses, net	(1,885)	838	14,204
Amortization and other non-cash items	20,192	1,616	(7,651)
Cumulative effect of accounting change	184	-	-
Change in:
Future policy benefits and other policyholders’ liabilities	29,266	24,544	14,808
Reinsurance recoverable	(49,561)	(9,671)	-
Accrued investment income	(784)	(2,344)	(892)
Policy loans	1,300	3,772	323
Receivable from affiliates	21	13	(7,416)
Deferred policy acquisition costs	(6,302)	(39,476)	(18,078)
Income taxes payable	25,597	17,737	(2,366)
Other, net	3,643	11,766	(8,341)
Cash Flows From Operating Activities	56,854	36,267	8,351

CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from the sale/maturity of:
Fixed maturities available for sale	449,653	314,559	271,401
Payments for the purchase of:
Fixed maturities available for sale	(543,373)	(540,203)	(331,512)
Other long-term investments	(86)	1,083	(2,458)
Short term investments, net	2,443	(14,254)	2,822
Cash Flows Used in Investing Activities	(91,363)	(238,815)	(59,747)

CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders’ account:
Deposits	221,728	210,872	135,163
Withdrawals	(157,616)	(73,794)	(73,518)
Cash collateral for loaned securities, net	(4,328)	53,820	(11,057)
Securities sold under agreements to repurchase, net	10,271	(17,230)	13,199
Contribution from Parent	-	40,000	-
Deferred compensation	(44)	(108)	-
Stock-based compensation	68	53	-
Cash payments to eligible policyholders	-	-	(9,121)
Cash Flows From Financing Activities	70,079	213,613	54,666

Net increase in cash and cash equivalents	35,570	11,065	3,270
Cash and cash equivalents, beginning of year	72,547	61,482	58,212
CASH AND CASH EQUIVALENTS, END OF YEAR	$ 108,117	$ 72,547	$ 61,482

See Notes to Financial Statements

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

1. BUSINESS

Pruco Life Insurance Company of New Jersey or, “the Company,” is a stock life insurance company organized in 1982 under the laws of the state of New Jersey. The Company is licensed to sell interest-sensitive individual life insurance, variable life insurance, term insurance, variable annuities, and fixed annuities contracts only in the states of New Jersey and New York.

The Company is a wholly owned subsidiary of Pruco Life Insurance Company or, “Pruco Life”, a stock life insurance company organized in 1971 under the laws of the state of Arizona. Pruco Life, in turn, is a wholly owned subsidiary of The Prudential Insurance Company of America or, “Prudential Insurance”, an insurance company founded in 1875 under the laws of the state of New Jersey. On December 18, 2001 (“the date of demutualization”) Prudential Insurance converted from a mutual life insurance company to a stock life insurance company and became an indirect wholly owned subsidiary of Prudential Financial, Inc. or, “Prudential Financial.”

The Company is engaged in a business that is highly competitive because of the large number of stock and mutual life insurance companies and other entities engaged in marketing insurance products and individual annuities.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America or, GAAP. The Company has extensive transactions and relationships with Prudential Insurance and other affiliates, as more fully described in Note 13. Due to these relationships, it is possible that the terms of these transactions are not the same as those that would result from transactions among wholly unrelated parties.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, in particular deferred policy acquisition costs, investments, future policy benefits, provision for income taxes, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Stock Options

Effective January 1, 2003, Prudential Financial changed its accounting for employee stock options to adopt the fair value recognition provisions of SFAS No. 123, “Accounting for Stock-Based Compensation,” as amended, prospectively for all new awards granted to employees on or after January 1, 2003. Accordingly, results of operations of the Company for the years ended December 31, 2004 and 2003, include costs of less than $0.1 million and $0.1 million, respectively, associated with employee stock options issued by Prudential Financial to certain employees of the Company. Prior to January 1, 2003, Prudential Financial accounted for employee stock options using the intrinsic value method of APB No. 25, “Accounting for Stock Issued to Employees,” and related interpretations. Under this method, Prudential Financial and the Company did not recognize any stock-based compensation costs as all options granted had an exercise price equal to the market value of Prudential Financial’s Common Stock on the date of grant.

In December 2004, the FASB issued SFAS No. 123R, “Share-Based Payment,” which replaces FASB Statement No. 123. SFAS 123R requires all entities to apply the fair value based measurement method in accounting for share-based payment transactions with employees except for equity instruments held by employee share ownership plans. As described above Prudential Financial had previously adopted the fair value recognition provisions of the original SFAS 123 for all new awards granted to employees on or after January 1, 2003. SFAS 123R is effective for interim and annual periods beginning after June 15, 2005. Prudential Financial will adopt the fair value recognition provisions of this statement on July 1, 2005 for those awards issued prior to January 1, 2003. By that date, the unvested stock options issued prior to January 1, 2003, will be recognized over the remaining vesting period of approximately six months.

Prudential Financial and the Company account for non-employee stock options using the fair value method of SFAS No. 123 in accordance with Emerging Issues Task Force Issue (“EITF”) No. 96-18 “Accounting for Equity Instruments That Are Issued to Other Than Employees” and related interpretations in accounting for its non-employee stock options.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Investments

Fixed maturities classified as “available for sale” are carried at fair value. The amortized cost of fixed maturities is written down to fair value if a decline in value is considered to be other than temporary. See the discussion below on realized gains and losses for a description of the accounting for impairment adjustments. Unrealized gains and losses on fixed maturities “available for sale”, including the effect on deferred policy acquisition costs and policyholders’ account balances that would result from the realization of unrealized gains and losses are included in “Accumulated other comprehensive income (loss).”

Policy loans are carried at unpaid principal balances.

Securities repurchase and resale agreements and securities borrowed and loaned transactions are used to generate income, to borrow funds, or to facilitate trading activity. Securities repurchase and resale agreements are generally short-term in nature, and therefore, the carrying amounts of these instruments approximate fair value. Securities repurchase and resale agreements are collateralized principally by U.S. government and government agency securities. Securities borrowed or loaned are collateralized principally by cash or U.S. government securities. For securities repurchase agreements and securities loaned transactions used to generate income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities.

Securities repurchase and resale agreements that satisfy certain criteria are treated as collateralized financing arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective agreements. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities and to value the securities daily. Securities to be resold are the same, or substantially the same, as the securities received. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. Securities to be repurchased are the same, or substantially the same as those sold. Income and expenses related to these transactions executed within the general are reported as “Net investment income,” however, for transactions used to borrow funds, the associated borrowing cost is reported as interest expense (included in “General and administrative expenses”).

Securities borrowed and securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash advanced or received. With respect to securities loaned transactions, the Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities borrowed and loaned on a daily basis with additional collateral obtained or provided as necessary. Substantially all of the Company’s securities borrowed transactions are with brokers and dealers, commercial banks and institutional clients. Substantially all of the Company’s securities loaned transactions are with large brokerage firms. Income and expenses associated with securities borrowing transactions are reported as “Net investment income.” Income and expenses associated with securities loaned transactions used to generate income are generally reported as “Net investment income;” however, for securities loaned transactions used for funding purposes the associated rebate is reported as interest expense (included in “General and administrative expenses”).

Short-term investments consist of highly liquid debt instruments with a maturity of greater than three months and less than twelve months when purchased. These investments are carried at amortized cost, which because of their short-term nature approximates fair value.

Other long-term investments consist of the Company’s investments in joint ventures and limited partnerships in which the Company does not exercise control, as well as investments in the Company’s own separate accounts, which are carried at estimated fair value, and investment real estate. Joint venture and partnership interests are generally accounted for using the equity method of accounting, except in instances in which the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies. In such instances, the Company applies the cost method of accounting. The Company’s net income from investments in joint ventures and partnerships is generally included in “Net investment income.”

Realized investment gains (losses), net are computed using the specific identification method. Costs of fixed maturities and equity securities are adjusted for impairments, which are declines in value that are considered to be other than temporary. Impairment adjustments are included in “Realized investment losses, net.” In evaluating whether a decline in value is other than temporary, the Company considers several factors including, but not limited to the following: (1) the extent (generally if greater than 20%) and the duration (generally if greater than six months); (2) the reasons for the decline in value (credit event, interest related or market fluctuation); (3) the Company’s ability and intent to hold the investments for a period of time to allow for a recovery of value; and (4) the financial condition of and near-term prospects of the issuer.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

There are a number of significant risks and uncertainties inherent in the process of monitoring impairments and determining if an impairment is other than temporary. These risks and uncertainties include, but are not limited to: (1) the risk that our assessment of an issuer’s ability to meet its obligations could change, (2) the risk that the economic outlook could be worse than expected or have more of an impact on the issuer than anticipated, (3) the risk that we are making decisions based on fraudulent or misstated information in the financial statements provided by issuers and (4) the risk that new information obtained by us or changes in other facts and circumstances, including those not related to the issuer, could lead us to change our intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a change in our impairment determination, and hence a charge to earnings in a future period.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, amounts due from banks, money market instruments, and other debt issues with maturities of three months or less when purchased.

Deferred Policy Acquisition Costs

The Company is charged distribution expenses from Prudential’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market based pricing arrangement. These costs include commissions and variable field office expenses. The Company is also allocated costs of policy issuance and underwriting from Prudential Insurance’s general and administrative expense allocation system. The Company also is charged commissions from third parties, which are primarily capitalized.

The costs that vary with and that are related primarily to the production of new insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. For annuity products, the entire transfer-pricing fee is deemed to be related to the production of new annuity business and is capitalized. For life products, there is a look-through into the expenses incurred by the Prudential Insurance’s agency network and expenses that are considered to be related to the production of new insurance business are deferred. The cost of policy issuance and underwriting are also considered to be related primarily to the production of new insurance and annuity business and are fully capitalized. Deferred policy acquisition costs (“DAC”) are subject to recoverability testing at the end of each accounting period. DAC, for applicable products, are adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in “Accumulated other comprehensive income (loss).”

Policy acquisition costs related to interest-sensitive and variable life products and certain investment-type products are deferred and amortized over the expected life of the contracts (periods ranging from 25 to 30 years) in proportion to estimated gross profits arising principally from investment results, mortality and expense margins, and surrender charges based on historical and anticipated future experience, which is updated periodically. The effect of changes to estimated gross profits on unamortized DAC is reflected in “General, administrative and other expenses” in the period such estimated gross profits are revised. DAC related to non-participating term insurance are amortized over the expected life of the contracts in proportion to premium income.

The Company and Prudential Insurance have offered programs under which policyholders, for a selected product or group of products, can exchange an existing policy or contract issued by the Company or Prudential Insurance for another form of policy or contract. These transactions are known as internal replacements. If the terms of the new policies are not substantially similar to those of the former policy, the unamortized DAC on the surrendered policies is immediately charged to expense. If the new policies have terms that are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the life of the new policies.

Reinsurance recoverables and payables

Reinsurance recoverables and payables include receivables and corresponding payables associated with reinsurance arrangements with affiliates. See Note 13 for additional information about these arrangements.

Separate account assets and liabilities

Separate account assets and liabilities are reported at fair value and represent segregated funds which are invested for certain policyholders, pension funds and other customers. The assets consist of common stocks, fixed maturities, real estate related investments, real estate mortgage loans and short-term investments. The assets of each account are legally segregated and are generally not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. See Note 8 for additional information regarding separate account arrangements with contractual guarantees. The investment income and gains or losses for separate accounts generally accrue to the policyholders and are not included in the Statements of Operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income.” Asset management fees charged to the accounts are included in “Asset management fees.”

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Other assets and other liabilities

The Company provides sales inducements to contractholders, which primarily include an up-front bonus added to the contractholder’s initial deposit for certain annuity contracts. These costs are deferred and recognized on the statement of financial position in other assets. They are amortized using the same methodology and assumptions used to amortized deferred policy acquisition costs. The amortization expense is included as a component of interest credited to policyholders’ account balances. As of December 31, 2004 and 2003, deferred sales inducement costs included in other assets were $11 million and $8 million, respectively.

Other assets consist primarily of reinsurance recoverables, premiums due, deferred sales inducement costs, certain restricted assets, and receivables resulting from sales of securities that had not yet settled at the balance sheet date. Other liabilities consist primarily of accrued expenses, technical overdrafts, and payables resulting from purchases of securities that had not yet been settled at the balance sheet date.

Policyholders’ Account Balances

The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is generally equal to the accumulated account deposits plus interest credited less policyholder withdrawals and other charges assessed against the account balance. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities.

Future Policy Benefits

The Company’s liability for future policy benefits is primarily comprised of the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality, less the present value of future net premiums. For life insurance, expected mortality is generally based on the Company’s historical experience or standard industry tables. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require us to provide for expected future losses on a product by establishing premium deficiency reserves. The Company’s liability for future policy benefits is also inclusive of liabilities for guarantee benefits related to certain non-traditional long duration life and annuity contracts, which are discussed more fully in Note 8.

Unpaid Claims

Unpaid claims include estimates of claims that the Company believes have been incurred, but have not yet been reported (“IBNR”) as of the balance sheet date. Consistent with industry accounting practice, we do not establish loss reserves until a loss has occurred. These IBNR estimates, and estimates of the amounts of loss we will ultimately incur on reported claims, which are based in part on our historical experience, are regularly adjusted to reflect actual claims experience. When actual experience differs from our previous estimate, the resulting difference will be included in our reported results for the period of the change in estimate in the “Policyholders’ benefits” caption in our statements of operations. On an ongoing basis, trends in actual experience are a significant factor in the determination of claim reserve levels.

Contingencies

Amounts related to contingencies are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual.

Insurance Revenue and Expense Recognition

Premiums from life insurance policies, excluding interest-sensitive life contracts, are recognized when due. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium method.

Certain annuity contracts provide the holder a guarantee that the benefit received upon death will be no less than a minimum prescribed amount that is based upon a combination of net deposits to the contract, net deposits to the contract accumulated at a specified rate or the highest historical account value on a contract anniversary. These contracts are discussed in further detail in Note 8. Also, as more fully discussed in Note 8, the liability for the guaranteed minimum death benefit under these contracts is determined each period end by estimating the accumulated value of a percentage of the total assessments to date less the accumulated value of death benefits in excess of the account balance.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Amounts received as payment for interest-sensitive life, deferred annuities and guaranteed investment contracts are reported as deposits to “Policyholders’ account balances.” Revenues from these contracts reflected as “Policy charges and fee income” consist primarily of fees assessed during the period against the policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC.

Premiums, benefits and expenses are stated net of reinsurance ceded to other companies. Estimated reinsurance recoverables and the cost of reinsurance are recognized over the life of the reinsured policies using assumptions consistent with those used to account for the underlying policies.

Asset Management Fees

Beginning October 1, 2002, the Company receives in accordance with a servicing agreement with Prudential Investments LLC, asset management fee income from policyholder account balances invested in The Prudential Series Funds (“PSF”). The PSF are a portfolio of mutual fund investments related to the Company’s separate account products (see Note 13). In addition, the Company receives fees from policyholders’ account balances invested in funds managed by companies other than Prudential Insurance. Asset management fees are recognized as income when earned.

Derivative Financial Instruments

Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, or the value of securities or commodities. Derivative financial instruments used by the Company include swaps and futures, and may be exchange-traded or contracted in the over-the-counter market. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of pricing models. Values can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility and liquidity. Values can also be affected by changes in estimates and assumptions used in pricing models.

Derivatives are used to manage the characteristics of the Company’s asset/liability mix, manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to seek to reduce exposure to interest rate and foreign currency risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred.

The Company designates derivatives as either (1) a hedge of the fair value of a recognized asset or liability or unrecognized firm commitment (“fair value” hedge), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a foreign currency fair value or cash flow hedge (“foreign currency” hedge), (4) a hedge of a net investment in a foreign operation, or (5) a derivative entered into as an economic hedge that does not qualify for hedge accounting. As of December 31, 2003, none of the Company’s derivatives qualify for hedge accounting treatment.

If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities.

The Company is a party to financial instruments that may contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.”

Income Taxes

The Company is a member of the consolidated federal income tax return of Prudential Financial and files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members with losses record tax benefits to the extent such losses are recognized in the consolidated federal tax provision.

Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to reduce a deferred tax asset to the amount expected to be realized.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

New Accounting Pronouncements

In March 2004, the EITF of the FASB reached a final consensus on Issue 03-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments.” This Issue establishes impairment models for determining whether to record impairment losses associated with investments in certain equity and debt securities. It also requires income to be accrued on a level-yield basis following an impairment of debt securities, where reasonable estimates of the timing and amount of future cash flows can be made. The Company’s policy is generally to record income only as cash is received following an impairment of a debt security. In September 2004, the FASB issued FASB Staff Position (“FSP”) EITF 03-1-1, which defers the effective date of a substantial portion of EITF 03-1, from the third quarter of 2004, as originally required by the EITF, until such time as FASB issues further implementation guidance, which is expected sometime in 2005. The Company will continue to monitor developments concerning this Issue and is currently unable to estimate the potential effects of implementing EITF 03-1 on the Company’s consolidated financial position or results of operations.

In December 2003, the FASB issued FIN No. 46(R), “Consolidation of Variable Interest Entities,” which revised the original FIN No. 46 guidance issued in January 2003. FIN No. 46(R) addresses whether certain types of entities, referred to as variable interest entities (“VIEs”), should be consolidated in a company’s financial statements. A VIE is an entity that either (1) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control the entity, the obligation to absorb the entity’s expected losses and the right to receive the entity’s expected residual returns) or (2) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE. An entity should consolidate a VIE if, as the primary beneficiary, it stands to absorb a majority of the VIE’s expected losses or to receive a majority of the VIE’s expected residual returns. On December 31, 2003, the Company adopted FIN No. 46(R) for all special purpose entities (“SPEs”) and for relationships with all VIEs that began on or after February 1, 2003. On March 31, 2004, the Company implemented FIN No. 46(R) for relationships with potential VIEs that are not SPEs. The transition to FIN No. 46(R) did not have a material effect on the Company’s consolidated financial position or results of operations.

In July 2003, the Accounting Standards Executive Committee (“AcSEC”) of the American Institute of Certified Public Accountants (“AICPA”) issued Statement of Position (“SOP”) 03-1, “Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts.” AcSEC issued this SOP to address the need for interpretive guidance in three areas: separate account presentation and valuation; the classification and valuation of certain long-duration contract liabilities; and the accounting recognition given sales inducements (bonus interest, bonus credits and persistency bonuses).

The effect of adopting SOP 03-1 was a charge of $.2 million, net of $.1 million of taxes, which was reported as a “Cumulative effect of accounting change, net of taxes” in the results of operations for the year ended December 31, 2004. This charge reflects the net impact of converting certain individual market value adjusted annuity contracts from separate account accounting treatment to general account accounting treatment, including carrying the related liabilities at accreted value, and the effect of establishing reserves for guaranteed minimum death benefit provisions of the Company’s variable annuity and variable life contracts. The Company also recognized a cumulative effect of accounting change related to unrealized investment gains within “Other comprehensive income, net of taxes” of $.5 million, net of $.3 million of taxes, for the year ended December 31, 2004. Upon adoption of SOP 03-1, approximately $40 million in “Separate account assets” were reclassified resulting in an increase in “Fixed maturities, available for sale”, as well as changes in other non-separate account assets. Similarly, upon adoption, approximately $40 million in “Separate account liabilities” were reclassified resulting in increases in “Policyholders’ account balances” as well as changes in other non-separate account liabilities.

In June 2004, the FASB issued FSP No. 97-1, “Situations in Which Paragraphs 17(b) and 20 of FASB Statement No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments, Permit or Require Accrual of an Unearned Revenue Liability.” FSP 97-1 clarifies the accounting for unearned revenue liabilities of certain universal-life type contracts under SOP 03-1. The Company’s adoption of FSP 97-1 on July 1, 2004 did not change the accounting for unearned revenue liabilities and, therefore, had no impact on the Company’s consolidated financial position or results of operations. In September 2004, the AICPA SOP 03-1 Implementation Task Force issued a Technical Practice Aid (“TPA”) to clarify certain aspects of SOP 03-1. The implementation of this TPA during the third quarter of 2004 had no impact on the Company’s consolidated financial position or results of operations.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

In April 2003, the FASB issued Statement No. 133 Implementation Issue No. B36, “Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor Under Those Instruments.” Implementation Issue No. B36 indicates that a modified coinsurance arrangement (“modco”), in which funds are withheld by the ceding insurer and a return on those withheld funds is paid based on the ceding company’s return on certain of its investments, generally contains an embedded derivative feature that is not clearly and closely related to the host contract and should be bifurcated in accordance with the provisions of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities.” Effective October 1, 2003, the Company adopted the guidance prospectively for existing contracts and all future transactions. As permitted by SFAS No. 133, all contracts entered into prior to January 1, 1999, were grandfathered and are exempt from the provisions of SFAS No. 133 that relate to embedded derivatives. The application of Implementation Issue No. B36 in 2003 had no impact on the consolidated financial position or results of operations of the Company.

In May 2003, the FASB issued SFAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity.” SFAS No. 150 generally applies to instruments that are mandatorily redeemable, that represent obligations that will be settled with a variable number of company shares, or that represent an obligation to purchase a fixed number of company shares. For instruments within its scope, the statement requires classification as a liability with initial measurement at fair value. Subsequent measurement depends upon the certainty of the terms of the settlement (such as amount and timing) and whether the obligation will be settled by a transfer of assets or by issuance of a fixed or variable number of equity shares. The Company’s adoption of SFAS No. 150, as of July 1, 2003, did not have a material effect on the Company’s consolidated financial position or results of operations.

In July 2002, the FASB issued SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities.” SFAS No. 146 requires that a liability for costs associated with an exit or disposal activity be recognized and measured initially at fair value only when the liability is incurred. Prior to the adoption of SFAS No. 146, such amounts were recorded upon the Company’s commitment to a restructuring plan. The Company has adopted this statement for applicable transactions occurring on or after January 1, 2003.

In November 2002, the FASB issued FIN No. 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” FIN No. 45 expands existing accounting guidance and disclosure requirements for certain guarantees and requires the recognition of a liability for the fair value of certain types of guarantees issued or modified after December 31, 2002. The January 1, 2003 adoption of the Interpretation’s guidance did not have a material effect on the Company’s financial position.

Reclassifications

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

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

3. INVESTMENTS

Fixed Maturities

The following tables provide additional information relating to fixed maturities as of December 31:

					2004
				Gross		Gross
		Amortized		Unrealized		Unrealized	Fair
		Cost		Gains		Losses	Value
	(in thousands)
Fixed maturities available for sale
U.S. Treasury securities and obligations of U.S. Government corporations and agencies			$ 40,178	$ 527		$ 94	$ 40,611

Foreign government bonds			-	-		-	-

Corporate securities			795,984	30,808		1,788	825,004

Mortgage-backed securities			38,038	200		168	38,070

Total fixed maturities, available for sale			$ 874,200	$ 31,535		$ 2,050	$ 903,685

				2003
		Gross				Gross
	Amortized	Unrealized				Unrealized	Fair
	Cost	Gains				Losses	Value
(in thousands)
Fixed maturities available for sale
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$ 31,909		$ 668		$ -			$ 32,577

Foreign government bonds	1,024		174		-			1,198

Corporate securities	699,928		36,179		964			735,143

Mortgage-backed securities	13,509		258		-			13,767

Total fixed maturities, available for sale	$ 746,370		$ 37,279		$ 964			$ 782,685

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

3. INVESTMENTS (continued)

The amortized cost and estimated fair value of fixed maturities, by contractual maturities at December 31, 2003, is shown below:

	Available for Sale
		Amortized Cost	Fair Value
	(in thousands)

Due in one year or less	$ 56,439			$ 56,990

Due after one year through five years	437,557			450,027

Due after five years through ten years	271,044			283,460

Due after ten years	71,122			75,138

Mortgage-backed securities	38,038			38,070

Total	$ 874,200			$ 903,685

Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations.

Proceeds from the sale of fixed maturities available for sale during 2004, 2003, and 2002 were $394 million, $275 million, and $262 million, respectively. Gross gains of $6 million, $2 million, and $5 million, and gross losses of $4 million, $2 million, and $9 million were realized on those sales during 2004, 2003, and 2002, respectively. Proceeds from maturities of fixed maturities available for sale during 2004, 2003, and 2002 were $56 million, and $39 million, and $9 million, respectively.

Writedowns for impairments that were deemed to be other than temporary for fixed maturities were $0 million, $2.0 million, and $9 million for the years 2004, 2003 and 2002, respectively.

Investment Income and Investment Gains and Losses

Net investment income arose from the following sources for the years ended December 31:

	2004	2003	2002
		(in thousands)

Fixed maturities, available for sale	$ 44,375	$ 36,587	$ 35,078
Policy loans	8,443	8,463	8,715
Short-term investments and cash equivalents	1,733	1,430	1,852
Other	272	535	932
Gross investment income	54,823	47,015	46,577
Less investment expenses	(2,324)	(1,867)	(1,765)
Net investment income	$ 52,499	$ 45,148	$ 44,812

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

3. INVESTMENTS (continued)

Realized investment losses, net, including charges for other than temporary reductions in value, for the years ended December 31, were from the following sources:

	2004	2003	2002
		(in thousands)

Fixed maturities, available for sale	$ 2,024	$ (1,123)	$ (12,690)
Derivatives and other	(139)	285	(1,514)
Realized investment losses, net	$ 1,885	$ (838)	$ (14,204)

Duration of Gross Unrealized Loss Positions for Fixed Maturities

The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, as of December 31, 2003:

	Less than twelve months			Twelve months or more		Total
	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
	(in thousands)
Fixed maturities, available for sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$ 23,744	$ 94	$ -		$ -	$ 23,744		$ 94
Corporate securities	208,780	1,721	3,606		67	212,386		1,788
Mortgage-backed securities	25,005	168	-		-	25,005		168
Total	$257,529	$ 1,983	$ 3,606		$ 67	$261,135		$ 2,050

As of December 31, 2004, gross unrealized losses on fixed maturities totaled approximately $2 million comprising 99 issuers. Of this amount, there was $2 million in the less than twelve months category comprising 95 issuers and $0.1 million in the greater than twelve months category comprising 4 issuers. There were no individual issuers with gross unrealized losses greater than $0.1 million. The $2 million loss of gross unrealized losses is comprised of investment grade securities. The $0.1 million of gross unrealized losses of twelve months or more were concentrated in the finance sector. Based on a review of the above information in conjunction with other factors as outlined in our policy surrounding other than temporary impairments (see Note 2), we have concluded that an adjustment for other than temporary impairments is not warranted at December 31, 2004.

Securities Pledged, Restricted Assets and Special Deposits

The Company pledges investment securities it owns to unaffiliated parties through certain transactions including securities lending, securities sold under agreements to repurchase, and futures contracts. At December 31, 2004 and 2003, the carrying values of fixed maturities available for sale pledged to third parties as reported in the Statements of Financial Position were $96 million and $91 million, respectively.

Fixed maturities of $0.5 million at December 31, 2004 and 2003 were on deposit with governmental authorities or trustees as required by certain insurance laws.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

3. INVESTMENTS (continued)

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains on fixed maturities available for sale are included in the Statements of Financial Position as a component of “Accumulated other comprehensive income.” Changes in these amounts include adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “net income” for a period that also had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the years ended December 31, net of tax, are as follows:

			Net Unrealized Gains (Losses) on Investments		Deferred policy Acquisition Costs	Policyholders’ Account Balances		Deferred Income Tax (Liability) Benefit	Accumulated other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)

					(in		thousands)
	Balance, January 1, 2002		$ 11,738		$ (7,134)		$ 1,214	$ (2,094)		$ 3,724
	Net investment gains on investments arising during the period		3,607		-		-	(1,299)		2,308

	Reclassification adjustment for losses included in net income		12,690		-		-	(4,568)		8,122

	Impact of net unrealized investment gains on deferred policy acquisition costs		-		(9,128)			3,286		(5,842)

	Impact of net unrealized investment gains on policyholders’ account balances		-		-		2,161	(778)		1,383

Balance, December 31, 2002		28,035		(16,262)		3,375		(5,453)		9,695
Net investment gains on investments arising during the period		7,160		-		-		(2,577)		4,583
Reclassification adjustment for losses included in net income		1,123		-		-		(404)		719
Impact of net unrealized investment gains on deferred policy acquisition costs		-		(3,662)				1,318		(2,344)
Impact of net unrealized investment gains on policyholders’ account balances		-		-		821		(296)		525

Balance, December 31, 2003		36,318		(19,924)		4,196		(7,412)		13,178
Net investment gains on investments arising during the period		(4,798)						2,043		(2,755)
Reclassification adjustment for losses included in net income		(2,024)						708		(1,316)
Impact of net unrealized investment gains on deferred policy acquisition costs				8,075				(3,026)		5,049
Impact of net unrealized investment gains on policyholders’ account balances						(1,465)		555		(910)
Balance, December 31, 2004		$ 29,496		$ (11,849)		$ 2,731		$ (7,132)		$ 13,246

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

4.	DEFERRED POLICY ACQUISITION COSTS

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

	2004	2003	2002
		(in thousands)
Balance, beginning of year	$ 176,529	$ 137,053	$ 118,975
Capitalization of commissions, sales and issue expenses	21,374	60,669	51,974
Amortization	(23,147)	(17,531)	(24,768)
Change in unrealized investment gains	8,463	(3,662)	(9,128)
Balance, end of year	$ 183,219	$ 176,529	$ 137,053

Deferred acquisition costs in 2004 include reductions in capitalization and amortization related to the reinsurance expense allowances resulting from the coinsurance treaty with Prudential Arizona Reinsurance Captive Company or, “PARCC,” discussed in Note 13 below. Ceded capitalization and amortization relating to this treaty included in the above table amounted to $37 million and $3 million, respectively, in 2004.

5. POLICYHOLDERS’ LIABILITIES

Future policy benefits at December 31 are as follows:


	2004	2003
	(in thousands)

Life insurance	$ 183,736	$ 154,410
Individual Annuities	5,937	4,342
Total future policy benefits	$ 189,673	$ 158,752

Life insurance liabilities include reserves for death benefits and other policy benefits. Annuity liabilities include reserves for annuities that are in payout status.

Future policy benefits for life insurance are based on the net level premium method, calculated using the guaranteed mortality and nonforfeiture rates, which range from 2.50% to 7.50%.

Future policy benefits for individual annuities are equal to the aggregate of 1) the present value of expected future payments on the basis of actuarial assumptions established at issue, and 2) any premium deficiency reserves. Assumptions as to mortality are based on the Company’s experience when the basis of the reserve is established. The interest rates used in the determination of the individual annuities reserves range from 4.75% to 8.75%, with less than 10% of the reserves based on an interest rate in excess of 8%.

Policyholders’ account balances at December 31 are as follows:

	2004	2003
	(in thousands)

Interest-sensitive life contracts	$ 432,460	$ 390,044
Individual annuities	363,961	285,779
Total policyholders’ account balances	$ 796,421	$ 675,823

Policyholders’ account balances for interest-sensitive life and individual annuities represent an accumulation of account deposits plus credited interest less withdrawals, expenses and mortality charges, if applicable. Interest crediting rates range from 2.97% to 5.90% for interest-sensitive life contracts. Interest crediting rates for individual annuities range from 1.50% to 11.00%.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

6.	REINSURANCE

The Company participates in reinsurance with Prudential Insurance, PARCC and other companies, in order to provide greater diversification of business, provide additional capacity for future growth and limit the maximum net loss potential arising from large risks. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The likelihood of a material reinsurance liability reassumed by the Company is considered to be remote.

Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers, for both long and short duration reinsurance arrangements, are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies.

Reinsurance amounts included in the Statement of Operations and Comprehensive Income for the years ended December 31 are below.

	2004	2003	2002
		(in thousands)
Direct premiums and policy charges and fee income	$ 147,511	$ 119,381	$ 104,180
Reinsurance ceded	(37,817)	(11,180)	(5,415)
Premiums and policy charges and fee income	$ 109,694	$ 108,201	$ 98,765

Policyholders’ benefits ceded	$ 20,028	$ 11,223	$ 12,929

Reinsurance premiums ceded for interest-sensitive life products is accounted for as a reduction of policy charges and fee income. Reinsurance ceded for term insurance products is accounted for as a reduction of premiums.

Reinsurance recoverables, included in the Company’s Statements of Financial Position, at December 31, 2004 and 2003 were $67 million and $18 million, respectively.

During 2004, the Company entered into reinsurance contracts with affiliates covering the entire life in force. As a result, all reinsurance contracts are with affiliates as of December 31, 2004. These contracts are described further in Note 13, below.

The gross and net amounts of life insurance in force at December 31, were as follows:

	2004	2003	2002
		(in thousands)

Life insurance face amount in force	$ 42,903,082	$ 31,868,113	$ 21,119,708
Ceded to other companies	(37,708,317)	(17,782,119)	(9,866,510)
Net amount of life insurance in force	$ 5,194,765	$ 14,085,994	$ 11,253,198

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

7. INCOME TAXES

The components of income taxes for the years ended December 31, are as follows:

	2004	2003	2002
	(in thousands)
Current tax (benefit) expense:
U.S.	$ 14,639	$ (15,103)	$ (8,975)
State and local	(55)	-	258
Total	14,584	(15,103)	(8,717)


Deferred tax expense (benefit):
U.S.	(2,640)	23,735	3,918
State and local	(1,576)	302	(360)
Total	(4,216)	24,037	3,558

Total income tax expense (benefit)	$ 10,368	$ 8,934	$ (5,159)

The income tax expense for the years ended December 31, differs from the amount computed by applying the expected federal income tax rate of 35% to income from operations before income taxes and cumulative effect of accounting change for the following reasons:

	2004	2003	2002
	(in thousands)

Expected federal income tax expense	$ 12,589	$ 10,343	$ 3,573
State and local income taxes	(1,060)	197	(66)
Non taxable investment income	(1,240)	(2,583)	(8,505)
Other	79	977	(161)
Total income tax expense (benefit)	$ 10,368	$ 8,934	$ (5,159)

Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table:

	2004	2003
	(in thousands)
Deferred tax assets
Net operating loss	$ -		$ 1,074
Investments	1,661		1,673
Other	841		204
Deferred tax assets	2,502		2,951

Deferred tax liabilities
Insurance reserves	$ 3,249		$ 7,420
Deferred acquisition costs	46,936		48,271
Net unrealized gains on securities	10,324		13,075
Other	3,209		-
Deferred tax liabilities	63,718		68,766

Net deferred tax liability	$ 61,216		$ 65,815

Management believes that based on its historical pattern of taxable income, the Company will produce sufficient income in the future to realize its deferred tax assets after valuation allowance. Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of the deferred tax asset that is realizable. At December 31, 2003 the Company had state operating loss carryforwards of $70 million.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

7. INCOME TAXES (continued)

The Internal Revenue Service (the “Service”) has completed all examinations of the consolidated federal income tax returns through 1996. Tax years 1997 through 2001 are currently under examination. Management believes sufficient provisions have been made for potential adjustments.

8.	CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS

The Company issues traditional variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than (a) total deposits made to the contract less any partial withdrawals (“return of net deposits”), (b) total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”), or (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary (“anniversary contract value”). These guarantees include benefits that are payable in the event of death or annuitization.

The Company also issues annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held to maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable.

In addition, the Company issues variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no lapse guarantee”). Variable life and variable universal life contracts are offered with general and separate account options.

The assets supporting the variable portion of both traditional variable annuities and certain variable contracts with guarantees are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits.” In 2004 there were no gains or losses on transfers of assets from the general account to a separate account.

For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

8.	CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS (continued)

As of December 31, 2004, the Company had the following guarantees associated with these contracts, by product and guarantee type:

	December 31, 2004
	In the Event of Death	At Annuitization / Accumulation
Variable Annuity Contracts	(dollars in thousands)

Return of Net Deposits
Account value	$253,843	N/A
Net amount at risk	$395	N/A
Average attained age of contractholders	61 years	N/A


Minimum return or anniversary contract value
Account value	$743,506	$68,612
Net amount at risk	$67,040	$0
Average attained age of contractholders	63 years	56
Average period remaining until earliest expected annuitization	N/A	6.5 years

Market value adjusted annuities	Unadjusted Value	Adjusted Value
Account value	$34,053	$35,885

	December 31, 2004
	In the Event of Death
Variable Life, Variable Universal Life and Universal Life Contracts	(dollars in thousands)

No Lapse Guarantees
Separate account value	$417,967
General account value Net amount at risk	$65,494 $5,329,909
Average attained age of contractholders	42 years

Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows:

		December 31, 2004
		(in thousands)


Equity funds		$552,820
Bond funds		78,373
Balanced funds		21,584
Money market funds		23,605
Specialty funds		81
Total		$676,463

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

8.	CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS (continued)

The total amount of funds invested in separate account investment options for variable life, variable universal life and universal life contracts with guarantees was $418 million at December 31, 2004.

In addition to the above mentioned amounts invested in separate account investment options, $321 million of account balances of variable annuity contracts with guarantees (inclusive of contracts with MVA features) were invested in general account investment options.

Liabilities For Guarantee Benefits

The table below summarizes the changes in general account liabilities for guarantees on variable contracts. The liabilities for guaranteed minimum death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.”

	Guaranteed Minimum Death Benefit (GMDB)
	(in thousands)
Balance as of January 1, 2004	$1,633
Incurred guarantee benefits	762
Paid guarantee benefits	(1,154)
Balance as of December 31, 2004	$1,241

The GMDB liability is determined each period end by estimating the accumulated value of a percentage of the total assessments to date less the accumulated value of the death benefits in excess of the account balance. The percentage of assessments used is chosen such that, at issue, the present value of expected death benefits in excess of the projected account balance and the percentage of the present value of total expected assessments over the lifetime of the contracts are equal. The Company regularly evaluates the estimates used and adjusts the GMDB liability balance, with a related charge or credit to earnings, if actual experience or other evidence suggests that earlier assumptions should be revised

The present value of death benefits in excess of the projected account balance and the present value of total expected assessments for GMDB’s were determined over a reasonable range of stochastically generated scenarios. For variable annuities and variable universal life, 5,000 scenarios were stochastically generated and, from these, 200 scenarios were selected using a sampling technique. For variable life, various scenarios covering a reasonable range were weighted based on a statistical lognormal model. For universal life, 10,000 scenarios were stochastically generated and, from these, 100 were selected.

Sales Inducements

The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize deferred policy acquisition costs. These deferred sales inducements are included in “Other assets.” The Company offers various types of sales inducements. These inducements include: (i) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit and (ii) additional interest credits after a certain number of years a contract is held. Changes in deferred sales inducements are as follows:

		Sales Inducements
		(in thousands)
Balance as of January 1, 2004	$	7,879
Capitalization		4,461
Amortization		(1,225)
Balance as of December 31, 2004	$	11,115

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

9. STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONS

The Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the New Jersey Department of Banking and Insurance. Statutory accounting practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions and valuing investments, deferred taxes, and certain assets on a different basis.

Statutory net income (loss) of the Company amounted to $57 million, $(60) million, and $(45) million for the years ended December 31, 2004, 2003 and 2002, respectively. Statutory surplus of the Company amounted to $148 million and $90 million at December 31, 2004 and 2003, respectively. The statutory losses in 2003, and 2002 were primarily attributed to the surplus strain from new business, which results from higher commissions and selling expenses, which are not deferred under statutory accounting, and from increases to reserves. During 2004, the Company obtained reinsurance on the term life business from a captive affiliate, mitigating the surplus strain on that business. The agreement is discussed further in Note 13.

In March 1998, the NAIC adopted the Codification of Statutory Accounting Principles guidance or, “Codification,” which replaced the current Accounting Practices and Procedures manual as the NAIC’s primary guidance on statutory accounting as of January 1, 2001. Codification provided guidance for areas where statutory accounting had been silent and changed current statutory accounting in certain areas. The Company adopted the Codification guidance effective January 1, 2001. As a result of these changes, the Company reported an increase to statutory surplus of $7 million, primarily relating to the recognition of deferred tax assets.

The Company is subject to New Jersey law. The maximum amount of dividends, which can be paid by State of New Jersey insurance companies to shareholders without prior approval of the Insurance Commissioner, is subject to N.J.S.A.17:27A-4.c(2)(b). There have been no dividend payments to the Company’s parent in 2004, 2003 or 2002. However, the Company received a $40 million capital contribution from its Parent during 2003.

10. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair values presented below have been determined by using available market information and by applying valuation methodologies. Considerable judgment is applied in interpreting data to develop the estimates of fair value. These fair values may not be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies could have a material effect on the fair values. The methods and assumptions discussed below were used in calculating the fair values of the instruments. See Note 11 for a discussion of derivative instruments.

Fixed maturities

The fair values of public fixed maturity securities are based on quoted market prices or estimates from independent pricing services. However, for investments in private placement fixed maturity securities, this information is not available. For these private investments, the fair value is determined typically by using a discounted cash flow model, which considers current market credit spreads for publicly traded issues with similar terms by companies of comparable credit quality, and an additional spread component for the reduced liquidity associated with private placements. This additional spread component is determined based on surveys of various third party financial institutions. Historically, changes in estimated future cash flows or the assessment of an issuer’s credit quality have been the more significant factors in determining fair values.

Policy loans

The fair value of policy loans is calculated using a discounted cash flow model based upon current U.S. Treasury rates and historical loan repayment patterns.

Investment contracts

For individual deferred annuities and other deposit liabilities, fair value approximates carrying value.

Derivative financial instruments

See note 11 for disclosure of fair value on these instruments.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

10. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)

The following table discloses the carrying amounts and fair values of the Company’s financial instruments at

December 31:

		2004			2003
	Carrying Value		Fair Value	Carrying Value		Fair Value
(in thousands)
Financial assets:

Fixed maturities, available for sale	$ 903,685		$ 903,685	$ 782,685		$ 782,685
Policy loans	153,359		175,090	154,659		179,308
Short-term investments	44,549		44,549	44,571		44,571
Cash and cash equivalents	108,117		108,117	72,547		72,547
Separate account assets	2,112,866		2,112,866	1,926,301		1,926,301

Financial liabilities:
Investment contracts	$ 398,615		$ 398,615	$ 312,635		$ 312,635
Cash collateral for loaned securities	74,527		74,527	78,855		78,855
Securities sold under agreements to repurchase	24,754		24,754	14,483		14,483
Separate account liabilities	2,112,866		2,112,866	1,926,301		1,926,301

11.

DERIVATIVE INSTRUMENTS

Types of Derivative Instruments

Interest rate swaps are used by the Company to manage interest rate exposures arising from mismatches between assets and liabilities (including duration mismatches) and to hedge against changes in the value of assets it anticipates acquiring and other anticipated transactions and commitments. Swaps may be specifically attributed to specific assets or liabilities or may be based on a portfolio basis. Under interest rate swaps, the Company agrees with other parties to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts calculated by reference to an agreed upon notional principal amount. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party. Cash is paid or received based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by one counterparty at each due date.

Exchange-traded futures and options are used by the Company to reduce market risks from changes in interest rates, to alter mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, and to hedge against changes in the value of securities it owns or anticipates acquiring or selling. In exchange-traded futures transactions, the Company agrees to purchase or sell a specified number of contracts, the values of which are determined by the values of designated classes of securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures and options with regulated futures commissions merchants who are members of a trading exchange.

Futures typically are used to hedge duration mismatches between assets and liabilities. Futures move substantially in value as interest rates change and can be used to either modify or hedge existing interest rate risk. This strategy protects against the risk that cash flow requirements may necessitate liquidation of investments at unfavorable prices resulting from increases in interest rates. This strategy can be a more cost effective way of temporarily reducing the Company’s exposure to a market decline than selling fixed income securities and purchasing a similar portfolio when such a decline is believed to be over.

Credit Risk

The Company is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. Generally, the current credit exposure of the Company’s derivative contracts is limited to the fair value at the reporting date. The credit exposure of the Company’s over-the-counter derivative transactions is represented by the fair value (market value) of contracts with a positive fair value (market value) at the reporting date. Because exchange-traded futures and options are effected through regulated exchanges, and positions are marked to market on a daily basis, the Company has little exposure to credit-related losses in the event of nonperformance by counterparties to such financial instruments.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

11.

DERIVATIVE INSTRUMENTS (continued)

The Company manages credit risk by entering into transactions with creditworthy counterparties and obtaining collateral where appropriate and customary. In addition, the Company enters into over-the-counter swaps pursuant to master agreements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination. Likewise, the Company effects exchange-traded futures and options through regulated exchanges and these positions are marked to market on a daily basis.

12.

CONTINGENCIES AND LITIGATION AND REGULATORY MATTERS

Contingencies

On an ongoing basis, our internal supervisory and control functions review the quality of our sales, marketing and other customer interface procedures and practices and may recommend modifications or enhancements. In certain cases, if appropriate, we may offer customers remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

It is possible that the results of operations or the cash flow of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above depending, in part, upon the results of operations or cash flow for such period. Management believes, however, that the ultimate payments in connection with these matters should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Proceedings

The Company is subject to legal and regulatory actions in the ordinary course of its businesses, which may include class action lawsuits. Pending legal and regulatory actions include proceedings relating to aspects of the businesses and operations that are specific to the Company and that are typical of the businesses in which the Company operates. Class action and individual lawsuits may involve a variety of issues and/or allegations, which include sales practices, underwriting practices, claims payment and procedures, premium charges, policy servicing and breach of fiduciary duties to customers. We may also be subject to litigation arising out of our general business activities, such as our investments and third party contracts. In certain of these matters, the plaintiffs may seek large and/or indeterminate amounts, including punitive or exemplary damages.

The Company has received formal requests for information relating to its variable annuity business from regulators, including, among others, the Securities and Exchange Commission and the State of New York Attorney General’s office. As part of a broad initiative by the NAIC, the Company has received a request for information from the New Jersey Department of Banking and Insurance related to producer compensation and fee arrangements. It is possible that other regulators will issue similar requests.

The Company’s litigation is subject to many uncertainties, and given the complexity and scope, the outcomes cannot be predicted. It is possible that the results of operations or the cash flow of the Company in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of litigation and regulatory matters. Management believes, however, that the ultimate outcome of all pending litigation and regulatory matters should not have a material adverse effect on the Company’s financial position.

13. RELATED PARTY TRANSACTIONS

The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. It is possible that the terms of these transactions are not the same as those that would result from transactions among wholly unrelated parties.

Expense Charges and Allocations

Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into the following categories: general and administrative expenses and agency distribution expenses.

The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. Beginning in 2003, general and administrative expenses include allocations of stock compensation expenses related to a stock option program and a deferred compensation program issued by Prudential Financial.

The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market based pricing arrangement.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

13.

RELATED PARTY TRANSACTIONS (Continued)

Affiliated Asset Management Fee Income

Beginning October 1, 2002, in accordance with a servicing agreement with Prudential Investments LLC, the Company receives fee income from policyholder account balances invested in the Prudential Series Funds (“PSF”). These revenues are recorded as “Asset management fees” in the Statements of Operations and Comprehensive Income.

Corporate Owned Life Insurance

The Company has sold two Corporate Owned Life Insurance (“COLI”) policies to Prudential Insurance. The cash surrender value included in separate accounts was $462 million and $430 million at December 31, 2004 and December 31, 2003, respectively. Fees related to the COLI policies were $4 million, $3 million and $7 million for the years ending December 31, 2004, 2003 and 2002, respectively.

Reinsurance with Affiliates

PARCC

In September 2004, the Company entered into an agreement to reinsure its term life insurance with an affiliated company, PARCC. The Company reinsures with PARCC 90 percent of the risks under such policies through an automatic and facultative coinsurance agreement. The Company is not relieved of its primary obligation to the policyholder as a result of these reinsurance transactions.

The coinsurance agreement with PARCC also replaces the yearly renewable term agreements with external reinsurers that were previously in effect on this block of business. There was no net cost associated with the initial transaction. Reinsurance recoverables related to this agreement were $56 million as of December 31, 2004.

Prudential Insurance

In December 2004, the Company recaptured the excess of loss reinsurance agreement with Prudential and replaced it with a revised yearly renewable term agreement to reinsure all risks, not otherwise reinsured. Reinsurance recoverables related to this agreement were $8 million as of December 31, 2004. The Company is not relieved of its primary obligation to the policyholder as a result of these reinsurance transactions.

Affiliated premiums ceded from these life reinsurance agreements for the periods ended December 31, 2004, 2003, and 2002 were $27 million, $1 million, and $1 million, respectively. Affiliated benefits ceded for the periods ended December 31, 2004, 2003, and 2002 from these life reinsurance agreements are $16 million in 2004, $0 in 2003, and $8 million in 2002.

Debt Agreements

The Company and its parent, Pruco Life, have a revolving line of credit facility of up to $800 million with Prudential Funding, LLC, a wholly owned subsidiary of Prudential Insurance. The total of asset-based financing and borrowing under this credit facility for the Company and its parent cannot be more than $800 million. As of December 31, 2004 and 2003, there was $99 million and $93 million, respectively, of asset-based financing. There is no outstanding debt to Prudential Funding, LLC as of December 31, 2004 or December 31, 2003.

Pruco Life Insurance Company of New Jersey

Notes to Financial Statements

14. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The unaudited quarterly results of operations for the years ended December 31, 2004 and 2003 are summarized in the table below:

                                                                      Three months ended
                                              -----------------------------------------------------------------
                                              -----------------------------------------------------------------
                                                   March 31        June 30       September 30     December 31
                                              -----------------------------------------------------------------
                                              -----------------------------------------------------------------
   2004                                                                 (in thousands)
   Total revenues                                  $    44,907     $   46,297      $    40,500      $   39,297
   Total benefits and expenses                          35,106         39,646           33,536          26,746
   Income from operations before income
   taxes       and cumulative effect of
   accounting change                                     9,801          6,651            6,964          12,551
   Net income                                            6,912          4,774            6,432           7,297
                                              -----------------------------------------------------------------

                                              -----------------------------------------------------------------
   2003                                                                 (in thousands)
   Total revenues                                   $   35,410     $   42,421       $   38,893      $   41,533
   Total benefits and expenses                          32,104         33,770           33,297          29,535
   Income from operations before income taxes
   and cumulative effect of accounting change            3,306          8,651            5,596          11,998
   Net income                                            2,633          5,932            3,229           8,823

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholder of

Pruco Life Insurance Company of New Jersey

In our opinion, the financial statements listed in the accompanying index present fairly, in all material respects, the financial position of Pruco Life Insurance Company of New Jersey (an indirect, wholly-owned subsidiary of The Prudential Insurance Company of America) at December 31, 2004 and 2003, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2004, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As described in Note 2, the Company adopted American Institute of Certified Public Accountants Statement of Position 03-1, “Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts” as of January 1, 2004, and the fair value provisions of Statement of Financial Accounting Standards No. 123, “Accounting for Stock Based Compensation” as of January 1, 2003.

PricewaterhouseCoopers LLP

New York, New York

March 25, 2005

PART C:

OTHER INFORMATION

Item 27. EXHIBITS
Exhibit number	Description of Exhibit

(a)	Board of Directors Resolution:
	(i) Resolution of Board of Directors of Pruco Life Insurance Company of New Jersey establishing the Pruco Life of New Jersey Variable Appreciable Account. (Note 2)
	(ii) Amendment of Separate Account Resolution. (Note 5)
(b)	Not Applicable.
(c)	Underwriting Contracts:
	(i) Distribution Agreement between Pruco Securities, LLC and Pruco Life Insurance Company of New Jersey. (Note 2)
	(ii) Proposed form of Agreement between Pruco Securities, LLC and independent brokers with respect to the Sale of the Contracts. (Note 4)
(d)	Contracts:
	(i) Variable Universal Life Insurance Contract - Type A & B Death Benefit. (Note 14)
	(ii) Variable Universal Life Insurance Contract - Type C Death Benefit. (Note 14)
	(iii) Rider for Insured's Accidental Death Benefit. (Note 6)
	(iv) Rider for Insured's Total Disability Benefit. (Note 14)
	(v) Rider for Level Term Insurance Benefit on Dependent Children. (Note 6)
	(vi) Rider for Level Term Insurance Benefit on Dependent Children - From Conversions. (Note 6)
	(vii) Rider for Settlement Options to Provide Acceleration of Death Benefits. ORD 87241-91-NY (Note 7)
(e)	Application:
	(i) Application for Variable Universal Life Insurance Contract. (Note 13)
	(ii) Supplement to the Application for Variable Universal Life Insurance Contract. (Note 14)
(f)	Depositor's Certificate of Incorporation and By-Laws:
	(i) Articles of Incorporation of Pruco Life Insurance Company of New Jersey, as amended March 11, 1983. (Note 2)
	(ii) Certificate of Amendment of the Articles of Incorporation of Pruco Life Insurance Company of New Jersey, February 12, 1998. (Note 3)
	(iii) By-laws of Pruco Life Insurance Company of New Jersey, as amended August 4, 1999. (Note 4)
(g)	Not applicable.
(h)	Not applicable.
(i)	Administrative Contracts:
	(i) Service Agreement between Prudential and First Tennessee Bank National Association. (Note 8)
(j)	Powers of Attorney:
	(i) David R. Odenath, Jr. (Note 9)
	(ii) James J. Avery, Jr. (Note 10)
	(iii) Ronald P. Joelson (Note 11)
	(iv) Helen M. Galt (Note 12)
	(v) John Chieffo, C. Edward Chaplin (Note 15)
	(vi) Andrew J. Mako (Note 16)
(k)	Opinion and Consent of Clifford E. Kirsch, Esq., as to the legality of the securities being registered. (Note 1)
(l)	Opinion and Consent of Nancy D. Davis, FSA, MAAA, as to actuarial matters pertaining to the representation of the illustrations and the Depositor's administrative procedures. (Note 1)
(m)	Calculation. (Note 1)
(n)	Consent of PricewaterhouseCoopers LLP, an independent registered public accounting firm. (Note 1)
(o)	None.
(p)	Not applicable.
(q)	Redeemability Exemption:
	(i) Memoradum describing Pruco Life Insurance Company of New Jersey's issuance, transfer, and redemption procedures for the Contracts pursuant to Rule 6e-3(T)(b)(12)(iii). (Note 1)

(Note 1)  Filed herewith.
(Note 2)  Incorporated by reference to Post-Effective Amendment No. 26 to Form S-6, Registration No. 2-89780, filed April 28, 1997 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 3)  Incorporated by reference to Post-Effective Amendment No. 12 for Form S-1, Registration No. 33-20018, filed April 19, 1999 on behalf of the Pruco Life of New Jersey Variable Contract Real Property Account.
(Note 4)  Incorporated by reference to Form S-6, Registration No. 333-85117, filed on August 13, 1999 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 5)  Incorporated by reference to Form S-6, Registration No. 333-94115, filed January 5, 2000 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 6)  Incorporated by reference to Form S-6, Registration No. 333-49334, filed November 3, 2000 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 7)  Incorporated by reference to Post-Effective Amendment No. 24 to Form S-6, Registration No. 2-81242, filed April 29, 1997 on behalf of the Pruco Life of New Jersey Variable Insurance Account.
(Note 8)  Incorporated by reference to Post-Effective Amendment No. 5 to Form S-6, Registration No. 333-49334, filed April 22, 2003 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 9)  Incorporated by reference to Pre-Effective Amendment No. 1 to Form S-6, Registration No. 333-49334, filed February 8, 2001 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 10)  Incorporated by reference to Post-Effective Amendment No. 10 to Form S-1, Registration No. 33-20018, filed April 9, 1998 on behalf of the Pruco Life of New Jersey Variable Contract Real Property Account.
(Note 11)  Incorporated by reference to Post-Effective Amendment No. 14 to Form S-1, Registration No. 33-20018, filed April 10, 2001 on behalf of the Pruco Life of New Jersey Variable Contract Real Property Account.
(Note 12)  Incorporated by reference to Post-Effective Amendment No. 5 to Form S-6, Registration No. 333-85117, filed June 28, 2001 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 13)  Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-6, Registration No. 333-112809, filed April 16, 2004 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 14)  Incorporated by reference to Form N-6 to this Registration Statement, filed July 30, 2004 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.
(Note 15)  Incorporated by reference to Post-Effective Amendment No. 13 to Form N-4, Registration No. 333-49230, filed January 20, 2005 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.
(Note 16)  Incorporated by reference to Post-Effective Amendment No. 1 to Form N-4, Registration No. 333-99275, filed June 27, 2003 on behalf of the Pruco Life of New Jersey Flexible Premium Variable Annuity Account.

Item 28. Directors and Major Officers of Pruco Life of New Jersey

The directors and major officers of Pruco Life of New Jersey, listed with their principal occupations during the past 5 years, are shown below. The Principal business address of the directors and officers listed below is 213 Washington Street, Newark, New Jersey 07102.

DIRECTORS OF PRUCO LIFE OF NEW JERSEY

JAMES J. AVERY, JR., Vice Chairman and Director – President, Prudential Individual Life Insurance since 1998.

C. EDWARD CHAPLIN, Treasurer and Director – Senior Vice President and Treasurer, Prudential since 2000; prior to 2000, Vice President and Treasurer, Prudential.

HELEN M. GALT, Director – Company Actuary, Prudential since 1993.

BERNARD J. JACOB, President and Director – Vice President, Prudential Individual Life and Annuities since 2004; 2002 to 2004: Vice President, Group Executive Strategy and Business Development; prior to 2001: Executive Vice President, Proact Technologies Corporation.

RONALD P. JOELSON, Director – Senior Vice President, Prudential Asset, Liability and Risk Management since 1999.

ANDREW J. MAKO, Director – Vice President, Finance, Insurance Division, Prudential Financial since 1999.

DAVID R. ODENATH, JR., Director – President, Prudential Annuities, since 2003; prior to 2003: President, Prudential Investments.

OFFICERS WHO ARE NOT DIRECTORS

JOHN CHIEFFO, Vice President and Chief Accounting Officer – Vice President and Individual Life Controller since 1998.

CLIFFORD E. KIRSCH, Chief Legal Officer and Secretary – Chief Counsel, Variable Products, Prudential Law Department since 1995.

MELODY C. MCDAID, Senior Vice President – Vice President and Site Executive, Prudential Financial Services Customer Service Office since 1995.

ESTHER H. MILNES, Senior Vice President – Vice President and Chief Actuary, Prudential Individual Life Insurance since 1999.

JAMES M. O'CONNOR, Senior Vice President and Actuary – Vice President, Guaranteed Products since 2001; prior to 2000: Corporate Vice President, Guaranteed Products, Prudential Retirement.

SHIRLEY H. SHAO,Senior Vice President and Chief Actuary – Vice President and Actuary, Prudential since 1996.

Item 29. Persons Controlled by or Under Common Control with the Depositor or the Registrant

See Annual Report on Form 10-K of Prudential Financial, Inc., File No. 001-16707, filed March 9, 2005.

Item 30. Indemnification

The Registrant, in connection with certain affiliates, maintains various insurance coverages under which the underwriter and certain affiliated persons may be insured against liability, which may be incurred in such capacity, subject to the terms, conditions, and exclusions of the insurance policies.

New Jersey, being the state of organization of Pruco Life of New Jersey, permits entities organized under its jurisdiction to indemnify directors and officers with certain limitations. The relevant provisions of New Jersey law permitting indemnification can be found in Section 14A:3-5 of the New Jersey Statutes Annotated. The text of Pruco Life of New Jersey’s By-law, Article V, which relates to indemnification of officers and directors, is filed as Exhibit 1.A.(6)(c) to Form S-6, Registration No. 333-85117, filed August 13, 1999 on behalf of the Pruco Life of New Jersey Variable Appreciable Account.

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

Item 31. Principal Underwriters

Pruco Securities Corporation (“Prusec”), an indirect wholly-owned subsidiary of Prudential Financial, acts as the principal underwriter of the Contract. Prusec, organized in 2003 under New Jersey law, is registered as a broker and dealer under the Securities Exchange Act of 1934 and is a member of the National Association of Securities Dealers, Inc. Prusec’s principal business address is 751 Broad Street, Newark, New Jersey 07102-3777.

The Contract is sold by registered representatives of Prusec who are also authorized by state insurance departments to do so. The Contract may also be sold through other broker-dealers authorized by Prusec and applicable law to do so.

MANAGERS AND OFFICERS OF PRUCO SECURITIES, LLC ("Prusec")
Name and Principal Business Address	Position and Office With Depositor
John W. Greene (Note 1)	Chairman of the Board, Manager
John G. Gordon (Note 1)	President, manager, Chief Operating Officer
Clifford E. Kirsch (Note 1)	Vice President, Chief Legal Officer, Secretary
Bernard Russo (Note 1)	Vice President, Controller, Chief Financial Officer
James G. Carroll (Note 1)	Vice President, Chief Compliance Officer
Maryanne Ryan (Note 2)	Vice President
Thomas H. Harris (Note 1)	Vice President
Mark A. Hug (Note 1)	Vice President
Patrick L. Hynes (Note 4)	Vice President
Michele Talafha (Note 4)	Assistant Vice President
C. Edward Chaplin (Note 2)	Vice President, Treasurer
Ralph Aquilera (Note 1)	Assistant Controller
James J. Avery, Jr. (Note 1)	Manager
Kiernan J. Quinn (Note 1)	Vice President
David R. Odenath (Note 3)	Manager
Judy A. Rice (Note 3)	Manager
Martin Chotiner (Note 1)	Assistant Controller
Raymond H. Goslin (Note 1)	Assistant Controller
Janice Pavlou (Note 1)	Assistant Controller
Valerie Simpson (Note 1)	Assistant Controller
Paul F. Blinn (Note 1)	Assistant Treasurer
Kathleen C. Hoffman (Note 2)	Assistant Treasurer
Robert Montellione (Note 1)	Assistant Treasurer
Patricia Christian (Note 1)	Assistant Secretary
Mary Jo Reich (Note 1)	Assistant Secretary
Thomas Castano (Note 1)	Assistant Secretary
Kathleen Gibson (Note 2)	Vice President, Assistant Secretary
Sue J. Nam (Note 2)	Assistant Secretary
Helene Gurian (Note 2)	Vice President, Anti-Money Laundering Officer


(Note 1)	213 Washington Street, Newark, NJ 07102
(Note 2)	751 Broad Street, Newark, NJ 07102
(Note 3)	100 Mulberry Street, Newark, NJ 07102
(Note 4)	One New York Plaza, 11th Floor, New York, NY 10004

Prusec serves as principal underwriter of the variable insurance Contracts issued by Pruco Life of New Jersey. Prusec received gross distribution revenue for its individual variable life products of $114,496,331 in 2004. Prusec passes through the gross distribution revenue it receives to selling firms for their sales and does not retain any portion of it in return for its services as distributor for the policies. However, Prusec does retain a portion of compensation it receives with respect to sales by its representatives. Prusec retained compensation of $10,572,253 in 2004. Prusec offers the Contract on a continuous basis.

Because Prusec registered representatives who sell the Contracts are also our life insurance agents, they may be eligible for various cash bonuses and insurance benefits and non-cash compensation programs that we or our affiliates offer, such as conferences, trips, prizes, and awards, subject to applicable regulatory requirements. In some circumstances and to the extent permitted by applicable regulatory requirements, we may also reimburse certain sales and marketing expenses.

Item 32. Location of Accounts and Records

The Depositor, Pruco Life Insurance Company of New Jersey, is located at 213 Washington Street, Newark, New Jersey 07102-2992.

The Principal Underwriter, Pruco Securities, LLC, is located at 751 Broad Street, Newark, New Jersey 07102-3777.

Each company maintains those accounts and records required to be maintained pursuant to Section 31(a) of the Investment Company Act and the rules promulgated thereunder.

Item 33. Management Services

Not Applicable.

Item 34. Representation of Reasonableness of Fees

Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey”) represents that the fees and charges deducted under the Variable Appreciable Life Insurance Contracts registered by this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Pruco Life of New Jersey.

Signatures

Pursuant to the requirements of the Securities Act of 1933, the Registrant, the Pruco Life of New Jersey Variable Appreciable Account, certifies that this Amendment is filed solely for one or more of the purposes specified in Rule 485(b)(1) under the Securities Act of 1933 and that no material event requiring disclosure in the prospectus, other than one listed in Rule 485(b)(1), has occurred since the effective date of the most recent Pre-Effective Amendment to the Registration Statement which included a prospectus and has duly caused this Registration Statement to be signed on its behalf by the undersigned thereunto duly authorized and its seal hereunto affixed and attested, all in the city of Newark and the State of New Jersey, on this 21st day of April, 2005.

(Seal)

Pruco Life of New Jersey Variable Appreciable Account
(Registrant)

By: Pruco Life Insurance Company of New Jersey
(Depositor)


Attest:	/s/ Thomas C. Castano	By:	/s/ Bernard J. Jacob
	Thomas C. Castano		Bernard J. Jacob
	Assistant Secretary		President

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 1 to the Registration Statement has been signed below by the following persons in the capacities indicated on this 21st day of April, 2005.


Signature and Title

/s/*_________________________
John Chieffo
Vice President and Chief Accounting Officer

/s/*_________________________	*By: /s/ Thomas C. Castano
James J. Avery, Jr.	Thomas C. Castano
Director	(Attorney-in-Fact)

/s/*_________________________
C. Edward Chaplin
Director

/s/*_________________________
Helen M. Galt
Director

/s/*_________________________
Ronald P. Joelson
Director

/s/*_________________________
Andrew J. Mako
Director

/s/*_________________________
David R. Odenath, Jr.
Director

EXHIBIT INDEX

Item 27.

(k) Legal Opinion and Consent:	Opinion and Consent of Clifford E. Kirsch, Esq., as to the legality of the securities being registered.

(l) Actuarial Consent:	Opinion and Consent of Nancy D. Davis, FSA, MAAA, as to actuarial matters pertaining to the representation of the illustrations and the Depositor's administrative procedures.

(m) Calculation:	Calculation of sample illustrations.

(n) Auditor's Consent:	Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm.

(q) Redeemability Exemption:	Memorandum describing Pruco Life Insurance Company of New Jersey's issuance, transfer, and redemption procedures for the Contracts pursuant to Rule 6e-3(T)(b)(12)(iii).