-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EWdbKCdSfhjIK3oanONgq5H5iIymGEDhKCPcWKR4NxzFGH63jQdwW13g60oDQkqs NVFYt+uHRguBwFL9F+AKdQ== 0000950135-07-002641.txt : 20070501 0000950135-07-002641.hdr.sgml : 20070501 20070430221043 ACCESSION NUMBER: 0000950135-07-002641 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20070501 DATE AS OF CHANGE: 20070430 EFFECTIVENESS DATE: 20070501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOHN HANCOCK LIFE INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000884525 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-138846 FILM NUMBER: 07803027 BUSINESS ADDRESS: STREET 1: 100 SUMMIT LAKE DRIVE STREET 2: SECOND FLOOR CITY: VALHALLA STATE: NY ZIP: 10595 BUSINESS PHONE: 6172666008 MAIL ADDRESS: STREET 1: 100 SUMMIT LAKE DRIVE STREET 2: SECOND FLOOR CITY: VAHALLA STATE: NY ZIP: 10595 FORMER COMPANY: FORMER CONFORMED NAME: JOHN HANCOCK INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20050103 FORMER COMPANY: FORMER CONFORMED NAME: MANUFACTURERS LIFE INSURANCE CO OF NEW YORK SEP ACCOUNT A DATE OF NAME CHANGE: 19971022 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOHN HANCOCK LIFE INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000884525 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06584 FILM NUMBER: 07803028 BUSINESS ADDRESS: STREET 1: 100 SUMMIT LAKE DRIVE STREET 2: SECOND FLOOR CITY: VALHALLA STATE: NY ZIP: 10595 BUSINESS PHONE: 6172666008 MAIL ADDRESS: STREET 1: 100 SUMMIT LAKE DRIVE STREET 2: SECOND FLOOR CITY: VAHALLA STATE: NY ZIP: 10595 FORMER COMPANY: FORMER CONFORMED NAME: JOHN HANCOCK INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20050103 FORMER COMPANY: FORMER CONFORMED NAME: MANUFACTURERS LIFE INSURANCE CO OF NEW YORK SEP ACCOUNT A DATE OF NAME CHANGE: 19971022 0000884525 S000002860 JOHN HANCOCK LIFE INSURANCE CO OF NEW YORK SEPARATE ACCOUNT A C000043113 NYVantage 485BPOS 1 b63297a1e485bpos.txt NY VANTAGE As filed with the Securities and Exchange Commission on May 1, 2007. Registration No. 333-138846 811-4113 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Post-Effective Amendment No. 1 and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 1 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A (formerly, The Manufacturers Life Insurance Company of New York) (Exact name of Registrant) JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK (formerly, The Manufacturers Life Insurance Company of New York) (Name of Depositor) 100 Summit Lake Drive, Second Floor Valhalla, New York 10595 (Address of Depositor's Principal Executive Offices) (914) 773-0708 (Depositor's Telephone Number Including Area Code) Arnold R. Bergman John Hancock Life Insurance Company of New York 601 Congress Street Boston, MA 02210 (Name and Address of Agent for Service) Copy to: John W. Blouch, Esq. Dykema Gossett PLLC Suite 300 West 1300 I Street, NS Washington, DC 20005-3306 Title of Securities Being Registered: Variable Annuity Insurance Contracts It is proposed that this filing will become effective: [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on May 1, 2007 pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] on February 12, 2007 pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. JOHN HANCOCK LIFE INSURANCE COMPANY of New York SEPARATE ACCOUNT A CROSS REFERENCE TO ITEMS REQUIRED BY FORM N-4
N-4 Item Part A Caption in Prospectus - -------- --------------------- 1....... Cover Page 2....... Glossary of Special Terms 3....... Overview, Fee Tables, Examples 4....... Appendix U: Accumulation Unit Value Tables 5....... General Information about Us, The Separate Accounts and The Funds 6....... Charges and Deductions; Withdrawal Charges; Administration Fees; Mortality and Expense Risks Charge; Taxes; Appendix A - Examples of Calculation of Withdrawal Charge 7....... Accumulation Period Provisions; Our Approval; Purchase Payments; Accumulation Units; Net Investment Factor; Transfers Among Investment Options; Special Transfer Services - Dollar Cost Averaging; Special Transfer Services - Asset Rebalancing Program; Withdrawals; Special Withdrawal Services - Income Plan; Contract Owner Inquiries; Other Contract Provisions; Ownership; Beneficiary; Modification; 8....... Pay-out Period Provisions; General; Annuity Options; Determination of Amount of the First Variable Annuity Payments; Annuity Units and the Determination of Subsequent Variable Annuity Payments; Transfers During Pay-out Period 9....... Accumulation Provisions; Death Benefit During Accumulation Period; Annuity Options; Death Benefit During Pay-out Period 10...... Accumulation Period Provisions; Purchase Payments; Accumulation Units; Value of Accumulation Units; Net Investment Factor; Distribution of Contracts 11...... Accumulation Period Provisions; Purchase Payments; Other Contract Provisions; Right to Review Contract 12...... Federal Tax Matters; Introduction; Our Tax Status; Special Considerations for Optional Benefits, Non-Qualified Contracts, Qualified Contracts 13...... Not Applicable 14...... Statement of Additional Information - Table of Contents
Part B Caption in Statement of Additional Information - ------ ---------------------------------------------- 15...... Cover Page 16...... Table of Contents 17...... General Information and History. 18...... Services-Independent Auditors, Services-Servicing Agent 19...... Not Applicable 20...... Services - Principal Underwriter 21...... Performance Data 22...... Not Applicable 23...... Financial Statements
PART A INFORMATION REQUIRED IN A PROSPECTUS VERSION A (NYVantage Variable Annuity) (currently issued contracts) Prospectus Dated May 1, 2007 (JOHN HANCOCK(R) LOGO) JOHN HANCOCK ANNUITIES VENTURE VANTAGE(R) VARIABLE ANNUITY This Prospectus describes interests in VENTURE VANTAGE(R) flexible Purchase Payment deferred combination fixed and variable annuity contracts (singly, a "Contract" and collectively, the "Contracts") issued by JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) ("John Hancock USA") in all jurisdictions except New York, or by JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK ("John Hancock New York") in New York. Unless otherwise specified, "we," "us," "our," or a "Company" refers to the applicable issuing Company of a Contract. You, the Contract Owner, should refer to the first page of your Venture Vantage(R) variable annuity Contract for the name of your issuing Company. VARIABLE INVESTMENT OPTIONS. You may allocate Contract Values or additional Purchase Payments, to the extent permitted under your Contract, in Variable Investment Options. If you do, we will measure your Contract Value (other than value allocated to a Fixed Investment Option) and Variable Annuity payments according to the investment performance of applicable Sub-Accounts of JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H or, in the case of John Hancock New York, applicable Sub-Accounts of JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A (singly, a "Separate Account" and collectively, the "Separate Accounts"). Each Sub-Account invests in one of the following Funds of John Hancock Trust that corresponds to a Variable Investment Option that we make available on the date of this Prospectus. We show the Fund's manager (i.e. subadviser) in bold above the name of the Fund: CAPITAL GUARDIAN TRUST COMPANY Income & Value Trust U.S. Large Cap Trust CAPITAL RESEARCH AND MANAGEMENT COMPANY (Adviser to the American Fund Insurance Series) American Asset Allocation Trust American Bond Trust American Global Growth Trust American Global Small Cap Trust American Growth Trust American Growth-Income Trust American High Income Trust American International Trust American New World Trust DAVIS SELECTED ADVISERS, L.P. Financial Services Trust Fundamental Value Trust DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC. Real Estate Securities Trust GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC International Core Trust JENNISON ASSOCIATES LLC Capital Appreciation Trust LEGG MASON CAPITAL MANAGEMENT, INC. Core Equity Trust MARSICO CAPITAL MANAGEMENT, LLC International Opportunities Trust MFC GLOBAL INVESTMENT MANAGEMENT (U.S.), LLC High Income Trust MFC GLOBAL INVESTMENT MANAGEMENT (U.S.A.) LIMITED (Adviser to the Franklin Templeton Founding Allocation Trust) Franklin Templeton Founding Allocation Trust Index Allocation Trust Lifestyle Aggressive Trust Lifestyle Balanced Trust Lifestyle Conservative Trust MFC GLOBAL INVESTMENT MANAGEMENT (U.S.A.) LIMITED Lifestyle Growth Trust Lifestyle Moderate Trust Mid Cap Index Trust Money Market Trust Pacific Rim Trust MUNDER CAPITAL MANAGEMENT Small Cap Opportunities Trust PACIFIC INVESTMENT MANAGEMENT COMPANY LLC Global Bond Trust Total Return Trust PZENA INVESTMENT MANAGEMENT, LLC Classic Value Trust RCM CAPITAL MANAGEMENT LLC T. ROWE PRICE ASSOCIATES, INC. Science & Technology Trust(1) T. ROWE PRICE ASSOCIATES, INC. Blue Chip Growth Trust Equity-Income Trust Health Sciences Trust Small Company Value Trust TEMPLETON INVESTMENT COUNSEL, LLC International Small Cap Trust International Value Trust UBS GLOBAL ASSET MANAGEMENT (AMERICAS) INC. Global Allocation Trust VAN KAMPEN Value Trust WELLINGTON MANAGEMENT COMPANY, LLP Investment Quality Bond Trust Mid Cap Intersection Trust Mid Cap Stock Trust Natural Resources Trust Small Cap Growth Trust Small Cap Value Trust WESTERN ASSET MANAGEMENT COMPANY High Yield Trust Strategic Bond Trust U.S. Government Securities Trust (1) The Science & Technology Trust is subadvised by T. Rowe Price Associates, Inc. and RCM Capital Management LLC. CONTRACTS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED, GUARANTEED OR ENDORSED BY, ANY BANK, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE REFERENCE. IT CONTAINS INFORMATION ABOUT THE SEPARATE ACCOUNT AND THE VARIABLE PORTION OF THE CONTRACT THAT YOU SHOULD KNOW BEFORE INVESTING. THE CONTRACT HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION ("SEC"). NEITHER THE SEC NOR ANY STATE HAS DETERMINED WHETHER THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. We will add a "PAYMENT ENHANCEMENT" of at least 3% of each Purchase Payment that you make under your Contract. Expenses (including withdrawal charges) for a Contract which has a Payment Enhancement may be higher (or for a longer time period) than the expenses for a Contract which does not have a Payment Enhancement. The amount of the Payment Enhancement may, over time, be more than offset by the additional fees and charges associated with the Payment Enhancement. JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK ANNUITIES SERVICE CENTER MAILING ADDRESS ANNUITIES SERVICE CENTER MAILING ADDRESS 601 Congress Street Post Office Box 55230 601 Congress Street Post Office Box 55013 Boston, Boston, Boston, Boston, Massachusetts 02210-2805 Massachusetts 02205-5230 Massachusetts 02210-2805 Massachusetts 02205-5013 (617) 663-3000 or (800) 344-1029 www.jhannuities.com (877) 391-3748 or (800) 551-2078 www.jhannuitiesnewyork.com
Venture Vantage(R) 2007 ii Table of Contents I. GLOSSARY OF SPECIAL TERMS ............................................. 1 II. OVERVIEW ............................................................. 3 III. FEE TABLES .......................................................... 8 EXAMPLES .............................................................. 9 IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNT, AND THE FUNDS .... 13 THE COMPANIES ......................................................... 13 THE SEPARATE ACCOUNT .................................................. 14 THE FUNDS ............................................................. 14 VOTING INTEREST ....................................................... 21 V. DESCRIPTION OF THE CONTRACT ........................................... 22 ELIGIBLE PLANS ........................................................ 22 ACCUMULATION PERIOD PROVISIONS ........................................ 22 Purchase Payments .................................................. 22 Payment Enhancements ............................................... 22 Accumulation Units ................................................. 23 Value of Accumulation Units ........................................ 24 Net Investment Factor .............................................. 24 Transfers Among Investment Options ................................. 24 Maximum Number of Investment Options ............................... 25 Telephone and Electronic Transactions .............................. 25 Enhanced Transfer Services-Dollar Cost Averaging ................... 26 Special Transfer Services-Asset Rebalancing Program ................ 26 Withdrawals ........................................................ 27 Special Withdrawal Services-The Income Plan ........................ 27 Death Benefit During Accumulation Period ........................... 28 PAY-OUT PERIOD PROVISIONS ................................................ 29 General ............................................................ 29 Annuity Options .................................................... 30 Determination of Amount of the First Variable Annuity Payment ...... 32 Annuity Units and the Determination of Subsequent Variable Annuity Payments ........................................................... 33 Transfers During Pay-out Period .................................... 33 Death Benefit During Pay-out Period ................................ 33 OTHER CONTRACT PROVISIONS ................................................ 33 Right to Review .................................................... 33 Ownership .......................................................... 34 Annuitant .......................................................... 34 Beneficiary ........................................................ 34 Modification ....................................................... 34 Our Approval ....................................................... 35 Misstatement and Proof of Age, Sex or Survival ..................... 35 FIXED INVESTMENT OPTIONS .............................................. 35 VI. OPTIONAL BENEFITS .................................................... 37 OVERVIEW OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS .............. 37 INVESTMENT OPTIONS UNDER GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS ................................................................ 40 FEATURES OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS .............. 42 Income Plus for Life ............................................... 44 Income Plus for Life - Joint Life (not available in New York) ...... 49 Principal Plus for Life ............................................ 52 Principal Plus for Life Plus Automatic Annual Step-up .............. 57 ANNUAL STEP DEATH BENEFIT ............................................. 58 VII. CHARGES AND DEDUCTIONS .............................................. 60 WITHDRAWAL CHARGES .................................................... 60 Waiver of Applicable Withdrawal Charge - Confinement to Eligible Nursing Home ....................................................... 61 ANNUAL CONTRACT FEE ................................................... 61 ASSET-BASED CHARGES ................................................... 61 Daily Administration Fee ........................................... 61 Mortality and Expense Risks Fee .................................... 62 REDUCTION OR ELIMINATION OF CHARGES AND DEDUCTIONS .................... 62 PREMIUM TAXES ......................................................... 63 VIII. FEDERAL TAX MATTERS ................................................ 64 INTRODUCTION .......................................................... 64 OUR TAX STATUS ........................................................ 64 SPECIAL CONSIDERATIONS FOR OPTIONAL BENEFITS .......................... 64 NON-QUALIFIED CONTRACTS ............................................... 65 Undistributed Gains ................................................ 65 Taxation of Annuity Payments ....................................... 65 Surrenders, Withdrawals and Death Benefits ......................... 65 Taxation of Death Benefit Proceeds ................................. 65 Penalty Tax on Premature Distributions ............................. 66 Puerto Rico Non-Qualified Contracts ................................ 66 Diversification Requirements ....................................... 66 QUALIFIED CONTRACTS ................................................... 67 Penalty Tax on Premature Distributions ............................. 68 Tax-Free Rollovers ................................................. 68 Loans .............................................................. 69 Puerto Rico Contracts Issued to Fund Retirement Plans .............. 69 SEE YOUR OWN TAX ADVISER .............................................. 69 IX. GENERAL MATTERS ...................................................... 70 ASSET ALLOCATION SERVICES ............................................. 70 RESTRICTIONS UNDER THE TEXAS OPTIONAL RETIREMENT PROGRAM .............. 70 DISTRIBUTION OF CONTRACTS ............................................. 70 Standard Compensation .............................................. 70 Revenue Sharing and Additional Compensation ........................ 71 Differential Compensation .......................................... 71 Contracts Sold Directly Without Payment of Any Sales Compensation .. 71 CONFIRMATION STATEMENTS ............................................... 72 REINSURANCE ARRANGEMENTS .............................................. 72 APPENDIX A: EXAMPLES OF CALCULATION OF WITHDRAWAL CHARGE ................. A-1 APPENDIX B: PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION RIDER ........ B-1 APPENDIX C: GUARANTEED MINIMUM WITHDRAWAL BENEFIT EXAMPLES ............... C-1 APPENDIX D: QUALIFIED PLAN TYPES ......................................... D-1 APPENDIX E: EXAMPLES OF PAYMENT ENHANCEMENT CALCULATIONS ................. E-1 APPENDIX U: TABLES OF ACCUMULATION UNIT VALUES ........................... U-1
We provide additional information about the Contract and the Separate Account, including information on our history, the accumulation unit value tables, services provided to the Separate Account and legal and regulatory matters, in a Statement of Additional Information. We filed the Statement of Additional Information with the SEC on the same date as this Prospectus, and incorporate it herein by reference. You may obtain a copy of the current Statement of Additional Information without charge by contacting us at the Annuities Service Center shown on the first page of this Prospectus. The SEC also maintains a Web site (http://www.sec.gov) that contains the Statement of Additional Information and other information about us, the Contracts and the Separate Account. We list the table of contents of the Statement of Additional Information below. JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H Statement of Additional Information Table of Contents General Information and History ......................... 3 Accumulation Unit Value Tables .......................... 3 Services ................................................ 3 Independent Registered Public Accounting Firm ........ 3 Servicing Agent ...................................... 3 Principal Underwriter ................................ 3 Special Compensation and Reimbursement Arrangements .. 4 Legal and Regulatory Matters ............................ 6 Appendix A: Audited Financial Statements ................ A-1
JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A Statement of Additional Information Table of Contents General Information and History ......................... 3 Accumulation Unit Value Tables .......................... 3 Services ................................................ 3 Independent Registered Public Accounting Firm ........ 3 Servicing Agent ...................................... 3 Principal Underwriter ................................ 3 Special Compensation and Reimbursement Arrangements .. 4 Legal and Regulatory Matters ............................ 6 Appendix A: Audited Financial Statements ................ A-1
I. Glossary of Special Terms The following terms as used in this Prospectus have the indicated meanings. We also define other terms in specific sections of this Prospectus. ACCUMULATION PERIOD: The period between the issue date of the Contract and its Maturity Date. ANNUITANT: Any natural person or persons to whom annuity payments are made and whose life is used to determine the duration of annuity payments involving life contingencies. If the Contract Owner names more than one person as an "Annuitant," the second person named is referred to as "co-Annuitant." The "Annuitant" and "co-Annuitant" are referred to collectively as "Annuitant." The "Annuitant" is as designated on the Contract specification page or in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period. ANNUITIES SERVICE CENTER: The mailing address of our service office is listed on the first page of this Prospectus. You can send overnight mail to us at 601 Congress St. Boston, MA 02210-2805. ANNUITY OPTION: The method selected by the Contract Owner (or as specified in the Contract if no selection is made) for annuity payments made by us. ANNUITY UNIT: A unit of measure that is used after the election of an Annuity Option to calculate Variable Annuity payments. BENEFICIARY: The person, persons or entity entitled to the death benefit under the Contract upon the death of a Contract Owner or, in certain circumstances, an Annuitant. The Beneficiary is as specified in the application, unless changed. BUSINESS DAY: Any day on which the New York Stock Exchange is open for business. CODE: The Internal Revenue Code of 1986, as amended. COMPANY: John Hancock USA or John Hancock New York. CONTINGENT BENEFICIARY: The person, persons or entity to become the Beneficiary if the Beneficiary is not alive. The Contingent Beneficiary is as specified in the application, unless changed. CONTRACT: The combination fixed and variable annuity contract offered by this Prospectus. CONTRACT ANNIVERSARY: The anniversary of the Contract Date. CONTRACT DATE: The date of issue of the Contract. CONTRACT VALUE: The total of the Investment Account values and, if applicable, any amount in the Loan Account attributable to the Contract. CONTRACT YEAR: The period of twelve consecutive months beginning on the date as of which the Contract is issued, or any anniversary of that date. DEBT: Any amounts in the Loan Account attributable to the Contract plus any accrued loan interest. The loan provision is applicable to certain Qualified Contracts only. FIXED ANNUITY: An Annuity Option with payments for a set dollar amount that we guarantee. FIXED INVESTMENT OPTION: An Investment Option in which the Company guarantees the principal value and the rate of interest credited to the Investment Account for the term of any guarantee period. FUND: A series of a registered open-end management investment company which corresponds to a Variable Investment Option. GENERAL ACCOUNT: All of our assets, other than assets in the Separate Account and any other separate accounts we may maintain. INVESTMENT ACCOUNT: An account we establish for you which represents your interests in an Investment Option during the Accumulation Period. INVESTMENT OPTIONS: The investment choices available to Contract Owners. 1 JOHN HANCOCK NEW YORK: John Hancock Life Insurance Company of New York. JOHN HANCOCK USA: John Hancock Life Insurance Company (U.S.A.). LOAN ACCOUNT: The portion of our General Account that we use for collateral for a loan under certain Qualified Contracts. MATURITY DATE: The date on which the Pay-out Period commences and we begin to make annuity payments to the Annuitant. The Maturity Date is the date specified on the Contract specifications page, unless changed. NON-QUALIFIED CONTRACT: A Contract which is not issued under a Qualified Plan. OWNER OR CONTRACT OWNER ("YOU"): The person, persons (co-Owner) or entity entitled to all of the ownership rights under the Contract. References in this Prospectus to Contract Owners are typically by use of "you." The Owner has the legal right to make all changes in contractual designations where specifically permitted by the Contract. The Owner is as specified in the application, unless changed. The Annuitant becomes the Owner of the Contract during the Pay-out Period. PAY-OUT PERIOD: The period when we make annuity payments to you following the Maturity Date. PROSPECTUS: This Prospectus that describes interests in the Contract. PURCHASE PAYMENT: An amount you pay to us for the benefits provided by the Contract. QUALIFIED CONTRACT: A Contract issued under a Qualified Plan. QUALIFIED PLAN: A retirement plan that receives favorable tax treatment under Section 401, 403, 408 (IRAs), 408A (Roth IRAs) or 457 of the Code. RIDER: An optional benefit that you may elect for an additional charge. SEPARATE ACCOUNT: John Hancock Life Insurance Company (U.S.A.) Separate Account H or John Hancock Life Insurance Company of New York Separate Account A, as applicable. A separate account is a segregated asset account of a company that is not commingled with the general assets and obligations of the company. SUB-ACCOUNT: A Sub-Account of the Separate Account. Each Sub-Account invests in shares of a specific Fund. UNPAID LOANS: The unpaid amount (including any accrued interest) of loans a Qualified Contract Owner may have taken from us, using certain Contract Value as collateral. VARIABLE ANNUITY: An Annuity Option with payments which: (1) are not predetermined or guaranteed as to dollar amount, and (2) vary in relation to the investment experience of one or more specified Sub-Accounts. VARIABLE INVESTMENT OPTION: An Investment Option corresponding to a Sub-Account of a Separate Account that invests in shares of a specific Fund. 2 II. Overview This overview tells you some key points you should know about the Contract. Because this is an overview, it does not contain all the information that may be important to you. You should read carefully this entire Prospectus, including its Appendices, your Contract and the Statement of Additional Information for more detailed information. Insurance laws and regulations apply to us in every state in which our Contracts are sold. As a result, various terms and conditions of your Contract may vary from the terms and conditions described in this Prospectus, depending upon where you purchase a Contract. These variations will be reflected in your Contract or in a Rider attached to your Contract. WHAT KIND OF CONTRACT IS DESCRIBED IN THIS PROSPECTUS? The Contract is a flexible Purchase Payment deferred combination fixed and variable annuity contract between you and the Company. "Deferred payment" means payments by the Company begin on a future date under the Contract. "Variable" means your investment amounts in the Contract may increase or decrease in value daily based upon your investment choices. The Contract provides for the accumulation of your investment amounts and annuity payments on a variable and/or fixed basis. WHAT IS A PAYMENT ENHANCEMENT? We will add a "Payment Enhancement" of at least 3% of each Purchase Payment that you make under your Contract. We are currently offering higher promotional rates on Payment Enhancements for initial and subsequent Purchase Payments. The current promotional Payment Enhancement Rate is 5.0%. We may terminate the promotional Payment Enhancements at any time. Initial and subsequent payments that do not receive a promotional Payment Enhancement will receive the guaranteed Payment Enhancement rate shown in the table in the section entitled "V. Description of the Contract - Payment Enhancement". The Payment Enhancement is funded from our General Account. The Payment Enhancement is allocated among Investment Options in the same proportion as your Purchase Payment. The amount returned if you exercise your right to return the Contract during the "right to review" period is reduced by any Payment Enhancements. The amount of the Payment Enhancement may, over time, be more than offset by the additional fees and charges associated with the Payment Enhancement. WHO IS ISSUING MY CONTRACT? Your Contract provides the name of the Company that issues your Contract. In general, John Hancock USA may issue the Contract in any jurisdiction except New York. John Hancock New York issues the Contract only in New York. Each Company sponsors its own Separate Account. WHAT ARE SOME BENEFITS OF THE CONTRACT? The Contract offers access to diversified money managers, a death benefit and an optional death benefit, a choice of optional guaranteed minimum withdrawal benefits, annuity payments and tax-deferred treatment of earnings. In most cases, no income tax will have to be paid on your earnings under the Contract until these earnings are paid out. WHEN YOU PURCHASE A CONTRACT FOR ANY TAX-QUALIFIED RETIREMENT PLAN, THE CONTRACT DOES NOT PROVIDE ANY ADDITIONAL TAX DEFERRED TREATMENT OF EARNINGS BEYOND THE TREATMENT PROVIDED BY THE PLAN. CONSEQUENTLY, YOU SHOULD PURCHASE A CONTRACT FOR A QUALIFIED PLAN ONLY ON THE BASIS OF OTHER BENEFITS OFFERED BY THE CONTRACT. THESE BENEFITS MAY INCLUDE LIFETIME INCOME PAYMENTS, PROTECTION THROUGH LIVING AND DEATH BENEFITS, AND GUARANTEED FEES. We will pay a death benefit to your Beneficiary if you die during the Accumulation Period, which is described in this Prospectus under "Death Benefit During Accumulation Period." For Contracts issued outside of New York, if a Contract Owner dies, we have the right to deduct any Payment Enhancements applied to the Contract in the 12 month period prior to the date of death. However, we are currently waiving this right. Reference to "Payment Enhancements" in this paragraph refers to the original amount of Payment Enhancements; earnings attributable to Payment Enhancements will not be deducted from the death benefit paid. For an additional fee, you may elect an optional death benefit called the "Annual Step Death Benefit." The Contract also offers a choice of optional guaranteed minimum withdrawal benefits for an additional fee. We provide more information about these optional benefits in this Prospectus under "VI. Optional Benefits." We offer a variety of Fixed Annuity and Variable Annuity payment options. Periodic annuity payments will begin on the Maturity Date. You select the Maturity Date, the frequency of payment and the type of annuity payment option. Annuity payments are made to the Annuitant. 3 HOW DOES THE CONTRACT WORK? Under the Contract, you make one or more Purchase Payments to the Company for a period of time, known as the Accumulation Period. During the Accumulation Period, your Purchase Payments will be allocated to Investment Options. You may transfer among the investment options and take withdrawals. Later, beginning on the Contract's Maturity Date, the Company makes one or more annuity payments under the Contract, known as the Pay-out Period. Your Contract Value during the Accumulation Period and the amounts of annuity payments during the Pay-out Period may either be variable or fixed, depending upon your investment choices. HOW CAN I INVEST MONEY IN THE CONTRACT? We use the term Purchase Payment to refer to the investments you make in the Contract. The table below shows the required minimum amount for the initial Purchase Payment. The table also shows the required minimum amount for subsequent Purchase Payments. Generally, you may make additional Purchase Payments at any time.
MINIMUM INITIAL PURCHASE MINIMUM SUBSEQUENT PAYMENT PURCHASE PAYMENT - ------------------------ ------------------ $10,000 $30
If a Purchase Payment causes your Contract Value to exceed $1 million or your Contract Value already exceeds $1 million, you must obtain our approval in order to make the Purchase Payment. WHAT ARE MY INVESTMENT CHOICES? There are two main types of Investment Options: Variable Investment Options and Fixed Investment Options. VARIABLE INVESTMENT OPTIONS. Each Variable Investment Option is a Sub-Account of a Separate Account that invests in a corresponding Fund. The Fund prospectus contains a full description of a Fund. The amount you've invested in any Variable Investment Option will increase or decrease based upon the investment performance of the corresponding Fund. Except for certain charges we deduct, your investment experience will be the same as if you had invested in a Fund directly and reinvested all Fund dividends and distributions in additional Fund shares. Your Contract Value during the Accumulation Period and the amounts of annuity payments will depend upon the investment performance of the underlying Fund of the Variable Investment Option you select and/or upon the interest we credit on each Fixed Investment Option you select. Allocating assets only to one or a small number of the Variable Investment Options (other than the Lifestyle or Index Allocation Trusts) should not be considered a balanced investment strategy. In particular, allocating assets to a small number of Variable Investment Options that concentrate their investments in a particular business or market sector will increase the risk that your Contract Value will be more volatile since these Variable Investment Options may react similarly to business or market specific events. Examples of business or market sectors where this risk historically has been and may continue to be particularly high include: (a) technology-related business sectors, (b) small cap securities and (c) foreign securities. We do not provide advice regarding appropriate investment allocations, and you should discuss this matter with your financial consultant. FIXED INVESTMENT OPTIONS. Currently, we do not make any Fixed Investment Options available, but we may make a DCA Fixed Investment Option from time to time. If available, Fixed Investment Options will earn interest at the rate we have set for that Fixed Investment Option. The interest rate depends upon the length of the guarantee period of the Fixed Investment Option. Under a Fixed Investment Option, we guarantee the principal value of Purchase Payments and the rate of interest credited to your Investment Account for the term of any guarantee period we may make available. HOW CAN I CHANGE MY INVESTMENT CHOICES? ALLOCATION OF PURCHASE PAYMENTS. You designate how your Purchase Payments are to be allocated among the Investment Options. You may change this investment allocation for future Purchase Payments at any time. TRANSFERS AMONG INVESTMENT OPTIONS. During the Accumulation Period, you may transfer your investment amounts among Investment Options subject to certain restrictions described below and in the section entitled "Transfers Among Investment Options." During the Pay-out Period, you may transfer your allocations among the Variable Investment Options, subject to certain restrictions described in the section entitled "Transfers During Pay-out Period." However, during the Pay-out Period, you may not transfer from a Variable Investment Option to a Fixed Investment Option, or from a Fixed Investment Option to a Variable Investment Option. The Variable Investment Options can be a prime target for abusive transfer activity. Long-term investors in a Variable Investment Option can be harmed by frequent transfer activity since such activity may expose the Variable Investment Option's corresponding Fund to increased Fund transaction costs (affecting the value of the shares) and/or disruption to the corresponding Fund manager's ability to effectively manage such corresponding Fund, both of which may result in dilution with respect to interests held for long- 4 term investment. To discourage disruptive frequent trading activity, we have adopted a policy for the Separate Account to restrict transfers to two per calendar month per Contract, with certain exceptions described in more detail in this Prospectus. We apply the Separate Account's policy and procedures uniformly to all Contract Owners. In addition to the transfer restrictions that we impose, the John Hancock Trust also has adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Fund may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to John Hancock Trust upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy. HOW DO I ACCESS MY MONEY? During the Accumulation Period, you may withdraw all or a portion of your Contract Value. The amount you withdraw from any Investment Option must be at least $300 or, if less, your entire balance in that Investment Option. If a partial withdrawal plus any applicable withdrawal charge would reduce your Contract Value to less than $300, we will treat your withdrawal request as a request to withdraw all of your Contract Value. We will deduct any partial withdrawal proportionally from each of your Investment Options based on the value in each, unless you direct otherwise. A withdrawal charge and an administration fee may apply to your withdrawal. A withdrawal may be subject to income tax and a 10% IRS penalty tax. WHAT TYPES OF OPTIONAL BENEFIT RIDERS MAY I BUY UNDER THE CONTRACT? For the additional charge shown in the Fee Tables, you may elect a Rider offering optional benefits. The availability of the Riders may vary by state. Guaranteed Minimum Withdrawal Benefit Riders - INCOME PLUS FOR LIFE, OR - INCOME PLUS FOR LIFE - JOINT LIFE, OR - PRINCIPAL PLUS FOR LIFE, OR - PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UP. You may elect to purchase any one of these optional benefit Riders, if available in your state. You may only elect one guaranteed minimum withdrawal benefit Rider. You may not be age 81 or over to purchase Income Plus for Life, and the older of you and your spouse must not be age 81 or over to purchase Income Plus for Life - Joint Life. You may not be age 81 or older to purchase Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-up. We designed the guaranteed minimum withdrawal benefit Riders to make a Lifetime Income Amount available for annual withdrawals starting on a Lifetime Income Date. If you limit your annual withdrawals to the Lifetime Income Amount, we will make this benefit available for as long as you live, even after your Contract Value reduces to zero. You may extend this benefit to cover the lifetimes of you and your spouse by selecting our Income Plus for Life - Joint Life option. In addition, our Principal Plus for Life Riders (i.e., Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-up) guarantee the return of your investments in the Contract, regardless of market performance, as long as you limit your withdrawals to a Guaranteed Withdrawal Amount each year, beginning on the date you purchase the Rider. The initial Guaranteed Withdrawal Amount equals 5% of your initial Purchase Payment for the Contract. (We do not include Purchase Payment amounts over $5 million for this purpose.) You can withdraw the Guaranteed Withdrawal Amount each year until the "Guaranteed Withdrawal Balance" is depleted to zero. Under any of our guaranteed minimum withdrawal benefit Riders, you choose how much Contract Value to withdraw at any time. We may reduce the Lifetime Income Amount that we guarantee for future lifetime benefit payments, however, if your annual withdrawals (including any applicable withdrawal charges): - exceed the Lifetime Income Amount in any year after the Lifetime Income Date, or - exceed certain limits, that vary by Rider, before the Lifetime Income Date. Similarly, if your withdrawals (including any applicable withdrawal charges) exceed the Guaranteed Withdrawal Amount in any year, we may reduce the Guaranteed Withdrawal Amount that we guarantee for future withdrawals. We will pay withdrawal benefits automatically during a guaranteed minimum withdrawal benefit Rider's "Settlement Phase" that we describe in the "Optional Benefits" section of the Prospectus. YOU COULD LOSE BENEFITS IF YOUR ANNUAL WITHDRAWALS EXCEED THE LIMITS SPECIFIED IN A GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER. WE MAY REDUCE THE LIFETIME INCOME AMOUNT IF YOU TAKE ANY WITHDRAWALS BEFORE THE APPLICABLE LIFETIME INCOME DATE. 5 YOU WILL LOSE THE LIFETIME INCOME AMOUNT IF YOUR WITHDRAWALS BEFORE THE APPLICABLE LIFETIME INCOME DATE DEPLETE YOUR CONTRACT VALUE AND ANY REMAINING "BENEFIT BASE" OR "GUARANTEED WITHDRAWAL BALANCE" TO ZERO. We will increase the Benefit Base or Guaranteed Withdrawal Balance by a Bonus that varies by the Rider you select, if you choose not to make any withdrawals at all during certain Contract Years. We also may increase or "Step-up" the guaranteed minimum withdrawal benefit amounts on certain dates to reflect market performance or other factors. You may also increase the amounts we guarantee, depending on the Rider, by making additional Purchase Payments that we accept. WE IMPOSE SPECIAL LIMITS ON ADDING PURCHASE PAYMENTS AFTER THE INITIAL PURCHASE PAYMENT FOR CONTRACTS ISSUED WITH ANY OF THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS. IF YOU ELECT TO PURCHASE ANY OF THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS, YOU MAY INVEST YOUR CONTRACT VALUE ONLY IN THE INVESTMENT OPTIONS WE MAKE AVAILABLE FOR THESE BENEFITS. WE ALSO RESERVE THE RIGHT TO IMPOSE ADDITIONAL RESTRICTIONS ON INVESTMENT OPTIONS AT ANY TIME. If we do impose additional restrictions, any amounts you allocated to a permitted Investment Option will not be affected by the restriction as long as it remains in that Investment Option. (We describe the currently available Investment Options for Contracts issued with any of the guaranteed minimum withdrawal benefit Riders in "VI. Optional Benefits".) The Automatic Annual Step-up or Spousal Protection versions of the Principal Plus for Life Rider enhance the guarantees we provide in the standard Principal Plus for Life Rider for the additional fee described in the Fee Tables. THE AMOUNT THAT MAY BE PROVIDED BY MORE FREQUENT "STEP-UP" DATES UNDER THE PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UP RIDER, MAY, OVER TIME, BE MORE THAN OFFSET BY THE ADDITIONAL FEE ASSOCIATED WITH THIS RIDER COMPARED TO THE PRINCIPAL PLUS FOR LIFE RIDER. For additional information on these Riders, please see the section entitled "VI. Optional Benefits." John Hancock USA also made a spousal version of Principal Plus for Life available for purchase before May 1, 2007 outside the state of New York. If you elected this version, entitled "Principal Plus for Life Plus Spousal Protection": (a) the older of you and your spouse must not be age 81 or older; and (b) both you and your spouse must be at least 65 or, if not, you must have birthdates less than 6 years apart from each other. In certain cases, we will issue a Contract on and after May 1, 2007 with this Rider. For additional information on this Rider, please see Appendix B: Principal Plus for Life Plus Spousal Protection. This Rider cannot be revoked once elected. Annual Step Death Benefit Rider You may elect to purchase the optional Annual Step Death Benefit Rider, if available in your state, whether or not you purchase a guaranteed minimum withdrawal benefit Rider. Under the Annual Step Death Benefit Rider, we guarantee a minimum death benefit up to the Maturity Date based on the Contract's highest "Anniversary Value" that may be achieved before you (or any joint Owner) reach 81 years old. The Annual Step Death Benefit is available only at Contract issue and cannot be revoked once elected. You may not purchase the Annual Step Death Benefit Rider, however, if you (or any joint Owner) have attained age 80. WHAT CHARGES DO I PAY UNDER THE CONTRACT? Your Contract has an annual Contract fee of $40. Your Contract also has asset-based charges to compensate us primarily for our administrative expenses and for the mortality and expense risks that we assume under the Contract. These charges do not apply to any assets you have in a Fixed Investment Option. We take the deduction proportionally from each of your Variable Investment Options. We make deductions for any applicable taxes based on the amount of a Purchase Payment. If you elect a Rider, we also deduct the Rider charges shown in the Fee Tables proportionally from each of your Investment Options based on your value in each. If you withdraw some of your Purchase Payments from your Contract prior to the Maturity Date, or if you surrender your Contract in its entirety for cash prior to the Maturity Date, we may assess a withdrawal charge. The amount of this charge will depend on the number of years that have passed since we received your Purchase Payments, as shown in the Fee Tables. WHAT ARE THE TAX CONSEQUENCES OF OWNING A CONTRACT? In most cases, no income tax will have to be paid on amounts you earn under a Contract until these earnings are paid out. All or part of the following distributions from a Contract may constitute a taxable payout of earnings: - full or partial withdrawals (including surrenders and systematic withdrawals); - payment of any death benefit proceeds; and - periodic payments under one of our annuity payment options. 6 How much you will be taxed on distribution is based upon complex tax rules and depends on matters such as: - the type of the distribution; - when the distribution is made; - the nature of any Qualified Plan for which the Contract is being used; and - the circumstances under which the payments are made. If your Contract is issued in connection with a Qualified Plan, all or part of your Purchase Payments may be tax-deductible. Special 10% tax penalties apply in many cases to the taxable portion of any distributions taken from a Contract before you reach age 59 1/2. Also, most Qualified Plans require that distributions from a Contract commence and/or be completed by a certain period of time. This effectively limits the period of time during which you can continue to derive tax deferral benefits from any tax-deductible Purchase Payments you paid or on any earnings under the Contract. IF YOU ARE PURCHASING THE CONTRACT AS AN INVESTMENT VEHICLE FOR A QUALIFIED PLAN, YOU SHOULD CONSIDER THAT THE CONTRACT DOES NOT PROVIDE ANY ADDITIONAL TAX-DEFERRAL BENEFITS BEYOND THE TREATMENT PROVIDED BY THE QUALIFIED PLAN ITSELF. THE FAVORABLE TAX-DEFERRAL BENEFITS AVAILABLE FOR QUALIFIED PLANS THAT INVEST IN ANNUITY CONTRACTS ARE ALSO GENERALLY AVAILABLE IF THE QUALIFIED PLANS PURCHASE OTHER TYPES OF INVESTMENTS, SUCH AS MUTUAL FUNDS, EQUITIES AND DEBT INSTRUMENTS. HOWEVER, THE CONTRACT OFFERS FEATURES AND BENEFITS THAT OTHER INVESTMENTS MAY NOT OFFER. YOU AND YOUR FINANCIAL PROFESSIONAL SHOULD CAREFULLY CONSIDER WHETHER THE FEATURES AND BENEFITS, INCLUDING THE INVESTMENT OPTIONS AND PROTECTION THROUGH LIVING GUARANTEES, DEATH BENEFITS AND OTHER BENEFITS PROVIDED UNDER AN ANNUITY CONTRACT ISSUED IN CONNECTION WITH A QUALIFIED PLAN ARE SUITABLE FOR YOUR NEEDS AND OBJECTIVES AND ARE APPROPRIATE IN LIGHT OF THE EXPENSE. We provide additional information on taxes in "VIII. Federal Tax Matters." We make no attempt to provide more than general information about use of the Contract with the various types of retirement plans. Purchasers of Contracts for use with any retirement plan should consult their legal counsel and tax advisor regarding the suitability of the Contract. CAN I RETURN MY CONTRACT? In most cases, you have the right to cancel your Contract within 10 days (or longer in some states) after you receive it. In most states, you will receive a refund equal to the Contract Value on the date of cancellation and increased by any charges for premium taxes deducted by us to that date and decreased by any Payment Enhancement. In some states, or if your Contract is issued as an "IRA," you will receive a refund of any Purchase Payments you made. The date of cancellation is the date we receive the Contract. WILL I RECEIVE A CONFIRMATION STATEMENT? We will send you a confirmation statement for certain transactions in your Investment Accounts. You should carefully review these statements to verify their accuracy. You should immediately report any mistakes to our Annuities Service Center (at the address or phone number shown on the cover of this Prospectus). If you fail to notify our Annuities Service Center of any mistake within 60 days of the mailing of the confirmation statement, you will be deemed to have ratified the transaction. 7 III. Fee Tables The following tables describe the fees and expenses that you will pay when buying, owning and surrendering a Venture Vantage(R) Contract. These fees are more completely described in this Prospectus under "Charges and Deductions." The items listed under "Total Annual Fund Operating Expenses" are described in detail in the Fund's prospectus. Unless otherwise shown, the tables below show the maximum fees and expenses (including fees deducted from Contract Value for optional benefits). THE FOLLOWING TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY THE CONTRACT, SURRENDER THE CONTRACT, OR TRANSFER CASH VALUE BETWEEN INVESTMENT OPTIONS. STATE PREMIUM TAXES MAY ALSO BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES(1) JOHN HANCOCK USA AND JOHN HANCOCK NEW YORK MAXIMUM WITHDRAWAL CHARGE(2) (as percentage of Purchase Payments) First Year 8.5% Second Year 8.5% Third Year 8% Fourth Year 7% Fifth Year 6% Sixth Year 5% Seventh Year 4% Eighth Year 3% Ninth Year 2% Thereafter 0% TRANSFER FEE(3) Maximum Fee $ 25 Current Fee $ 0
(1) State premium taxes may also apply to your Contract, which currently range from 0.50% to 4.00% of each Purchase Payment (See "IX. General Matters - Premium Taxes"). (2) This charge is taken on a first-in first-out basis upon withdrawal or surrender within the specified period of years measured from the date of each Purchase Payment. (3) We reserve the right to impose a charge in the future for transfers in excess of 12 per year. The amount of this fee will not exceed the lesser of $25 or 2% of the amount transferred. THE FOLLOWING TABLE DESCRIBES FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THIS TABLE DOES NOT INCLUDE ANNUAL FUND OPERATING EXPENSES. PERIODIC FEES AND EXPENSES OTHER THAN FUND EXPENSES ANNUAL CONTRACT FEE(1) $ 40 ANNUAL SEPARATE ACCOUNT EXPENSES(2) (as a percentage of average Contract Value) Mortality and Expense Risks Fee 1.25% Daily Administration Fee (asset based) 0.30% ----- TOTAL ANNUAL SEPARATE ACCOUNT EXPENSES 1.55% ===== (With No Optional Riders Reflected) OPTIONAL BENEFITS FEES DEDUCTED FROM SEPARATE ACCOUNT Optional Annual Step Death Benefit Fee 0.20% ----- TOTAL ANNUAL SEPARATE ACCOUNT EXPENSES(3) 1.75% =====
8 FEES DEDUCTED FROM CONTRACT VALUE Optional Guaranteed Minimum Withdrawal Benefit Riders (You may select only one of the following. We deduct the fee on an annual basis from Contract Value.)
PRINCIPAL PLUS FOR INCOME PLUS FOR PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL LIFE - JOINT LIFE(5) LIFE PLUS PROTECTION(8) INCOME PLUS FOR (NOT AVAILABLE IN AUTOMATIC ANNUAL PRINCIPAL PLUS FOR (NOT AVAILABLE IN LIFE(4) NEW YORK) STEP-UP(6) LIFE(7) NEW YORK) --------------- -------------------- ------------------ ------------------ ------------------ Maximum Fee 1.20% 1.20% 1.20% 0.75% 1.20% Current Fee 0.60% 0.60% 0.60% 0.40% 0.65%
(1) The $40 annual Contract fee will not be assessed prior to the Maturity Date if at the time of its assessment the Contract Value is greater than or equal to $99,000. (2) A daily charge reflected as a percentage of the Variable Investment Options. (3) Amount shown includes the Mortality and Expense Risks Fee, Daily Administration Fee as well as the optional Annual Step Death Benefit Fee. (4) The current charge for the Income Plus for Life Rider is 0.60% of the Adjusted Benefit Base. We reserve the right to increase the charge to a maximum charge of 1.20% if the Benefit Base is "Stepped-up" to equal the Contract Value. (5) The current charge for the Income Plus for Life - Joint Life Rider is 0.60% of the Adjusted Benefit Base. We reserve the right to increase the charge to a maximum charge of 1.20% if the Benefit Base is "Stepped-up" to equal the Contract Value. (6) The current charge for the Principal Plus for Life Plus Automatic Annual Step-up Rider is 0.60% of the Adjusted Guaranteed Withdrawal Benefit amount. We reserve the right to increase the charge to a maximum charge of 1.20% if the Guaranteed Withdrawal Benefit amount is "Stepped-up" to equal the Contract Value. (7) The current charge for the Principal Plus for Life Rider is 0.40% of the Adjusted Guaranteed Withdrawal Benefit amount. We reserve the right to increase the charge to a maximum charge of 0.75% if the Guaranteed Withdrawal Benefit amount is "Stepped-up" to equal the Contract Value. (8) The current charge for the Principal Plus for Life Plus Spousal Protection Rider is 0.65% of the Adjusted Guaranteed Withdrawal Benefit amount. We reserve the right to increase the charge to a maximum charge of 1.20% if the Guaranteed Withdrawal Benefit amount is "Stepped-up" to equal the Contract Value. THE NEXT TABLE DESCRIBES THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE FUND'S PROSPECTUS.
TOTAL ANNUAL FUND OPERATING EXPENSES MINIMUM MAXIMUM - ------------------------------------ ------- ------- Range of expenses that are deducted from Fund assets, including management fees, Rule 12b-1 fees, and other expenses 0.76% 1.67%
EXAMPLES We provide the following examples that are intended to help you compare the costs of investing in the Contract with the costs of investing in other variable annuity contracts. These costs include Contract Owner expenses, Contract fees, Separate Account annual expenses and Fund fees and expenses. Example 1 pertains to a Contract with the optional benefit Riders shown below. Example 2 pertains to a Contract without optional benefit Riders. 9 EXAMPLE 1: MAXIMUM FUND OPERATING EXPENSES- CONTRACT WITH OPTIONAL BENEFIT RIDERS The following example assumes that you invest $10,000 in a Contract with the optional benefit Riders shown below. The first example also assumes that your investment has a 5% return each year and assumes the maximum annual Contract fee and the maximum fees and expenses of any of the Funds. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: JOHN HANCOCK USA INCOME PLUS FOR LIFE AND ANNUAL STEP DEATH BENEFIT
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- EXAMPLE 1: MAXIMUM FUND OPERATING EXPENSES- CONTRACT WITH OPTIONAL BENEFIT RIDERS If you surrender the Contract at the end of the applicable time period: $1,253 $2,182 $3,001 $5,072 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $ 475 $1,449 $2,451 $5,072
EXAMPLE 2: MINIMUM FUND OPERATING EXPENSES - CONTRACT WITH NO OPTIONAL BENEFIT RIDERS The next example assumes that you invest $10,000 in a Contract, but with no optional benefit Riders. This example also assumes that your investment has a 5% return each year and assumes the average annual Contract fee we expect to receive for the Contracts and the minimum fees and expenses of any of the Funds. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- If you surrender the Contract at the end of the applicable time period: $1,025 $1,514 $1,850 $2,669 If you annuitize, or do not surrender the Contract at the end of the applicable time period: $ 237 $ 731 $1,250 $2,669
10 THE FOLLOWING TABLES DESCRIBE THE OPERATING EXPENSES FOR EACH OF THE FUNDS, AS A PERCENTAGE OF THE FUND'S AVERAGE NET ASSETS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2006, EXCEPT AS STATED BELOW IN THE NOTES THAT FOLLOW THE TABLES. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE FUND'S PROSPECTUS AND IN THE NOTES FOLLOWING THE TABLES. The Funds available may be restricted if you purchase a guaranteed minimum withdrawal benefit rider (See Optional Benefits).
ACQUIRED FUND FEES TOTAL CONTRACTUAL NET MANAGEMENT 12B-1 OTHER AND OPERATING EXPENSE OPERATING FEES FEES EXPENSES(1) EXPENSES EXPENSES(2) REIMBURSEMENT EXPENSES ---------- ----- ----------- --------- ----------- ------------- --------- JOHN HANCOCK TRUST (SERIES II): Blue Chip Growth(3) 0.81% 0.25% 0.02% -- 1.08% -- 1.08% Capital Appreciation 0.75% 0.25% 0.03% -- 1.03% -- 1.03% Classic Value 0.80% 0.25% 0.11% -- 1.16% -- 1.16% Core Equity 0.78% 0.25% 0.05% -- 1.08% -- 1.08% Equity-Income(3) 0.81% 0.25% 0.03% -- 1.09% -- 1.09% Financial Services 0.82% 0.25% 0.04% -- 1.11% -- 1.11% Franklin Templeton Founding Allocation(4, 5) 0.05% 0.25% 0.07% 0.97% 1.34% 0.09% 1.25% Fundamental Value 0.77% 0.25% 0.04% -- 1.06% -- 1.06% Global Allocation 0.85% 0.25% 0.13% -- 1.23% -- 1.23% Global Bond 0.70% 0.25% 0.10% -- 1.05% -- 1.05% Health Sciences(3) 1.05% 0.25% 0.09% -- 1.39% -- 1.39% High Income(4) 0.68% 0.25% 0.06% -- 0.99% -- 0.99% High Yield 0.66% 0.25% 0.05% -- 0.96% -- 0.96% Income & Value 0.79% 0.25% 0.07% -- 1.11% -- 1.11% Index Allocation(6) 0.05% 0.25% 0.09% 0.53% 0.92% 0.12% 0.80% International Core 0.89% 0.25% 0.10% -- 1.24% -- 1.24% International Opportunities 0.89% 0.25% 0.11% -- 1.25% -- 1.25% International Small Cap 0.92% 0.25% 0.19% -- 1.36% -- 1.36% International Value(7) 0.82% 0.25% 0.11% -- 1.18% -- 1.18% Investment Quality Bond 0.60% 0.25% 0.07% -- 0.92% -- 0.92% Lifestyle Aggressive 0.04% 0.25% 0.02% 0.90% 1.21% -- 1.21% Lifestyle Balanced 0.04% 0.25% 0.01% 0.84% 1.14% -- 1.14% Lifestyle Conservative 0.04% 0.25% 0.02% 0.78% 1.09% -- 1.09% Lifestyle Growth 0.04% 0.25% 0.01% 0.87% 1.17% -- 1.17% Lifestyle Moderate 0.04% 0.25% 0.02% 0.81% 1.12% -- 1.12% Mid Cap Index 0.48% 0.25% 0.04% -- 0.77% -- 0.77% Mid Cap Intersection(4) 0.87% 0.25% 0.07% -- 1.19% -- 1.19% Mid Cap Stock 0.84% 0.25% 0.04% -- 1.13% -- 1.13% Money Market 0.48% 0.25% 0.03% -- 0.76% -- 0.76% Natural Resources 1.00% 0.25% 0.06% -- 1.31% -- 1.31% Pacific Rim 0.80% 0.25% 0.22% -- 1.27% -- 1.27% Real Estate Securities 0.70% 0.25% 0.03% -- 0.98% -- 0.98% Science & Technology 1.05% 0.25% 0.09% -- 1.39% -- 1.39% Small Cap Growth 1.07% 0.25% 0.08% -- 1.40% -- 1.40% Small Cap Opportunities 0.99% 0.25% 0.03% -- 1.27% -- 1.27% Small Cap Value 1.06% 0.25% 0.06% -- 1.37% -- 1.37% Small Company Value(3) 1.02% 0.25% 0.06% -- 1.33% -- 1.33% Strategic Bond 0.68% 0.25% 0.07% -- 1.00% -- 1.00% Total Return 0.70% 0.25% 0.06% -- 1.01% -- 1.01% U.S. Government Securities(8) 0.61% 0.25% 0.08% -- 0.94% -- 0.94% U.S. Large Cap 0.83% 0.25% 0.03% -- 1.11% -- 1.11% Value 0.74% 0.25% 0.05% -- 1.04% -- 1.04%
* See notes beginning after next table. 11
FEEDER FUNDS(9) MASTER FUND(9) ----------------------------------------- ---------------------------------------- TOTAL TOTAL MASTER & MANAGEMENT 12B-1 OTHER OPERATING MANAGEMENT 12B-1 OTHER FEEDER FEES FEES EXPENSES EXPENSES FEES(10) FEES EXPENSES EXPENSES ---------- ----- -------- --------- ---------- ----- -------- -------- American Asset Allocation(4) -- 0.75% 0.03% 0.78% 0.32% -- 0.01% 1.11% American Bond -- 0.50% 0.03% 0.53% 0.41% 0.25% 0.01% 1.20% American Global Growth(4) -- 0.75% 0.03% 0.78% 0.55% -- 0.04% 1.37% American Global Small Capitalization(4) -- 0.75% 0.03% 0.78% 0.72% -- 0.05% 1.55% American Growth -- 0.50% 0.03% 0.53% 0.32% 0.25% 0.02% 1.12% American Growth-Income -- 0.50% 0.03% 0.53% 0.27% 0.25% 0.01% 1.06% American High-Income Bond(4) -- 0.75% 0.03% 0.78% 0.48% -- 0.01% 1.27% American International -- 0.50% 0.03% 0.53% 0.50% 0.25% 0.05% 1.33% American New World(4) -- 0.75% 0.03% 0.78% 0.81% -- 0.08% 1.67%
NOTES TO FUND EXPENSE TABLES (1) The Adviser has voluntarily agreed to limit Other Expenses as described under "Management of JHT - Advisory Fee Waivers and Expense Reimbursements" in the Fund's prospectus. The Adviser may terminate this limitation at any time upon notice to JHT. (2) The "Total Operating Expenses" include fees and expenses incurred indirectly by a Fund as a result of its investment in other investment companies (each, an "Acquired Fund"). The Operating Expenses shown may not correlate to the Fund's ratio of expenses to average net assets shown in the "Financial Highlights" section, which does not include Acquired Fund fees and expenses. Acquired Fund Fees and Expenses are estimated, not actual, amounts based on the Fund's current fiscal year. (3) The Adviser has voluntarily agreed to waive a portion of its advisory fee for each of these T. Rowe Price subadvised funds as described under "Management of JHT - Advisory Fee Waivers and Expense Reimbursements" in the Fund's prospectus. The Adviser may terminate this waiver at any time upon notice to the Trust. (4) For Funds that have not started operations or have operations of less than six months as of December 31, 2006, expenses are based on estimates which reflect what actual expenses are expected to be incurred over the next year. (5) The Franklin Templeton Founding Allocation Trust is subject to an expense reimbursement as noted under "Management of JHT - Advisory Fee Waivers and Expense Reimbursements." This contractual expense reimbursement will remain in effect until May 1, 2008, but may be terminated by the adviser any time after May 1, 2008. If expenses were not reimbursed, expenses reflected in the table would be higher. The Franklin Templeton Founding Allocation Trust currently invests in the Global Trust, the Mutual Shares Trust and the Income Trust. The expenses of each of these funds are set forth above. (6) The Adviser has contractually agreed to reimburse expenses of the Index Allocation Trust as described under "Management of JHT - Contractual Expenses Limit" until May 1, 2008. (7) The Adviser has voluntarily agreed to waive its advisory fees so that the amount retained by the Adviser after payment of the subadvisory fees for the International Value Trust does not exceed 0.45% of the Fund's average net assets. For the year ended December 31, 2006, the effective annual advisory fee reflecting these waivers for the International Value Trust was 0.80%. The Net Operating Expenses for International Value Trust Series II reflecting these waivers was 1.16%. This advisory fee waiver may be rescinded at any time. (8) The Advisory fees were changed during the previous fiscal year. Rates shown reflect what the advisory fees would have been during the fiscal year 2006 had the new rates been in effect for the whole year. (9) A "feeder fund" means that the Fund does not buy investment securities directly. Instead, it invests in a "master fund" which in turn purchases investment securities. The prospectus of the master fund for each of these feeder funds will be delivered together with this Prospectus. Each feeder fund is invested in Series II of the Fund. The American Asset Allocation, American Global Growth, American Global Small Capitalization, American High-Income Bond and American New World Trusts are invested in class I shares of the American Fund Master Fund. The American Bond, American Growth, American Growth-Income and American International Trusts are invested in class II shares of the American Fund Master Fund. (10) Capital Research Management Company (the adviser to the master fund for each of the JHT feeder funds) is waiving a portion of its management fee. The fees shown do not reflect the waiver. See the financial highlights table in the American Funds prospectus or annual report for further information. A Table of Accumulation Unit Values relating to the Contract is included in "Appendix U" to this Prospectus. LOCATION OF FINANCIAL STATEMENTS. Our financial statements and those of the Separate Account may be found in the Statement of Additional Information. 12 IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNT, AND THE FUNDS THE COMPANIES We are a subsidiary of Manulife Financial Corporation. Your Contract is issued by either John Hancock USA or John Hancock New York. Please refer to your Contract to determine which Company issued your Contract. John Hancock USA, formerly "The Manufacturers Life Insurance Company (U.S.A.)," is a stock life insurance company originally organized under the laws of Maine on August 20, 1955 by a special act of the Maine legislature. John Hancock USA redomesticated under the laws of Michigan on December 30, 1992. John Hancock USA is authorized to transact life insurance and annuity business in all states (except New York), the District of Columbia, Guam, Puerto Rico and the Virgin Islands. Its principal office is located at 601 Congress Street, Boston, Massachusetts 02210-2805. John Hancock New York, formerly known as "The Manufacturers Life Insurance Company of New York," is a wholly-owned subsidiary of John Hancock USA and is a stock life insurance company organized under the laws of New York on February 10, 1992. John Hancock New York is authorized to transact life insurance and annuity business only in the State of New York. Its principal office is located at 100 Summit Lake Drive, Valhalla New York 10595. John Hancock New York also has an Annuities Service Center at 601 Congress Street, Boston, Massachusetts 02210-2805. The ultimate parent of both companies is Manulife Financial Corporation, a publicly traded company based in Toronto, Canada. Manulife Financial Corporation is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial. The Companies changed their names to John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York, respectively, on January 1, 2005 following Manulife Financial Corporation's acquisition of John Hancock Financial Services, Inc. John Hancock USA and John Hancock New York have received the following ratings from independent rating agencies: AAA Extremely strong financial security characteristics; 1st Standard & Poor's category of 21 A++ Superior companies have a very strong ability to meet their A.M. Best obligations; 1st category of 16 AA+ Very strong capacity to meet policyholder and contract Fitch obligations; 2nd category of 24 John Hancock USA has also received the following rating from Moody's: Aa2 Excellent in financial strength; 3 category of 21 Moody's These ratings, which are current as of the date of this Prospectus and are subject to change, are assigned as a measure of John Hancock USA's and John Hancock New York's ability to honor any guarantees provided by the Contract and any applicable optional Riders, but not specifically to its products, the performance (return) of these products, the value of any investment in these products upon withdrawal or to individual securities held in any Fund. With respect to the fixed portion of the Contracts issued by John Hancock USA, The Manufacturers Life Insurance Company unconditionally guarantees to make funds available to John Hancock USA for the timely payment of contractual claim pursuant to a Guarantee Agreement dated March 31, 1996. The guarantee may be terminated by The Manufacturers Life Insurance Company upon notice to John Hancock USA. Termination will not affect The Manufacturers Life Insurance Company's continuing liability with respect to all fixed annuity contracts and Fixed Investment Options issued by John Hancock USA prior to the termination of the guarantee except if: - - the liability to pay contractual claims under the contracts is assumed by another insurer; or - - we are sold and the buyer's guarantee is substituted for The Manufacturers Life Insurance Company's guarantee. 13 THE SEPARATE ACCOUNT We use our Separate Accounts to support the Variable Investment Options you choose. You do not invest directly in the Funds made available under the Contracts. When you direct or transfer money to a Variable Investment Option, we will purchase shares of a corresponding Fund through one of our Separate Accounts. We hold the Fund's shares in a "Sub-Account" (usually with a name similar to that of the corresponding Fund) of the Separate Account. The Separate Account's assets (including the Fund's shares) belong to the Company. For Contracts issued by John Hancock USA, we purchase and hold Fund shares in John Hancock Life Insurance Company (U.S.A.) Separate Account H. John Hancock USA, then known as The Manufacturers Life Insurance Company (U.S.A.), became the owner of this Separate Account in a merger transaction with The Manufacturers Life Insurance Company of North America ("Manulife North America") on January 1, 2002. Manulife North America initially established Separate Account H on August 24, 1984 as a separate account under the laws of Delaware. When Manulife North America merged with John Hancock USA, John Hancock USA became the owner of Separate Account H and reestablished it as a Separate Account under the laws of Michigan. As a result of this merger, John Hancock USA became the owner of all of Manulife North America's assets, including the assets of Separate Account H, and assumed all of Manulife North America's obligations including those under its Contracts. The merger had no other effects on the terms and conditions of Contracts issued prior to January 1, 2002. For Contracts issued by John Hancock New York, we purchase and hold Fund shares in John Hancock Life Insurance Company of New York Separate Account A. John Hancock New York established this Separate Account on March 4, 1992 as a separate account under the laws of New York. The income, gains and losses, whether or not realized, from assets of a Separate Account are credited to or charged against the Separate Account without regard to the Company's other income, gains, or losses. Nevertheless, all obligations arising under the Company's Contracts are general corporate obligations of the Company. Assets of a Separate Account may not be charged with liabilities arising out of any of the Company's business. We reserve the right, subject to compliance with applicable law, to add other Sub-Accounts, eliminate existing Sub-Accounts, combine Sub-Accounts or transfer assets in one Sub-Account to another Sub-Account that we, or an affiliated company, may establish. We will not eliminate existing Sub-Accounts or combine Sub-Accounts without the prior approval of the appropriate state or federal regulatory authorities. We registered the Separate Account with the SEC under the Investment Company Act of 1940, as amended (the "1940 Act") as unit investment trusts. Registration under the 1940 Act does not involve supervision by the SEC of the management or investment policies or practices of the Separate Account. If a Company determines that it would be in the best interests of persons having voting rights under the Contracts it issues, that Company's Separate Account may be operated as a management investment company under the 1940 Act or it may be deregistered if 1940 Act registration were no longer required. THE FUNDS When you select a Variable Investment Option, we invest your money in a Sub-Account of our Separate Account and it invests in shares of a corresponding Fund of John Hancock Trust. THE FUNDS IN THE SEPARATE ACCOUNT ARE NOT PUBLICLY TRADED MUTUAL FUNDS. The Funds are only available to you as Investment Options in the Contracts or, in some cases, through other variable annuity contracts or variable life insurance policies issued by us or by other life insurance companies. In some cases, the Funds also may be available through participation in certain qualified pension or retirement plans. Investment Management The Funds' investment advisers and managers (i.e., subadvisers) may manage publicly traded mutual funds with similar names and investment objectives. However, the Funds are NOT directly related to any publicly traded mutual fund. You should not compare the performance of any Fund described in this Prospectus with the performance of a publicly traded mutual fund. THE PERFORMANCE OF ANY PUBLICLY TRADED MUTUAL FUND COULD DIFFER SUBSTANTIALLY FROM THAT OF ANY OF THE FUNDS HELD IN OUR SEPARATE ACCOUNT. The John Hancock Trust is a so-called "series" type mutual fund and is registered under the 1940 Act as an open-end management investment company. John Hancock Investment Management Services, LLC ("JHIMS LLC") provides investment advisory services to the John Hancock Trust and receives investment management fees for doing so. JHIMS LLC pays a portion of its investment management fees to other firms that manage the John Hancock Trust's Funds. JHIMS LLC is our affiliate and we indirectly benefit from any investment management fees JHIMS LLC retains. 14 The John Hancock Trust has obtained an order from the SEC permitting JHIMS LLC, subject to approval by the Board of Trustees, to change a Subadviser for a Fund or the fees paid to Subadvisers and to enter into new subadvisory agreements from time to time without the expense and delay associated with obtaining shareholder approval of the change. This order does not, however, permit JHIMS LLC to appoint a Subadviser that is an affiliate of JHIMS LLC or the John Hancock Trust (other than by reason of serving as Subadviser to a portfolio) (an "Affiliated Subadviser") or to change a subadvisory fee of an Affiliated Subadviser without the approval of shareholders. If shares of a Fund are no longer available for investment or in our judgment investment in a Fund becomes inappropriate, we may eliminate the shares of a Fund and substitute shares of another Fund, or of another open-end registered investment company. A substitution may be made with respect to both existing investments and the investment of future Purchase Payments. However, we will make no such substitution without first notifying you and obtaining approval of the SEC (to the extent required by the 1940 Act). Fund Expenses The table in the Fee Tables section of the Prospectus shows the investment management fees, Rule 12b-1 fees and other operating expenses for these Fund shares as a percentage (rounded to two decimal places) of each Fund's average daily net assets for 2006, except as indicated in the footnotes appearing at the end of the table. Fees and expenses of the Funds are not fixed or specified under the terms of the Contracts and may vary from year to year. These fees and expenses differ for each Fund and reduce the investment return of each Fund. Therefore, they also indirectly reduce the return you will earn on any Separate Account Investment Options you select. The Funds pay us or certain of our affiliates compensation for some of the distribution, administrative, shareholder support, marketing and other services we or our affiliates provide to the Funds. The amount of this compensation is based on a percentage of the assets of the Fund attributable to the variable insurance products that we and our affiliates issue. These percentages may differ from Fund to Fund and among classes of shares within a Fund. In some cases, the compensation is derived from the Rule 12b-1 fees which are deducted from a Fund's assets and paid for the services we or our affiliates provide to that Fund. In addition, compensation payments of up to 0.45% of assets may be made by a Fund's investment adviser or its affiliates. We pay American Funds Distributors, Inc., the principal underwriter for the American Fund Insurance Series, a percentage of some or all of the amounts allocated to the "American" Funds of the John Hancock Trust for the marketing support services it provides (see "Distribution of Contracts" in "IX. General Matters"). Any of these compensation payments do not, however, result in any charge to you in addition to what is shown in the Total Annual Fund Operating Expenses table. Funds-of-Funds and Master-Feeder Funds Each of the John Hancock Trust's Index Allocation, Franklin Templeton Founding Allocation, Lifestyle Aggressive, Lifestyle Balanced, Lifestyle Conservative, Lifestyle Growth and Lifestyle Moderate Funds ("JHT Funds of Funds") is a "fund-of funds" that invest in other underlying funds. Expenses for a fund-of-funds may be higher than that for other funds because a fund-of-funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying funds in which it invests. The prospectus for each of the JHT Funds of Funds contains a description of the underlying funds for that Fund, including expenses and associated investment risks. Each of the John Hancock Trust's American Asset Allocation, American Bond, American Global Growth, American Global Small Cap, American Growth, American Growth-Income, American High Income, American International, and American New World Trust ("JHT American Funds") invests in Series 1 or Series 2 shares of the corresponding investment portfolio of a "master" fund. The JHT American Funds operate as "feeder funds," which means that the each Fund does not buy investment securities directly. Instead, it invests in a corresponding "master fund" which in turn purchases investment securities. Each of the JHT American Funds has the same investment objective and limitations as its corresponding master fund. The combined master and feeder 12b-1 fees for each JHT American Fund totals 0.75% of net assets. The prospectus for the American Fund master funds is included with the prospectuses for the JHT American Funds. Fund Investment Objectives and Strategies You bear the investment risk of any Fund you choose as a Variable Investment Option for your Contract. The following table contains a general description of the Funds that we make available under the Contracts. You can find a full description of each Fund, including the investment objectives, policies and restrictions of, and the risks relating to, investment in the Fund in the prospectus for that Fund. YOU CAN OBTAIN A COPY OF A FUND'S PROSPECTUS (INCLUDING THE PROSPECTUS FOR A MASTER FUND FOR ANY OF THE FUNDS THAT ARE OPERATED AS "FEEDER FUNDS"), WITHOUT CHARGE, BY CONTACTING US AT THE ANNUITIES SERVICE CENTER SHOWN ON THE FIRST PAGE OF THIS PROSPECTUS. YOU SHOULD READ THE FUND'S PROSPECTUS CAREFULLY BEFORE INVESTING IN THE CORRESPONDING VARIABLE INVESTMENT OPTION. 15 JOHN HANCOCK TRUST We show the Fund's manager (i.e., subadviser) in bold above the name of the Fund and we list the Funds alphabetically by subadviser. The Funds available may be restricted if you purchase a guaranteed minimum withdrawal benefit rider (See Optional Benefits). CAPITAL GUARDIAN TRUST COMPANY Income & Value Trust Seeks the balanced accomplishment of (a) conservation of principal and (b) long-term growth of capital and income. To do this, the Fund invests its assets in both equity and fixed income securities based on the expected returns of the portfolios. U.S. Large Cap Trust Seeks long-term growth of capital and income. To do this, the Fund invests at least 80% of its net assets in equity and equity-related securities of quality largecap U.S. companies that will outperform their peers over time. CAPITAL RESEARCH AND MANAGEMENT COMPANY (Adviser to the American Fund Insurance Series) - ADVISER TO MASTER FUND American Asset Allocation Seeks to provide high total return (including Trust income and capital gains) consistent with preservation of capital over the long term. To do this, the Fund invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Asset Allocation Fund, which invests in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments. American Bond Trust Seeks to maximize current income and preserve capital. To do this, the Fund invests all of its assets in the master fund, Class 2 shares of the American Funds Insurance Series Bond Fund, which normally invests at least 80% of its assets in bonds, with at least 65% in investment-grade debt securities and up to 35% in lower rated fixed income securities. American Global Growth Trust Seeks to make the shareholders' investment grow over time. To do this, the Fund invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Global Growth Fund, which invests primarily in common stocks of companies located around the world. American Global Small Cap Seeks to make the shareholders' investment grow Trust over time. To do this, the Fund invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series Global Small Capitalization Fund, which invests primarily in stocks of smaller companies located around the world. Normally, the Fund invests at least 80% of its assets in equity securities of companies with small market capitalizations. American Growth Trust Seeks to make the shareholders' investment grow. To do this, the Fund invests all of its assets in the master fund, Class 2 shares of the American Funds Insurance Series Growth Fund, which invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. American Growth-Income Trust Seeks to make the shareholders' investments grow and to provide the shareholder with income over time. To do this, the Fund invests all of its assets in the master fund, Class 2 shares of the American Funds Insurance Series Growth-Income, which invests primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends. American High Income Trust Seeks to provide a high level of current income and, secondarily, capital appreciation. To do this, the Fund invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series High-Income Bond Fund, which invests at least 65% of its assets in higher yielding and generally lower quality debt securities, and normally invests at least 80% in bonds and up to 20% in equity securities.
16 American International Trust Seeks to make the shareholders' investment grow. To do this, the Fund invests all of its assets in the master fund, Class 2 shares of the American Funds Insurance Series International Fund, which invests primarily in common stocks of companies located outside the United States. American New World Trust Seeks to make the shareholders' investment grow over time. To do this, the Fund invests all of its assets in the master fund, Class 1 shares of the American Funds Insurance Series New World Fund, which invests primarily in stocks of companies with significant exposure to countries with developing economies and/or markets. DAVIS SELECTED ADVISERS, L.P. Financial Services Trust Seeks growth of capital. To do this, the Fund invests at least 80% of its net assets in companies that are principally engaged in financial services. Fundamental Value Trust Seeks growth of capital. To do this, the Fund invests in common stocks of U.S. companies with durable business models that can be purchased at attractive valuations relative to their intrinsic value. DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC. ("DIMA")(1) Real Estate Securities Trust Seeks to achieve a combination of long-term capital appreciation and current income. To do this, the Fund invests at least 80% of its net assets in equity securities of REITs and real estate companies. GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC International Core Trust Seeks high total return. To do this, the Fund typically invests at least 80% of its total assets in a diversified portfolio of equity investments from a number of developed markets outside the U.S. JENNISON ASSOCIATES LLC Capital Appreciation Trust Seeks long-term growth of capital. To do this, the Fund invests at least 65% of its total assets in equity and equity-related securities of companies that exceed $1 billion in market capitalization and have above-average growth prospects. LEGG MASON CAPITAL MANAGEMENT, INC. Core Equity Trust Seeks long-term capital growth. To do this, the Fund invests at least 80% of its net assets in equity securities that offer the potential for capital growth by purchasing securities at large discounts relative to their intrinsic value. MARSICO CAPITAL MANAGEMENT, LLC International Opportunities Seeks long-term growth of capital. To do this, Trust the Fund invests at least 65% of its total assets in common stocks of at least three different foreign companies of any size that are selected for their long-term growth potential. MFC GLOBAL INVESTMENT MANAGEMENT (U.S.A.) LIMITED (2) Franklin Templeton Founding Seeks long-term growth of capital. To do this, Allocation Trust the Fund invests primarily in three JHT portfolios subadvised by Franklin Templeton: Global Trust, Income Trust and Mutual Shares Trust. The Fund is a fund of funds and is also authorized to invest in NAV shares of many other JHT portfolios and other investment companies. Index Allocation Trust Seeks long term growth of capital. Current income is also a consideration. To do this, the Fund invests approximately 70% of its total assets in JHT index portfolios which invest primarily in equity securities and approximately 30% of its total assets in JHT Funds which invest primarily in fixed income securities. Lifestyle Aggressive Seeks long term growth of cap capital. Current income is not a consideration. To do this, the Fund invests 100% of its assets in JHT Funds which invest primarily in equity securities.
17 Lifestyle Balanced Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. To do this, the Fund invests approximately 40% of its assets in JHT Funds which invest primarily in fixed income securities and approximately 60% in Funds which invest primarily in equity securities. Lifestyle Conservative Seeks a high level of current income with some consideration given to growth of capital. To do this, the Fund invests approximately 80% of its assets in JHT Funds which invest primarily in fixed income securities and approximately 20% in Funds which invest primarily in equity securities. Lifestyle Growth Seeks long-term growth of capital. Current income is also a consideration. To do this, the Fund invests approximately 20% of its assets in JHT Funds which invest primarily in fixed income securities and approximately 80% in Funds which invest primarily in equity securities. Lifestyle Moderate Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on income. To do this, the Fund invests approximately 60% of its assets in JHT Funds which invest primarily in fixed income securities and approximately 40% in Funds which invest primarily in equity securities. Mid Cap Index Trust Seeks to approximate the aggregate total return of a mid cap U.S. domestic equity market index. To do this, the Fund invests at least 80% of its net assets in the common stocks in the S&P Mid Cap 400 Index Index(3) and securities that as a group behave in a manner similar to the index. Money Market Trust Seeks to obtain maximum current income consistent with preservation of principal and liquidity. To do this, the Fund invests in high quality, U.S. dollar denominated money market instruments. Pacific Rim Trust Seeks to achieve long-term growth of capital. To do this, the Fund invests at least 80% of its net assets in common stocks and equity-related securities of established, larger-capitalization non-U.S. companies located in the Pacific Rim region, including emerging markets. MFC GLOBAL INVESTMENT MANAGEMENT (U.S.), LLC High Income Trust Seeks a high level of current income; capital appreciation is a secondary goal. To do this, the Fund invests at least 80% of its net assets in U.S. and foreign fixed-income securities that are rated BB/Ba or lower or are unrated equivalents. MUNDER CAPITAL MANAGEMENT Small Cap Opportunities Seeks long-term capital appreciation. To do Trust this, the Fund invests at least 80% of its net assets in equity securities of small-capitalization companies. PACIFIC INVESTMENT MANAGEMENT COMPANY LLC Global Bond Trust Seeks maximum total return, consistent with preservation of capital and prudent investment management. To do this, the Fund invests at least 80% of its net assets in fixed income instruments, futures contracts (including related options) with respect to such securities and options on such securities. Total Return Trust Seeks maximum total return, consistent with preservation of capital and prudent investment management. To do this, the Fund invests at least 65% of its total assets in a diversified fund of fixed income instruments of varying maturities. PZENA INVESTMENT MANAGEMENT, LLC Classic Value Trust Seeks long-term growth of capital. To do this, the Fund invests at least 80% of its assets in domestic equity securities of companies that are currently undervalued relative to the market, based on estimated future earnings and cash flow.
18 RCM CAPITAL MANAGEMENT LLC & T. ROWE PRICE ASSOCIATES, INC. Science & Technology Trust Seeks long-term growth of capital. Current income is incidental to the Fund's objective. To do this, the Fund invests at least 80% of its net assets in the common stocks of companies expected to benefit from the development, advancement, and/or use of science and technology. T. ROWE PRICE ASSOCIATES, INC. Blue Chip Growth Trust Seeks to provide long-term growth of capital. Current income is a secondary objective. To do this, the Fund invests at least 80% of its net assets in the common stocks of large and medium-sized blue chip growth companies that are well established in their industries. Equity-Income Trust Seeks to provide substantial dividend income and also long-term capital appreciation. To do this, the Fund invests at least 80% of its net assets in equity securities, with 65% in common stocks of well-established companies paying above-average dividends. Health Sciences Trust Seeks long-term capital appreciation. To do this, the Fund invests at least 80% of its net assets in common stocks of companies engaged in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences. Small Company Value Trust Seeks long-term growth of capital. To do this, the Fund will invest at least 80% of its net assets in small companies whose common stocks are believed to be undervalued. TEMPLETON INVESTMENT COUNSEL, LLC International Small Cap Seeks long-term capital appreciation. To do Trust this, the Fund invests at least 80% of its net assets in securities issued by foreign small-cap companies in emerging markets. International Value Trust Seeks long-term growth of capital. To do this, the Fund invests at least 65% of its total assets in equity securities of companies located outside the U.S., including in emerging markets, and generally up to 25% of its total assets in debt securities of companies and governments located anywhere in the world. UBS GLOBAL ASSET MANAGEMENT (AMERICAS) INC. Global Allocation Trust Seeks total return, consisting of long-term capital appreciation and current income. To do this, the Fund invests in equity and fixed income securities of issuers located within and outside the U.S. based on prevailing market conditions. VAN KAMPEN (A REGISTERED TRADE NAME OF MORGAN STANLEY INVESTMENT MANAGEMENT INC.) Value Trust Seeks to realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. To do this, the Fund invests at least 65% of its total assets in equity securities which are believed to be undervalued relative to the stock market in general. WELLINGTON MANAGEMENT COMPANY, LLP Investment Quality Bond Seeks to provide a high level of current income Trust consistent with the maintenance of principal and liquidity. To do this, the Fund invests at least 80% of its net assets in bonds rated investment grade, focusing on corporate and U.S. government bonds with intermediate to longer term maturities. Mid Cap Intersection Trust Seeks long-term growth of capital. To do this, the Fund invests at least 80% of its net assets in equity securities of medium-sized companies with significant capital appreciation potential.
19 Mid Cap Stock Trust Seeks long-term growth of capital. To do this, the Fund invests at least 80% of its net assets in equity securities of medium-sized companies with significant capital appreciation potential. Natural Resources Trust Seeks long-term total return. To do this, the Fund will invest at least 80% of its net assets in equity and equity-related securities of natural resource-related companies worldwide, including emerging markets. Small Cap Growth Trust Seeks long-term capital appreciation. To do this, the Fund will invest at least 80% of its net assets in small-cap companies that are believed to offer above-average potential for growth in revenues and earnings. Small Cap Value Trust Seeks long-term capital appreciation. To do this, the Fund will invest at least 80% of its net assets in small-cap companies that are believed to be undervalued. WESTERN ASSET MANAGEMENT COMPANY High Yield Trust Seeks to realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. To do this, the Fund invests at least 80% of its net assets in high yield securities, including corporate bonds, preferred stocks and U.S. Government and foreign securities. Strategic Bond Trust Seeks a high level of total return consistent with preservation of capital. To do this, the Fund invests at least 80% of its net assets in fixed income securities across a range of credit qualities and may invest a substantial portion of its assets in obligations rated below investment grade. U.S. Government Securities Seeks to obtain a high level of current income Trust consistent with preservation of capital and maintenance of liquidity. To do this, the Fund invests at least 80% of its net assets in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or instrumentalities.
(1) RREEF American L.L.C. provides sub-subadvisory services to DIMA in its management of the Global Real Estate Trust. (2) DIMA provides subadvisory consulting services to MFC Global Investment Management (U.S.A.) Limited in its management of the Lifestyle Trusts. (3) S&P Mid Cap 400(R) is a trademark of The McGraw-Hill Companies, Inc. None of the Index Trusts are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the Trust. Effective December 31, 2006, the S&P Mid Cap 400(R) tracks companies having market capitalization between $590 million to $12.5 billion. 20 VOTING INTEREST You instruct us how to vote Fund shares. We will vote Fund shares held in a Separate Account at any Fund shareholder meeting in accordance with voting instructions received from the persons having the voting interest under the Contract. We will determine the number of Fund shares for which voting instructions may be given not more than 90 days prior to the meeting. We will arrange for proxy materials to be distributed to each person having the voting interest under the Contract together with appropriate forms for giving voting instructions. We will vote all Fund shares that we hold (including our own shares and those we hold in a Separate Account for Contract Owners) in proportion to the instructions so received. A potential effect of this proportional voting is that a small number of Contract Owners can determine the outcome of a vote. During the Accumulation Period, the Contract Owner has the voting interest under a Contract. We determine the number of votes for each Fund for which voting instructions may be given by dividing the value of the Investment Account corresponding to the Sub-Account in which such Fund shares are held by the net asset value per share of that Fund. During the Pay-out Period, the Annuitant has the voting interest under a Contract. We determine the number of votes as to each Fund for which voting instructions may be given by dividing the reserve for the Contract allocated to the Sub-Account in which such Fund shares are held by the net asset value per share of that Fund. Generally, the number of votes tends to decrease as annuity payments progress since the amount of reserves attributable to a Contract will usually decrease after commencement of annuity payments. We will determine the number of Fund shares for which voting instructions may be given not more than 90 days prior to the meeting. We reserve the right to make any changes in the voting rights described above that may be permitted by the federal securities laws, regulations, or interpretations thereof. 21 V. DESCRIPTION OF THE CONTRACT ELIGIBLE PLANS The Contract may be used to fund plans qualifying for special income tax treatment under the Code, such as individual retirement accounts and annuities, pension and profit-sharing plans for corporations and sole proprietorships/partnerships ("H.R. 10" and "Keogh" plans), tax-sheltered annuities, and state and local government deferred compensation plans (see "Qualified Retirement Plans"). We also designed the Contract so that it may be used with non-qualified retirement plans, such as payroll savings plans and such other groups (with or without a trustee) as may be eligible under applicable law. ACCUMULATION PERIOD PROVISIONS We may impose restrictions on your ability to make initial and subsequent Purchase Payments. Purchase Payments You may make Purchase Payments to us at our Annuities Service Center at any time. The minimum initial Purchase Payment is $10,000. Subsequent Purchase Payments must be at least $30. All Purchase Payments must be in U.S. dollars. We may provide for Purchase Payments to be automatically withdrawn from your bank account on a periodic basis. If a Purchase Payment would cause your Contract Value to exceed $1 million or your Contract Value already exceeds $1 million, you must obtain our approval in order to make the payment. John Hancock USA may reduce or eliminate the minimum initial Purchase Payment requirement, upon your request and as permitted by state law, in the following circumstances: - You purchase your Contract through a 1035 exchange or a Qualified Plan transfer of an existing contract(s) issued by another carrier(s) AND at the time of application, the value of your existing contract(s) meets or exceeds the applicable minimum initial Purchase Payment requirement AND prior to our receipt of such 1035 monies, the value drops below the applicable minimum initial Purchase Payment requirement due to market conditions. - You purchase more than one new Contract and such Contracts cannot be combined AND the average initial Purchase Payments for these new Contracts is equal to or greater than $50,000. - You and your spouse each purchase at least one new Contract AND the average initial Purchase Payments for the new Contract(s) is equal to or greater than $50,000. - You purchase multiple Contracts issued in conjunction with a written Retirement Savings Plan (either Qualified or Non-Qualified), for the benefit of plan participants AND the Annuitant under each Contract is a plan participant AND the average initial Purchase Payment for these new Contracts is equal to or greater than $50,000. If permitted by state law, John Hancock USA may cancel a Contract at the end of any TWO consecutive Contract Years in which no Purchase Payments have been made, if both: - the total Purchase Payments made over the life of the Contract, less any withdrawals, are less than $2,000; and - the Contract Value at the end of such two year period is less than $2,000. Contracts issued by John Hancock New York may be cancelled at the end of any THREE consecutive Contract Years in which no Purchase Payments have been made as described above. As a matter of administrative practice, the respective Company will attempt to notify you prior to any such cancellation in order to allow you to make the necessary Purchase Payment to keep your Contract in force. The cancellation of Contract provisions may vary in certain states to comply with the requirements of insurance laws and regulations in such states. If we cancel your Contract, we will pay you the Contract Value computed as of the valuation period during which the cancellation occurs, minus the amount of any outstanding loan. The amount paid will be treated as a withdrawal for federal tax purposes and thus may be subject to income tax and to a 10% penalty tax (see "VIII. Federal Tax Matters"). You designate how your Purchase Payments are to be allocated among the Investment Options. You may change the allocation of subsequent Purchase Payments at any time by notifying us in writing (or by telephone or electronically if you comply with our telephone or electronic transaction procedures described herein). We add 3% or more to each Purchase Payment you make. Payment Enhancements When you make a Purchase Payment, we will add a Payment Enhancement to your Contract. The Payment Enhancement is funded from our General Account and is allocated among Investment Options in the same proportion as your Purchase Payment. We do not count Payment Enhancements as part of a "Purchase Payment" for purposes of calculating the guarantees under our optional benefit Riders. 22 We are currently offering a higher promotional rate on Payment Enhancements for initial and subsequent Purchase Payments. The current promotional Payment Enhancement rate is 5.0%. We may terminate the promotional Payment Enhancements at any time. Initial and subsequent payments that do not receive a promotional Payment Enhancement will receive the guaranteed Payment Enhancement described in the column labeled "Guaranteed Rate" in the table below: PAYMENT ENHANCEMENTS
CUMULATIVE PURCHASE PAYMENTS GUARANTEED RATE PROMOTIONAL RATE - ---------------------------- --------------- ---------------- Under $500,000 3.0% 5.0% $500,000 - $2.5 million 4.0% 5.0% Over $2.5 million 5.0% 5.0%
An example of the calculation of the Payment Enhancement is set forth in Appendix E. Payment Enhancements are not considered to be "investments in the Contract" for income tax purposes (see "VIII. Federal Tax Matters"). THE COMPANY EXPECTS TO MAKE A PROFIT FROM THE CONTRACTS. The charges used to recoup the expense of paying the Payment Enhancement include the withdrawal charge and the asset based charges. MATTERS TO CONSIDER ABOUT THE PAYMENT ENHANCEMENT. Expenses (including withdrawal charges) for a Contract that has a Payment Enhancement may be higher (or for a longer time period) than the expenses for a Contract which does not have a Payment Enhancement. You should be aware that the amount of the Payment Enhancement may, over time, be more than offset by the additional fees and charges associated with the Payment Enhancement. Before you decide to purchase the Contract you should consult with your financial adviser and review: - The length of time that you plan to own your Contract, - The frequency, amount and timing of any partial surrenders, - The amount and frequency of your Purchase Payments. Other variable annuities issued by the Company and by other life insurance companies have no "Payment Enhancement." Variable annuity contracts with no Payment Enhancements may have lower fees and charges than the charges for this Contract. In addition, if you exercise your right to return the Contract within 10 days of receiving it, we will recover the original amount of the Payment Enhancement credited. Therefore, you bear the risk that if the market value of the Payment Enhancement has declined, we will still recover the full amount of the Payment Enhancement. If you are considering purchasing a Contract in connection with certain Qualified Plans, then special considerations regarding the Payment Enhancement may apply. Corporate and self-employed pension and profit sharing plans, as well as tax-sheltered annuity plans, are subject to nondiscrimination rules. The nondiscrimination rules generally require that benefits, rights, or features of the plan not discriminate in favor of highly compensated employees. In evaluating whether the Contract is suitable for purchase in connection with such a Qualified Plan, you should consider the effect of the Payment Enhancement on the plan's compliance with the applicable nondiscrimination requirements. Violation of these nondiscrimination rules can cause loss of the plan's tax favored status under the Code. Employers intending to use the Contract in connection with such plans should seek competent advice (see Appendix D: "Qualified Plan Types"). Accumulation Units During the Accumulation Period, we establish an Investment Account for you for each Variable Investment Option to which you allocate a portion of your Contract Value. We credit amounts to those Investment Accounts in the form of "accumulation units" to measure the value of the variable portion of your Contract during the Accumulation Period. We calculate and credit the number of accumulation units in each of your Investment Accounts by dividing (i) the amount allocated to that Investment Account by (ii) the value of an accumulation unit for that Investment Account we next compute after a purchase transaction is complete. We will usually credit initial Purchase Payments received by mail on the Business Day on which they are received at our Annuities Service Center, and no later than two Business Days after our receipt of all information necessary for issuing the Contract. We will inform you of any deficiencies preventing processing if your Contract cannot be issued. If the deficiencies are not remedied within five Business Days after receipt, we will return your Purchase Payment promptly, unless you specifically consent to our retaining your Purchase Payment until all necessary information is received. We will credit initial Purchase Payments received by wire transfer from broker-dealers on the Business Day received by us if the broker-dealers have made special arrangements with us. We will credit subsequent Purchase Payments on the Business Day they are received at our Annuities Service Center. 23 We will deduct accumulation units based on the value of an accumulation unit we next compute each time you make a withdrawal or transfer amounts from an Investment Option, and when we deduct certain Contract charges, pay proceeds, or apply amounts to an Annuity Option. We measure the value of an Investment Account in accumulation units, which vary in value with the performance of the underlying Fund. Value of Accumulation Units The value of your accumulation units will vary from one Business Day to the next depending upon the investment results of the Investment Options you select. We arbitrarily set the value of an accumulation unit for each Sub-Account on the first Business Day the Sub-Account was established. We determine the value of an accumulation unit for any subsequent Business Day by multiplying (i) the value of an accumulation unit for the immediately preceding Business Day by (ii) the "net investment factor" for that Sub-Account (described below) for the Business Day for which the value is being determined. We value accumulation units as of the end of each Business Day. We deem a Business Day to end, for these purposes, at the time a Fund determines the net asset value of its shares. We will use a Fund share's net asset value at the end of a Business Day to determine accumulation unit value for a Purchase Payment, withdrawal or transfer transaction only if: - your Purchase Payment transaction is complete before the close of the New York Stock Exchange (usually 4:00 p.m. Eastern Time) for that Business Day, or - we receive your request for a withdrawal or transfer of Contract Value at the Annuities Service Center before the close of the New York Stock Exchange for that Business Day. Net Investment Factor The net investment factor is an index used to measure the investment performance of a Sub-Account from one Business Day to the next (the "valuation period"). The net investment factor may be greater or less than or equal to one; therefore, the value of an accumulation unit may increase, decrease or remain the same. We determine the net investment factor for each Sub-Account for any valuation period by dividing (a) by (b) and subtracting (c) from the result: Where (a) is: - the net asset value per share of a Fund share held in the Sub-Account determined at the end of the current valuation period; plus - the per share amount of any dividend or capital gain distributions made by the Fund on shares held in the Sub-Account if the "ex-dividend" date occurs during the current valuation period. Where (b) is the net asset value per share of a Fund share held in the Sub-Account determined as of the end of the immediately preceding valuation period. Where (c) is a factor representing the charges deducted from the Sub-Account on a daily basis for Separate Account annual expenses. Transfers Among Investment Options During the Accumulation Period, you may transfer amounts among the Variable Investment Options and from those Investment Options to the Fixed Investment Options, subject to the restrictions set forth below. You may make a transfer by providing written notice to us, by telephone or by other electronic means that we may provide through the internet (see "Telephone and Electronic Transactions"). We will cancel accumulation units from the Investment Account from which you transfer amounts and we will credit to the Investment Account to which you transfer amounts. Your Contract Value on the date of the transfer will not be affected by a transfer. You must transfer at least $300 or, if less, the entire value of the Investment Account. If after the transfer the amount remaining in the Investment Account is less than $100, then we will transfer the entire amount instead of the requested amount. Currently, we do not impose a charge for transfer requests. The first twelve transfers in a Contract Year are free of any transfer charge. For each additional transfer in a Contract Year, we do not currently assess a charge but reserve the right (to the extent permitted by your Contract) to assess a reasonable charge (not to exceed the lesser of $25 or 2% of the amount transferred) to reimburse us for the expenses of processing transfers. Investment options in variable annuity and variable life insurance products can be a prime target for abusive transfer activity because these products value their investment options on a daily basis and allow transfers among investment options without immediate tax consequences. As a result, some investors may seek to frequently transfer into and out of variable investment options in reaction to market news or to exploit some perceived pricing inefficiency. Whatever the reason, frequent transfer activity can harm long-term investors in a variable investment option since such activity may expose a variable investment option's underlying fund to increased 24 fund transaction costs and/or disrupt the fund manager's ability to effectively manage a fund in accordance with its investment objective and policies, both of which may result in dilution with respect to interests held for long-term investment. We have adopted a policy and procedures to restrict frequent transfers of Contract Value among Variable Investment Options. To discourage disruptive frequent trading activity, we have adopted a policy for the Separate Account to restrict transfers to two per calendar month per Contract, with certain exceptions, and procedures to count the number of transfers made under a Contract. Under the current procedures of the Separate Accounts, we count all transfers made during each Business Day that the net asset value of the shares of a Fund are determined ending at the close of day-time trading of the New York Stock Exchange (usually 4 p.m.) as a SINGLE transfer. We do NOT count: (a) scheduled transfers made pursuant to our Dollar Cost Averaging program or our Asset Rebalancing program, (b) transfers from a Fixed Investment Option at the end of its guarantee period, (c) transfers made within a prescribed period before and after a substitution of underlying Funds and (d) transfers made during the Pay-out Period (these transfers are subject to a 30-day notice requirement, however, as described in the "Transfers During Pay-out Period" section of this Prospectus). Under the Separate Account's policy and procedures, Contract Owners may transfer to a Money Market investment option even if a Contract Owner reaches the two transfer per month limit if 100% of the Contract Value in all Variable Investment Options is transferred to that Money Market Investment Option. If such a transfer to a Money Market Investment Option is made, for a 30-calendar day period after such transfer, a Contract Owner may not make any subsequent transfers from that Money Market investment option to another Variable Investment Option. We apply each Separate Account's policy and procedures uniformly to all Contract Owners. We reserve the right to take other actions to restrict trading, including, but not limited to: - restricting the number of transfers made during a defined period; - restricting the dollar amount of transfers; - restricting the method used to submit transfers (e.g., requiring transfer requests to be submitted in writing via U.S. mail); and - restricting transfers into and out of certain Sub-Account(s). In addition, we reserve the right to defer a transfer at any time we are unable to purchase or redeem shares of the Funds. We also reserve the right to modify or terminate the transfer privilege at any time (to the extent permitted by applicable law). In addition to the transfer restrictions that we impose, the John Hancock Trust also has adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short term trading. Accordingly, a Fund may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to John Hancock Trust upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy. While we seek to identify and prevent disruptive frequent trading activity, it is not always possible to do so. Therefore, we cannot provide assurance that the restrictions we impose will be successful in restricting disruptive frequent trading activity and avoiding harm to long-term investors. Maximum Number of Investment Options We currently do not limit the number of Investment Options to which you may allocate Purchase Payments, except in connection with the Contract's Optional Benefit Riders. We permit you to make certain types of transactions by telephone or electronically through the internet. Telephone and Electronic Transactions When you purchase a Contract, we will automatically permit you to request transfers and withdrawals by telephone. We will also permit you to access information about your Contract, request transfers and perform some transactions (other than withdrawals) electronically through the internet. You can contact us at the telephone number or internet address shown on the first page of this Prospectus. To access information and perform electronic transactions through our website, we require you to create an account with a username and password, and maintain a valid e-mail address. You may also authorize other people to make certain transaction requests by telephone or electronically through the internet by sending us instructions in a form acceptable to us. We will not be liable for following instructions communicated by telephone or electronically that we reasonably believe to be genuine. We will employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require you to provide information to verify your identity when you call us and we will record all conversations with you. When someone contacts us by telephone and follows our procedures, we will assume that you are authorizing us to act upon those instructions. For electronic transactions through the internet, you will need to provide your username and password. You are responsible for keeping your password confidential and must notify us of: 25 - Any loss or theft of your password; or - Any unauthorized use of your password. We may only be liable for any losses due to unauthorized or fraudulent instructions where we fail to employ our procedures properly. All transaction instructions we receive by telephone or electronically will be followed by a confirmation statement of the transaction. Transaction instructions we receive by telephone or electronically before the close of the New York Stock Exchange, which is usually 4:00 p.m. Eastern Time on any Business Day, will usually be effective at the end of that day. Circumstances beyond our control, such as system outages, or during periods when our telephone lines or our website may be busy, may limit your ability to access or transact business electronically. We may, for example, experience unusual volume during periods of substantial market change. We may suspend, modify or terminate our telephone or electronic transaction procedures at any time. We may, for example, impose limits on the maximum withdrawal amount available to you through a telephone transaction. Also, as stated earlier in this Prospectus, we have imposed restrictions on transfers and reserve the right to take other actions to restrict trading, including the right to restrict the method used to submit transfers (e.g., by requiring transfer requests to be submitted in writing via U.S. mail). We also reserve the right to suspend or terminate the transfer privilege altogether with respect to anyone who we feel is abusing the privilege to the detriment of others. We make available Dollar Cost Averaging and Asset Rebalancing programs. Enhanced Transfer Services-Dollar Cost Averaging We administer a Dollar Cost Averaging ("DCA") program. If you enter into a DCA agreement, you may instruct us to transfer monthly a predetermined dollar amount from any Variable Investment Option, or from a Fixed Investment Option we permit for this purpose (the "DCA Fixed Investment Option"), to other Variable Investment Options until the amount in the Investment Option from which the transfer is made is exhausted. You may establish a DCA Fixed Investment Option under the DCA program to make automatic transfers. You may allocate only Purchase Payments (and not existing Contract Values) to the DCA Fixed Investment Option. If you elect the DCA Fixed Investment Option, we will credit the amounts allocated to this option with interest at the guaranteed interest rate in effect on the date of such allocation. From time to time, we may offer enhanced DCA programs where the rate of interest credited to the DCA Fixed Investment Option exceeds our actual earnings on the supporting assets, less appropriate risk and expense adjustments. In such case, we will recover any amounts we credit to your account in excess of amounts earned by us on the assets in the General Account from existing charges described in your Contract. Your Contract charges will not increase as a result of electing to participate in any enhanced DCA program. A DCA program is generally suitable if you are making a substantial deposit and desire to control the risk of investing at the top of a market cycle. A DCA program allows investments to be made in equal installments over time in an effort to reduce that risk. Therefore, you may achieve a lower purchase price over the long-term by purchasing more accumulation units of a particular Sub-Account when the unit value is low; less when the unit value is high. However, a DCA program does not guarantee profits or prevent losses in a declining market and requires regular investment regardless of fluctuating price levels. Contract Owners interested in a DCA program should consider their financial ability to continue purchases through periods of low price levels. If you are interested in a DCA program, you may elect to participate in the program on the appropriate application or you may obtain a separate authorization form and full information concerning the program and its restrictions from your registered representative or our Annuities Service Center. There is no charge for participation in a DCA program. Special Transfer Services-Asset Rebalancing Program We administer an Asset Rebalancing program which enables you to specify the percentage levels you would like to maintain in particular Funds. We will automatically rebalance your Contract Value pursuant to the schedule described below to maintain the indicated percentages by transfers among the Funds. (Fixed Investment Options are not eligible for participation in the Asset Rebalancing program.) You must include your entire value in the Variable Investment Options in the Asset Rebalancing program. Other investment programs, such as the DCA program, or other transfers or withdrawals may not work in concert with the Asset Rebalancing program. Therefore, you should monitor your use of these other programs and any other transfers or withdrawals while the Asset Rebalancing program is being used. If you are interested in the Asset Rebalancing program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your registered representative or our Annuities Service Center. There is no charge for participation in the Asset Rebalancing program. We will permit asset rebalancing only on the following time schedules: - quarterly on the 25th day of the last month of the calendar quarter (or the next Business Day if the 25th is not a Business Day), - semi-annually on June 25th and December 26th (or the next Business Day if these dates are not Business Days), or - annually on December 26th (or the next Business Day if December 26th is not a Business Day). 26 You may withdraw all or a portion of your Contract Value, but may incur withdrawal charges or tax liability as a result. Withdrawals During the Accumulation Period, you may withdraw all or a portion of your Contract Value upon written request (complete with all necessary information) to our Annuities Service Center. You may make withdrawals by telephone as described above under "Telephone and Electronic Transactions." For certain Qualified Contracts, exercise of the withdrawal right may require the consent of the Qualified Plan participant's spouse under the Code. In the case of a total withdrawal, we will pay the Contract Value as of the date of receipt of the request at our Annuities Service Center, minus any Unpaid Loans and any applicable withdrawal charge. We will then cancel the Contract. In the case of a partial withdrawal, we will pay the amount requested and cancel accumulation units credited to each Investment Account equal in value to the amount withdrawn from that Investment Account plus any applicable withdrawal charge deducted from that Investment Account. When making a partial withdrawal, you should specify the Investment Options from which the withdrawal is to be made. The amount requested from an Investment Option may not exceed the value of that Investment Option minus any applicable withdrawal charge. If you do not specify the Investment Options from which a partial withdrawal is to be taken, we will take the withdrawal from the Variable Investment Options until exhausted. We will then take from the Fixed Investment Option, beginning with the shortest remaining guarantee period first and ending with the longest remaining guarantee period last. If the partial withdrawal is less than the total value in the Variable Investment Options, we will take the withdrawal proportionately from all of your Variable Investment Options. For rules governing the order and manner of withdrawals from the Fixed Investment Option, see "Fixed Investment Options." There is no limit on the frequency of partial withdrawals; however, the amount withdrawn must be at least $300 or, if less, the entire balance in the Investment Option. If after the withdrawal (and deduction of any withdrawal charge) the amount remaining in the investment option is less than $100, we will treat the partial withdrawal as a withdrawal of the entire amount held in the Investment Option. If a partial withdrawal plus any applicable withdrawal charge would reduce the Contract Value to less than $300, we will treat the partial withdrawal as a total withdrawal of the Contract Value. We will pay the amount of any withdrawal from the Variable Investment Options promptly, and in any event within seven days of receipt of the request, complete with all necessary information at our Annuities Service Center. We reserve the right to defer the right of withdrawal or postpone payments for any period when: - the New York Stock Exchange is closed (other than customary weekend and holiday closings); - trading on the New York Stock Exchange is restricted; - an emergency exists, as determined by the SEC, as a result of which disposal of securities held in the Separate Account is not reasonably practicable or it is not reasonably practicable to determine the value of the Separate Account's net assets; or - the SEC, by order, so permits for the protection of security holders; provided that applicable rules and regulations of the SEC shall govern as to whether trading is restricted or an emergency exists. IMPACT OF DIVORCE. In the event that you and your spouse become divorced after you purchase a Contract, we will consider any request to reduce or divide benefits under a Contract as a request for a withdrawal of Contract Value. The transaction may be subject to any applicable tax, withdrawal charges and, for Contracts issued with an optional minimum guaranteed withdrawal benefit Rider, Reset provisions (see "VI. Optional Benefits"). If you determine to divide a Contract with an optional benefit Rider, we will permit you to continue the existing Rider under one, but not both, resulting Contracts. We will also permit the owner of the new Contract to purchase any optional benefit Rider then available. TAX CONSIDERATIONS. Withdrawals from the Contract may be subject to income tax and a 10% IRS penalty tax (see "VIII. Federal Tax Matters"). Withdrawals are permitted from Contracts issued in connection with Section 403(b) Qualified Plans only under limited circumstances (see Appendix D: "Qualified Plan Types"). You may make Systematic "Income Plan" withdrawals. Special Withdrawal Services-The Income Plan We administer an Income Plan ("IP") which permits you to pre-authorize a periodic exercise of the contractual withdrawal rights described above. After entering into an IP agreement, you may instruct us to withdraw a level dollar amount from specified Investment Options on a periodic basis. We limit the total of IP withdrawals in a Contract Year to not more than 10% of the Purchase Payments made (to ensure that no withdrawal charge will ever apply to an IP withdrawal). If additional withdrawals, outside the IP program, are taken from a Contract in the same Contract Year in which an IP program is in effect, IP withdrawals after the free withdrawal amount has been exceeded are subject to a withdrawal charge. The IP is not available to Contracts participating in the DCA program or for which Purchase Payments are being automatically deducted from a bank account on a periodic basis. IP withdrawals, like other withdrawals, may be subject to income tax and a 10% IRS penalty tax. If you are interested in an IP, you may obtain a separate authorization form and full information concerning the program and its restrictions from your registered representative or our Annuities Service Center. There is no charge for participation in the IP program. 27 If you die during the Accumulation Period, your Beneficiary will receive a death benefit that might exceed your Contract Value. Death Benefit During Accumulation Period The Contracts described in this Prospectus provide for the distribution of a death benefit before a Contract's Maturity Date. AMOUNT OF DEATH BENEFIT. If any Owner dies, the death benefit will be the greater of: - the Contract Value, or - the Minimum Death Benefit. For Contracts issued outside New York, if a Contract Owner dies, we have the right to deduct from the death benefit paid any Payment Enhancements applied to the Contract in the 12-month period prior to the date of death. However, we are currently waiving this right. Reference to "Payment Enhancements" in this paragraph refers to the original amount of Payment Enhancements; earnings attributable to Payment Enhancements will not be deducted from the death benefit paid. If there is any Debt, the Death Benefit equals the amount described above less the Debt under the Contract. The Minimum Death Benefit will be determined as follows: (a) During the first nine Contract Years, the Minimum Death Benefit will be the sum of all Purchase Payments made, less any amount deducted in connection with partial withdrawals. (b) After the ninth Contract Year, the Minimum Death Benefit will be the greater of (i) or (ii) where: (i) is the sum of all Purchase Payments made, less any amount deducted in connection with partial withdrawals, and (ii) is the Contract Value on the last day of the ninth Contract Year, plus the sum of all subsequent Purchase Payments made, less any amount deducted in connection with partial withdrawals since then. For purposes of calculating the Minimum Death Benefit under (a) or (b) above, the amount deducted in connection with partial withdrawals will be equal to (i) times (ii) where (i) is equal to the Minimum Death Benefit prior to withdrawal, and (ii) is equal to the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. PAYMENT OF DEATH BENEFIT. The determination of the death benefit will be made on the date we receive written notice and "proof of death" as well as all required claims forms from all Beneficiaries at our Annuities Service Center. No one is entitled to the death benefit until this time. Proof of death occurs when we receive one of the following at our Annuities Service Center: - a certified copy of a death certificate; or - a certified copy of a decree of a court of competent jurisdiction as to the finding of death; and - all required claim forms; or - any other proof satisfactory to us. If there are any Unpaid Loans, the death benefit equals the death benefit, as described above, minus the amount of Unpaid Loans (including unpaid interest). DISTRIBUTION OF DEATH BENEFIT. The following discussion applies principally to distribution of death benefits upon the death of an Owner under Contracts that are not issued in connection with Qualified Plans, i.e., "Non-Qualified Contracts." Tax law requirements applicable to Qualified Plans, including IRAs, and the tax treatment of amounts held and distributed under such plans, are quite complex. Accordingly, if your Contract is used in connection with a Qualified Plan, you should seek competent legal and tax advice regarding requirements governing the distribution of benefits, including death benefits, under the plan. In particular, if you intend to use the Contract in connection with a Qualified Plan, including an IRA, you and your advisor should consider that there is some uncertainty as to the income tax effects of the death benefit on Qualified Plans, including IRAs (see "VIII. Federal Tax Matters" and Appendix D: "Qualified Plan Types"). In designating Beneficiaries you may impose restrictions on the timing and manner of payment of death benefits. The description of death benefits in this Prospectus does not reflect any of the restrictions that could be imposed, and it should be understood as describing what will happen if the Contract Owner chooses not to restrict death benefits under the Contract. If the Contract Owner imposes restrictions, those restrictions will govern payment of the death benefit. We will pay the death benefit to the Beneficiary if any Contract Owner dies before the Maturity Date. If there is a surviving Owner, that Contract Owner will be deemed to be the Beneficiary. No death benefit is payable on the death of any Annuitant, except that if any Owner is not a natural person, the death of any Annuitant will be treated as the death of an Owner. On the death of the last surviving Annuitant, the Owner, if a natural person, will become the Annuitant unless the Owner designates another person as the Annuitant. 28 The death benefit may be taken in the form of a lump sum. If so, we will pay death benefits under our current administrative procedures within seven calendar days of the date that we determine the amount of the death benefit, subject to postponement under the same circumstances that payment of withdrawals may be postponed (see "Withdrawals"). If the death benefit payable upon the death of an Owner is not taken immediately, the Contract will continue, subject to the following: - The Beneficiary will become the Owner. - We will allocate any excess of the death benefit over the Contract Value to the Owner's Investment Accounts in proportion to their relative values on the date of receipt by us of due proof of the Owner's death. - No additional Purchase Payments may be made. - We will waive withdrawal charges for all future distributions. - If the deceased Owner's spouse is the Beneficiary, the surviving spouse continues the Contract as the new Owner. In such a case, the distribution rules applicable when a Contract Owner dies will apply when the spouse, as the Owner, dies. In addition, a death benefit will be paid upon the death of the spouse. For purposes of calculating the death benefit payable upon the death of the spouse (excluding any optional benefits), we will treat the death benefit paid upon the first Owner's death as a Purchase Payment to the Contract. In addition, all payments made and all amounts deducted in connection with partial withdrawals prior to the date of the first Owner's death will not be considered in the determination of the spouse's death benefit. - If the Beneficiary is not the deceased Owner's spouse, distribution of the Owner's entire interest in the Contract must be made within five years of the Owner's death, or alternatively, distribution may be made as an annuity, under one of the Annuity Options described below, which begins within one year of the Owner's death and is payable over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary (see "Annuity Options"). If distribution is not made as an annuity, upon the death of the Beneficiary, the death benefit will equal the Contract Value and must be distributed immediately in a single sum. - Alternatively, if the Contract is not a Qualified Contract and if the Beneficiary is not the deceased Owner's spouse, distribution of the Owner's entire interest in the Contract may be made as a series of withdrawals over the Beneficiary's life expectancy. If this form of distribution is selected, the Beneficiary may not reduce or stop the withdrawals, but may in any year withdraw more than the required amount for that year. If life expectancy withdrawals have been selected and the initial Beneficiary dies while value remains in the Contract, a successor Beneficiary may either take a lump sum distribution of the remaining balance or continue periodic withdrawals according to the original schedule based on the initial Beneficiary's life expectancy. A substitution or addition of any Contract Owner may result in resetting the death benefit to an amount equal to the Contract Value as of the date of the change. For purposes of subsequent calculations of the death benefit prior to the Maturity Date, the Contract Value on the date of the change will be treated as a Purchase Payment made on that date. This treatment of Contract Value as a Purchase Payment is not included in cumulative Purchase Payments and is not eligible for a Payment Enhancement. In addition, all Purchase Payments made and all amounts deducted in connection with partial withdrawals prior to the date of the change will not be considered in the determination of the death benefit. No such change in death benefit will be made if the person whose death will cause the death benefit to be paid is the same after the change in ownership or if ownership is transferred to the Owner's spouse. Please see "VI. Optional Benefits" for a discussion of benefits available to Beneficiaries under the optional Annual Step Death Benefit. PAY-OUT PERIOD PROVISIONS You have a choice of several different ways of receiving annuity payments from us. General Generally, the Contracts contain provisions for the commencement of annuity payments to the Annuitant on the Contract's Maturity Date (the first day of the Pay-out Period). The Maturity Date is the date specified on your Contract's specifications page, unless you change that date. If no date is specified, the Maturity Date is the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary. You may specify a different Maturity Date at any time by written request at least one month before both the previously specified and the new Maturity Date. The new Maturity Date may not be later than the previously specified Maturity Date unless we consent. Maturity Dates which occur when the Annuitant is at an advanced age, e.g., past age 90, may have adverse income tax consequences (see "VIII. Federal Tax Matters"). Distributions may be required from Qualified Contracts before the Maturity Date. You may select the frequency of annuity payments. However, if the Contract Value at the Maturity Date is such that a monthly payment would be less than $20, we may pay the Contract Value, minus any Unpaid Loans, in one lump sum to the Annuitant on the Maturity Date. 29 Annuity Options Annuity payments are available under the Contract on a fixed, variable, or combination fixed and variable basis. Upon purchase of the Contract, and at any time during the Accumulation Period, you may select one or more of the Annuity Options described below on a fixed and/or variable basis or choose an alternate form of payment acceptable to us. If an Annuity Option is not selected, we will provide as a default an Annuity Option in the form of a life annuity with payments guaranteed for ten years, as described below. We will provide either variable or fixed, or a combination variable and fixed annuity payments in proportion to the Investment Account Value of each Investment Option at the Maturity Date. We will determine annuity payments based on the Investment Account Value of each Investment Option at the Maturity Date. Internal Revenue Service ("IRS") regulations may preclude the availability of certain Annuity Options in connection with certain Qualified Contracts. Once annuity payments commence: - you will no longer be permitted to make any withdrawals under the Contract; - you will no longer be permitted to make or receive any withdrawals under a guaranteed minimum withdrawal benefit Rider; - we may not change the Annuity Option or the form of settlement; and - your Guaranteed Minimum Death Benefit will terminate. Please read the description of each Annuity Option carefully. In general, a non-refund life annuity provides the highest level of payments. However, because there is no guarantee that any minimum number of payments will be made, an Annuitant may receive only one payment if the Annuitant dies prior to the date the second payment is due. You may also elect annuities with payments guaranteed for a certain number of years but the amount of each payment will be lower than that available under the non-refund life Annuity Option. ANNUITY OPTIONS OFFERED IN THE CONTRACT. The Contracts guarantee the availability of the following Annuity Options: Option 1(a): Non-Refund Life Annuity - An annuity with payments during the lifetime of the Annuitant. No payments are due after the death of the Annuitant. Because there is no guarantee that we will make any minimum number of payments, an Annuitant may receive only one payment if the Annuitant dies prior to the date the second payment is due. Option 1(b): Life Annuity with Payments Guaranteed for 10 Years - An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetime of the Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if the Annuitant dies prior to the end of the tenth year. Option 2(a): Joint & Survivor Non-Refund Life Annuity - An annuity with payments during the lifetimes of the Annuitant and a designated co-Annuitant. No payments are due after the death of the last survivor of the Annuitant and co-Annuitant. Because there is no guarantee that we will make any minimum number of payments, an Annuitant or co-Annuitant may receive only one payment if the Annuitant and co-Annuitant die prior to the date the second payment is due. Option 2(b): Joint & Survivor Life Annuity with Payments Guaranteed for 10 Years - - An annuity with payments guaranteed for 10 years and continuing thereafter during the lifetimes of the Annuitant and a designated co-Annuitant. Because we guarantee payments for 10 years, we will make annuity payments to the end of such period if both the Annuitant and the co-Annuitant die prior to the end of the tenth year. ADDITIONAL ANNUITY OPTIONS. We currently offer the following Annuity Options, which are in addition to the ones we are contractually obligated to make available. We may cease offering any of the following Annuity Options at any time and may offer other Annuity Options in the future. Option 3: Life Annuity with Payments Guaranteed for 5, 15 or 20 Years - An annuity with payments guaranteed for 5, 15 or 20 years and continuing thereafter during the lifetime of the Annuitant. Because we guarantee payments for the specific number of years, we make annuity payments to the end of the last year of the 5, 15 or 20 year period. Option 4: Joint & Two-Thirds Survivor Non-Refund Life Annuity - An annuity with full payments during the joint lifetime of the Annuitant and a designated co-Annuitant and two-thirds payments during the lifetime of the survivor. Because we do not guarantee that we will make any minimum number of payments, an Annuitant or co-Annuitant may receive only one payment if the Annuitant and co-Annuitant die prior to the date the second payment is due. Option 5: Period Certain Only Annuity for 10, 15 or 20 Years - An annuity with payments for a 10, 15 or 20 year period and no payments thereafter. You may surrender all or part of your Contract for its 'Commuted Value' after the Pay-out Period has begun only if you select a variable pay-out under this Option. (See "Full Surrenders During the Pay-out Period" and "Partial Surrenders During the Pay-out Period" below.) ADDITIONAL ANNUITY OPTIONS FOR CONTRACTS WITH A GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER. We make one or more additional Annuity Options available if you purchase a Contract with one of our guaranteed minimum withdrawal benefit Riders (i.e., Income Plus for Life, Income Plus for Life - Joint Life, Principal Plus for Life, or Principal Plus for Life Plus Automatic Annual Step- 30 up, as described in "VI. Optional Benefits," or Principal Plus for Life Plus Spousal Protection, as described in Appendix B.) If you purchase a Contract with a guaranteed minimum withdrawal benefit Rider, you may select the additional Annuity Options shown below. These additional Annuity Options are only available for Maturity Dates no earlier than the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary. GMWB Alternate Annuity Option 1: LIA with Cash Refund - This Annuity Option is available if you purchase a Contract with the Income Plus for Life or an Income Plus for Life - Joint Life Rider. For the Income Plus for Life - Joint Life Rider, this Annuity Option is available only if one Covered Person, not two, remains on the Rider at the Maturity Date. Under this option, we will make annuity payments during the lifetime of the Annuitant. After the death of the Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of: - the Lifetime Income Amount on the Maturity Date, if any, as provided by the guaranteed minimum withdrawal benefit rider that you purchased with your Contract, or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under a life with cash refund annuity. (Unlike Option 1(b), however, we will not continue making payments for the remainder of the 10 year term upon the death of the Annuitant. Instead, we will pay a lump sum amount of the excess Contract Value, if any, described above.) GMWB Alternate Annuity Option 2: Joint & Survivor LIA with Cash Refund - This Annuity Option is available if you purchase a Contract with the Income Plus for Life - Joint Life Rider and both Covered Persons remain on the Rider at the Maturity Date. Under this option, we will make annuity payments during the joint lifetime of the co-Annuitants. After the death of the last surviving Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of: - the Lifetime Income Amount on the Maturity Date, if any, as provided by the guaranteed minimum withdrawal benefit rider that you purchased with your Contract, or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under a joint life with cash refund annuity. (Unlike Option 2(b), however, we will not continue making payments for the remainder of the 10 year term upon the death of the last surviving Annuitant. Instead, we will pay a lump sum amount of the excess Contract Value, if any, described above.) GMWB Alternate Annuity Option 3: Fixed Annuity with Period Certain - This Annuity Option is available if you purchase a Contract with the Principal Plus for Life or a Principal Plus for Life Plus Automatic Annual Step-up optional benefit Rider. If you purchase a Contract with a Principal Plus for Life Plus Spousal Protection Rider, this Annuity Option is available only if one Covered Person, not two, remains under the Rider at the Maturity Date. This option provides an annuity with payments guaranteed for a certain period and continuing thereafter during the lifetime of a single Annuitant. We determine the certain period by dividing the Guaranteed Withdrawal Balance at the Maturity Date by the amount of the annual annuity benefit payment we determine for this option. This period will be rounded to the next higher month. We determine the annual amount of Fixed Annuity payments under this Annuity Option as the greater of: - the Lifetime Income Amount on the Maturity Date, if any, as provided by the guaranteed minimum withdrawal benefit rider that you purchased with your Contract, or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under Annuity Option 1(a): Non-Refund Life Annuity. GMWB Alternate Annuity Option 4: Spousal LIA Fixed Annuity with Period Certain - This Annuity Option is available if you purchase a Contract with the Principal Plus for Life Plus Spousal Protection Rider, and both Covered Persons remain under the Rider at the Maturity Date. This option provides an annuity with payments guaranteed for a certain period and continuing thereafter during the lifetimes of the Annuitant and co-Annuitant. If you elect this option, we will make payments for a certain period and after that during the joint lifetime of the Annuitant and Co-Annuitant. Payments will then continue during the remaining lifetime of the survivor. No payments are due after the death of the last surviving Annuitant or, if later, the end of the certain period. We determine the certain period by dividing Guaranteed Withdrawal Balance at the Maturity Date by the amount of the annual annuity benefit payment we determine for this option. This period will be rounded to the next higher month. We determine the annual amount of Fixed Annuity payments under this option as the greater of: - the Lifetime Income Amount, if any, as provided by the Rider that you purchased with your Contract, or - the annual amount that the proceeds of your Contract provides on a guaranteed basis under Annuity Option 2(a): Joint and Survivor Non-Refund Annuity. GMWB Alternate Annuity Option 5: Fixed Period Certain Only - This Annuity Option is available only if: - you purchase a Contract with a Principal Plus for Life, Principal Plus for Life Plus Spousal Protection or a Principal Plus for Life Plus Automatic Annual Step-up optional benefit Rider; and 31 - there is no Lifetime Income Amount remaining (or none has been determined) at the Maturity Date. This Annuity Option provides a Fixed Annuity with payments guaranteed for a certain period and no payments thereafter. Under this option, we determine the certain period by dividing the Guaranteed Withdrawal Balance at the Maturity Date by the Guaranteed Withdrawal Amount at the Maturity Date. This period will be rounded to the next higher month. (If the period certain is less than 5 years, we may pay the benefit as a lump sum equal to the present value of the annuity payments at the rate of interest for Annuity Options as described in the Contract.) We determine the annual amount of Fixed Annuity payments under this option as the greater of: - the Guaranteed Withdrawal Amount on the Maturity Date as provided by the Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, or the Principal Plus for Life Plus Spousal Protection Rider that you purchased with your Contract, or - the annual amount for a Fixed Annuity with the same period certain that we determine for this option, but based on the interest rate for Annuity Options described in your Contract. FULL SURRENDERS DURING THE PAY-OUT PERIOD. You may surrender your Contract, after the Pay-out Period has begun, only if you have selected a variable pay-out under Option 5: Period Certain Only Annuity for 10, 15, or 20 years. Under this option, we will pay you the present value of any remaining guaranteed annuity payments ("Commuted Value") of your Contract. The Commuted Value is determined on the day we receive your written request for surrender. We determine the Commuted Value by: - multiplying the number of Annuity Units we currently use to determine each payment by the respective Annuity Unit value on the last payment date (see "Annuity Units and the Determination of Subsequent Variable Annuity Benefit Payments" for a description of an "Annuity Unit"); - assuming that the net investment factor for the remainder of the guarantee period will equal the assumed interest rate of 3%, resulting in level annuity payments; and - calculating the present value of these payments at the assumed interest rate of 3%. If you elect to take the entire Commuted Value of the remaining annuity payments due in the Period Certain, no future annuity payments will be made. PARTIAL SURRENDERS DURING THE PAY-OUT PERIOD. We permit partial surrenders after the Pay-out Period has begun, only if you have selected a variable pay-out under Option 5: Period Certain Only Annuity for 10, 15, or 20 years. You make take partial surrenders of amounts equal to the Commuted Value of the payments that we would have made during the Period Certain. The Commuted Value is determined in the manner described above on the day we receive your written request for surrender. If you elect to take only the Commuted Value of some of the remaining annuity payments due in the Period Certain, we will reduce the remaining annuity payments during the remaining Period Certain. You will not be able to make any additional withdrawals under a Contract with a guaranteed minimum withdrawal benefit Rider once annuity payments begin under an Annuity Option. FIXED ANNUITY OPTIONS. Subject to the distribution of death benefits provisions (see "Death Benefit During Accumulation Period" above), on death, withdrawal or the Maturity Date of the Contract, the proceeds may be applied to a Fixed Annuity Option (see "Annuity Options" above). The amount of each Fixed Annuity payment is determined by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase the Fixed Annuity to the appropriate table in the Contract. If the table we are then using is more favorable to you, we will substitute that table. If you choose an Annuity Option that is not guaranteed in the Contract, we will use the appropriate table that we are currently offering. We guarantee the dollar amount of all Fixed Annuity payments. Determination of Amount of the First Variable Annuity Payment We determine the first Variable Annuity payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase a Variable Annuity to the annuity tables contained in the Contract. We will determine the amount of the Contract Value as of the date not more than ten Business Days prior to the Maturity Date. We will reduce Contract Value used to determine annuity payments by any applicable premium taxes. The rates contained in the annuity tables vary with the Annuitant's sex and age and the Annuity Option selected. However, we may not use sex-distinct tables for Contracts issued in connection with certain employer-sponsored retirement plans. Under such tables, the longer the life expectancy of the Annuitant under any life Annuity Option or the longer the period for which payments are guaranteed under the option, the smaller the amount of the first monthly Variable Annuity payment will be. 32 Annuity Units and the Determination of Subsequent Variable Annuity Payments We will base Variable Annuity payments after the first one on the investment performance of the Sub-Accounts selected during the Pay-out Period. The amount of a subsequent payment is determined by dividing the amount of the first annuity payment from each Sub-Account by the Annuity Unit value of that Sub-Account (as of the same date the Contract Value to effect the annuity was determined) to establish the number of Annuity Units which will thereafter be used to determine payments. This number of Annuity Units for each Sub-Account is then multiplied by the appropriate Annuity Unit value as of a uniformly applied date not more than ten Business Days before the annuity payment is due, and the resulting amounts for each Sub-Account are then totaled to arrive at the amount of the annuity payment to be made. The number of Annuity Units generally remains constant throughout the Pay-out Period (assuming no transfer is made). We will deduct a pro-rata portion of the administration fee from each annuity payment. The value of an Annuity Unit for each Sub-Account for any Business Day is determined by multiplying the Annuity Unit value for the immediately preceding Business Day by the net investment factor for that Sub-Account (see "Net Investment Factor") for the valuation period for which the Annuity Unit value is being calculated and by a factor to neutralize the assumed interest rate. Generally, if the net investment factor is greater than the assumed interest rate, the payment amount will increase. If the net investment factor is less than the assumed interest rate, the payment amount will decrease. We build a 3% assumed interest rate into the annuity tables in the Contract used to determine the first Variable Annuity payment. Some transfers are permitted during the Pay-out Period, but subject to different limitations than during the Accumulation Period. Transfers During Pay-out Period Once Variable Annuity payments have begun, you may transfer all or part of the investment upon which those payments are based from one Sub-Account to another. You must submit your transfer request to our Annuities Service Center at least 30 DAYS BEFORE the due date of the first annuity payment to which your transfer will apply. We will make transfers after the Maturity Date by converting the number of Annuity Units being transferred to the number of Annuity Units of the Sub-Account to which the transfer is made, so that the next annuity payment if it were made at that time would be the same amount that it would have been without the transfer. Thereafter, annuity payments will reflect changes in the value of the Annuity Units for the new Sub-Account selected. We reserve the right to limit, upon notice, the maximum number of transfers a Contract Owner may make per Contract Year to four. Once annuity payments have commenced, a Contract Owner may not make transfers from a Fixed Annuity Option to a Variable Annuity Option or from a Variable Annuity Option to a Fixed Annuity Option. In addition, we reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of a Fund. We also reserve the right to modify or terminate the transfer privilege at any time in accordance with applicable law. Death Benefit During Pay-out Period If an Annuity Option providing for payments for a guaranteed period has been selected, and the Annuitant dies during the Pay-out Period, we will make the remaining guaranteed payments to the Beneficiary. We will make any remaining payments as rapidly as under the method of distribution being used as of the date of the Annuitant's death. If no Beneficiary is living, we will commute any unpaid guaranteed payments to a single sum (on the basis of the interest rate used in determining the payments) and pay that single sum to the estate of the last to die of the Annuitant and the Beneficiary. OTHER CONTRACT PROVISIONS You have a right to cancel your Contract. Right to Review You may cancel the Contract by returning it to our Annuities Service Center or to your registered representative at any time within 10 days after receiving it or such other period as required by law. Within 7 days of receiving a returned Contract, we will pay you the Contract Value (minus any Unpaid Loans) computed at the end of the Business Day on which we receive your returned Contract. We will recover the original amount of the Payment Enhancement credited; earnings attributable to the Payment Enhancement will not be deducted from the amount paid. No withdrawal charge is imposed upon return of a Contract within the ten day right to review period. The ten day right to review may vary in certain states in order to comply with the requirements of state insurance laws and regulations. When the Contract is issued as an individual retirement annuity under Sections 408 or 408A of the Code, during the first 7 days of the 10 day period, we will return all Purchase Payments if this is greater than the amount otherwise payable. If you purchase your Contract in connection with a replacement of an existing contract, your Contract may provide for a longer time period to return it to us. For example, in New York, you may return the Contract at any time within 60 days after receiving it. Replacement of an existing annuity contract generally is defined as the purchase of a new contract in connection with (a) the lapse, partial or full surrender or change of, or borrowing from, an existing annuity or life insurance contract or (b) the assignment to a new issuer of an existing annuity contract. This description, however, does not necessarily cover all situations which could be considered a replacement of an existing contract. Therefore, you should consult with your registered representative or attorney regarding whether the purchase of a new Contract is a replacement of an existing contract. 33 (Applicable to Residents of California Only) Residents in California age 60 and greater may cancel the Contract by returning it to our Annuities Service Center or agent at any time within 30 days after receiving it. We will allocate your Purchase Payments to the Money Market Investment Option during this period. We will, however, permit you to elect to allocate your Purchase Payments during this 30 day period to a Fixed Investment Option (if available), or to one or more of the Variable Investment Options. If you cancel the Contract during this 30 day period and your Purchase Payments were allocated to a Fixed Investment Option or the Money-Market Investment Option, we will pay you the original amount of your Purchase Payments. If your Purchase Payments were allocated to a Variable Investment Option (other than the Money Market Fund), we will pay you the Contract Value, (minus any Unpaid Loans), computed at the end of the Business Day on which we receive your returned Contract. You own the Contract. Ownership Prior to the Maturity Date, the Contract Owner is the person designated in the Contract specifications page or as subsequently named. On and after the Maturity Date, the Annuitant is the Contract Owner. If amounts become payable to any Beneficiary under the Contract, the Beneficiary is the Contract Owner. In the case of Non-Qualified Contracts, you may change ownership of the Contract or you may collaterally assign the Contract at any time prior to the Maturity Date, subject to the rights of any irrevocable Beneficiary. Changing the ownership of a Contract may be treated as a (potentially taxable) distribution from the Contract for Federal tax purposes. A collateral assignment is treated as a distribution from the Contract and will be tax reported as such. An addition or substitution of any Contract Owner may result in resetting the death benefit to an amount equal to the Contract Value as of the date of the change and treating that value as a Purchase Payment made on that date for purposes of computing the amount of the death benefit. You must make any change of ownership or assignment in writing and we must receive such written change at the Annuities Service Center. We must approve any change. We assume no liability for any payments made or actions taken before a change is approved or an assignment is accepted or responsibility for the validity or sufficiency of any assignment. An absolute assignment will revoke the interest of any revocable Beneficiary. In the case of Qualified Contracts, ownership of the Contract generally may not be transferred except by the trustee of an exempt employees' trust which is part of a retirement plan qualified under Section 401 of the Code or as otherwise permitted by applicable IRS regulations. Subject to the foregoing, you may not sell, assign, transfer, discount or pledge as collateral for a loan or as security for the performance of an obligation, or for any other purpose, a Qualified Contract to any person other than us. The Annuitant is either you or someone you designate. Annuitant The Annuitant is any natural person or persons whose life is used to determine the duration of annuity payments involving life contingencies. The Annuitant is entitled to receive all annuity payments under the Contract. If the Contract Owner names more than one person as an "Annuitant," the second person named shall be referred to as "co-Annuitant." The Annuitant is as designated on the Contract specifications page or in the application, unless changed. You must make any change of Annuitant in writing in a form acceptable to us. We must approve any change. On the death of the Annuitant prior to the Maturity Date, the co-Annuitant, if living, becomes the Annuitant. If there is no living co-Annuitant, the Owner becomes the Annuitant. In the case of certain Qualified Contracts, there are limitations on the ability to designate and change the Annuitant and the co-Annuitant. The Annuitant becomes the Owner of the Contract at the Maturity Date. If any Annuitant is changed and any Contract Owner is not a natural person, we must distribute the entire interest in the Contract to the Contract Owner within five years. We will reduce the amount distributed by charges that would otherwise apply upon withdrawal. The Beneficiary is the person you designate to receive the death benefit if you die. Beneficiary The Beneficiary is the person, persons or entity designated in the Contract specifications page (or as subsequently changed). However, if there is a surviving Contract Owner, we will treat that person as the Beneficiary. You may change the Beneficiary subject to the rights of any irrevocable Beneficiary. You must make any change in writing. We must approve any change. If approved, we will effect such change as of the date on which written. We assume no liability for any payments made or actions taken before the change is approved. If no Beneficiary is living, the Contingent Beneficiary will be the Beneficiary. The interest of any Beneficiary is subject to that of any assignee. If no Beneficiary or Contingent Beneficiary is living, the Beneficiary is the estate of the deceased Contract Owner. In the case of certain Qualified Contracts, IRS regulations may limit designations of Beneficiaries. Modification We may not modify your Contract without your consent, except to the extent required to make it conform to any law or regulation or ruling issued by a governmental agency. 34 Our Approval We reserve the right to accept or reject any Contract application at our sole discretion. Misstatement and Proof of Age, Sex or Survival We may require proof of age, sex or survival of any person upon whose age, sex or survival any payment depends. If the age or sex of the Annuitant has been misstated, the benefits will be those that would have been provided for the Annuitant's correct age and sex. If we have made incorrect annuity payments, we will pay the amount of any underpayment immediately and we will deduct the amount of any overpayment from future annuity payments. FIXED INVESTMENT OPTIONS Interests in a Fixed Investment Option are not registered under the Securities Act of 1933, as amended (the "1933 Act"), and our General Account is not registered as an investment company under the 1940 Act. Neither interests in a Fixed Investment Option nor our General Account are subject to the provisions or restrictions of the 1933 Act or the 1940 Act. Nonetheless, Federal securities laws may require disclosures relating to interests in a Fixed Investment Option and the General Account to be accurate. INTEREST RATES AND AVAILABILITY. Currently, we do not make available any Fixed Investment Options, other than a DCA Fixed Investment Option under the DCA program (see "Special Transfer Services-Dollar Cost Averaging" for details). However, we may make available Fixed Investment Options under the Contract in the future. If we do, a Fixed Investment Option provides for the accumulation of interest on Purchase Payments at guaranteed rates for the duration of the guarantee period. We determine the guaranteed interest rates on amounts allocated or transferred to a Fixed Investment Option from time-to-time. In no event will the guaranteed rate of interest be less than guaranteed minimum interest rate stated in your Contract. Once an interest rate is guaranteed for a Fixed Investment Option, it is guaranteed for the duration of the guarantee period, and we may not change it. Fixed Investment Options are not available with John Hancock USA Contracts issued in the States of Minnesota, Mississippi, and Oregon. Certain other states may impose restrictions on the availability of Fixed Investment Options under your Contract. TRANSFERS. During the Accumulation Period, you normally may transfer amounts from a Fixed Investment Option to the Variable Investment Options only at the end of a guaranteed period. You may, however, transfer amounts from Fixed to Variable Investment Options prior to the end of the guarantee period pursuant to the DCA program. Where there are multiple Investment Accounts within a Fixed Investment Option, amounts must be transferred from that Fixed Investment Option on a first-in-first-out basis. You may also make transfers from Variable Investment Options to a Fixed Investment Option, if available, at any time prior to the Maturity Date, as permitted by applicable law. We establish a separate Investment Account each time you allocate or transfer amounts to a Fixed Investment Option, except that for amounts allocated or transferred the same day, we will establish a single Investment Account. You may not allocate amounts to a Fixed Investment Option that would extend the guarantee period beyond the Maturity Date. Subject to certain regulatory limitations, we may determine to restrict payments and transfers to Fixed Investment Options at any time the declared interest rate in effect equals the minimum interest rate specified in your Contract. RENEWALS. At the end of a guarantee period, you may establish a new Investment Account with the same guarantee period at the then current interest rate, if available, or transfer the amounts to a Variable Investment Option, all without the imposition of any charge. In the case of renewals in the last year of the Accumulation Period, the only Fixed Investment Option available is to have interest accrued for the remainder of the Accumulation Period at the then current interest rate for one-year guarantee period. WITHDRAWALS. You may make total and partial withdrawals of amounts held in a Fixed Investment Option at any time during the Accumulation Period. Withdrawals from a Fixed Investment Option will be made in the same manner and be subject to the same limitations as set forth under "Withdrawals." We reserve the right to defer payment of amounts withdrawn from a Fixed Investment Option for up to six months from the date we receive the written withdrawal request. If a withdrawal is deferred for more than 30 days pursuant to this right, we will pay interest on the amount deferred at a rate not less than 3% per year (or a higher rate if required by applicable law). If you do not specify the Investment Options from which a partial withdrawal is to be taken, the partial withdrawal will be taken from the Variable Investment Options until exhausted and then from the Fixed Investment Options. Such withdrawals will be made from the Investment Options beginning with the shortest guarantee period. Within such a sequence, where there are multiple Investment Accounts within a Fixed Investment Option, withdrawals will be made on a first-in-first-out basis. For this purpose, the DCA Fixed Investment Option is considered to have a shorter guarantee period than the one-year Fixed Investment Option. Withdrawals from the Contract may be subject to income tax and a 10% penalty tax. See "VIII. Federal Tax Matters" below. Withdrawals are permitted from Contracts issued in connection with Section 403(b) Qualified Plans only under limited circumstances. See Appendix D "Qualified Plan Types." 35 LOANS. We offer a loan privilege only to Owners of Contracts issued in connection with Section 403(b) Qualified Plans that are not subject to Title I of ERISA. If you own such a Contract, you may borrow from us, using your Contract as the only security for the loan, in the same manner and subject to the same limitations as set forth under "Loans" (See "VIII. Federal Tax Matters"). THE LOAN PRIVILEGE WILL NOT BE AVAILABLE TO SUCH CONTRACTS IF YOU ELECT ANY OF THE INCOME PLUS FOR LIFE, OR PRINCIPAL PLUS FOR LIFE OPTIONAL BENEFIT RIDERS. CHARGES. No asset based charges are deducted from Fixed Investment Options. 36 VI. Optional Benefits You may elect to purchase optional benefits when you purchase a Contract. If available in your state, you may select one of the following "guaranteed minimum withdrawal benefit" Riders: - Income Plus for Life, or - Income Plus for Life - Joint Life, or - Principal Plus for Life, or - Principal Plus for Life Plus Automatic Annual Step-up. You also may select an Annual Step Death Benefit Rider. We describe each of these optional benefit riders in the following sections. We also provide information about the spousal version of Principal Plus for Life in Appendix B. This Rider, entitled "Principal Plus for Life Plus Spousal Protection," was available for purchase before May 1, 2007 outside the state of New York. In certain cases, John Hancock USA may issue a Contract after May 1, 2007 with this Rider. OVERVIEW OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS Each of our guaranteed minimum withdrawal benefit Riders provides a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, these riders will permit you to withdraw a minimum annual amount, for as long as a "Covered Person" lives, subject to the terms and conditions of the specific rider you elect. We may determine the amount of the initial guarantee after we issue your Contract, depending on the age of the Covered Person when we issue the Contract and the type of guaranteed minimum withdrawal benefit you purchase. We may increase the guarantee: - if you make no withdrawals during certain Contract Years, up to limits that vary by rider, - as a result of a "Step-up" of the guarantee to reflect your then current Contract Value on certain Anniversary Dates, or - if you make an additional Purchase Payment, up to limits that vary by rider. Although these riders guarantee a minimum annual withdrawal amount, you may take withdrawals of any amount of Contract Value during your Contract's Accumulation Period. If you take withdrawals for more than the annual amount permitted under the terms of the rider you select, however, we may "Reset" and reduce the guaranteed minimum amount. Availability You may elect a guaranteed minimum withdrawal benefit rider at the time you purchase a Contract, provided: - the Rider is available for sale in the state where the Contract was sold; - you limit your investment of Purchase Payments and Contract Value to the Investment Options we make available with the Rider; and - you (and any other Covered Person) comply with the age restrictions we may impose for the Rider. Please contact the John Hancock Annuities Service Center at 1-800-344-1029 (in NY: 1-800-551-2078) for additional information on availability. We offer these optional benefit Riders only where approved by local state insurance regulatory agencies. We reserve the right to accept or refuse to issue any guaranteed minimum withdrawal benefit rider at our sole discretion. Once you elect a guaranteed minimum withdrawal benefit rider, its effective date usually will be the Contract Date (unless we permit otherwise) and it is irrevocable. We charge an additional fee for each rider that differs by rider. AGE RESTRICTIONS. You must not be age 81 or older to purchase an Income Plus for Life, Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-up Rider. Both you and your spouse must not be age 81 or older (and must qualify as "Covered Persons") to purchase an Income Plus for Life - Joint Life or Principal Plus for Life Plus Spousal Protection Rider. CHANGE OF RIDERS. If we issue you a Contract on or after May 1, 2007 with a Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up, or Principal Plus for Life Plus Spousal Protection Rider, you will be allowed to exchange that Rider (the "Current Rider") for an Income Plus for Life Rider or an Income Plus for Life - Joint Life Rider if: - the Income Plus for Life Rider or the Income Plus for Life - Joint Life Rider, as the case may be, was not available in your state at the time we issued your Contract, but becomes available in your state after we issued your Contract; - unless we agree otherwise, you elect to exchange your Current Rider within the 90 day period we permit for this purpose, beginning on the date we first make the Income Plus for Life or the Income Plus for Life-Joint Life Rider, as the case may be, available in a state following that state's approval; and - unless we agree otherwise, you elect to exchange your Current Rider before May 1, 2008. 37 We provide no assurance that you will be able to exchange the Principal Plus for Life Rider, Principal Plus for Life Plus Automatic Annual Step-up Rider, or Principal Plus for Life Plus Spousal Protection Rider for an Income Plus for Life or Income Plus for Life -Joint Life Rider in any state. You should purchase a Contract with a Principal Plus for Life Rider, a Principal Plus for Life Plus Automatic Annual Step-up Rider or Principal Plus for Life Plus Spousal Protection Rider only if that Rider is appropriate for your needs and financial circumstances. If you are eligible and decide to exchange your Current Rider for an Income Plus for Life Rider or an Income Plus for Life - Joint Life Rider: - you will have to pay the current annual fee for the new Rider, as described in the Fee Tables section of this Prospectus; - the Covered Person under a new Income Plus for Life Rider must be a Covered Person under your Current Rider; - one of the Covered Persons under a new Income Plus for Life - Joint Life Rider must be a Covered Person under your Current Rider, and the other Covered Person must be the first Covered Person's spouse; - we will calculate the initial Benefit Base under the new Rider as of the Contract Date if you exchange your Current Rider before the first Contract Anniversary; - we will calculate the initial Benefit Base under the new Rider to equal the Contract Value of your Contract if you exchange your Current Rider on or after the first Contract Anniversary; - if you exchange your Rider on or after the first Contract Anniversary, we will calculate the Target Amount under the new Rider on the later of (a) the 10th Contract Anniversary following the exchange or(b) the Contract Anniversary following the Covered Person's (younger Covered Person's for Income Plus for Life-Joint Life) attainment of age 70; and - if you exchange your Rider on or after the first Contract Anniversary, we will calculate the Target Amount under the new Rider as (a) 200% of the Contract Value on the date of the exchange plus any Purchase Payments applied to the Benefit Base after the exchange but prior to the Contract Anniversary next following the exchange; plus (b) 100% of any Purchase Payments applied to the Benefit Base after the Contract Anniversary next following the exchange but prior to the Target Date. We will deduct the fee for the new Rider on the first Contract Anniversary following the exchange and each Contract Anniversary thereafter. You must submit all required paperwork in good order to our Annuities Service Center to elect an Income Plus for Life Rider or an Income Plus for Life-Joint Life Rider. You must do this within the 90 day period we permit for this purpose or, if applicable in your state, any extension of these periods. Except as stated above, you may not elect more than one guaranteed minimum withdrawal benefit Rider for a Contract. Purchase Payments RESTRICTIONS ON CONTRACTS WITH GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS. If you purchase a guaranteed minimum withdrawal benefit rider, we restrict your ability to make additional Purchase Payments to the Contract. You must obtain our prior approval if the Contract Value immediately following an additional Purchase Payment would exceed $1 million. We do not permit additional Purchase Payments during a Rider's "Settlement Phase." Other limitations on additional payments may vary by state. Special Purchase Payment limits on "Non-Qualified" Contracts. If we issue your Contract not in connection with an IRA or other tax-qualified retirement plan, we also impose the following limit on your ability to make Purchase Payments: - on or after the first Contract Anniversary, without our prior approval, we will not accept an additional Purchase Payment if your total payments after the first Contract Anniversary exceed $100,000. Special Purchase Payment limits on "Qualified" Contracts. If we issue your Contract in connection with a tax qualified retirement plan, including an IRA, we also impose additional limits on your ability to make Purchase Payments: - on and after the Age 65 Contract Anniversary (or after the first Contract Anniversary if we issue your Contract after you become Age 65), without our prior approval, we will not accept an additional Purchase Payment if your total payments after the first Contract Anniversary exceed $100,000; - for the year that you become age 70 1/2 and for any subsequent years, if we issue your Contract in connection with an IRA, we will only accept a Purchase Payment that qualifies as a "rollover contribution"; but - we will not accept any Purchase Payment after the oldest Owner becomes age 81. You should consult with a qualified tax advisor prior to electing a guaranteed minimum withdrawal benefit Rider for further information on tax rules affecting Qualified Contracts, including IRAs. General right of refusal. We reserve the right to refuse to accept additional Purchase Payments at any time after the first Contract Anniversary to the extent permitted in the state we issue your Contract. We do not reserve this right of refusal for additional payments before the Age 65 Contract Anniversary that are permitted to Contracts issued in connection with tax qualified retirement plans, including IRAs. 38 IMPACT ON BENEFIT BASE AND LIFETIME INCOME AMOUNT (Applicable to Income Plus for Life and Income Plus for Life - Joint Life). Prior to the Lifetime Income Date, we will increase the Benefit Base each time you make an additional Purchase Payment, subject to the maximum Benefit Base limit of $5 million. We do not include any Payment Enhancement attributable to the Purchase Payment, however, in our calculation of the new Benefit Base. On and after the Lifetime Income Date, we may increase the Benefit Base each time you make an additional Purchase Payment, subject to the maximum Benefit Base limit of $5 million. We will recalculate the Benefit Base at the time of an additional Purchase Payment. The new Benefit Base will be the Benefit Base immediately before the additional Purchase Payment, plus: - The excess, if any, of the additional Purchase Payment (subject to our Purchase Payment limits and not including any Payment Enhancement attributable to the Purchase Payment); over - The amount of your withdrawals (including withdrawal charges) reduced by any Purchase Payment since the last time we calculated the Benefit Base (i.e., the last date of a Purchase Payment that we applied to the Benefit Base, the last "Reset" date, the last "Step-up" date, or the Lifetime Income Date). In addition, if a Purchase Payment increases the Benefit Base after the Lifetime Income Date, we will recalculate the Lifetime Income Amount and increase it to equal: - (for Income Plus for Life) 5% of the Benefit Base in effect immediately after the Purchase Payment; or - (for Income Plus for Life - Joint Life) 4.75% of the Benefit Base in effect immediately after the Purchase Payment. We will not change the Lifetime Income Amount, however, if the recalculated amount is less than the Lifetime Income Amount before the additional Purchase Payment. IMPACT ON GUARANTEED WITHDRAWAL BALANCE, GUARANTEED WITHDRAWAL AMOUNT AND LIFETIME INCOME AMOUNT (applicable to Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection). We will increase the total Guaranteed Withdrawal Balance by the amount of each additional Purchase Payment we accept (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). We do not include any Payment Enhancement attributable to the Purchase Payment, however, in our calculation of the new Guaranteed Withdrawal Balance. In addition, we will recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount and usually increase it: In the case of the Guaranteed Withdrawal Amount, to equal the lesser of: - 5% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment; or - the Guaranteed Withdrawal Amount immediately prior to the Purchase Payment plus an amount equal to 5% of the Purchase Payment. We do not include any Payment Enhancement attributable to the Purchase Payment, in our calculation of the new Guaranteed Withdrawal Amount. In the case of the Lifetime Income Amount, to equal the lesser of: - 5% of the Guaranteed Withdrawal Balance immediately after the Purchase Payment; or - the Lifetime Income Amount immediately prior to the Purchase Payment plus an amount equal to 5% of the Purchase Payment. We do not include any Payment Enhancement attributable to the Purchase Payment in our calculation of the new Guaranteed Withdrawal Amount. We will not change the Guaranteed Withdrawal Amount or the Lifetime Income Amount if the recalculated amount is less than the Guaranteed Withdrawal Amount or Lifetime Income Amount, as the case may be, before the additional Purchase Payment. Rider Fees We charge an additional fee on each Contract Anniversary for a guaranteed minimum withdrawal benefit Rider, and reserve the right to increase the fee on the effective date of each Step-Up in the benefits under that Rider. We withdraw the fee from each Investment Option in the same proportion that the value of Investment Accounts of each Investment Option bears to the Contract Value. We will deduct a pro rata share of the annual fee from the Contract Value: - on the date we determine the death benefit; - after the Maturity Date at the time an Annuity Option under the Contract begins; or - on the date an Excess Withdrawal reduces the Contract Value to zero. We do not deduct additional rider fees during the "Settlement Phase" or after the Maturity Date once an Annuity Option begins. FEE FOR INCOME PLUS FOR LIFE. The fee is equal to 0.60% of the "Adjusted Benefit Base." The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary adjusted for any Step-up or any subsequent Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Income Plus for Life fee on the effective date of each Step-up. In such a situation, the Income Plus for Life fee will never exceed 1.20%. 39 FEE FOR INCOME PLUS FOR LIFE - JOINT LIFE. The fee is equal to 0.60% of the "Adjusted Benefit Base." The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary adjusted for any Step-up or subsequent Purchase Payments that we applied to the Benefit Base during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Income Plus for Life - Joint Life fee on the effective date of each Step-up. In such a situation, the Income Plus for Life - Joint Life fee will never exceed 1.20%. FEE FOR PRINCIPAL PLUS FOR LIFE. The fee is equal to 0.40% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary adjusted for any Step-up, Bonus or subsequent Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Plus for Life fee on the effective date of each Step-up. In such a situation, the Principal Plus for Life fee will never exceed 0.75%. FEE FOR PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UP. The fee is equal to 0.60% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary adjusted for any Step-up, Bonus or subsequent Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Plus for Life Plus Automatic Annual Step-up Rider fee on the effective date of each Step-up. In such a situation, the Principal Plus for Life Plus Automatic Annual Step-up Rider fee will never exceed 1.20%. Additional Annuity Options We provide additional Annuity Options for Contracts issued with a guaranteed minimum withdrawal benefit rider, as described in the "Pay-out Period Provisions" section of this Prospectus. Tax Considerations See Section VII. Federal Tax Matters for information on tax considerations related to optional benefit riders. No Loans under 403(b) plans The loan privilege described in the Prospectus for Contracts issued in connection with certain Section 403(b) plans is NOT available if you elect any of our guaranteed minimum withdrawal benefit riders. INVESTMENT OPTIONS UNDER GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS If you elect to purchase any of our Guaranteed Minimum Withdrawal Benefit Riders, you may invest your Contract Value only in the Investment Options we make available with that Rider. If you purchase any of our Guaranteed Minimum Withdrawal Benefit Riders, you must invest 100% of your Contract Value at all times in one or more of the investment options we make available for these riders. Under our current rules, you must invest either: (a) among the currently available individual Investment Options (see "Available Individual Investment Options" below); or (b) in a manner consistent with any one of the currently available Model Allocations (see "Available Model Allocations" below). You may transfer between (a) and (b), or vice versa, on any date subject to our restrictions on frequent trading, provided you transfer 100% of your Contract Value. You may take withdrawals only in accordance with our default procedures; you may not specify the Investment Option from which you wish to make a withdrawal (see "Accumulation Period Provisions - Withdrawals"). We will allocate subsequent Purchase Payments in accordance with your instructions, subject to the restrictions described herein. All Investment Options may not be available through all distribution partners. 40 YOU SHOULD CONSULT WITH YOUR FINANCIAL PROFESSIONAL TO ASSIST YOU IN DETERMINING WHICH AVAILABLE INDIVIDUAL INVESTMENT OPTION OR MODEL ALLOCATION IS BEST SUITED FOR YOUR FINANCIAL NEEDS AND RISK TOLERANCE. Available Individual Investment Options If you purchase a Contract with any of our currently offered Guaranteed Minimum Withdrawal Benefit Riders, we restrict the individual Investment Options to which you may allocate your Contract Value. These Investment Options invest in the following Funds: - American Asset Allocation Trust - Franklin Templeton Founding Allocation Trust - Lifestyle Growth Trust - Lifestyle Balanced Trust - Lifestyle Moderate Trust - Lifestyle Conservative Trust - Index Allocation Trust - Money Market Trust You may allocate your Contract Value to any combination of these Investment Options and you may also use our DCA program from the Money Market or any available DCA Fixed Investment Option in connection with your selected Investment Options. FOR MORE INFORMATION REGARDING THESE FUNDS, INCLUDING INFORMATION RELATING TO THEIR INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS, AND THE RISKS OF INVESTING IN SUCH FUNDS, PLEASE SEE "IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNTS AND THE FUNDS" AS WELL AS THE PROSPECTUSES FOR THE APPLICABLE FUNDS. YOU CAN OBTAIN A COPY OF THE FUNDS' PROSPECTUSES BY CONTACTING THE ANNUITIES SERVICE CENTER SHOWN ON PAGE II OF THIS PROSPECTUS. YOU SHOULD READ THE FUNDS' PROSPECTUSES CAREFULLY BEFORE INVESTING IN A CORRESPONDING VARIABLE INVESTMENT OPTION. Available Model Allocations You may allocate your entire Contract Value to one of the available Model Allocations, as shown below, and you may also use our DCA program from any available DCA Fixed Investment Option in connection with your selected Model Allocation. You must, however, rebalance your entire Contract Value allocated to your selected Model Allocation on a quarterly basis. In addition, you may not transfer monies between Investment Options other than to transfer 100% of your Contract Value to another Model Allocation if available or 100% to any one, or any combination of, the available individual Investment Options. The currently available Model Allocations are:
MODEL ALLOCATION NAME MODEL ALLOCATION PERCENTAGE FUND NAME - ------------------------------- --------------------------- ---------------- American Global Diversification 50% American Global Growth Trust 20% American Bond Trust 15% American Global Small Cap Trust 10% American High Income Trust 5% American New World Trust Fundamental Holdings of America 35% American Bond Trust 25% American Growth-Income Trust 25% American Growth Trust 15% American International Trust
NONE OF THE MODEL ALLOCATIONS IS A FUND-OF-FUNDS. A MODEL ALLOCATION MAY EXPERIENCE VOLATILITY IN ITS INVESTMENT PERFORMANCE OR LOSE MONEY, DEPENDING ON THE PERFORMANCE OF THE COMPONENT FUNDS REFERENCED ABOVE. YOUR INVESTMENT IN THE FUNDS WILL FLUCTUATE AND WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN YOUR ORIGINAL INVESTMENT. FOR MORE INFORMATION REGARDING EACH FUND THAT WE PERMIT YOU TO INVEST IN THROUGH A MODEL ALLOCATION, INCLUDING INFORMATION RELATING TO THAT FUND'S INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS, AND THE RISKS OF INVESTING IN THAT FUND, PLEASE SEE "IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNTS AND THE FUNDS" AS WELL AS THE FUND'S PROSPECTUS. YOU CAN OBTAIN A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION ON EACH OF THE FUNDS BY CONTACTING THE RESPECTIVE ANNUITIES SERVICE CENTER SHOWN ON PAGE II OF THIS PROSPECTUS. YOU SHOULD READ THE FUND'S PROSPECTUS CAREFULLY BEFORE INVESTING IN THE CORRESPONDING INVESTMENT OPTION. WE RESERVE THE RIGHT TO RESTRICT INVESTMENT OPTIONS IN YOUR VARIABLE INVESTMENT ACCOUNT AT ANY TIME. If we restrict an Investment Option, we will not allow transfers into the restricted Investment Option and you may not allocate Purchase Payments to 41 the restricted Investment Option after the date of the restriction. Any amounts you allocated to an Investment Option before we imposed restrictions will not be affected by such restrictions as long as it remains in that Investment Option. We also reserve the right to limit the actual percentages you may allocate to certain Investment Options under the Model Allocations, to require that you choose certain Investment Options in conjunction with other Investment Options under the Model Allocations, to limit your ability to transfer between existing Investment Options and/or to require you to periodically rebalance existing variable Investment Accounts to the percentages we require. FEATURES OF GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDERS Definitions We use the following definitions to describe how our Guaranteed Minimum Withdrawal Benefit Riders work: AGE 65 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date: - the older Owner attains age 65 under Income Plus for Life, Income Plus for Life - Joint Life, Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-up; or - the oldest Covered Person attains age 65 under Principal Plus for Life Plus Spousal Protection. AGE 95 CONTRACT ANNIVERSARY means the Contract Anniversary on, or next following, the date: - the Covered Person attains age 95 under Income Plus for Life, Principal Plus for Life or Principal Plus for Life Plus Automatic Annual Step-up; or - the older Owner attains age 95 under Income Plus for Life - Joint Life or Principal Plus for Life Plus Spousal Protection. BENEFIT BASE means (applicable only to Income Plus for Life and Income Plus for Life - Joint Life): - a value we use to determine the Lifetime Income Amount. - The initial Benefit Base is equal to your initial Purchase Payment, up to the maximum Benefit Base. - We may adjust the Benefit Base to reflect withdrawals, "Step-ups," "Bonuses" and additional Purchase Payments as provided in the Rider. - The maximum Benefit Base is $5 million. Any adjustment to the Benefit Base will result in a corresponding adjustment to the Lifetime Income Amount. (See "Guaranteed Withdrawal Balance," below, for Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection.) COVERED PERSON means (for Income Plus for Life, Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step Up): - The person whose life we use to determine the duration of the Lifetime Income Amount payments; - The oldest Owner at issue of the Rider or the oldest Annuitant in the case of a non-natural Owner. COVERED PERSON means (for Income Plus for Life - Joint Life and Principal Plus for Life Plus Spousal Protection): - One of the two persons whose lives we use to determine the duration of the Lifetime Income Amount payments. - We determine the Covered Persons at the time you elect the Rider. A spouse must qualify as a "spouse" under federal law. (For Income Plus for Life - Joint Life Non-Qualified Contracts): - both the spouses must be named as co-Owners of the Contract (or co-Annuitants if the Owner is a non-natural person);or - if only one spouse is named as an Owner of the Contract (or Annuitant if the Owner is a non-natural person), the other spouse must be designated as the Beneficiary of the Contract. (For Principal Plus for Life Plus Spousal Protection Non-Qualified Contracts): - both the spouses must be named as co-Owners and co-Beneficiaries of the Contract (or co-Annuitants if the Owner is a non-natural person). (For Qualified Contracts): - one spouse must be named as the Owner (or Annuitant if the Owner is a non-natural person);and - the Owner's spouse must be the designated Beneficiary. 42 A Covered Person will no longer qualify as such (i.e., that Covered Person will be removed from the Rider) if that person is no longer designated as an Owner, co-Owner, Annuitant, co-Annuitant or Beneficiary as required above. In the event that you and your spouse become divorced after you purchase the Rider, you may not add a new spouse as a Covered Person. If you remove your spouse as an Owner, Beneficiary or Annuitant, that person will no longer be a Covered Person under the Rider. (See "Withdrawals" in section V. Description of the Contract for additional information on the impact of divorce.) EXCESS WITHDRAWAL means: - (for Income Plus for Life) Any withdrawal you take before the Lifetime Income Date that, when combined with all other withdrawals (and applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds 5.0% of the Benefit Base at the prior Contract Anniversary, increased for any subsequent Purchase Payments; - (for Income Plus for Life - Joint Life) Any withdrawal you take before the Lifetime Income Date that, when combined with all other withdrawals (and applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds 4.75% of the Benefit Base at the prior Contract Anniversary, increased for any subsequent Purchase Payments; and - (for Income Plus for Life and Income Plus for Life - Joint Life) Any withdrawal you take on and after the Lifetime Income Date that, when combined with all other withdrawals (and applicable withdrawal charges) previously taken during the Contract Year of withdrawal, exceeds the Lifetime Income Amount at the time of withdrawal. GUARANTEED WITHDRAWAL BALANCE (applicable only to Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection) means: - The total amount we guarantee to be available for future periodic withdrawals during the Accumulation Period. - The initial Guaranteed Withdrawal Balance is equal to your initial Purchase Payment, up to the maximum Guaranteed Withdrawal Balance. - We adjust the Guaranteed Withdrawal Balance to reflect withdrawals, "Step-ups," "Bonuses" and additional Purchase Payments as provided in the Rider. - The maximum Guaranteed Withdrawal Balance at any time is $5 million. GUARANTEED WITHDRAWAL AMOUNT (applicable only to Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection) means: - The amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period until the Guaranteed Withdrawal Balance is depleted; - The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance; - The maximum Guaranteed Withdrawal Amount at any time is $250,000. LIFETIME INCOME AMOUNT means the amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period after the date you purchased the Rider (or the Lifetime Income Date, if later), as long as: - (for Income Plus for Life, Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step-up) the Covered Person remains alive as an Owner or Annuitant of the Contract, subject to the terms and conditions of the Rider. - (for Income Plus for Life - Joint Life and Principal Plus for Life Plus Spousal Protection) at least one Covered Person remains alive and qualified as a Covered Person, subject to the terms and conditions of the Rider. - We may adjust the Lifetime Income Amount to reflect withdrawals, "Step-ups," "Bonuses" and additional Purchase Payments as provided in the Rider. Any adjustment to the Benefit Base will result in a corresponding adjustment to the Lifetime Income Amount. LIFETIME INCOME DATE means the date on which we determine the Life Income Amount. This will be the date you purchase the Rider if: - (for Income Plus for Life, Principal Plus for Life and Principal Plus for Life Plus Automatic Annual Step Up) you are age 59 1/2 or older at the time; otherwise, the Lifetime Income Date is the Anniversary Date on, or immediately following, the date you attain age 59 1/2. - (for Income Plus for Life - Joint Life) both you and your spouse are age 59 1/2 or older at the time; otherwise, the Anniversary Date on, or immediately following, the date the younger spouse would attain age 59 1/2. (The Lifetime Income Date does not change if the younger spouse does not survive to this date and the older spouse is still a Covered Person under the Rider.) - (for Principal Plus for Life Plus Spousal Protection) the older of you and your spouse are age 65 or older at the time; otherwise, the Anniversary Date on, or immediately following, the date the older spouse would attain age 65. (The Lifetime Income Date does not change if the older spouse does not survive to this date and the younger spouse is still a Covered Person under the Rider.) RESET means a reduction resulting from our recalculation of: - the Benefit Base (for Income Plus for Life and Income Plus for Life - Joint Life) if you take withdrawals of Contract Value before the Lifetime Income Date; or - the Benefit Base (for Income Plus for Life and Income Plus for Life - Joint Life) if your annual withdrawals on and after the Lifetime Income Date exceed the Lifetime Income Amount; and 43 - the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or the Lifetime Income Amount (for Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection) if your annual withdrawals of Contract Value exceed the Guaranteed Withdrawal Amount or Lifetime Income Amount. STEP-UP means an increase resulting from our recalculation of: - the Benefit Base and Lifetime Income Amount (for Income Plus for Life and Income Plus for Life - Joint Life) on certain anniversary dates to reflect market performance that exceeds previously calculated benefits; and - the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or Lifetime Income Amount (for Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection) on certain anniversary dates to reflect market performance that exceeds previously calculated benefits. We also use the term "withdrawal" to refer to amounts withdrawn, including any applicable withdrawal charges. Income Plus for Life OVERVIEW. The Income Plus for Life Rider provides a guaranteed minimum withdrawal benefit, called the "Lifetime Income Amount" during the Accumulation Period. We calculate the Lifetime Income Amount on the Lifetime Income Date. If the Covered Person is age 59 1/2 or older when you purchase the Income Plus for Life Rider, the initial Lifetime Income Amount equals 5% of the initial Purchase Payment for your Contract on the Rider's effective date. (We do not count Purchase Payment amounts over $5 million or any Payment Enhancement attributable to the Purchase Payment for this purpose.) Otherwise, the initial Lifetime Income Amount equals 5% of the Benefit Base in effect on the Lifetime Income Date. If you subsequently limit your annual withdrawals to the Lifetime Income Amount, Income Plus for Life guarantees that we will make the Lifetime Income Amount benefit available to you, as long as the Covered Person is alive and an Owner, Beneficiary or Annuitant under the Contract, even if your Contract Value reduces to zero. We may reduce the Lifetime Income Amount if you take withdrawals in excess of the Lifetime Income Amount. If you defer taking withdrawals, we may increase the Lifetime Income Amount to reflect one or more "Lifetime Income Bonuses" and a "Target Amount Adjustment." We also may increase the Lifetime Income Amount if you make additional Purchase Payments, or if we Step-up the Benefit Base to reflect current Contract Value. IMPACT OF WITHDRAWALS. Each time you take a withdrawal before the Lifetime Income Date, we reduce the Benefit Base by the amount of that withdrawal (including withdrawal charges). If, however, a withdrawal is an Excess Withdrawal, we will reduce the Benefit Base to equal the lesser of: - the Contract Value immediately after the withdrawal; or - the Benefit Base minus the amount of the withdrawal (including related withdrawal charges). If you take withdrawals prior to the Lifetime Income Date, we reduce the Benefit Base we use to determine the guaranteed Lifetime Income Amount on the Lifetime Income Date. You could eventually lose any benefit based on the Lifetime Income Amount if you take withdrawals in excess of 5% of the Benefit Base. If Contract Value declines to zero during a Contract Year in which you have an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus for Life Rider. (See "Settlement Phase," below) After the Lifetime Income Date, you may withdraw the guaranteed Lifetime Income Amount (inclusive of withdrawal charges) each Contract Year without affecting the Benefit Base. If your total withdrawals during a Contract Year exceed the Lifetime Income Amount, however, we will Reset (i.e., reduce) the Benefit Base and the Lifetime Income Amount. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the amount of the withdrawal is an Excess Withdrawal (i.e., a withdrawal, including any withdrawal charges, that exceeds the Lifetime Income Amount when combined with any other withdrawal for that Contract Year). If so, we will deduct the entire amount of the Excess Withdrawal (including any withdrawal charges) from the Benefit Base and compare the reduced Benefit Base to your Contract Value after the withdrawal. We next Reset the Benefit Base to equal the lesser of: - the reduced Benefit Base; or - the Contract Value immediately after the Excess Withdrawal. After we Reset the Benefit Base, we will Reset the Lifetime Income Amount to equal 5% of the new Benefit Base. We also will Reset the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year. In certain circumstances, we will not Reset the Benefit Base and/or the Lifetime Income Amount, even where a withdrawal would exceed the Lifetime Income Amount for a Contract Year. These circumstances involve withdrawals taken as "Life Expectancy Distributions" under an automatic distribution program provided by us (see "Life Expectancy Distribution Program" below). We do not change your Benefit Base or Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Lifetime Income Amount. 44 The Income Plus for Life Rider enters a "Settlement Phase" in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. (see "Settlement Phase" below). In the event of an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus for Life Rider if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. (See "Settlement Phase," below) The Income Plus for Life benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are all equal to zero. We may reduce Benefit Base and Lifetime Income Amount values if you take withdrawals that exceed the guaranteed amount of your withdrawals. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values. We reduce your Contract Value each time you take a withdrawal. EFFECT OF WITHDRAWALS ON GUARANTEED MINIMUM DEATH BENEFIT AMOUNT. If you purchase Income Plus for Life, we will adjust the way we calculate the death benefit payable under your Contract upon the death of the Owner (or deemed Owner if the Owner is not a natural person) during the Accumulation Period. We reduce that death benefit each time you take a withdrawal. We will reduce the death benefit on a dollar for dollar basis if: - you limit your withdrawals (including applicable withdrawal charges) during a Contract Year to the Lifetime Income Amount; or, - if you purchased the Income Plus for Life Rider before the Covered Person attained age 59 1/2, you limit your withdrawals (including applicable withdrawal charges) each Contract Year before the Lifetime Income Date to 5% of the Benefit Base, and to the Lifetime Income Amount for each Contract Year after that. If you take an Excess Withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the Guaranteed Minimum Death Benefit under the Contract. To do this, we reduce the Guaranteed Minimum Death Benefit by an amount equal to: - the Guaranteed Minimum Death Benefit before the withdrawal, multiplied by an amount equal to: - the amount of the withdrawal (including applicable withdrawal charges); divided by - the Contract Value before the withdrawal. We also will reduce the Guaranteed Minimum Death Benefit in the same manner for any subsequent Excess Withdrawals that you take during that Contract Year. INCREASES IN THE BENEFIT BASE. We will increase the Benefit Base: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; - to an established "Target Amount" if you take no withdrawals until the later of: (a) the Contract Anniversary on or next following the date the Covered Person attains age 70; and (b) the Contract Anniversary at the end of 10 Contract Years; and - to reflect certain additional Purchase Payments (see "Purchase Payments, above"). Bonuses, when applied, will increase the Benefit Base and the Lifetime Income Amount. LIFETIME INCOME BONUSES. We will increase the Benefit Base at the end of each Contract Year during one or more "Lifetime Income Bonus Periods" if you take no withdrawals during that Contract Year. For these purposes, the initial Lifetime Income Bonus Period coincides with the first 10 Contract Years while the Income Plus for Life Rider is in effect. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. Each time you qualify, we will increase the Benefit Base by a Lifetime Income Bonus equal to: - 6% of total Purchase Payments to your Contract if we did not previously Step-up the Benefit Base and/or the Lifetime Income Amount; otherwise - 6% of the Benefit Base immediately after the latest Step-up or Reset, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-up or Reset. We will not apply any Lifetime Income Bonus, however, to the extent it would increase the Benefit Base to an amount in excess of the maximum Benefit Base of $5 million. Step-ups will increase the Benefit Base and the Lifetime Income Amount. STEP-UPS. If the Contract Value on any Step-up Date is greater than the Benefit Base on that date, we will automatically increase ("Step-up") the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also recalculate the Lifetime Income Amount (after the Lifetime Income Date) and the Rider Fee (see "Rider Fees"). The recalculated Lifetime Income Amount will equal 5% of the new Benefit Base value after the Step-up, and the new Rider Fee will be based on the recalculated Benefit Base. We also reserve the right to increase the rate of the Income Plus for Life fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity 45 of no less than 30 days to decline the automatic Step-up (see "Income Plus for Life Fee"). If you decline the Step-up, the fee rate will not be increased. The Step-up Dates occur only while the Income Plus for Life Rider is in effect. We schedule the Step-up Dates starting with the first Contract Anniversary and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. If you decline an automatic Step-up, you will have the option to elect to Step-up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Benefit Base, we will thereafter resume automatic Step-ups. "TARGET AMOUNT" ADJUSTMENT. When you purchase the Income Plus for Life, we establish a "Target Amount" for a potential increase in the Benefit Base on a "Target Date." For these purposes, the Target Date is the later of: - the end of the first 10 Contract Years while the Income Plus for Life is in effect; or - the Contract Anniversary on or next following the date the Covered Person attains age 70. The Target Amount is 200% of the initial Purchase Payment for your Contract. We will increase the Target Amount by 200% of all additional Purchase Payments made in the first Contract Year and 100% of all subsequent Purchase Payments you make, subject to our Purchase Payment limits, until the applicable target date. In no event, however, will we set a Target Amount in excess of the maximum Benefit Base of $5 million. If you take no withdrawals under your Contract from the Income Plus for Life Rider's effective date until the applicable Target Date, we will adjust the Benefit Base to equal the greater of: - the current Benefit Base, as adjusted by any Lifetime Income Bonus or Step-up for the Contract Year ending on the Target Date; or - the Target Amount. LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse). For purposes of Income Plus for Life, withdrawals under our Life Expectancy Distribution program are distributions within a calendar year that are intended to be paid to you: - pursuant to Code Section 72(q)(2)(D) or Section 72(t)(2)(A)(iv) upon the request of the Owner (we sometimes refer to these as "Pre-59 1/2 Distributions"); or - pursuant to Code Section 72(s)(2) upon the request of the Beneficiary (we sometimes refer to these as "Non-Qualified Death Benefit Stretch Distributions"); or - as required or contemplated by Code Section 401(a)(9), Section 403(b)(10), Section 408(b)(3), or Section 408A, as the case may be (we sometimes refer to these as "Qualified Death Benefit Stretch Distributions" or "Required Minimum Distributions"). Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all "life expectancy" distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. We base our "life expectancy" calculations on our understanding and interpretation of the requirements under tax law applicable to Pre-59 1/2 Distributions, Required Minimum Distributions, Non-Qualified Death Benefit Stretch Distributions and Qualified Death Benefit Stretch Distributions. You should discuss these matters with your tax advisor prior to electing Income Plus for Life. Each withdrawal under our Life Expectancy Distribution program will reduce your Contract Value. In addition, if you purchased the rider before the Covered Person attains age 59 1/2, and you take the withdrawal before the Lifetime Income Date, we will reduce your Benefit Base by the amount of the withdrawal. We will not, however, Reset your Benefit Base or Lifetime Income Amount if a withdrawal under our Life Expectancy Distribution program (based on our current understanding and interpretation of the tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution program. 46 We will not make any further withdrawals under our Life Expectancy Distribution program if both the Contract Value and the Benefit Base are depleted to zero. We will make distributions as part of the Contract's "Settlement Phase," however, if the Lifetime Income Amount is greater than zero and the Covered Person is living at that time. We designed our Life Expectancy Distribution Program to provide minimum lifetime distributions as described or as required under certain sections of the Code. Withdrawals under our automatic Life Expectancy Distribution program will not be treated as Excess Withdrawals and will not Reset the Benefit Base or Lifetime Income Amount. SETTLEMENT PHASE. We automatically make settlement payments during Income Plus for Life's "Settlement Phase." The Settlement Phase begins if the Contract Value reduces to zero at any time during a Contract Year, there were no Excess Withdrawals during that Contract Year and the Benefit Base is still greater than zero at the time. In the event of an Excess Withdrawal, the Income Plus for Life Rider will not enter the Settlement Phase if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. We will not accept additional Purchase Payments, credit additional Bonus amounts, make any Step-ups or deduct any charge for the Income Plus for Life benefit during the Settlement Phase. At the beginning of the Settlement Phase, we will automatically begin paying an annual settlement amount to you. The settlement payment amount varies: - If the Lifetime Income Amount is greater than zero at the start of the Settlement Phase, we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year and make additional annual payments of the Lifetime Income Amount as long as the Covered Person is living. - If you purchased the Income Plus for Life Rider before the Covered Person attained age 59 1/2, and the Settlement Phase begins before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as the Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 5% of the Benefit Base at the Lifetime Income Date). - In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount. 47 IMPACT OF DEATH BENEFITS. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, Income Plus for Life will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum under our current administrative procedures. If the Beneficiary elects not to take the death benefit as a lump sum, the following will apply: IF A BENEFICIARY IS: THEN INCOME PLUS FOR LIFE: 1. The decedent's - may continue if the Beneficiary elects to continue spouse and the the Contract within the time we permit under our Covered Person is not administrative rules. We will automatically the deceased Owner increase the Benefit Base to equal the initial death benefit we determine, if the death benefit is greater than the Benefit Base prior to our determination. We will also recalculate the Lifetime Income Amount to equal 5% of the recalculated Benefit Base and will assess the Rider Fee based on the recalculated Benefit Base. - enters its Settlement Phase if a subsequent withdrawal would deplete the Contract Value to zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero. - continues to be eligible for any remaining Bonus amounts and Step-ups, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We will permit the spouse to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit and any future Step-ups if we increase the rate of the Income Plus for Life fee at that time. 2. Not the deceased - may continue in the same manner as 1. Owner's spouse and the Covered Person is - enters its Settlement Phase if a subsequent not the deceased withdrawal would deplete the Contract Value to Owner zero, and the remaining Lifetime Income Amount for the year of withdrawal is still greater than zero. - does not continue to be eligible for any Bonus amounts and Step-ups. We will permit the Beneficiary to opt out of an increase in the Benefit Base, if any, to reflect the initial death benefit if we increase the rate of the Income Plus for Life fee at that time. 3. The deceased - ends without any further benefit. Owner's spouse and the Covered Person is - we may determine to offer a new guaranteed minimum the deceased Owner withdrawal death benefit rider to the Beneficiary, subject to our current administrative rules and subject to rider's then current fees, but we provide no assurance that we will do so. 4. Not the deceased - ends without any further benefit. Owner's spouse and the Covered Person is the deceased Owner
If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Income Plus for Life continues, we will determine the Adjusted Benefit Base and the Rider fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Income Plus for Life Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments. If the Beneficiary is not the deceased Owner's spouse, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner's death. Otherwise, the entire interest must be distributed within five years of the Owner's death. TERMINATION. You may not terminate the Income Plus for Life Rider once it is in effect. However, the Income Plus for Life Rider will terminate automatically upon the earliest of: - the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; - the date an Annuity Option begins; - the date the Contract Value and the Benefit Base both equal zero; - the death of the Covered Person; or - termination of the Contract. The addition of Income Plus for Life to a Contract may not always be in your interest since an additional fee is imposed annually for this benefit and the Covered Person must attain Age 59 1/2 and remain living for you to receive certain benefits. Furthermore, Income Plus for Life limits the Investment Options otherwise available under the Contract, requires you to defer taking withdrawals to receive certain benefits, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provide no guaranteed withdrawal benefits once payments begin under certain Annuity Options described in the Prospectus. You should carefully consider each of these factors before deciding if Income Plus for Life is suitable for your needs, especially at older ages. 48 EXAMPLES. Please refer to Appendix C for hypothetical examples that illustrate the benefits under Income Plus for Life. Income Plus for Life - Joint Life (not available in New York) OVERVIEW. The Income Plus for Life - Joint Life Rider provides a guaranteed minimum withdrawal benefit, called the "Lifetime Income Amount" during the Accumulation Period. If both you and your spouse are age 59 1/2 or older when you purchase the Income Plus for Life Rider, the initial Lifetime Income Amount equals 4.75% of the initial Purchase Payment for your Contract on the Rider's effective date. (We do not count Purchase Payment amounts over $5 million or any Payment Enhancement attributable to the Purchase Payment for this purpose.) Otherwise, the initial Lifetime Income Amount equals 4.75% of the Benefit Base in effect on the Lifetime Income Date. If you subsequently limit your annual withdrawals to the Lifetime Income Amount, Income Plus for Life - Joint Life guarantees that we will make the Lifetime Income Amount benefit available to you, as long as either Covered Person remains alive and an Owner, Beneficiary or Annuitant under the Contract, even if your Contract Value reduces to zero. The Lifetime Income Amount reduces to zero upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant. Because we provide our guarantee over the lifetime of two Covered Persons under the Income Plus for Life - Joint Life Rider, we calculate a lower Lifetime Income Amount than we do under the Income Plus for Life Rider. If you defer taking withdrawals, we may increase the Lifetime Income Amount to reflect one or more "Lifetime Income Bonuses" and a "Target Amount Adjustment." We also may increase the Lifetime Income Amount if you make additional Purchase Payments, or if we Step-up the Benefit Base to reflect current Contract Value. IMPACT OF WITHDRAWALS. Each time you take a withdrawal before the Lifetime Income Date, we reduce the Benefit Base by the amount of that withdrawal (including withdrawal charges). If, however, a withdrawal is an Excess Withdrawal, we will reduce the Benefit Base to equal the lesser of: - the Contract Value immediately after the withdrawal; or - the Benefit Base minus the amount of the withdrawal (including related withdrawal charges) for that Contract Year. If you take withdrawals prior to the Lifetime Income Date, we reduce the Benefit Base we use to determine the guaranteed Lifetime Income Amount on the Lifetime Income Date. You could eventually lose any benefit based on the Lifetime Income Amount if you take withdrawals in excess of 4.75% of the Benefit Base. If Contract Value declines to zero during a Contract Year in which you have an Excess Withdrawal, you will lose the guaranteed minimum withdrawal benefit under the Income Plus for Life Rider (See "Settlement Phase," below) After the Lifetime Income Date, you may withdraw the guaranteed Lifetime Income Amount (inclusive of withdrawal charges) each Contract Year without affecting the Benefit Base. If your total withdrawals during a Contract Year exceed the Lifetime Income Amount, however, we will Reset (i.e., reduce) the Benefit Base and the Lifetime Income Amount. Each time you take a withdrawal after the Lifetime Income Date, we first determine if the amount of the withdrawal is an Excess Withdrawal (i.e., a withdrawal, including any withdrawal charges, that exceeds the Lifetime Income Amount when combined with any other withdrawal for that Contract Year). If so, we will deduct the entire amount of the Excess Withdrawal (including any withdrawal charges) from the Benefit Base and compare the reduced Benefit Base to your Contract Value after the withdrawal. We next Reset the Benefit Base to equal the lesser of: - the reduced Benefit Base; or - the Contract Value immediately after the Excess Withdrawal. After we Reset the Benefit Base, we will Reset the Lifetime Income Amount to equal 4.75% of the new Benefit Base. We also will Reset the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year. In certain circumstances, we will not Reset the Benefit Base and/or the Lifetime Income Amount, even where a withdrawal would exceed the Lifetime Income Amount for a Contract Year. These circumstances involve withdrawals taken as "Life Expectancy Distributions" under an automatic distribution program provided by us (see "Life Expectancy Distribution Program" below). We do not change your Benefit Base or Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Lifetime Income Amount. The Income Plus for Life - Joint Life Rider enters a "Settlement Phase" in any Contract Year that your Contract Value declines to zero if your Benefit Base is greater than zero at that time and you have taken no Excess Withdrawals during that Contract Year. (see "Settlement Phase" below). In the event of an Excess Withdrawal, the Income Plus for Life - Joint Life Rider will not enter the Settlement Phase if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. (See "Income Plus for Life - Calculation of Benefit Base.") The Income Plus for Life - Joint Life benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are all equal to zero. 49 We may reduce Benefit Base and Lifetime Income Amount values if you take withdrawals that exceed the guaranteed amount of your withdrawals. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values. We reduce your Contract Value each time you take a withdrawal. EFFECT OF WITHDRAWALS ON GUARANTEED MINIMUM DEATH BENEFIT AMOUNT. If you purchase the Income Plus for Life - Joint Life Rider, we will adjust the way we calculate the death benefit payable under your Contract upon death of the first Owner (or deemed Owner if the Owner is not a natural person) to die during the Accumulation Period. We reduce that death benefit each time you take a withdrawal. We will reduce the death benefit on a dollar for dollar basis if: - you limit your withdrawals (including applicable withdrawal charges) during a Contract Year to the Lifetime Income Amount; or, - if you purchased the Income Plus for Life - Joint Life Rider before the younger Covered Person attained age 59 1/2, you limit your withdrawals (including applicable withdrawal charges) each Contract Year before the Lifetime Income Date to 4.75% of the Benefit Base, and to the Lifetime Income Amount for each Contract Year after that. If you take an Excess Withdrawal, we will deduct the entire amount of that withdrawal (including any withdrawal charges) on a pro rata basis from the Guaranteed Minimum Death Benefit under the Contract. To do this, we reduce the Guaranteed Minimum Death Benefit by an amount equal to: - the Guaranteed Minimum Death Benefit before the withdrawal, multiplied by an amount equal to: - the amount of the withdrawal (including applicable withdrawal charges); divided by - the Contract Value before the withdrawal. We also will reduce the Guaranteed Minimum Death Benefit in the same manner for any subsequent Excess Withdrawals that you take during that Contract Year. INCREASES IN THE BENEFIT BASE. We will increase the Benefit Base: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; - to an established "Target Amount" if you take no withdrawals until the later of: (a) the Contract Anniversary on or next following the date the younger Covered Person attains age 70;and (b) the Contract Anniversary at the end of 10 Contract Years; and - to reflect certain additional Purchase Payments (see "Purchase Payments, above"). Bonuses, when applied, will increase the Benefit Base and the Lifetime Income Amount. LIFETIME INCOME BONUSES. We will increase the Benefit Base at the end of each Contract Year during one or more "Lifetime Income Bonus Periods" if you take no withdrawals during that Contract Year. For these purposes, the initial Lifetime Income Bonus Period coincides with the first 10 Contract Years while the Income Plus for Life - Joint Life Rider is in effect. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. - Each time you qualify, we will increase the Benefit Base by a Lifetime Income Bonus equal to: - 6% of total Purchase Payments to your Contract if we did not previously Step-up the Benefit Base and/or the Lifetime Income Amount; otherwise - 6% of the Benefit Base immediately after the latest Step-up or Reset, increased by the amount of any Purchase Payments applied to the Benefit Base since the latest Step-up or Reset. We will not apply any Lifetime Income Bonus, however, to the extent it would increase the Benefit Base to an amount in excess of the maximum Benefit Base of $5 million. Step-ups will increase the Benefit Base and the Lifetime Income Amount. STEP-UPS. If the Contract Value on any Step-up Date is greater than the Benefit Base on that date, we will automatically increase ("Step-up") the Benefit Base to equal the Contract Value (subject to the maximum Benefit Base limit of $5 million). We will also recalculate the Lifetime Income Amount (after the Lifetime Income Date) and the Rider Fee (see "Rider Fees"). The recalculated Lifetime Income Amount will equal 4.75% of the new Benefit Base value after the Step-up, and the new Rider Fee will be based on the recalculated Benefit Base. We also reserve the right to increase the rate of the Income Plus for Life fee up to a maximum rate of 1.20%. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up (see "Rider Fees"). If you decline the Step-up, the fee rate will not be increased. 50 The Step-up Dates occur only while the Income Plus for Life Rider is in effect. We schedule the Step-up Dates starting with the first Contract Anniversary and on each Contract Anniversary after that, up to and including the Age 95 Contract Anniversary. Each time a Step-up occurs, we will extend the Lifetime Income Bonus Period to the lesser of 10 years from the Step-up Date or the Age 95 Contract Anniversary. If you decline an automatic Step-up, you will have the option to elect to Step-up the Benefit Base (as well as Lifetime Income Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Benefit Base, we will thereafter resume automatic Step-ups. "TARGET AMOUNT" ADJUSTMENT. When you purchase the Income Plus for Life - Joint Life Rider, we establish a "Target Amount" for a potential increase in the Benefit Base on a "Target Date." For these purposes, the Target Date is the later of: - the end of the first 10 Contract Years while the Income Plus for Life - Joint Life Rider is in effect; or - the Contract Anniversary on or next following the date the younger spouse would have attained age 70. The Target Amount is 200% of the initial Purchase Payment for your Contract. We will increase the Target Amount by 200% of all additional Purchase Payments made in the first Contract Year and 100% of all subsequent Purchase Payments you make, subject to our Purchase Payment limits, until the applicable target date. In no event, however, will we set a Target Amount in excess of the maximum Benefit Base of $5 million. If you take no withdrawals under your Contract from the Income Plus for Life - Joint Life Rider's effective date until the applicable Target Date, we will adjust the Benefit Base to equal the greater of: - the current Benefit Base, as adjusted by any Lifetime Income Bonus or Step-up for the Contract Year ending on the Target Date; or - the Target Amount. LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse) as described in "Income Plus for Life - Life Expectancy Distribution Program," above. Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all "life expectancy" distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. SETTLEMENT PHASE. Income Plus for Life - Joint Life will enter its Settlement Phase as described in "Income Plus for Life - Settlement Phase," above, if the Contract Value reduces to zero during a Contract Year, you have taken no Excess Withdrawals during that Contract Year and the Benefit Base is still greater than zero at the time. In the event of an Excess Withdrawal, the Income Plus for Life - - Joint Life Rider will not enter the Settlement Phase if Contract Value declines to zero during the Contract Year of the Excess Withdrawal. During the Settlement Phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. We will not accept additional Purchase Payments, credit additional Bonus amounts, make any Step-ups or deduct any charge for the Income Plus for Life - Joint Life benefit during the Settlement Phase. At the beginning of the Settlement Phase, we will automatically begin paying an annual settlement amount to you. The settlement payment amount varies: - If the Lifetime Income Amount is greater than zero at the start of the Settlement Phase, we will pay an initial settlement amount equal to the remaining Lifetime Income Amount for that Contract Year and make additional annual payments of the Lifetime Income Amount as long as either Covered Person is living. - If you purchased the Income Plus for Life - Joint Life Rider before the younger Covered Person attained age 59 1/2, and the Settlement Phase begins before the Lifetime Income Date, we will begin making annual settlement payments following the Lifetime Income Date as long as either Covered Person is living. In this case, the annual amount will equal the Lifetime Income Amount (i.e., 4.75% of the Benefit Base at the Lifetime Income Date). - In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount. IMPACT OF DEATH BENEFITS. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, Income Plus for Life - Joint Life will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum under our current administrative procedures. If the Beneficiary elects not to take the death benefit as a lump sum, the following will apply. Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an "Owner" if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the 51 Contract's death benefit as a lump sum under our current administrative procedures. (See "Death after Removal of a Covered Person" below if there is no surviving Covered Person.) If the Contract continues, the Income Plus for Life - Joint Life Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only for the lifetime of the surviving Covered Person and continue to charge the Income Plus for Life - Joint Life Rider fee (See "Income Plus for Life - Joint Life Rider Fee" below). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Benefit Base, Lifetime Income Amount, Bonuses or Step-ups). We will treat any distribution of death benefits under a Contract as a "withdrawal" for purposes of subsequent calculations of the Benefit Base and the Lifetime Income Amount. If the first Covered Person to die is not is not the Owner (and is not deemed to be an "Owner" if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Income Plus for Life - Joint Life Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Benefit Base, Lifetime Income Amount, Bonuses or Step-ups. - If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the later of the Lifetime Income Date or the date we receive notice of the death of the first Covered Person. Settlement payments will equal the Lifetime Income Amount. WE MAY LIMIT THE ABILITY OF THE SURVIVING COVERED PERSON TO CHOOSE A SETTLEMENT PAYMENT AMOUNT AND DURATION THAT DIFFERS FROM THE AMOUNT AND DURATION IN EFFECT BEFORE THE DEATH OF THE FIRST COVERED PERSON. Death of Last Covered Person. If the surviving Covered Person dies while the Income Plus for Life - Joint Life Rider is in effect we will reduce the Lifetime Income Amount to zero and we no make no additional payments under the Rider to the Beneficiary. Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider (see "Covered Persons" above). If that happens and: - if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and - if the remaining Covered Person subsequently dies, we will consider that Covered Person to be the "last" Covered Person and the Rider will terminate. TERMINATION. The Income Plus for Life - Joint Life Rider terminates in accordance with the "Income Plus for Life - Termination" section, above. You should consult with your financial professional to assist you in determining whether the Income Plus for Life - Joint Life Rider is suited for your financial needs and investment risk tolerance. The addition of the Rider to a Contract may not always be in your interest since an additional fee is imposed annually for this benefit and at least one of the Covered Persons must attain age 59 1/2 and remain living for you to receive certain benefits. Furthermore this Rider limits the investment options otherwise available under the Contract, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described in the Prospectus. You should carefully consider each of these factors before purchasing an Income Plus for Life - Joint Life Rider. EXAMPLES. Please refer to Appendix C for hypothetical examples that illustrate the benefits under the Income Plus for Life - Joint Life Rider. Principal Plus for Life OVERVIEW. The optional Principal Plus for Life Rider provides a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, this Rider guarantees the return of your investments in the Contract, regardless of market performance, as long as you limit your withdrawals to a Guaranteed Withdrawal Amount each year, beginning on the date you purchase the Rider. The initial Guaranteed Withdrawal Amount equals 5% of your initial Purchase Payment for the Contract. (We do not count Purchase Payment amounts over $5 million or any Payment Enhancement attributable to the Purchase Payment for this purpose.) You can withdraw the Guaranteed Withdrawal Amount each year until the Guaranteed Withdrawal Balance is depleted to zero. In addition, we designed the Principal Plus for Life Rider to permit you to withdraw a minimum annual amount, called the Lifetime Income Amount, starting on a Lifetime Income Date. If you limit your annual withdrawals to the Lifetime Income Amount, we will make this benefit available as long as the Covered Person is alive and an Owner, Beneficiary or Annuitant under the Contract, even after you have recovered your investments in the Contract and even if your Contract Value reduces to zero. 52 IMPACT OF WITHDRAWALS. We decrease the Guaranteed Withdrawal Balance each time you take a withdrawal. If your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount, we will decrease the Guaranteed Withdrawal Balance by the amount of the withdrawals. If a withdrawal causes total withdrawals during a Contract Year to exceed the Guaranteed Withdrawal Amount (or if total withdrawals during a Contract Year have already exceeded the Guaranteed Withdrawal Amount), we will automatically Reset the Guaranteed Withdrawal Balance to equal the lesser of: - the Contract Value immediately after the withdrawal; or - the Guaranteed Withdrawal Balance immediately prior to the withdrawal minus the amount of the withdrawal. Each time we Reset the Guaranteed Withdrawal Balance, we also recalculate the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will equal the lesser of (a) the Guaranteed Withdrawal Amount prior to the withdrawal or (b) 5% of the greater of the Contract Value after the withdrawal or the new Guaranteed Withdrawal Balance value. After the Lifetime Income Date, we also will recalculate the Lifetime Income Amount if a withdrawal causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount (or if total withdrawals during a Contract Year have already exceeded the Lifetime Income Amount). In that case, the Lifetime Income Amount will equal the lesser of (a) the Lifetime Income Amount prior to the withdrawal or (b) 5% of the greater of the Contract Value immediately after the withdrawal or the new Guaranteed Withdrawal Balance value. In certain circumstances, however, we will not Reset the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and/or the Lifetime Income Amount, even where a withdrawal would exceed the Guaranteed Withdrawal Amount and/or Lifetime Income Amount for a Contract Year. These involve withdrawals taken as "Life Expectancy Distributions" under an automatic distribution program provided by us (see "Life Expectancy Distribution Program" below). We do not change your Guaranteed Withdrawal Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Guaranteed Withdrawal Amount. Similarly, we do not change your Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less that or equal to the Lifetime Income Amount. If you take any withdrawals prior to the Lifetime Income Date, the initial amount of the Lifetime Income Amount may be less than the Guaranteed Withdrawal Amount. Although you may continue to take withdrawals up to the Guaranteed Withdrawal Amount after the Lifetime Income Date without reduction of the Guaranteed Withdrawal Amount benefit (as long as there is a positive Guaranteed Withdrawal Balance value) your Lifetime Income Amount benefit may be reduced if the amount you withdraw exceeds the Lifetime Income Amount. You could eventually lose any benefit based on the Lifetime Income Amount if you continue to take withdrawals in excess of the Lifetime Income Amount. If your withdrawals are less than the full Guaranteed Withdrawal Amount available in any Contract Year, the remaining Guaranteed Withdrawal Amount cannot be carried forward to the next Contract Year. The Principal Plus for Life benefit enters a "Settlement Phase" if a withdrawal less than or equal to the Guaranteed Withdrawal Amount reduces the Contract Value to zero but either the Guaranteed Withdrawal Balance or the Lifetime Income Amount immediately after the withdrawal is greater than zero (see "Settlement Phase" below). The Principal Plus for Life benefit terminates if the Contract Value, Guaranteed Withdrawal Balance and Lifetime Income Amount immediately after a withdrawal are all equal to zero (see "Principal Plus for Life Fee" and "Termination" sections below.) If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we will recalculate amounts we guarantee for future withdrawals. We may Reset Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount values to reflect reductions that exceed the amount of your withdrawals. A Reset also may reduce the total amount guaranteed below the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount and Lifetime Income Amount values. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values. INCREASES IN THE GUARANTEED WITHDRAWAL BALANCE. We will increase the Guaranteed Withdrawal Balance: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; and - to reflect additional Purchase Payments (see "Purchase Payments, above"). Bonuses, when applied, will increase the Guaranteed Withdrawal Balance and may increase the Guaranteed Withdrawal Amount and the Lifetime Income Amount. BONUSES. We will increase the Guaranteed Withdrawal Balance at the end of each Contract Year during Principal Plus for Life's Bonus Period if you take no withdrawals during that Contract Year. For these purposes, the initial Bonus Period is the first 10 Contract Years. Each time a Step-up occurs, we will extend the Bonus Period to the lesser of: (a) 10 years from a Step-up Date; or (b) the Age 95 Contract Anniversary. Each time you qualify for a Bonus, we will increase the Guaranteed Withdrawal Balance: - by an amount equal to 5% of total Purchase Payments to the Contract if you did not previously Step-up the Guaranteed Withdrawal Balance and/or we did not previously Reset the Guaranteed Withdrawal Balance (see "Effects of Withdrawals" below); otherwise - by an amount equal to 5% of the Guaranteed Withdrawal Balance immediately after the latest Step-up or Reset, increased by any Purchase Payments received since such latest Step-up or Reset. 53 Each time we apply a Bonus to the Guaranteed Withdrawal Balance, we will also recalculate the Guaranteed Withdrawal Amount and the Lifetime Income Amount. The Guaranteed Withdrawal Amount will equal the greater of Guaranteed Withdrawal Amount prior to the Bonus or 5% of the Guaranteed Withdrawal Balance after the Bonus. The Lifetime Income Amount will equal the greater of the Lifetime Income Amount prior to the Bonus or 5% of the Guaranteed Withdrawal Balance after the Bonus. Step-ups will increase the Guaranteed Withdrawal Balance and may increase the Guaranteed Withdrawal Amount and the Lifetime Income Amount. STEP-UPS. If the Contract Value on any Step-up Date is greater than the Guaranteed Withdrawal Balance on that date, we will automatically increase ("Step-up") the Guaranteed Withdrawal Balance to equal the Contract Value (subject to the maximum Guaranteed Withdrawal Balance limit of $5 million). Each time we apply a Step-up, we will also recalculate the Guaranteed Withdrawal Amount, the Lifetime Income Amount, and the Rider Fee (see "Principal Plus for Life Fee"). The Guaranteed Withdrawal Amount will equal the greater of the Guaranteed Withdrawal Amount prior to the Step-up or 5% of the new Guaranteed Withdrawal Balance value after the Step-up and the Lifetime Income Amount will equal the greater of the Lifetime Income Amount prior to the Step-up or 5% of the new Guaranteed Withdrawal Balance value after the Step-up. We also reserve the right to increase the rate of the Principal Plus for Life fee up to a maximum rate of 0.75%. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up (see "Principal Plus for Life Fee"). If you decline the Step-up, the fee rate will not be increased. The Step-up Dates occur only while the Principal Plus for Life Benefit is in effect. We schedule the Step-up Dates for the 3rd, 6th and 9th Contract Anniversary after the Contract Date. After the 9th Contract Anniversary, we increase the schedule of Step-up Dates to include each succeeding Contract Anniversary (e.g., the 10th, 11th, 12th etc.) up to and including the Age 95 Contract Anniversary. (In Oregon, we limit the duration of Step-Up Dates to a maximum of 50 Contract Years.) If you decline an automatic Step-up, you will have the option to elect to Step-up the Guaranteed Withdrawal Balance (as well as the Guaranteed Withdrawal Amount and Lifetime Income Amount) within 30 days of subsequent Step-up Dates. If you decide to Step-up the Guaranteed Withdrawal Balance, we will thereafter resume automatic Step-ups. LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse). For purposes of Principal Plus for Life, withdrawals under our Life Expectancy Distribution program are distributions within a calendar year that are intended to be paid to you: - pursuant to Code Section 72(q)(2)(D) or Section 72(t)(2)(A)(iv) upon the request of the Owner (we sometimes refer to these as "Pre-59 1/2 Distributions"); or - pursuant to Code Section 72(s)(2) upon the request of the Beneficiary (we sometimes refer to these as "Non-Qualified Death Benefit Stretch Distributions"); or - as required or contemplated by Code Section 401(a)(9), Section 403(b)(10), Section 408(b)(3), or Section 408A, as the case may be (we sometimes refer to these as "Qualified Death Benefit Stretch Distributions" or "Required Minimum Distributions"). Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract's proportional share of all "life expectancy" distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. We base our life expectancy calculations on our understanding and interpretation of the requirements under tax law applicable to Pre-59 1/2 Distributions, Required Minimum Distributions, Non-Qualified Death Benefit Stretch Distributions and Qualified Death Benefit Stretch Distributions. You should discuss these matters with your tax advisor prior to electing Principal Plus for Life. Each withdrawal under our Life Expectancy Distribution program will reduce your Contract Value and your Guaranteed Withdrawal Balance. We will not, however, Reset your Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or Lifetime Income Amount if a withdrawal under our Life Expectancy Distribution program (based on our current understanding and interpretation of the tax law) causes total withdrawals during a Contract Year to exceed the Guaranteed Withdrawal Amount or Lifetime Income Amount, as applicable and all withdrawals during that year were under our Life Expectancy Distribution program. We will not make any further withdrawals under our Life Expectancy Distribution program if both the Contract Value and the Guaranteed Withdrawal Balance are depleted to zero. We will make distributions as part of the Contract's "Settlement Phase," however, if the Lifetime Income Amount is greater than zero and the Covered Person is living at that time. We designed our Life Expectancy Distribution Program to provide minimum lifetime distributions as described or as required under certain sections of the Code. Withdrawals under our automatic Life Expectancy Distribution program will not be treated as excess withdrawals and will not Reset the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount or Lifetime Income Amount. 54 SETTLEMENT PHASE. We automatically make settlement payments during Principal Plus for Life's "Settlement Phase." The Settlement Phase begins if total withdrawals during the Contract Year, are equal to or less than the Guaranteed Withdrawal Amount, the Contract Value reduces to zero and either the Guaranteed Withdrawal Balance or the Lifetime Income Amount immediately after the withdrawal is still greater than zero. During this phase, the Contract will continue but all other rights and benefits under the Contract, including death benefits and any additional Riders, terminate. We will not accept additional Purchase Payments and we will not deduct any charge for the Principal Plus for Life benefit during the Settlement Phase. At the beginning of the Settlement Phase, you generally may choose an annual settlement payment amount that we will automatically pay to you. The settlement payment amount we permit you to choose varies: - You may choose an amount that is no greater than, or equal to, the Guaranteed Withdrawal Amount if the Guaranteed Withdrawal Balance is greater than zero at the beginning of the Settlement Phase. We reduce any remaining Guaranteed Withdrawal Balance each time we make a settlement payment, and automatically pay the settlement amount to you each Contract Year while the Covered Person is alive until the Guaranteed Withdrawal Balance reduces to zero. After that, we will make settlement payments to you each Contract Year during the Covered Person's lifetime in an amount that is equal to any remaining Lifetime Income Amount value. Keep in mind that in certain circumstances the Lifetime Income Amount may be less than the Guaranteed Withdrawal Amount, and under those circumstances your choice of an amount in excess of the Lifetime Income Amount could result in a reduction of the Lifetime Income Amount (see "Effect of Withdrawals"). - You may choose to continue to receive distribution payments under the Life Expectancy Distribution program if the program is in effect and the Guaranteed Withdrawal Balance is greater than zero at the beginning of the Settlement Phase. If you do, we will reduce any remaining Guaranteed Withdrawal Balance each time we make a distribution payment and automatically make distribution payments each Contract Year while the Covered Person is alive until the Guaranteed Withdrawal Balance reduces to zero (see "Life Expectancy Distribution Program"). After that, we will make settlement payments to you each Contract Year during the Covered Person's lifetime in an amount that is equal to any remaining Lifetime Income Amount value. - We will make settlement payments to you each Contract Year during the Covered Person's lifetime in an amount that is equal to the Lifetime Income Amount if there is no remaining Guaranteed Withdrawal Balance at the beginning of the Settlement Phase. If the Covered Person is alive when the Guaranteed Withdrawal Balance is depleted, we will continue to make settlement payments each Contract Year during the Covered Person's lifetime in an amount that is equal to the Lifetime Income Amount. - After the Life Income Date, if you choose to receive a settlement payment that is in excess of the Lifetime Income Amount, we will recalculate the Lifetime Income Amount in the same manner as a withdrawal that exceeds the Lifetime Income Amount (see "Effect of Withdrawals" above). We do not recalculate the Lifetime Income Amount, however, if you receive distribution payments under the Life Expectancy Distribution program. 55 IMPACT OF DEATH BENEFITS. If a death benefit becomes payable during the Accumulation Period but before the Settlement Phase, Principal Plus for Life will end if the Beneficiary takes the death benefit provided under the terms of the Contract as a lump sum under our current administrative procedures. If the Beneficiary elects not to take the death benefit as a lump sum, the following will apply: IF A BENEFICIARY IS: THEN PRINCIPAL PLUS FOR LIFE: 1. The deceased Owner's - Does not continue with respect to the spouse and the deceased Lifetime Income Amount, but continues with Owner is the Covered Person respect to the Guaranteed Withdrawal Amount if the death benefit or the Guaranteed Withdrawal Balance is greater than zero. We will automatically Step-up the Guaranteed Withdrawal Balance to equal the initial death benefit we determine, if greater than the Guaranteed Withdrawal Balance prior to the death benefit. - Enters the Settlement Phase if a withdrawal would deplete the Contract Value to zero, and the Guaranteed Withdrawal Balance is still greater than zero. - Continues to impose the Principal Plus for Life fee. - Continues to be eligible for any remaining Bonuses and Step-ups, but we will change the date we determine and apply these benefits to future anniversaries of the date we determine the initial death benefit. We will permit the spouse to opt out of the initial death benefit Step-up, if any, and any future Step-ups if we increase the rate of the Principal Plus for Life fee at that time. 2. Not the deceased Owner's Continues in the same manner as 1., except that spouse and the deceased Owner Principal Plus for Life does not continue to be is the Covered Person eligible for any remaining Bonuses and Step-ups, other than the initial Step-up of the Guaranteed Withdrawal Balance to equal the death benefit, if greater than the Guaranteed Withdrawal Balance prior to the death benefit. We will permit the Beneficiary to opt out of the initial death benefit Step-up, if any, if we increase the rate of the Principal Plus for Life fee at that time. 3. The deceased Continues in the same manner as 1., except that Owner's spouse and the Principal Plus for Life continues with respect deceased Owner is not the to the Lifetime Income Amount for the Covered Person Beneficiary. If the Lifetime Income Amount has not been determined prior to the payment of any portion of the death benefit, we will determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached age 59 1/2. 4. Not the deceased Continues in the same manner as 1., except that Owner's spouse and the Principal Plus for Life continues with respect deceased Owner is not the to the Lifetime Income Amount for the Covered Person Beneficiary. If the Lifetime Income Amount has not been determined prior to the payment of any portion of the death benefit, we will determine the initial Lifetime Income Amount on an anniversary of the date we determine the death benefit after the Covered Person has reached age 59 1/2. In this case, Principal Plus for Life does not continue to be eligible for any remaining Bonuses and Step-ups, other than the initial Step-up of the Guaranteed Withdrawal Balance to equal the death benefit, if greater than the Guaranteed Withdrawal Balance prior to the death benefit. We will permit the Beneficiary to opt out of the initial death benefit Step-up, if any, if we increase the rate of the Principal Plus for Life fee at that time. If the Beneficiary does not take the death benefit as a lump sum under the terms of the Contract and Principal Plus for Life continues, we will determine the Adjusted Guaranteed Withdrawal Balance and the fee based on the date we determine the death benefit, and anniversaries of that date, instead of the initial Contract Anniversary date. If you die during the Settlement Phase, the only death benefits we provide are the remaining settlement payments that may become due under the Principal Plus for Life Rider. If the Covered Person dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero. If the Beneficiary is the deceased Owner's spouse, the surviving spouse may choose the amount of the settlement payments up to the Guaranteed Withdrawal Amount. If the Beneficiary is not the deceased Owner's spouse, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of the Owner's death. Otherwise, the entire interest must be distributed within five years of the Owner's death. 56 TERMINATION. You may not terminate the Principal Plus for Life Rider once it is in effect. However, Principal Plus for Life will terminate automatically upon the earliest of: - the date a death benefit is payable and the Beneficiary takes the death benefit as a lump sum under the terms of the Contract; - the date an Annuity Option under the Contract begins; - the date the Contract Value, the Guaranteed Withdrawal Balance and the Lifetime Income Amount all equal zero; or - termination of the Contract. The addition of Principal Plus for Life to a Contract may not always be in your interest since an additional fee is imposed annually for this benefit and the Covered Person must attain age 59 1/2 and remain living for you to receive certain benefits. Furthermore, Principal Plus for Life limits the Investment Options otherwise available under the Contract, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described in the Prospectus. You should carefully consider each of these factors before deciding if Principal Plus for Life is suitable for your needs, especially at older ages. EXAMPLES. Please refer to Appendix C for hypothetical examples that illustrate the benefits under Principal Plus for Life. Principal Plus for Life Plus Automatic Annual Step-up OVERVIEW. This version of the Principal Plus for Life optional benefit Rider is the same as the standard Principal Plus for Life optional benefit Rider, except that it provides annual "Step-up Dates" and we charge a different fee (see "Rider Fees," above). Please refer to the description of Principal Plus for Life, above, for a general overview of this Rider. IMPACT OF WITHDRAWALS. Please refer to the description of Principal Plus for Life, above, for information on the impact of withdrawals on the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount. If your annual withdrawals exceed the Guaranteed Withdrawal Amount, we will recalculate amounts we guarantee for future withdrawals. We may Reset Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount values to reflect reductions that exceed the amount of your withdrawals. A Reset also may reduce the total amount guaranteed below the total of your Purchase Payments and may reduce or eliminate future Guaranteed Withdrawal Amount and Lifetime Income Amount values. Withdrawals in excess of the Lifetime Income Amount may reduce or eliminate future Lifetime Income Amount values. INCREASES IN THE GUARANTEED WITHDRAWAL BALANCE. We will increase the Guaranteed Withdrawal Balance: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; and - to reflect additional Purchase Payments (see "Purchase Payments, above"). BONUSES. Please refer to the description of Principal Plus for Life - "Bonuses," above, for information on Bonus qualification and effect. STEP-UPS. If you elect this Rider, we will automatically increase ("Step-up") the Guaranteed Withdrawal Balance to equal the Contract Value on each Contract Anniversary starting with the first Contract Anniversary up to and including the Age 95 Contract Anniversary while the Rider is in effect, provided the Contract Value is greater than the Guaranteed Withdrawal Balance on that date (and provided you have not chosen to decline the Step-up as described under "Principal Plus for Life - Step-up of Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount.") (In Oregon, we limit the maximum duration of Step-Up Dates to 50 years.) Each time we apply a Step-up, we will also recalculate the Guarantee Withdrawal Amount and the Lifetime Income Amount as described under "Principal Plus for Life - Step-up of Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount." We also reserve the right to increase the rate of the Principal Plus for Life Plus Automatic Annual Step-up Rider fee up to a maximum rate of 1.20% of the Adjusted Guaranteed Withdrawal Balance. If we decide to increase the rate at the time of a Step-up, you will receive advance notice and be given the opportunity of no less than 30 days to decline the automatic Step-up. If you decline the Step-up, the fee rate will not be increased. If you decline an automatic Step-up, you will have the option to elect to Step-up the Guaranteed Withdrawal Balance (as well as the Guaranteed Withdrawal Amount and Lifetime Income Amount) within 30 days of subsequent annual Step-up dates. If you decide to Step-up the Guaranteed Withdrawal Balance, we will thereafter resume automatic annual Step-ups. 57 We reserve the right to increase the Principal Plus for Life Plus Automatic Annual Step-up Rider fee on the effective date of each Step-up. In such situation, the Principal Plus for Life Plus Automatic Annual Step-up Rider fee will never exceed 1.20% of the Adjusted Guaranteed Withdrawal Balance. You should consult with your financial professional to assist you in determining whether the Principal Plus for Life Plus Automatic Annual Step-up Rider is suited for your financial needs and investment risk tolerance. The addition of the Rider to a Contract may not always be in your interest since an additional fee is imposed annually for this benefit and there is no assurance that your Contract Value will be sufficient on any Step-up date to receive an increase (Step-up) in the guarantees we provide under the Rider. The amount that may be provided by more frequent Step-up dates under the Principal Plus for Life Plus Automatic Annual Step-up Rider, may, over time, be more than offset by the additional fees and charges associated with this Rider compared to the Principal Plus for Life Rider Furthermore, similar to Principal Plus for Life, this Rider limits the Investment Options otherwise available under the Contract, requires the Covered Person to attain age 59 1/2 and remain living for you to receive certain benefits, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described in the Prospectus. You should carefully consider each of these factors which are outlined in the Prospectus before purchasing a Principal Plus for Life Plus Automatic Annual Step-up Rider. EXAMPLES. Please refer to Appendix C for hypothetical examples that illustrate the benefits under Principal Plus for Life Plus Automatic Annual Step-up. ANNUAL STEP DEATH BENEFIT You may elect the optional Annual Step Death Benefit: - for an additional charge of 0.20% of the value of the Variable Investment Options; and - AS LONG AS THE OLDEST OWNER OF A CONTRACT IS NOT AGE 80 OR OLDER AT THE TIME OF PURCHASE. (We impose this restriction because the Annual Step Death Benefit would be zero if the oldest Owner were age 80 or older on the effective date of the Rider.) Election of this optional benefit may only be made at the time the Contract is issued and, once made, is irrevocable. The amount of the death benefit for the optional Annual Step Death Benefit is the greater of: - the death benefit described under "Death Benefit During Accumulation Period"; or - the Annual Step Death Benefit. The Annual Step Death Benefit is the greatest Anniversary Value after the effective date of the Optional Annual Step Death Benefit but prior to the oldest Owner's 81st birthday. The Anniversary Value is equal to the Contract Value on the last day of the Contract Year, plus subsequent Purchase Payments, less amounts deducted in connection with partial withdrawals since the last day of the Contract Year. The amount deducted in connection with partial withdrawals will be on a pro rata basis and will be equal to (a) times (b) where: (a) is equal to the optional Annual Step Death Benefit prior to the withdrawal; and (b) is equal to the partial withdrawal amount divided by the Contract Value prior to the partial withdrawal. If the Beneficiary under the Contract is the Contract Owner's surviving spouse and elects to continue the Contract, the Contract and the Optional Annual Step Death Benefit will continue with the surviving spouse as the new Contract Owner. For purposes of calculating the Optional Annual Step Death Benefit payable upon the death of the surviving spouse, the death benefit paid upon the first Owner's death will be treated as a payment to the Contract. In addition, all payments made and all amounts deducted in connection with partial withdrawals prior to the date the first death benefit is paid will not be considered in determination of the optional Annual Step Death Benefit. In determination of the optional Annual Step Death Benefit, the Anniversary Values for all prior Contract Anniversaries will be set to zero as of the date the first death benefit is paid. Termination of the Optional Annual Step Death Benefit The Optional Annual Step Death Benefit will terminate upon the earliest to occur of (a) the date the Contract terminates, (b) the Maturity Date; or (c) the date on which the Optional Annual Step Death Benefit is paid. However, as noted in the paragraph above, if the deceased Owner's spouse is the Beneficiary, the spouse may elect to continue the Contract (including the Optional Annual Step Death Benefit) as the new Owner. 58 Annual Step Death Benefit Fee A daily charge in an amount equal to 0.20% of the value of each variable Investment Account on an annual basis is deducted from each Sub-Account for the Annual Step Death Benefit. Qualified Plans If you intend to use your Contract in connection with a Qualified Plan, including an IRA, you should consider the effects that the death benefit provided under the Contract (with or without Annual Step Death Benefit) may have on your plan (see Appendix C: "Guaranteed Minimum Withdrawal Benefit Riders Examples"). Please consult your tax advisor. The addition of the Annual Step Death Benefit to a Contract may not always be in your interest since an additional fee is imposed for this benefit and we provide no assurance that investment performance will result in an increased death benefit. 59 VII. CHARGES AND DEDUCTIONS We assess charges and deductions under the Contracts against Purchase Payments or Contract Values. Currently, there are no deductions made from Purchase Payments. In addition, there are deductions from and expenses paid out of the assets of the Funds that are described in the Fund prospectuses. For information on the optional benefit fees, see "VI. Optional Benefits" above. WITHDRAWAL CHARGES If you make a withdrawal from your Contract during the Accumulation Period, we may assess a withdrawal charge. We base the withdrawal charge on Purchase Payments that have been in the Contract less than 9 complete Contract Years. We do not assess a withdrawal charge with respect to i) earnings accumulated in the Contract, ii) Payment Enhancements and any earnings attributable to Payment Enhancements, iii) certain other "free withdrawal amounts" described below, or iv) Purchase Payments that have been in the Contract more than 9 complete Contract Years. In no event may the total withdrawal charges exceed 8.5% of the amount invested. We first allocate a withdrawal to a "free withdrawal amount" and second to "unliquidated Purchase Payments." We do not impose a withdrawal charge on amounts allocated to the free withdrawal amount. In any Contract Year, the free withdrawal amount for that year is the greater of: - 10% of total Purchase Payments (less all prior partial withdrawals in that Contract Year), and - the accumulated earnings of the Contract (i.e., the excess of the Contract Value on the date of withdrawal over unliquidated Purchase Payments). Withdrawals of up to the free withdrawal amount may be withdrawn without the imposition of a withdrawal charge. The free withdrawal amount will be applied first to withdrawals from Variable Investment Options and then to withdrawals from the Fixed Investment Options. If the amount of a withdrawal exceeds the free withdrawal amount, the excess will be allocated to Purchase Payments which will be "liquidated" on a first-in first-out basis. On any withdrawal request, we will liquidate Purchase Payments equal to the amount of the withdrawal request which exceeds the free withdrawal amount in the order the Purchase Payments were made: the oldest unliquidated Purchase Payment first, the next Purchase Payment second, etc., until all Purchase Payments have been liquidated. Upon a full surrender of a Contract, we will liquidate the excess of all unliquidated Purchase Payments over the free withdrawal amount for purposes of calculating the withdrawal charge. Each Purchase Payment (or portion thereof) liquidated in connection with a withdrawal request is subject to a withdrawal charge based on the length of time the Purchase Payment has been in the Contract. The amount of the withdrawal charge is calculated by multiplying the amount of the Purchase Payment being liquidated by the applicable withdrawal charge percentage shown below. MAXIMUM WITHDRAWAL CHARGE (as percentage of Purchase Payments) First Year 8.5% Second Year 8.5% Third Year 8% Fourth Year 7% Fifth Year 6% Sixth Year 5% Seventh Year 4% Eighth Year 3% Ninth Year 2% Thereafter 0%
The total withdrawal charge will be the sum of the withdrawal charges for the Purchase Payments being liquidated. The withdrawal charge is deducted from the Contract Value remaining after the Contract Owner is paid the amount requested, except in the case of a complete withdrawal when it is deducted from the amount otherwise payable. In the case of a partial withdrawal, the amount requested from an Investment Account may not exceed the value of that Investment Account minus any applicable withdrawal charge. There is generally no withdrawal charge on distributions made as a result of the death of the Contract Owner or, if applicable, the Annuitant. In addition, no withdrawal charges are imposed on annuity payments. 60 Withdrawal charges help to compensate us for the cost of selling the Contracts. The amount of the charges in any Contract Year does not specifically correspond to sales expenses for that year. We expect to recover our total sales expenses over the life of the Contracts. To the extent that the withdrawal charges do not cover total sales expenses, the sales expenses may be recovered from other sources, including gains from the asset-based risk charge and other gains with respect to the Contracts or from our general assets. Similarly, administrative expenses not fully recovered by the administration fee may also be recovered from such other sources. For examples of calculation of the withdrawal charge, see Appendix A: "Examples of Calculation of Withdrawal Charge." Waiver of Applicable Withdrawal Charge - Confinement to Eligible Nursing Home (John Hancock USA Contracts only; not available in MA and NY) In states where approved, any applicable withdrawal charge will be waived on a total withdrawal prior to the Maturity Date if all the following apply: - the Owner has been confined to an "Eligible Nursing Home" for at least 180 days (the waiver does not apply to the confinement of any Annuitant unless the Owner is a non-natural person), - the confinement began at least one year after the Contract Date, - confinement was prescribed by a "Physician," - both the Owner and the Annuitant are alive as of the date we pay the proceeds of such total withdrawal, - the request for a total withdrawal and "Due Proof of Confinement" are received by us, in good order, no later than 90 days after discharge. An "Eligible Nursing Home" is a licensed "Long Term Care Facility" or "Hospital" providing medically necessary inpatient care that is prescribed in writing by a licensed "Physician" and is based on physical limitations which requires daily living in an institutional setting. A "Long Term Care Facility" is a facility which (a) is located in the United States or its territories; (b) is licensed by the jurisdiction in which it located; (c) provides custodial care under the supervision of a registered nurse (R.N.); and (d) can accommodate three or more persons. A "Hospital" is a facility which is (a) licensed as a Hospital by the jurisdiction in which it is located; (b) is supervised by a staff of licensed physicians; (c) provides nursing services 24 hours a day by, or under the supervision of, a registered nurse (R.N.); (d) operates primarily for the care and treatment of sick or injured persons as inpatients for a charge; and (e) has access to medical, diagnostic and major surgical facilities. A "Physician" is a person other than you, the Annuitants(s) or a member of your or the Annuitant's families who is a licensed medical doctor (M.D.) or a licensed doctor of osteopathy (D.O.), practicing within the scope of that license. "Due Proof of Confinement" is a letter signed by a Physician containing: (a) the date the Owner was confined, (b) the name and location of the Eligible Nursing Home, (c) a statement that the confinement was medically necessary in the judgment of the Physician and (d) if applicable, the date the Owner was released from the Eligible Nursing Home. The waiver is only applicable for total withdrawals and does not apply to partial withdrawals. The waiver described above is not available in all states and certain terms may vary depending on the state of issue as noted in your Contract. Withdrawals may be taxable and if made prior to age 59 1/2 may be subject to a 10% penalty (see "VIII. Federal Tax Matters"). ANNUAL CONTRACT FEE We will deduct each year an annual Contract fee of $40 as partial compensation for the cost of providing all administrative services attributable to the Contracts and the operations of the Separate Accounts and us in connection with the Contracts. However, if prior to the Maturity Date the Contract Value is equal to or greater than $99,000 at the time of the fee's assessment, we will waive the annual Contract fee. During the Accumulation Period, this administration fee is deducted on the last day of each Contract Year. It is withdrawn from each investment option in the same proportion that the value of such investment option bears to the Contract Value. If the entire Contract is withdrawn on other than the last day of any Contract Year, the $40 administration fee will be deducted from the amount paid. During the Pay-out Period, the fee is deducted on a pro-rata basis from each annuity payment. ASSET-BASED CHARGES We deduct asset-based charges for administration, distribution and mortality and expense risks. We do not assess asset-based charges against Fixed Investment Options. Daily Administration Fee We allocate a portion of the asset-based charges shown in the Fee Tables to help cover our administrative expenses. We deduct a daily charge in an amount equal to 0.30% of the value of each Variable Investment Option on an annual basis, deducted from each Sub-Account to reimburse us for administrative expenses. The charge will be reflected in the Contract Value as a proportionate reduction in the value of each Variable Investment Option. Even though administrative expenses may increase, we guarantee that it will not increase the amount of the administration fees. 61 Mortality and Expense Risks Fee The mortality risk we assume is the risk that Annuitants may live for a longer period of time than we estimate. We assume this mortality risk by virtue of annuity payment rates incorporated into the Contract which cannot be changed. This assures each Annuitant that his or her longevity will not have an adverse effect on the amount of annuity payments. We also assume mortality risks in connection with our guarantee that, if the Contract Owner dies during the Accumulation Period, we will pay a death benefit (see "Death Benefit During Accumulation Period"). The expense risk we assume is the risk that the administration charges, distribution charge, or withdrawal charge may be insufficient to cover actual expenses. To compensate us for assuming these risks, we deduct from each of the Sub-Accounts a daily charge in an amount equal to 1.25% of the value of the Variable Investment Options on an annual basis. The rate of the mortality and expense risks charge cannot be increased. If the charge is insufficient to cover the actual cost of the mortality and expense risks assumed, we will bear the loss. Conversely, if the charge proves more than sufficient, the excess will be profit to us and will be available for any proper corporate purpose including, among other things, payment of distribution expenses. On the Period Certain Only Annuity Option, if you elect benefits payable on a variable basis, the mortality and expense risks charge is assessed although we bear only the expense risk and not any mortality risk. REDUCTION OR ELIMINATION OF CHARGES AND DEDUCTIONS We may reduce or eliminate the amount of the charges and deductions for certain Contracts where permitted by state law. These Contracts would involve sales that are made to individuals or to a group of individuals in a manner that results in savings of sales or maintenance expenses or that we expect may result in reduction of other risks that are normally associated with the Contracts. We will determine entitlement to such a reduction in the charges or deductions in the following manner: - We will consider the size and type of group to which sales are to be made. Generally, sales expenses for a larger group are smaller than for a smaller group because of the ability to implement large numbers of Contracts with fewer sales contacts. - We will consider the total amount of Purchase Payments to be received. Per-dollar sales expenses are likely to be less on larger Purchase Payments than on smaller ones. - We will consider the nature of the group or class for which the Contracts are being purchased including the expected persistency, mortality or morbidity risks associated with the group or class of Contracts. - We will consider any prior or existing relationship with us. Per-Contract sales expenses are likely to be less when there is a prior or existing relationship because of the likelihood of implementing the Contract with fewer sales contacts. - We will consider the level of commissions paid to selling broker-dealers. Certain broker-dealers may offer the Contract in connection with financial planning programs offered on a fee-for-service basis. In view of the financial planning fees, such broker-dealers may elect to receive lower commissions for sales of the Contracts, thereby reducing our sales expenses. - There may be other circumstances of which we are not presently aware, which could result in reduced expenses. If after consideration of the foregoing factors, we determine that there will be a reduction in expenses, we will provide a reduction in the charges or deductions. In no event will we permit reduction or elimination of the charges or deductions where that reduction or elimination will be unfairly discriminatory to any person. For further information, contact your registered representative. 62 PREMIUM TAXES We will charge you for state premium taxes to the extent we incur them and reserve the right to charge you for new taxes we may incur. We make deductions for any applicable premium or similar taxes based on the amount of a Purchase Payment. Currently, certain local jurisdictions assess a tax of up to 4% of each Purchase Payment. In most cases, we deduct a charge in the amount of the tax from the total value of the Contract only at the time of annuitization, death, surrender, or withdrawal. We reserve the right, however, to deduct the charge from each Purchase Payment at the time it is made. We compute the amount of the charge by multiplying the applicable premium tax percentage times the amount you are withdrawing, surrendering, annuitizing or applying to a death benefit.
PREMIUM TAX RATE ------------------------- STATE OR QUALIFIED NON-QUALIFIED TERRITORY CONTRACTS CONTRACTS - --------- --------- ------------- CA 0.50% 2.35% GUAM 4.00% 4.00% ME(1) 0.00% 2.00% NV 0.00% 3.50% PR 3.00% 3.00% SD(1) 0.00% 1.25%(2) WV 1.00% 1.00% WY 0.00% 1.00%
(1) We pay premium tax upon receipt of Purchase Payment. (2) 0.80% on Purchase Payments in excess of $500,000. 63 VIII. FEDERAL TAX MATTERS INTRODUCTION The following discussion of the Federal income tax treatment of the Contract is not exhaustive, does not purport to cover all situations, and is not intended as tax advice. The Federal income tax treatment of an annuity contract is unclear in certain circumstances, and you should consult a qualified tax advisor with regard to the application of the law to your circumstances. This discussion is based on the Code, IRS regulations, and interpretations existing on the date of this Prospectus. These authorities, however, are subject to change by Congress, the Treasury Department, and judicial decisions. This discussion does not address state or local tax consequences associated with the purchase of a Contract. IN ADDITION, WE MAKE NO GUARANTEE REGARDING ANY TAX TREATMENT -- FEDERAL, STATE, OR LOCAL -- OF ANY CONTRACT OR OF ANY TRANSACTION INVOLVING A CONTRACT. OUR TAX STATUS We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of a Separate Account in our taxable income and take deductions for investment income credited to our "policyholder reserves." We are also required to capitalize and amortize certain costs instead of deducting those costs when they are incurred. We do not currently charge a Separate Account for any resulting income tax costs. We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the Funds. These benefits can be material. We do not pass these benefits through to a Separate Account, principally because: (i) the deductions and credits are allowed to the Company and not the Contract owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on a Separate Account assets that is passed through to Contract owners. The Contracts permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the Contracts or a Separate Account. Currently, we do not anticipate making a charge for such taxes. If the level of the current taxes increases, however, or is expected to increase in the future, we reserve the right to make a charge in the future. SPECIAL CONSIDERATIONS FOR OPTIONAL BENEFITS At present, the IRS has not provided guidance as to the tax treatment of charges for optional benefits to an annuity contract. The IRS might take the position that each charge associated with these optional benefits is deemed a withdrawal from the Contract subject to current income tax to the extent of any gains and, if applicable, the 10% penalty tax for premature withdrawals. We do not currently report charges for optional benefits as partial withdrawals, but we may do so in the future if we believe that the IRS would require us to report them as such. You should consult a tax adviser for information on any optional benefit Riders. When you take a withdrawal under a Non-Qualified Contract, it ordinarily is taxable only to the extent it does not exceed gain in the Contract, if any, at the time of the withdrawal. Under current IRS guidance, we expect to determine gain on a withdrawal, including withdrawals during the "Settlement Phase" of an optional guaranteed minimum withdrawal benefit Rider (i.e., Income Plus for Life, Income Plus for Life - Joint Life, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-Up, or Principal Plus for Life Plus Spousal Protection), using the Contract Value. It is possible, however, that the IRS may take the position that the value of amounts guaranteed to be available in the future should also be taken into account in computing the taxable portion of a withdrawal. In that event, you may be subject to a higher amount of tax on a withdrawal If you purchased a Qualified Contract with an optional death benefit or other optional benefit Rider, the presence of these benefits may increase the amount of any required minimum distributions under the requirements of your Qualified Plan. See "Qualified Contracts (Contracts Purchased for a Qualified Plan)" below. Any annuity payments that you receive under an Annuity Option, including Annuity Options that only are available when you elect a guaranteed minimum withdrawal benefit Rider, will be taxed in the manner described in "Taxation of Annuity Payments," below. CHARITABLE REMAINDER TRUSTS This federal tax discussion does not address tax consequences of a Contract used in a charitable remainder trust. The tax consequences of charitable remainder trusts may vary depending on the particular facts and circumstances of each individual case. Additionally, the tax rules governing charitable remainder trusts, or the taxation of a Contract used with a charitable remainder trust, may be subject to change by legislation, regulatory changes, judicial decrees or other means. You should consult competent legal or tax counsel regarding the tax treatment of a charitable remainder trust before purchasing a Contract for use within it. 64 NON-QUALIFIED CONTRACTS (Contracts Not Purchased to Fund an Individual Retirement Account or Other Qualified Plan) Undistributed Gains Except where the Owner is not an individual, we expect our Contracts to be considered annuity contracts under Section 72 of the Code. This means that, ordinarily, you pay no federal income tax on any gains in your Contract until we actually distribute assets to you. However, a Contract held by an Owner other than a natural person (for example, a corporation, partnership, limited liability company or other such entity) does not generally qualify as an annuity contract for tax purposes. Any increase in value therefore would constitute ordinary taxable income to such an Owner in the year earned. Notwithstanding this general rule, a Contract will ordinarily be treated as held by a natural person if the nominal Owner is a trust or other entity which holds the Contract as an agent for a natural person. Taxation of Annuity Payments When we make payments under a Contract in the form of an annuity, normally a portion of each annuity payment is taxable as ordinary income. The taxable portion of an annuity payment is equal to the excess of the payment over the exclusion amount. In the case of variable annuity payments, the exclusion amount is the investment in the Contract when payments begin to be made divided by the number of payments expected to be made (taking into account the Annuitant's life expectancy and the form of annuity benefit selected). In the case of Fixed Annuity payments, the exclusion amount is based on the investment in the Contract and the total expected value of Fixed Annuity payments for the term of the Contract (determined under IRS regulations). In general, your investment in the Contract equals the aggregate amount of premium payments you have made over the life of the Contract, reduced by any amounts previously distributed from the Contract that were not subject to tax. A simplified method of determining the taxable portion of annuity benefit payments applies to Contracts issued in connection with certain Qualified Plans other than IRAs. Once you have recovered your total investment in the Contract tax-free, further annuity payments will be fully taxable. If annuity payments cease because the Annuitant dies before all of the investment in the Contract is recovered, the unrecovered amount generally will be allowed as a deduction on the Annuitant's last tax return or, if there is a beneficiary entitled to receive further payments, will be distributed to the beneficiary as described more fully below under "Taxation of Death Benefit Proceeds." Surrenders, Withdrawals and Death Benefits When we make a single sum payment consisting of the entire value of your Contract, you have ordinary taxable income to the extent the payment exceeds your investment in the Contract (discussed above). Such a single sum payment can occur, for example, if you surrender your Contract before the Maturity Date or if no extended payment option is selected for a death benefit payment. When you take a partial withdrawal from a Contract before the Maturity Date, including a payment under a systematic withdrawal plan or guaranteed withdrawal benefit, all or part of the payment may constitute taxable ordinary income to you. If, on the date of withdrawal, the total value of your Contract exceeds the investment in the Contract, the excess will be considered gain and the withdrawal will be taxable as ordinary income up to the amount of such gain. Taxable withdrawals may also be subject to a penalty tax for premature withdrawals as explained below. When only the investment in the Contract remains, any subsequent withdrawal made before the Maturity Date will be a tax-free return of investment. If you assign or pledge any part of your Contract's value, the value so pledged or assigned is taxed the same way as if it were a partial withdrawal. For purposes of determining the amount of taxable income resulting from a single sum payment or a partial withdrawal, all annuity contracts issued by us or our affiliates to the Owner within the same calendar year will be treated as if they were a single contract. There may be special income tax issues present in situations where the Owner and the Annuitant are not the same person and are not married to each other. A tax adviser should be consulted in those situations. Taxation of Death Benefit Proceeds All or part of any death benefit proceeds may constitute a taxable payout of earnings. A death benefit payment generally results in taxable ordinary income to the extent such payment exceeds your investment in the Contract. Amounts may be distributed from a Contract because of the death of an Owner or the Annuitant. During the Accumulation Period, death benefit proceeds are includible in income as follows: - if distributed in a single sum payment under our current administrative procedures, they are taxed in the same manner as a full withdrawal, as described above; or - if distributed under an Annuity Option, they are taxed in the same manner as annuity payments, as described above; or - if distributed as a series of withdrawals over the Beneficiary's life expectancy, they are taxable to the extent the Contract Value exceeds the investment in the Contract. 65 After a Contract matures and annuity payments begin, if the Contract guarantees payments for a stated period and the Owner dies before the end of that period, payments made to the Beneficiary for the remainder of that period are includible in the Beneficiary's income as follows: - if received in a single sum under our current administrative procedures, they are includible in income to the extent that they exceed the unrecovered investment in the Contract at that time; or - if distributed in accordance with the existing Annuity Option selected, they are fully excludable from income until the remaining investment in the Contract has been recovered, and all annuity benefit payments thereafter are fully includible in income. Penalty Tax on Premature Distributions There is a 10% IRS penalty tax on the taxable portion of any payment from a Non-Qualified Contract. Exceptions to this penalty tax include distributions: - received on or after the date on which the Contract Owner reaches age 59 1/2; - attributable to the Contract Owner becoming disabled (as defined in the tax law); - made to a Beneficiary on or after the death of the Contract Owner or, if the Contract Owner is not an individual, on or after the death of the primary Annuitant; - made as a series of substantially equal periodic payments for the life (or life expectancy) of the Owner or for the joint lives (or joint life expectancies) of the Owner and designated individual Beneficiary; - made under a single-premium immediate annuity contract; or - made with respect to certain annuities issued in connection with structured settlement agreements. Note that when a series of substantially equal periodic payments is used to avoid the penalty, if the Contract Owner then modifies the payment pattern (other than by reason of death or disability) before the later of the Contract Owner's attaining age 59-1/2 and the passage of five years after the date of the first payment, such modification will cause retroactive imposition of the penalty plus interest on it. Puerto Rico Non-Qualified Contracts Distributions from Puerto Rico annuity contracts issued by us are subject to federal income taxation, withholding and reporting requirements as well as Puerto Rico tax laws. Both jurisdictions impose a tax on distributions. Under federal requirements, distributions are deemed to be income first. Under the Puerto Rico tax laws, however, distributions from a Contract not purchased to fund a Qualified Plan ("Non-Qualified Contract") are generally treated as a non-taxable return of principal until the principal is fully recovered. Thereafter, all distributions under a Non-Qualified Contact are fully taxable. Puerto Rico does not currently impose an early withdrawal penalty tax. The Internal Revenue Code, however, does impose such a penalty and bases it on the amount that is taxable under federal rules. Distributions under a Non-Qualified Contract after annuitization are treated as part taxable income and part non-taxable return of principal. The amount excluded from gross income after annuitization under Puerto Rico tax law is equal to the amount of the distribution in excess of 3% of the total Purchase Payments paid, until an amount equal to the total Purchase Payments paid has been excluded. Thereafter, the entire distribution from a Non-Qualified Contract is included in gross income. For federal income tax purposes, however, the portion of each annuity payment that is subject to tax is computed on the basis of investment in the Contract and the Annuitant's life expectancy. Generally Puerto Rico does not require income tax to be withheld from distributions of income. Although Puerto Rico allows a credit against its income tax for taxes paid to the federal government, you may not be able to use the credit fully. If you are a resident of Puerto Rico, you should consult a tax adviser before purchasing an annuity contract. Diversification Requirements Your Contract will not qualify for the tax benefits of an annuity contract unless the Separate Account follows certain rules requiring diversification of investments underlying the Contract. In addition, the rules require that the Contract Owner not have "investment control" over the underlying assets. In certain circumstances, the owner of a variable annuity contract may be considered the owner, for federal income tax purposes, of the assets of the separate account used to support the contract. In those circumstances, income and gains from the separate account assets would be includible in the contract owner's gross income. The Internal Revenue Service ("IRS") has stated in published rulings that a variable contract owner will be considered the owner of separate account assets if the contract owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. A Treasury Decision issued in 1986 stated that guidance would be issued in the form of regulations or rulings on the "extent to which Policyholders may direct their investments to particular sub-accounts of a separate account without being treated as owners of the underlying assets." As of the date of this Prospectus, no comprehensive guidance on this point has been issued. In Rev. Rul. 2003-91, however, the IRS ruled that a contract holder would not be treated as the owner of assets underlying a variable life insurance or annuity contract despite the owner's ability to allocate funds among as many as twenty sub-accounts. 66 The ownership rights under your Contract are similar to, but different in certain respects from, those described in IRS rulings in which it was determined that contract owners were not owners of separate account assets. Since you have greater flexibility in allocating premiums and Contract Values than was the case in those rulings, it is possible that you would be treated as the owner of your Contract's proportionate share of the assets of the Separate Account. We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that an underlying Fund will be able to operate as currently described in its prospectus, or that a Fund will not have to change any of its investment objectives or policies. We have reserved the right to modify your Contract if we believe doing so will prevent you from being considered the owner of your Contract's proportionate share of the assets of the Separate Account, but we are under no obligation to do so. QUALIFIED CONTRACTS (Contracts Purchased for a Qualified Plan) The Contracts are also available for use in connection with certain types of retirement plans, including IRAs, which receive favorable treatment under the Code ("Qualified Plans"). Numerous special tax rules apply to the participants in Qualified Plans and to the Contracts used in connection with these plans. We provide a brief description of types of Qualified Plans in Appendix D of this Prospectus, but make no attempt to provide more than general information about use of the Contracts with the various types of Qualified Plans in this Prospectus. We may limit the availability of the Contracts to certain types of Qualified Plans and may discontinue making Contracts available to any Qualified Plan in the future. If you intend to use a Contract in connection with a Qualified Plan you should consult a tax adviser. We have no responsibility for determining whether a particular retirement plan or a particular contribution to the plan satisfies the applicable requirements of the Code, or whether a particular employee is eligible for inclusion under a plan. In general, the Code imposes limitations on the amount of annual compensation that can be contributed into a Qualified Plan, and contains rules to limit the amount you can contribute to all of your Qualified Plans. Trustees and administrators of Qualified Plans may, however, generally invest and reinvest existing plan assets without regard to such Code imposed limitations on contributions. Certain distributions from Qualified Plans may be transferred directly to another plan, unless funds are added from other sources, without regard to such limitations. The tax rules applicable to Qualified Plans vary according to the type of plan and the terms and conditions of the plan itself. For example, for both withdrawals and annuity benefit payments under certain Qualified Contracts, there may be no "investment in the Contract" and the total amount received may be taxable. Also, loans from Qualified Contracts, where allowed, are subject to a variety of limitations, including restrictions as to the amount that may be borrowed, the duration of the loan, and the manner in which the loan must be repaid. (You should always consult your tax adviser and retirement plan fiduciary prior to exercising your loan privileges.) Both the amount of the contribution that may be made and the tax deduction or exclusion that you may claim for that contribution are limited under Qualified Plans. Under the tax rules, the Owner and the Annuitant may not be different individuals if a Contract is used in connection with a Qualified Plan. If a co-Annuitant is named, all distributions made while the Annuitant is alive must be made to the Annuitant. Also, if a co-Annuitant is named who is not the Annuitant's spouse, the Annuity Options which are available may be limited, depending on the difference in ages between the Annuitant and co-Annuitant. Additionally, for Contracts issued in connection with Qualified Plans subject to the Employee Retirement Income Security Act, the spouse or ex-spouse of the Owner will have rights in the Contract. In such a case, the Owner may need the consent of the spouse or ex-spouse to change Annuity Options or make a withdrawal from the Contract. Special minimum distribution requirements govern the time at which distributions to the Owner and beneficiaries must commence and the form in which the distributions must be paid. These special rules may also require the length of any guarantee period to be limited. They also affect the restrictions that the Owner may impose on the timing and manner of payment of death benefits to beneficiaries or the period of time over which a Beneficiary may extend payment of the death benefits under the Contract. In addition, the presence of the death benefit or a benefit provided under an optional rider may affect the amount of the required minimum distributions that must be made under the Contract. Failure to comply with minimum distribution requirements will result in the imposition of an excise tax, generally 50% of the amount by which the amount required to be distributed exceeds the actual distribution. In the case of IRAs (other than Roth IRAs), distributions of minimum amounts (as specified in the tax law) to the Owner must generally commence by April 1 of the calendar year following the calendar year in which the Owner attains age 70 1/2. In the case of certain other Qualified Plans, such distributions of such minimum amounts must generally commence by the later of this date or April 1 of the calendar year following the calendar year in which the employee retires. Distributions made under certain Qualified Plans, including IRAs and Roth IRAs, after the Owner's death must also comply with the minimum distribution requirements, and different rules governing the timing and the manner of payments apply, depending on whether the designated Beneficiary is an individual, and, if so, the Owner's spouse, or an individual other than the Owner's spouse. If you wish to impose restrictions on the timing and manner of payment of death benefits to your designated beneficiaries or if your Beneficiary wishes to extend over a period of time the payment of the death benefits under your Contract, please consult your tax adviser. 67 Penalty Tax on Premature Distributions There is also a 10% IRS penalty tax on the taxable amount of any payment from certain Qualified Contracts (but not Section 457 plans). (The amount of the penalty tax is 25% of the taxable amount of any payment received from a SIMPLE retirement account during the 2-year period beginning on the date the individual first participated in any qualified salary reduction arrangement maintained by the individual's employer.) There are exceptions to this penalty tax which vary depending on the type of Qualified Plan. In the case of an Individual Retirement Annuity or an IRA, including a SIMPLE IRA, the penalty tax does not apply to a payment: - received on or after the date on which the Contract Owner reaches age 59 1/2; - received on or after the Owner's death or because of the Owner's disability (as defined in the tax law); or - made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Owner or for the joint lives (or joint life expectancies) of the Owner and "designated beneficiary" (as defined in the tax law). Note that when a series of substantially equal periodic payments is used to avoid the penalty, if the Contract Owner then modifies the payment pattern (other than by reason of death or disability) before the later of the Contract Owner's attaining age 59 1/2 and the passage of five years after the date of the first payment, such modification will cause retroactive imposition of the penalty plus interest on it. These exceptions generally apply to taxable distributions from other Qualified Plans (although, in the case of plans qualified under Sections 401 and 403, the exception for substantially equal periodic payments applies only if the Owner has separated from service). In addition, the penalty tax does not apply to certain distributions from IRAs which are used for first time home purchases or for higher education expenses, or for distributions made to certain eligible individuals called to active duty after September 11, 2001 and before December 31, 2007. Special conditions must be met to qualify for these three exceptions to the penalty tax. If you wish to take a distribution from an IRA for these purposes, you should consult your tax adviser. When we issue a Contract in connection with a Qualified Plan, we will amend the Contract as necessary to conform to the requirements of the plan. However, your rights to any benefits under the plan may be subject to the terms and conditions of the plan itself, regardless of the terms and conditions of the Contracts. We will not be bound by terms and conditions of Qualified Plans to the extent those terms and conditions contradict a Contract, unless we consent. Tax-Free Rollovers If permitted under your plan, you may make a tax-free rollover: - from a traditional IRA to another traditional IRA; - from a traditional IRA to a retirement plan qualified under Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code; - from any Qualified Plan (other than a Section 457 deferred compensation plan maintained by a tax-exempt organization) to a traditional IRA; - between a retirement plan qualified under Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code and any such plans; - from a Section 457 deferred compensation plan maintained by a tax-exempt organization to another Section 457 deferred compensation plan maintained by a tax-exempt organization (by means of a direct trustee-to-trustee transfer only); and - from a traditional IRA to a Roth IRA, subject to special withholding restrictions discussed below. In addition, if your spouse survives you, he or she is permitted to rollover your tax-qualified retirement account to another tax-qualified retirement account in which your surviving spouse participates, to the extent permitted by your surviving spouse's plan. Beginning in 2007, a beneficiary who is not your surviving spouse may directly roll over the amount distributed to the beneficiary under a Contract that is held as part of a retirement plan described in Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code to a traditional IRA. The IRA is treated as an inherited IRA of the non-spouse beneficiary. Also effective in 2008, distributions that you receive from a retirement plan described in Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code may be rolled over directly to a Roth IRA if (i) your adjusted gross income is not in excess of $100,000, and (ii) you are not a married taxpayer filing a separate return. WITHHOLDING ON ELIGIBLE ROLLOVER DISTRIBUTIONS. If a Contract is used in connection with a retirement plan that is qualified under Sections 401(a), 403(a), or 403(b) of the Code, or a governmental deferred compensation plan described in Section 457(b) of the Code, any eligible rollover distribution from the Contract will be subject to mandatory withholding. An eligible rollover distribution generally is any taxable distribution from such plans except (i) minimum distributions required under Section 401(a)(9) of the Code, (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a "series of substantially equal periodic payments," and (iii) if applicable, certain hardship withdrawals. 68 Federal income tax of 20% will be withheld from an eligible rollover distribution. The withholding is mandatory, and you cannot elect to have it not apply. This 20% withholding will not apply, however, if instead of receiving the eligible rollover distribution, you choose to have it directly transferred to an applicable plan or a traditional IRA. Before you receive an eligible rollover distribution, we will provide a notice explaining generally the direct rollover and mandatory withholding requirements and how to avoid the 20% withholding by electing a direct rollover. Loans A loan privilege is available only to Owners of Contracts issued in connection with Section 403(b) retirement arrangements that are not subject to Title 1 of the Employee Retirement Income Security Act of 1974 (ERISA). The rules governing the availability of loans, including the maximum Loan Amount, are prescribed in the Code, Treasury regulations, IRS rulings, and our procedures in effect at the time a loan is made. Because the rules governing loans under section 403(b) Contracts are complicated, you should consult your tax adviser before exercising the loan privilege. Failure to meet the requirements for loans may result in adverse income tax consequences to you. The loan agreement you sign will describe the restrictions and limitations applicable to the loan at the time you apply. Federal tax law generally requires loans to be repaid within 5 years (except in cases where the loan was used to acquire the principal residence of a plan participant), with repayments made at least quarterly and in level payments over the term of the loan. Interest will be charged on your Loan Amount. Failure to make a loan repayment when due will result in adverse income tax consequences to you. The amount of any Unpaid Loans will be deducted from the death benefit otherwise payable under the Contract. In addition, loans, whether or not repaid, will have a permanent effect on the Contract Value because the investment results of the Investment Accounts will apply only to the unborrowed portion of the Contract Value. The longer a loan is unpaid, the greater the effect is likely to be. The effect could be favorable or unfavorable. Puerto Rico Contracts Issued to Fund Retirement Plans The tax laws of Puerto Rico vary significantly from the provisions of the Internal Revenue Code of the United States that are applicable to various Qualified Plans. Although we may offer variable annuity contracts in Puerto Rico in connection with Puerto Rican "tax qualified" retirement plans, the text of this Prospectus addresses federal tax law only and is inapplicable to the tax laws of Puerto Rico. SEE YOUR OWN TAX ADVISER The foregoing description of Federal income tax topics and issues is only a brief summary and is not intended as tax advice. It does not include a discussion of federal estate and gift tax or state tax consequences. The rules under the Code governing Qualified Plans are extremely complex and often difficult to understand. Changes to the tax laws may be enforced retroactively. Anything less than full compliance with the applicable rules, all of which are subject to change from time to time, can have adverse tax consequences. The taxation of an Annuitant or other payee has become so complex and confusing that great care must be taken to avoid pitfalls. For further information you should always consult a qualified tax adviser. 69 IX. General Matters ASSET ALLOCATION SERVICES We are aware that certain third parties are offering asset allocation services ("Asset Allocation Services") in connection with the Contracts through which a third party may transfer amounts among Investment Options from time to time on your behalf. In certain cases we have agreed to honor transfer instructions from such Asset Allocation Services where we have received powers of attorney, in a form acceptable to us, from the Contract Owners participating in the service and where the Asset Allocation Service has agreed to the trading restrictions imposed by us. These trading restrictions include adherence to the Separate Account's policies that we have adopted to discourage disruptive frequent trading activity. (See "Transfers Among Investment Options.") WE DO NOT ENDORSE, APPROVE OR RECOMMEND SUCH SERVICES IN ANY WAY AND YOU SHOULD BE AWARE THAT FEES PAID FOR SUCH SERVICES ARE SEPARATE AND IN ADDITION TO FEES PAID UNDER THE CONTRACTS. RESTRICTIONS UNDER THE TEXAS OPTIONAL RETIREMENT PROGRAM (for Contracts issued by John Hancock USA) Section 830.105 of the Texas Government Code permits participants in the Texas Optional Retirement Program ("ORP") to withdraw their interest in a Variable Annuity contract issued under the ORP only upon: - termination of employment in the Texas public institutions of higher education, - retirement, - death, or - the participant's attainment of age 70 1/2. Accordingly, before you withdraw any amounts from the Contract, you must furnish proof to us that one of these four events has occurred. The foregoing restrictions on withdrawal do not apply in the event a participant in the ORP transfers the Contract Value to another Contract or another qualified custodian during the period of participation in the ORP. Loans are not available under Contracts subject to the ORP. DISTRIBUTION OF CONTRACTS We pay compensation for sales of the Contracts. John Hancock Distributors, LLC ("JH Distributors"), a Delaware limited liability company that we control, is the principal underwriter and distributor of the Contracts offered by this Prospectus and of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of the John Hancock Trust, whose securities are used to fund certain Variable Investment Options under the Contracts and under other annuity and life insurance products we offer. JH Distributors' principal address is 200 Bloor Street East, Toronto, Canada M4W 1E5. It also maintains offices with us at 601 Congress Street, Boston, Massachusetts 02210. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the "1934 Act") and is a member of the National Association of Securities Dealers, Inc. (the "NASD"). We offer the Contracts for sale through broker-dealers (firms) that have entered into selling agreements with JH Distributors and us. Broker-dealers sell the Contracts through their registered representatives who have been appointed by us to act as our insurance agents. JH Distributors, or any of its affiliates that is registered under the 1934 Act and a member of the NASD, may also offer the Contracts directly to potential purchasers. Signator Investors, Inc. is an affiliated broker-dealer. JH Distributors pays compensation to broker-dealers for the promotion and sale of the Contracts. Contract Owners do not pay this compensation directly. These payments are made from JH Distributors' and our own revenues, profits or retained earnings, which may be derived from a number of sources, such as fees received from an underlying Fund's distribution plan ("12b-1 fees"), the fees and charges imposed under the Contract, and other sources. The individual representative who sells you a Contract typically will receive a portion of the compensation, under the representative's own arrangement with his or her broker-dealer. A limited number of broker-dealers may also be paid commissions or overrides to "wholesale" the Contract; that is, to provide marketing support and training services to the broker-dealer firms that do the actual selling. We may also provide compensation to broker-dealers for providing ongoing service in relation to Contract(s) that have already been purchased. Standard Compensation The amount and timing of compensation JH Distributors may pay to broker-dealers may vary depending on the selling agreement, but compensation with respect to Contracts sold through broker-dealers (inclusive of wholesaler overrides and expense allowances) and paid to broker-dealers is not expected to exceed 7.00% of Purchase Payments. In addition, JH Distributors may pay ongoing compensation at an annual rate of up to 1.20% of the values of the Contracts attributable to such Purchase Payments. The greater the 70 amount of compensation paid by JH Distributors at the time you make a Purchase Payment, the less it will pay as ongoing compensation. Revenue Sharing and Additional Compensation In addition to standard compensation arrangements and to the extent permitted by SEC and NASD rules and other applicable laws and regulations, we, either directly or through JH Distributors, may enter into special compensation or reimbursement arrangements ("revenue sharing") with selected firms. We determine which firms to support and the extent of the payments that are made. Under these arrangements, the form of payment may be any one or a combination of a flat fee, a percentage of the assets we hold that are attributable to Contract allocations, a percentage of sales revenues, reimbursement of administrative expenses (including ticket charges), conference fees, or some other type of compensation. We hope to benefit from these revenue sharing arrangements through increased sales of our annuity products. In consideration of these arrangements, a firm may feature the Contract in its sales system or give us preferential access to members of its sales force. In addition, the firm may agree to participate in our marketing efforts by allowing JH Distributors or its affiliates to participate in conferences, seminars or other programs attended by the firm's sales force. These arrangements may not be offered to all firms, and the terms of such arrangements may differ between firms. We provide additional information on special compensation or reimbursement arrangements, including a list of firms to whom we paid annual amounts greater than $5,000 under these arrangements in 2006, in the Statement of Additional Information (SAI), which is available upon request. Any such compensation, which may be significant at times, will not result in any additional direct charge to you by us. Selling broker dealers may receive additional payments from us, either directly or through JH Distributors, in the form of cash, other special compensation or reimbursement of expenses. These additional compensation or reimbursement payments may include, for example, payments for providing conferences or seminars, sales or training programs for invited registered representatives and other employees, payments for travel expenses, including lodging, incurred by registered representatives and other employees for such seminars or training programs, seminars for the public, advertising and sales campaigns regarding the Contract, and payments to assist a firm in connection with its marketing expenses and/or other events or activities sponsored by the firms. We may contribute to, as well as sponsor, various educational programs, sales promotions and/or contests in which participating firms and their sales persons may receive gifts and prizes such as merchandise, cash, or other awards, as may be permitted by applicable NASD rules and other applicable laws and regulations. In an effort to promote the sale of our products, our affiliated broker-dealer may pay its registered representatives additional cash incentives such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the Contracts that they would not receive in connection with the sale of contracts issued by unaffiliated companies. Differential Compensation Compensation negotiated and paid by JH Distributors pursuant to a selling agreement with a broker-dealer may differ from compensation levels that the broker-dealer receives for selling other variable contracts. In addition, under their own arrangements, broker-dealer firms may pay a portion of any amounts received from us to their registered representatives. As a result, registered representatives may be motivated to sell the Contracts of one issuer over another issuer, or one product over another product. You should contact your registered representative for more information on compensation arrangements in connection with the sale and purchase of your Contract. Contracts Sold Directly Without Payment of Any Sales Compensation The Contract may be sold directly to certain individuals under various circumstances that do not involve payment of any sales compensation to a registered representative. For such Contracts we will credit initial and subsequent Purchase Payments to the Contract with an additional 5% of the Purchase Payment. However, the amount of this credit, together with the Payment Enhancement attributable to the Contract may not exceed 10% of each Purchase Payment. Therefore, if the Payment Enhancement exceeds 5%, the amount of the credit will be reduced so that the total of the Payment Enhancement and the credit does not exceed 10% of the Purchase Payment. We will apply the credit and the Payment Enhancement (subject to the limitations on the aggregate credit and Payment Enhancement that may be applied) in effect at the time of the issuance of the Contract to each subsequent Purchase Payment. The credit may be terminated or reduced at any time for Contracts issued, and subsequent Purchase Payments made, after the date of termination. Initial and subsequent Purchase Payments that do not receive the Payment Enhancements and credits described above will receive the guaranteed Payment Enhancements set forth under "Payment Enhancements" above. 71 The following classes of individuals are eligible for the credit described above: - officers, directors, trustees or employees (or a relative thereof) of John Hancock USA, Manulife, the Trust or any of their affiliates, and - employees and registered representatives (and their immediate families) of registered broker-dealers (or their financial institutions) that: (x) have a sales agreements with John Hancock USA and its principal underwriter, JH Distributors, to sell the Contracts and (y) have approved the payment of the credit to their employees and registered representatives. CONFIRMATION STATEMENTS We will send you confirmation statements for certain transactions in your Investment Accounts. You should carefully review these statements to verify their accuracy. You should report any mistakes immediately to our Annuities Service Center. If you fail to notify our Annuities Service Center of any mistake within 60 days of the mailing of the confirmation statement, we will deem you to have ratified the transaction. REINSURANCE ARRANGEMENTS From time to time we may utilize reinsurance as part of our risk management program. Under any reinsurance agreement, we remain liable for the contractual obligations of the Contracts' guaranteed benefits and the reinsurer(s) agree to reimburse us for certain amounts and obligations in connection with the risks covered in the reinsurance agreements. The reinsurer's contractual liability runs solely to us, and no Contract Owner shall have any right of action against any reinsurer. In evaluating reinsurers, we consider the financial and claims paying ability ratings of the reinsurer. Our philosophy is to minimize incidental credit risk. We do so by engaging in secure types of reinsurance transactions with high quality reinsurers and diversifying reinsurance counterparties to limit concentrations. Some of the benefits that may be reinsured include living benefits, guaranteed death benefits, Fixed Investment Option guarantees, or other obligations. 72 Appendix A: Examples of Calculation of Withdrawal Charge The following examples assume an initial Purchase Payment of $30,000 and a subsequent Purchase Payment of $20,000 during the second Contract Year. EXAMPLE 1. If you surrender the contract during Contract Year 3, the Contract Value is $60,000 and there have been no prior withdrawals, we will calculate the withdrawal charge as follows: a) First we will calculate the free withdrawal amount, which equals the greater of - 10% of all purchase payments = .10 x ($30,000 + $20,000) = $5,000, or - Earnings equal to the Contract Value minus unliquidated Purchase Payments = $60,000 - $50,000 = $10,000 b) Next we determine the amount of Purchase Payments to be liquidated as the greater of the Contract Value or the unliquidated Purchase Payments, reduced by the free withdrawal amount, or $60,000 - $10,000 = $50,000 c) Finally we calculate the withdrawal charge by applying the appropriate withdrawal charge percentage for each purchase liquidated based on the length of time the payment has been in the contract - The initial purchase payment is in the third year, so the applicable withdrawal charge is .08 x $30,000 = $2,400 - The subsequent payment of $20,000 is in the second year, so the applicable withdrawal charge is .085 x $20,000 = $1,700 - The total withdrawal charge is $2,400 + $1,700 = $4,100 EXAMPLE 2. If you surrender the contract during Contract Year 3, the Contract Value is $35,000 and there have been no prior withdrawals, we will calculate the withdrawal charge as follows: a) First we will calculate the free withdrawal amount, which equals the greater of - 10% of all purchase payments = .10 x ($30,000 + $20,000) = $5,000, or - Earnings equal to the Contract Value minus unliquidated Purchase Payments = $35,000 - $50,000 = $-15,000 b) Next we determine the amount of Purchase Payments to be liquidated as the greater of the Contract Value or the unliquidated Purchase Payments, reduced by the free withdrawal amount, or $50,000 - $5,000 = $45,000 c) Finally we calculate the withdrawal charge by applying the appropriate withdrawal charge percentage for each purchase liquidated based on the length of time the payment has been in the contract - The initial purchase payment is in the third year, so the applicable withdrawal charge is .08 x $30,000 = $2,400 - The subsequent payment of $20,000 is in the second year, so the applicable withdrawal charge is .085 x $15,000 = $1,275 - The total withdrawal charge is $2,400 + $1,275 = $3,675 EXAMPLE 3. If you take a partial withdrawal of $5,000 during Contract Year 3 when the Contract Value is $52,000 and then surrender the contract later in Contract Year 3 when the Contract Value is $49,000, we will calculate the withdrawal charge as follows: a) First we will calculate the free withdrawal amount for the partial, which equals the greater of - 10% of all purchase payments = .10 x ($30,000 + $20,000) = $5,000, or - Earnings equal to the Contract Value minus unliquidated Purchase Payments = $52,000 - $50,000 = $2,000 b) Since the partial withdrawal is equal to the free withdrawal amount, we will not liquidate any Purchase Payments and there will not be any withdrawal charge. c) When the contract is surrendered, we will calculate the free withdrawal amount for the surrender, which equals the greater of - 10% of all purchase payments reduced by prior withdrawals during the year= .10 x ($30,000 + $20,000) - $5,000 = $0, or - Earnings equal to the Contract Value minus unliquidated Purchase Payments = $49,000 - $50,000 = $-1,000 d) Next we determine the amount of Purchase Payments to be liquidated as the greater of the Contract Value or the unliquidated Purchase Payments, reduced by the free withdrawal amount, or $50,000 - $0 = $50,000 e) Finally we calculate the withdrawal charge by applying the appropriate withdrawal charge percentage for each purchase liquidated based on the length of time the payment has been in the contract - The initial purchase payment is in the third year, so the applicable withdrawal charge is .08 x $30,000 = $2,400 - The subsequent payment of $20,000 is in the second year, so the applicable withdrawal charge is .085 x $20,000 = $1,700 - The total withdrawal charge is $2,400 + $1,700 = $4,100 A-1 (Page intentionally left blank.) Appendix B: Principal Plus for Life Plus Spousal Protection Rider This Appendix describes a spousal version of Principal Plus for Life that was available for purchase before May 1, 2007. This Rider cannot be revoked once elected. OVERVIEW OF GUARANTEED MINIMUM WITHDRAWAL BENEFITS Please refer to "VI. Option Benefits" in the Prospectus for general information about our guaranteed minimum withdrawal benefit riders. Availability Principal Plus for Life Plus Spousal Protection was available for purchase before May 1, 2007. In certain cases, John Hancock USA will issue a Contract on and after May 1, 2007 with this Rider if you elected to purchase the Rider before then. The Principal Plus for Life Plus Spousal Protection Rider was not available in New York and its availability in other states varied. AGE RESTRICTIONS. If you elected this Rider: (a) the older of you and your spouse must not be age 81 or older; and (b) both you and your spouse must be at least 65 or, if not, you must have birthdates less than 6 years apart from each other. This Rider cannot be revoked once elected. For Example: Assume you purchased a Venture Variable Annuity Contract on NOVEMBER 1, 2006 and wanted to elect the Principal Plus for Life Plus Spousal Protection Rider. EXAMPLE #1 You are born JULY 1, 1941 and your spouse is born JUNE 1, 1947. - Since your birthdates are 5 YEARS AND 11 MONTHS apart, YOU MAY elect the Principal Plus for Life Plus Spousal Protection Rider when you purchase your Contract. EXAMPLE #2 You are born JULY 1, 1941 and your spouse is born AUGUST 1, 1947. - Since your birthdates are 6 YEARS AND 1 MONTH apart, YOU MAY NOT elect the Principal Plus for Life Plus Spousal Protection Rider. Purchase Payments RESTRICTIONS ON CONTRACTS WITH PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION. Please refer to the "Purchase Payments" subsection for a description of our restrictions on additional Purchase Payments to Contracts issued with a guaranteed minimum withdrawal benefit rider. These restrictions apply to Contracts issued with Principal Plus for Life Plus Spousal Protection. IMPACT ON GUARANTEED WITHDRAWAL BALANCE, GUARANTEED WITHDRAWAL AMOUNT AND LIFETIME INCOME AMOUNT. Please refer to the "Purchase Payments" subsection for a description of the impact of additional Purchase Payments on the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount and Lifetime Income Amount that's applicable to Principal Plus for Life Plus Spousal Protection). Rider Fees Please refer to the "Rider Fees" subsection for a description of the way we impose an additional fee for Principal Plus for Life Plus Spousal Protection. FEE FOR PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION. The fee is equal to 0.65% of the "Adjusted Guaranteed Withdrawal Balance." The Adjusted Guaranteed Withdrawal Balance is the Guaranteed Withdrawal Balance that was available on the prior Contract Anniversary adjusted for any Step-up, Bonus or subsequent Purchase Payment made during the Contract Year prior to the current Contract Anniversary. We reserve the right to increase the Principal Plus for Life Plus Automatic Annual Step-up Rider fee on the effective date of each Step-up. In such a situation, the Principal Plus for Life Plus Automatic Annual Step-up Rider fee will never exceed 1.20%. Additional Annuity Options We provide additional Annuity Options for Contracts issued with the Principal Plus for Life Plus Spousal Protection Rider, as described in the "Pay-out Period Provisions" section of this Prospectus. Tax Considerations Please see "VIII. Federal Tax Matters" for information on tax considerations related to the Principal Plus for Life Plus Spousal Protection Rider. The loan privilege described in the Prospectus for Contracts issued in connection with certain Section 403(b) plans is NOT available if you elect this Rider. B-1 INVESTMENT OPTIONS UNDER PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION Please refer to the "VI. Optional Benefits" section in the Prospectus for general information about the investment options we make available for Contracts issued with Principal Plus for Life Plus Spousal Protection. FEATURES OF THE PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION RIDER Definitions Please refer to the "VI. Optional Benefits" section in the Prospectus for the definitions we use to describe how the Principal Plus for Life Plus Spousal Protection Rider works. QUALIFICATION OF COVERED PERSON. As stated in the "Definitions" subsection, a Covered Person will no longer qualify as such (i.e., that Covered Person will be removed from the Rider) if that person is no longer designated as an Owner, Co-Owner, Annuitant, Co-Annuitant or Beneficiary. In the event that you and your spouse become divorced after you purchase the Rider, you may not add a new spouse as a Covered Person. If you remove your spouse as an Owner, Beneficiary or Annuitant, that person will no longer be a Covered Person under the Rider. (See "Withdrawals" in section V. Description of the Contract for additional information on the impact of divorce.) EXAMPLES OF LIFETIME INCOME DATE. As stated in the "Definitions" subsection, we determine the Lifetime Income Amount on the Contract Anniversary on, or next following, the date the older Covered Person attains age 65. We provide the following examples: Assume you purchase a Venture Variable Annuity Contract on NOVEMBER 1, 2006 with the Principal Plus for Life Plus Spousal Protection Rider. EXAMPLE #1 You are born July 1, 1941 and your spouse is born June 1, 1947. - Since the oldest Covered Person has attained age 65 at the time of purchase, we will calculate the Lifetime Income Date on November 1, 2006. We provide a Lifetime Income Amount starting on this date. EXAMPLE #2 You are born December 1, 1950 and your spouse is born October 1, 1956. - Since the oldest Covered Person attains age 65 on December 1, 2015, we will calculate the Lifetime Income Date on November 1, 2016. We provide a Lifetime Income Amount starting on this date. Features OVERVIEW. The optional Principal Plus for Life Plus Spousal Protection Rider provides a guaranteed minimum withdrawal benefit during the Accumulation Period. In particular, this Rider guarantees the return of your investments in the Contract, regardless of market performance, as long as you limit your withdrawals to a Guaranteed Withdrawal Amount each year, beginning on the date you purchase the Rider. The initial Guaranteed Withdrawal Amount equals 5% of your initial Purchase Payment for the Contract. (We do not count Purchase Payment amounts over $5 million or any Payment Enhancement attributable to the Purchase Payment for this purpose.) You can withdraw the Guaranteed Withdrawal Amount each year until the "Guaranteed Withdrawal Balance" is depleted to zero. In addition, we designed the Principal Plus for Life Plus Spousal Protection Rider to permit you to withdraw a minimum annual amount, called the Lifetime Income Amount, starting on a Lifetime Income Date. If you limit your annual withdrawals to the Lifetime Income Amount, we will make this benefit available as long as either Covered Person remains alive and an Owner, Beneficiary or Annuitant under the Contract, even if your Contract Value reduces to zero. The Lifetime Income Amount reduces to zero upon the death of the last Covered Person or upon a change in Owner, Beneficiary or Annuitant that removes the last Covered Person from the Contract as an Owner, Beneficiary or Annuitant. IMPACT OF WITHDRAWALS. The Lifetime Income Amount may decrease as a result of a withdrawal as described under "Principal Plus for Life - Impact of Withdrawals." After the Lifetime Income Date, if a withdrawal causes total withdrawals during the Contract Year to exceed the Lifetime Income Amount (or if total withdrawals during a Contract Year have already exceeded the Lifetime Income Amount), we will recalculate the Lifetime Income Amount. In that case, the Lifetime Income Amount will equal the lesser of (a) the Lifetime Income Amount prior to the withdrawal or (b) 5% of the greater of the Contract Value immediately after the withdrawal or the new Guaranteed Withdrawal Balance value. (See "Principal Plus for Life - Impact of Withdrawals" in the Prospectus.) B-2 INCREASES IN THE GUARANTEED WITHDRAWAL BALANCE. We will increase the Guaranteed Withdrawal Balance: - by any applicable Bonus if you take no withdrawals during certain Contract Years; - by any applicable "Step-up" to reflect certain increases in Contract Value; and - to reflect additional Purchase Payments (see "Purchase Payments" above). BONUSES. We will increase the Guaranteed Withdrawal Balance at the end of each Contract Year during the Bonus Period if you take no withdrawals during that Contract Year as described under "Principal Plus for Life - Bonuses" in the Prospectus. The Bonus Period for the Spousal version of the Rider is the lesser of the first 10 Contract Years or each Contract Year up to the Contract Year in which the younger of the two Covered Persons attains age 80. If you elect the Spousal version of the Principal Plus for Life Rider when you purchase a Contract, the Bonus Period is determined on the Contract Date and will not change upon the death of either Covered Person. STEP-UPS. The Principal Plus for Life Plus Spousal Protection Rider is subject to the Step-up benefit described under "Principal Plus for Life - Step-ups." We schedule the Step-up Dates under the Spousal Protection version for the 3rd, 6th, and 9th Contract Anniversary while the Rider is in effect. After the 9th Contract Anniversary, we increase the schedule of Step-up dates to include each succeeding Contract Anniversary (e.g., the 10th, 11th, 12th etc.) up to and including the 30th Contract Anniversary while Rider is in effect. LIFE EXPECTANCY DISTRIBUTION PROGRAM. You may request us in writing, in a form acceptable to us, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your "life expectancy" (or, if applicable, the joint life expectancy of you and your spouse) as described under "Principal Plus for Life - Life Expectancy Distribution Program" in the Prospectus. Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your contract's proportional share of all "life expectancy" distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Regulations. SETTLEMENT PHASE. The Principal Plus for Life Plus Spousal Protection Rider will enter its Settlement Phase as described under "Principal Plus for Life - Settlement Phase" when: - the Contract Value reduces to zero; and - withdrawals during that Contract Year do not exceed the Guaranteed Withdrawal Amount; and - either the Guaranteed Withdrawal Balance or the Lifetime Income Amount is greater than zero. (See "Principal Plus for Life - Settlement Phase" in the Prospectus.) If during the Settlement Phase, the Guaranteed Withdrawal Balance equals zero and the Lifetime Income Amount is greater than zero, you will automatically receive settlement payments each Contract Year equal to the Lifetime Income Amount during the life of either Covered Person. IMPACT OF DEATH BENEFITS. Death benefits under a Principal Plus for Life Plus Spousal Protection Rider differ from those under the basic Principal Plus for Life optional benefit Rider: Death of First Covered Person. If the first Covered Person to die is an Owner of the Contract (or deemed to be an "Owner" if the Owner is a non-natural person), the surviving Covered Person may elect to continue the Contract in effect in lieu of receiving the Contract's death benefit as a lump sum under our current administrative procedures. (See "Death after Removal of a Covered Person" below if there is no surviving Covered Person.) If the Contract continues, the Principal Plus for Life Plus Spousal Protection Rider will continue. We will continue to provide the Lifetime Income Amount guarantee only on the lifetime of the surviving Covered Person and continue to charge the Principal Plus for Life Plus Spousal Protection Rider fee (See "Rider Fees," above). If the death benefit is greater than the Contract Value, we will increase the Contract Value to equal the amount of the death benefit (but will not make any adjustments to the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount, Lifetime Income Amount, Bonuses or Step-ups). We will treat any distribution of death benefits under a Contract as a "withdrawal" for purposes of subsequent calculations of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount and the Lifetime Income Amount. If the first Covered Person to die is not is not the Owner (and is not deemed to be an "Owner" if the Owner is a non-natural person), no death benefit is payable under the Contract. The Rider will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the surviving Covered Person. We will continue to charge the Principal Plus for Life Plus Spousal Protection Rider fee; however, we will make no adjustments to the Contract Value or make any adjustments to the Guaranteed Withdrawal Balance, Guaranteed Withdrawal Amount, Lifetime Income Amount, Bonuses or Step-ups. B-3 If the death of the first Covered Person occurs while the Rider is in its Settlement Phase, no additional death benefit is payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will compute a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. At the time we compute the Lifetime Income Amount, we may permit the surviving Covered Person to receive settlement payments: - no greater than the Guaranteed Withdrawal Amount until the Guaranteed Withdrawal Balance is depleted to zero; - no less than the Lifetime Income Amount during the lifetime of the surviving Covered Person (The Lifetime Income Amount may be lower than the Guaranteed Withdrawal Amount and the duration of settlement payments based on the Lifetime Income Amount may be longer or shorter than the duration of settlement payments based on the Guaranteed Withdrawal Amount); or - based on amounts we calculate under our Life Expectancy Distribution program (see "Life Expectancy Distribution Program" above). We may limit the ability of the surviving Covered Person to choose a settlement payment amount and duration that differs from the amount and duration in effect before the death of the first Covered Person. Death of Last Covered Person. If the surviving Covered Person dies while the Principal Plus for Life Plus Spousal Protection Rider is in effect and if the Beneficiary does not take the death benefit under the Contract as a lump sum under our current administrative procedures or as an Annuity Option, the Principal Plus for Life Plus Spousal Protection Rider will continue. The Rider will only continue, however, if the death benefit or the Guaranteed Withdrawal Balance is greater than zero at the time. We will Step-up the Guaranteed Withdrawal Balance to equal the death benefit, if greater than the Guaranteed Withdrawal Balance prior to the death benefit and treat any distribution of death benefits under a Contract as a "withdrawal" for purposes of subsequent calculations of the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount. The Rider will not continue to provide for any remaining Bonuses or Step-ups, and will not continue with respect to the Lifetime Income Amount. If the Rider continues, the Principal Plus for Life Plus Spousal Protection Rider fee will continue (See "Rider Fees," above). We will permit the Beneficiary to opt out of the initial death benefit Step-up, if any, if we increase the rate of the Principal Plus for Life Plus Spousal Protection Rider fee at that time. The Rider will enter its Settlement Phase if the Guaranteed Withdrawal Balance is still greater than zero when distributions of death benefits under a Contract deplete any remaining death benefit proceeds to zero. If the surviving Covered Person dies during the Settlement Phase, we will reduce the Lifetime Income Amount to zero. If the Beneficiary at that time is the spouse of the decedent, that spouse may choose the amount of any remaining settlement payments up to the Guaranteed Withdrawal Amount. If the Beneficiary is not the decedent's spouse, the Beneficiary may choose to receive any remaining settlement payments over a period not extending beyond the life expectancy of the Beneficiary beginning within one year of death. Otherwise, the entire interest must be distributed within five years of the death. When settlement payments deplete the Guaranteed Withdrawal Balance to zero, the Rider terminates and we will make no additional payments to the Beneficiary. Death after Removal of a Covered Person. In certain instances, a person initially designated as a Covered Person may be removed as a Covered Person from the Rider (see "Qualification of Covered Person" above). If that happens and: - if the removed Covered Person subsequently dies, there will be no impact on the guarantees provided by the Rider in most cases; and - if the remaining Covered Person subsequently dies, we will consider that person to be the "last" Covered Person and the Rider may continue in certain cases as described in "Death of Last Covered Person" above. TERMINATION. The Principal Plus for Life Plus Spousal Protection Rider terminates in accordance with the "Principal Plus for Life -Termination" section in the Prospectus. You should consult with your financial professional to assist you in determining whether the Principal Plus for Life Plus Spousal Protection Rider is suited for your financial needs and investment risk tolerance. The addition of the Rider to a Contract may not always be in your interest since an additional fee is imposed annually for this benefit and at least one of the Covered Persons must remain living until the Lifetime Income Date for you to receive certain benefits. Furthermore, similar to Principal Plus for Life, this Rider limits the Investment Options otherwise available under the Contract, contains age caps and limitations on a Contract Owner's rights and benefits at certain ages and values, and provides no guaranteed withdrawal benefits once payments begin under any of the Annuity Options described in the Prospectus. You should carefully consider each of these factors before purchasing a Principal Plus for Life Plus Spousal Protection Rider. EXAMPLES. Please refer to Appendix C for hypothetical examples that illustrate the benefits under Principal Plus for Life Plus Spousal Protection Rider. B-4 Appendix C: Guaranteed Minimum Withdrawal Benefit Examples The following examples provide hypothetical illustrations of the benefits provided under the Income Plus for Life, Income Plus for Life - Joint Life, Principal Plus for Life, Principal Plus for Life Plus Automatic Annual Step-up and Principal Plus for Life Plus Spousal Protection optional benefit Riders. These illustrations are not representative of future performance under your Contract, which may be higher or lower than the amounts shown. EXAMPLES 1A, 1B, 1C AND 1D DEMONSTRATE THE BASIC OPERATION OF THE INCOME PLUS FOR LIFE OPTIONAL BENEFIT RIDER. EXAMPLE 1A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. Assume a single Purchase Payment of $100,000 at Covered Person's age 49 1/2, no additional Purchase Payments are made, withdrawals equal to the Lifetime Income Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Benefit Base at the eligible Step-up Dates, so there is no Step-up and the Covered Person survives at least 20 years from issue.
BENEFIT BASE LIFETIME ON CONTRACT PURCHASE INCOME WITHDRAWAL CONTRACT YEAR PAYMENTS AMOUNT TAKEN BONUS ANNIVERSARY - -------- -------- --------- ---------- ------ ------------ At issue $100,000 N/A $ 0 $ 0 $100,000(1) 1 0 N/A 0 6,000(2) 106,000(3) 2 0 N/A 0 6,000 112,000 3 0 N/A 0 6,000 118,000 4 0 N/A 0 6,000 124,000 5 0 N/A 0 6,000 130,000 6 0 N/A 0 6,000 136,000 7 0 N/A 0 6,000 142,000 8 0 N/A 0 6,000 148,000 9 0 N/A 0 6,000 154,000 10 0 N/A 0 6,000 160,000 11 0 $8,000(4) 8,000 0 160,000 12 0 8,000 8,000 0 160,000 13 0 8,000 8,000 0 160,000 14 0 8,000 8,000 0 160,000 15 0 8,000 8,000 0 160,000 20 0 8,000 8,000 0 160,000
(1) The initial Benefit Base is equal to the initial payment of $100,000. The Benefit Base is used to determine the Lifetime Income Amount and the rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a bonus will be added to the Benefit Base. The bonus amount is equal to 6% of the total Purchase Payments to date (.06 X $100,000 = $6,000). (3) Following a bonus, the Benefit Base is recalculated. The new Benefit Base is equal to the Benefit Base before the bonus increased by the amount of the bonus ($100,000 + $6,000 = $106,000). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 5% of the Benefit Base at that time (.05 X $160,000 = $8,000) C-1 EXAMPLE 1B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
BENEFIT LIFETIME INCOME BENEFIT BASE LIFETIME INCOME BASE ON AMOUNT ON CONTRACT PURCHASE AFTER AMOUNT AFTER WITHDRAWAL CONTRACT CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PURCHASE PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - -------- -------- ---------------- ---------------- ---------- ----------- --------------- At issue $100,000 $100,000 $5,000 $ -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) 5,500 110,000 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 114,500 5,725
(1) In this example, there is an additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + 10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X 110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Since there was a withdrawal prior to this payment and after the last recalculation of the Benefit Base, the Benefit Base is increased by the excess of the Purchase Payment over the previous withdrawals ($110,000 +(10,000-5,500) = $114,500) The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X 114,500 = $5,725). EXAMPLE 1C. THIS EXAMPLE DEMONSTRATE THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2, no additional Purchase Payments are made, withdrawals equal to the Lifetime Income Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no bonuses. The Benefit Base steps-up at the end of Contract Years 1, 2 and 3.
HYPOTHETICAL LIFETIME CONTRACT INCOME VALUE ON AMOUNT CONTRACT BENEFIT BASE AFTER ANNIVERSARY ON CONTRACT PURCHASE PURCHASE WITHDRAWAL PRIOR TO CONTRACT YEAR PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - -------- -------- -------- ---------- ------------ ------------ At issue $100,000 $ -- $ -- $ -- $100,000 1 0 5,000 5,000 102,000 102,000(1) 2 0 5,100(1) 5,100(1) 103,514 103,514 3 0 5,176 5,176 105,020 105,020 4 0 5,251 5,251 94,013(2) 105,020(2) 5 0 5,251 5,251 78,793 105,020
(1) At the end of Contract Year 1, the Contract Value in this example, $102,000 is greater than the Benefit Base of $100,000. The Benefit Base will Step-up to equal the Contract Value of $102,000. The Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x 102,000 = $5,100). (2) At the end of Contract Year 4, the Contract Value in this example, $94,013 is less than the Benefit Base of $105,020. The Benefit Base will remain at $105,020. EXAMPLE 1D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 1c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL LIFETIME CONTRACT INCOME VALUE ON AMOUNT CONTRACT BENEFIT BASE AFTER ANNIVERSARY ON CONTRACT PURCHASE PURCHASE WITHDRAWAL PRIOR TO CONTRACT YEAR PAYMENT PAYMENT TAKEN RIDER FEE ANNIVERSARY - -------- -------- -------- ---------- ------------ ------------ At issue $100,000 $ -- $ -- $ -- $100,000 1 0 5,000 5,000 102,000 102,000 2 0 5,100 5,100 103,514 103,514 3 0 5,176 5,176 105,020 105,020 4 0 5,251 10,000 89,264 89,264(1) 5 0 4,463(1) 4,463 75,307 89,264
(1) The withdrawal of $10,000 exceeds the Lifetime Income Amount of $5,251. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($89,264) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,020-10,000 = $95,020). The Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x 89,264 = $4,463). C-2 EXAMPLES 2A, 2B, 2C AND 2D DEMONSTRATE THE BASIC OPERATION OF THE INCOME PLUS FOR LIFE - JOINT LIFE OPTIONAL BENEFIT RIDER. EXAMPLE 2A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING FOR WITHDRAWALS. Assume a single Purchase Payment of $100,000 at the youngest Covered Person's age 49 1/2, no additional Purchase Payments are made, withdrawals equal to the Lifetime Income Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Benefit Base at the eligible Step-up Dates, so there is no Step-up and at least one of the Covered Persons survives at least 20 years from issue.
BENEFIT BASE LIFETIME ON CONTRACT PURCHASE INCOME WITHDRAWAL CONTRACT YEAR PAYMENTS AMOUNT TAKEN BONUS ANNIVERSARY - -------- -------- --------- ---------- ------ ------------ At issue $100,000 N/A $ 0 $ 0 $100,000(1) 1 0 N/A 0 6,000(2) 106,000(3) 2 0 N/A 0 6,000 112,000 3 0 N/A 0 6,000 118,000 4 0 N/A 0 6,000 124,000 5 0 N/A 0 6,000 130,000 6 0 N/A 0 6,000 136,000 7 0 N/A 0 6,000 142,000 8 0 N/A 0 6,000 148,000 9 0 N/A 0 6,000 154,000 10 0 N/A 0 6,000 160,000 11 0 $7,600(4) 7,600 0 160,000 12 0 7,600 7,600 0 160,000 13 0 7,600 7,600 0 160,000 14 0 7,600 7,600 0 160,000 15 0 7,600 7,600 0 160,000 20 0 7,600 7,600 0 160,000
(1) The initial Benefit Base is equal to the initial payment of $100,000. The Benefit Base is used to determine the Lifetime Income Amount and the rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a bonus will be added to the Benefit Base. The bonus amount is equal to 6% of the total Purchase Payments to date (.06 X $100,000 = $6,000). (3) Following a bonus, the Benefit Base is recalculated. The new Benefit Base is equal to the Benefit Base before the bonus increased by the amount of the bonus ($100,000 + $6,000 = $106,000). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the youngest Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 4.75% of the Benefit Base at that time (.0475 X $160,000 = $7,600) EXAMPLE 2B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at youngest Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
BENEFIT LIFETIME INCOME BENEFIT BASE LIFETIME INCOME BASE ON AMOUNT ON CONTRACT PURCHASE AFTER AMOUNT AFTER WITHDRAWAL CONTRACT CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PURCHASE PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - -------- -------- ---------------- ---------------- ---------- ----------- --------------- At issue $100,000 $100,000 $4,750 $ -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,225(1) 5,225 110,000 5,225 2 10,000(2) 114,775(2) 5,452(2) 5,452 114,775 5,452
(1) In this example, there is an additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + 10,000 = $110,000). The Lifetime Income Amount is calculated as 4.75% of the Benefit Base immediately after the Purchase Payment (.0475 X $110,000 = $5,225). (2) In the second year, there is another Additional Purchase Payment of $10,000. Since there was a withdrawal prior to this payment and after the last recalculation of the Benefit Base, the Benefit Base is increased by the excess of the Purchase Payment over the previous withdrawals ($110,000 +(10,000-5,225) = $114,775) The Lifetime Income Amount is calculated as 4.75% of the Benefit Base immediately after the Purchase Payment (.0475 X $114,775 = $5,451.81). C-3 EXAMPLE 2C. THIS EXAMPLE DEMONSTRATE THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2 of the youngest Covered Person, no additional Purchase Payments are made, withdrawals equal to the Lifetime Income Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no bonuses. The Benefit Base steps-up at the end of Contract Years 1, 2 and 3.
HYPOTHETICAL LIFETIME INCOME CONTRACT VALUE ON AMOUNT AFTER CONTRACT PURCHASE PURCHASE WITHDRAWAL ANNIVERSARY PRIOR BENEFIT BASE ON CONTRACT YEAR PAYMENTS PAYMENT TAKEN TO RIDER FEE CONTRACT ANNIVERSARY - ------------- -------- --------------- ---------- ----------------- -------------------- At issue $100,000 $ -- $ -- $ -- $100,000 1 0 4,750 4,750 102,250 102,250 2 0 4,857(1) 4,857(1) 104,025 104,025(1) 3 0 4,941 4,941 105,800 105,800 4 0 5,026 5,026 94,977(2) 105,800(2) 5 0 5,026 5,026 79,882 105,800
(1) At the end of Contract Year 1, the Contract Value in this example, $102,250 is greater than the Benefit Base of $100,000. The Benefit Base will Step-up to equal the Contract Value of $102,000. The Lifetime Income Amount will equal 5% of the new Benefit Base (.0475 x $102,000 = $4,856.88). (2) At the end of Contract Year 4, the Contract Value in this example, $94,977 is less than the Benefit Base of $105,800. The Benefit Base will remain at $105,800. EXAMPLE 2D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 2c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL LIFETIME INCOME CONTRACT VALUE ON AMOUNT AFTER CONTRACT PURCHASE PURCHASE WITHDRAWAL ANNIVERSARY PRIOR BENEFIT BASE ON CONTRACT YEAR PAYMENTS PAYMENT TAKEN TO RIDER FEE CONTRACT ANNIVERSARY - ------------- -------- --------------- ---------- ----------------- -------------------- At issue $100,000 $ -- $ -- $ -- $100,000 1 0 4,750 4,750 102,250 102,250 2 0 4,857 4,857 104,025 104,025 3 0 4,941 4,941 105,800 105,800 4 0 5,026 10,000 90,002 90,002(1) 5 0 4,275(1) 4,275 76,156 90,002
(1) The withdrawal of $10,000 exceeds the Lifetime Income Amount of $5,026. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($90,002) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,800-10,000 = $95,800). The Lifetime Income Amount will equal 4.75% of the new Benefit Base (.0475 x $90,002 = $4,275). C-4 EXAMPLES 3A, 3B, 3C AND 3D DEMONSTRATE THE BASIC OPERATION OF THE PRINCIPAL PLUS FOR LIFE OPTIONAL BENEFIT RIDER. EXAMPLE 3A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. Assume a single Purchase Payment of $100,000 at Covered Person's age 49 1/2, no additional Purchase Payments are made, withdrawals equal to the Guaranteed Withdrawal Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Guaranteed Withdrawal Balance at the eligible Step-up Dates, so there is no Step-up and the Covered Person survives at least 31 years from issue.
GUARANTEED GUARANTEED LIFETIME WITHDRAWAL BALANCE PURCHASE WITHDRAWAL INCOME WITHDRAWAL ON CONTRACT CONTRACT YEAR PAYMENTS AMOUNT AMOUNT TAKEN BONUS ANNIVERSARY - ------------- -------- ---------- -------- ---------- ------ --------------- At issue $100,000 N/A N/A $ 0 $ 0 $100,000(1) 1 0 $5,000(1) N/A 0 5,000(2) 105,000(3) 2 0 5250(3) N/A 0 5,000 110,000 3 0 5,500 N/A 0 5,000 115,000 4 0 5,750 N/A 0 5,000 120,000 5 0 6,000 N/A 0 5,000 125,000 6 0 6,250 N/A 0 5,000 130,000 7 0 6,500 N/A 0 5,000 135,000 8 0 6,750 N/A 0 5,000 140,000 9 0 7,000 N/A 0 5,000 145,000 10 0 7,250 N/A 0 5,000 150,000 11 0 7,500 $7,500(4) 7,500 0 142,500 12 0 7,500 7,500 7,500 0 135,000 13 0 7,500 7,500 7,500 0 127,500 14 0 7,500 7,500 7,500 0 120,000 15 0 7,500 7,500 7,500 0 112,500 20 0 7,500 7,500 7,500 0 75,000 25 0 7,500 7,500 7,500 0 37,500 30 0 7,500 7,500 7,500 0 0 31+ 0 0 7,500 7,500 0 0
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance (.05 X $100,000 = $5,000). The Guaranteed Withdrawal Balance is used to determine the Guaranteed Withdrawal Amount, the Lifetime Income Amount and the rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a bonus will be added to the Guaranteed Withdrawal Balance. The bonus amount is equal to 5% of the total Purchase Payments to date (.05 X $100,000 = $5,000). (3) Following a bonus, the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount are recalculated. The new Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the bonus increased by the amount of the bonus ($100,000 + $5,000 = $105,000). The Guaranteed Withdrawal Amount is equal to the greater of (a) the Guaranteed Withdrawal Amount prior to the bonus ($5,000) or 5% of the Guaranteed Withdrawal Balance after the bonus (.05 X $105,000 = $5,250). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 5% of the Guaranteed Withdrawal Balance at that time (.05 X $150,000 = $7,500) EXAMPLE 3B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
BENEFIT LIFETIME INCOME BASE AFTER LIFETIME INCOME BENEFIT BASE AMOUNT ON PURCHASE PURCHASE AMOUNT AFTER WITHDRAWAL ON CONTRACT CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PURCHASE PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - ------------- -------- ---------- ---------------- ---------- ------------ --------------- At issue $100,000 $100,000 $5,000 $ -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) 5,500 104,500 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 108,775 5,725
(1) In this example, there is an additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + $10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X $110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Following the Additional Purchase Payment, the Benefit Base is calculated as the previous Benefit Base plus the amount of the Additional Purchase Payment ($104,500 + 10,000 = $114,500). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X $114,500 = $5,725). C-5 EXAMPLE 3C. THIS EXAMPLE DEMONSTRATE THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2, no additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no bonuses. The Guaranteed Withdrawal Balance Steps-up at the end of Contract Year 3,
HYPOTHETICAL GUARANTEED CONTRACT VALUE ON GUARANTEED WITHDRAWAL LIFETIME INCOME CONTRACT WITHDRAWAL BALANCE PURCHASE AMOUNT AFTER AMOUNT AFTER WITHDRAWAL ANNIVERSARY PRIOR ON CONTRACT CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PURCHASE PAYMENT TAKEN TO RIDER FEE ANNIVERSARY - ------------- -------- ---------------- ---------------- ---------- ----------------- ------------------ At issue $100,000 $ -- $ -- $ -- $ -- $100,000 1 0 5,000 5,000 5,000 102,000 95,000 2 0 5,000 5,000 5,000 103,828 90,000 3 0 5,000 5,000 5,000 105,781 105,781(1) 4 0 5,289(2) 5,289(2) 5,289 94,946 100,492
(1) At the end of Contract Year 3, the Contract Value in this example, $105,781 is greater than the Guaranteed Withdrawal Balance ($90,000 - $5,000 = $85,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $105,781. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 X $105,781 = $5,289). The Lifetime Income Amount is also recalculated as the greater of (a) the Lifetime Income Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 X $107,881 = $5,289). EXAMPLE 3D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 3c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL GUARANTEED CONTRACT VALUE ON GUARANTEED WITHDRAWAL LIFETIME INCOME CONTRACT WITHDRAWAL BALANCE PURCHASE AMOUNT AFTER AMOUNT AFTER WITHDRAWAL ANNIVERSARY PRIOR ON CONTRACT CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PURCHASE PAYMENT TAKEN TO RIDER FEE ANNIVERSARY - ------------- -------- ---------------- ---------------- ---------- ----------------- ------------------ At issue $100,000 $ -- $ -- $ -- $ -- $100,000 1 0 5,000 5,000 5,000 102,000 95,000 2 0 5,000 5,000 5,000 103,828 90,000 3 0 5,000 5,000 5,000 105,781 105,781 4 0 5,289 5,289 10,000 90,235 90,235(1) 5 0 4,512(1) 4,512(1) 4,512 76,319 85,723
(1) The withdrawal of $10,000 exceeds the Guaranteed Withdrawal Amount and the Lifetime Income Amount of $5,289. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($90,235) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,781-$10,000 = $95,781). The Guaranteed Income Amount and the Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x $90,235 =$4,512). C-6 EXAMPLES 4A, 4B, 4C AND 4D DEMONSTRATE THE BASIC OPERATION OF THE PRINCIPAL PLUS FOR LIFE PLUS AUTOMATIC ANNUAL STEP-UPS OPTIONAL BENEFIT RIDER. EXAMPLE 4A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. Assume a single Purchase Payment of $100,000 at Covered Person's age 49 1/2, no additional Purchase Payments are made, withdrawals equal to the Guaranteed Withdrawal Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Guaranteed Withdrawal Balance at the eligible Step-up Dates, so there is no Step-up and the Covered Person survives at least 31 years from issue.
GUARANTEED GUARANTEED WITHDRAWAL BALANCE PURCHASE WITHDRAWAL LIFETIME INCOME WITHDRAWAL ON CONTRACT CONTRACT YEAR PAYMENTS AMOUNT AMOUNT TAKEN BONUS ANNIVERSARY - ------------- -------- ---------- --------------- ---------- ------ ------------------ At issue $100,000 N/A N/A $ 0 $ 0 $100,000(1) 1 0 $5,000(1) N/A 0 5,000(2) 105,000(3) 2 0 5,250(3) N/A 0 5,000 110,000 3 0 5,500 N/A 0 5,000 115,000 4 0 5,750 N/A 0 5,000 120,000 5 0 6,000 N/A 0 5,000 125,000 6 0 6,250 N/A 0 5,000 130,000 7 0 6,500 N/A 0 5,000 135,000 8 0 6,750 N/A 0 5,000 140,000 9 0 7,000 N/A 0 5,000 145,000 10 0 7,250 N/A 0 5,000 150,000 11 0 7,500 $7,500(4) 7,500 0 142,500 12 0 7,500 7,500 7,500 0 135,000 13 0 7,500 7,500 7,500 0 127,500 14 0 7,500 7,500 7,500 0 120,000 15 0 7,500 7,500 7,500 0 112,500 20 0 7,500 7,500 7,500 0 75,000 25 0 7,500 7,500 7,500 0 37,500 30 0 7,500 7,500 7,500 0 0 31+ 0 0 7,500 7,500 0 0
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance (.05 X $100,000 = $5,000). The Guaranteed Withdrawal Balance is used to determine the Guaranteed Withdrawal Amount, the Lifetime Income Amount and the rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a bonus will be added to the Guaranteed Withdrawal Balance. The bonus amount is equal to 5% of the total Purchase Payments to date (.05 X $100,000 = $5,000). (3) Following a bonus, the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount are recalculated. The new Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the bonus increased by the amount of the bonus ($100,000 + $5,000 = $105,000). The Guaranteed Withdrawal Amount is equal to the greater of (a) the Guaranteed Withdrawal Amount prior to the bonus ($5,000) or 5% of the Guaranteed Withdrawal Balance after the bonus (.05 X $105,000 = $5,250). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person's attains age 59 1/2. The Lifetime Income Amount is initially equal to 5% of the Guaranteed Withdrawal Balance at that time (.05 X $150,000 = $7,500) EXAMPLE 4B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at Covered Person's age 60, an Additional Purchase Payment of $10,000 during Contract Year 1, and an additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
LIFETIME INCOME BENEFIT BASE ON LIFETIME INCOME PURCHASE BENEFIT BASE AFTER AMOUNT AFTER WITHDRAWAL CONTRACT AMOUNT ON CONTRACT CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PURCHASE PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - ------------- -------- ------------------ ---------------- ---------- --------------- ------------------ AT ISSUE $100,000 $100,000 $5,000 $ -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) 5,500 104,500 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 108,775 5,725
(1) In this example, there is an additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + 10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X $110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Following the Additional Purchase Payment, the Benefit Base is calculated as the previous Benefit Base plus the amount of the Additional Purchase Payment ($104,500 +$10,000 = $114,500). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X $114,500 = $5,725). C-7 EXAMPLE 4C. THIS EXAMPLE DEMONSTRATE THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at age 59 1/2, no additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no bonuses. The Guaranteed Withdrawal Balance Steps-up at the end of Contract Years 1, 2 and 3,
HYPOTHETICAL GUARANTEED LIFETIME INCOME CONTRACT VALUE ON WITHDRAWAL AMOUNT AFTER CONTRACT GUARANTEED PURCHASE AMOUNT AFTER PURCHASE WITHDRAWAL ANNIVERSARY PRIOR TO WITHDRAWAL BALANCE ON CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PAYMENT TAKEN RIDER FEE CONTRACT ANNIVERSARY - ------------- -------- ---------------- --------------- ---------- -------------------- --------------------- AT ISSUE $100,000 $ -- $ -- $ -- $ -- $100,000 1 0 5,000 5,000 5,000 102,000 102,000(1) 2 0 5,100(2) 5,100 5,100 103,514 103,514 3 0 5,176 5,176 5,176 105,020 105,020 4 0 5,251 5,251 5,251 94,012 99,769
(1) At the end of Contract Year 1, the Contract Value in this example, $102,000 is greater than the Guaranteed Withdrawal Balance ($10,000-$5,000 = $95,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $102,000. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 X $102,000 = $5,100). EXAMPLE 4D. THIS EXAMPLE ILLUSTRATES EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 4c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL GUARANTEED LIFETIME INCOME CONTRACT VALUE ON WITHDRAWAL AMOUNT AFTER CONTRACT GUARANTEED PURCHASE AMOUNT AFTER PURCHASE WITHDRAWAL ANNIVERSARY PRIOR TO WITHDRAWAL BALANCE ON CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PAYMENT TAKEN RIDER FEE CONTRACT ANNIVERSARY - ------------- -------- ---------------- --------------- ---------- -------------------- --------------------- At issue $100,000 $ -- $ -- $ -- $ -- $100,000 1 0 5,000 5,000 5,000 102,000 102,000 2 0 5,100 5,100 5,100 103,514 103,514 3 0 5,176 5,176 5,176 105,020 105,020 4 0 5,251 5,251 10,000 89,263 89,263(1) 5 0 4,463(1) 4,463(1) 4,463 75,307 84,800
(1) The withdrawal of $10,000 exceeds the Guaranteed Withdrawal Amount and the Lifetime Income Amount of $5,251. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($89,263) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,020-10,000 = $95,020). The Guaranteed Income Amount and the Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x $89,263 = $4,463). C-8 EXAMPLES 5A, 5B, 5C AND 5D DEMONSTRATE THE BASIC OPERATION OF THE PRINCIPAL PLUS FOR LIFE PLUS SPOUSAL PROTECTION OPTIONAL BENEFIT RIDER. EXAMPLE 5A. THIS EXAMPLE ILLUSTRATES THE IMPACT OF WAITING TO START WITHDRAWALS. Assume a single Purchase Payment of $100,000 at age 55 of oldest Covered Person, no additional Purchase Payments are made, withdrawals equal to the Guaranteed Withdrawal Amount are taken beginning in year 11. Also assume that the Contract Value is less than the Guaranteed Withdrawal Balance at the eligible Step-up Dates, so there is no Step-up and either of the Covered Persons survives at least 31 years from issue.
GUARANTEED GUARANTEED WITHDRAWAL BALANCE PURCHASE WITHDRAWAL LIFETIME INCOME WITHDRAWAL ON CONTRACT CONTRACT YEAR PAYMENTS AMOUNT AMOUNT TAKEN BONUS ANNIVERSARY - ------------- -------- ---------- --------------- ---------- ------ ------------------ AT ISSUE $100,000 N/A N/A $ 0 $ 0 $100,000(1) 1 0 $5,000(1) N/A 0 5,000(2) 105,000(3) 2 0 5,250(3) N/A 0 5,000 110,000 3 0 5,500 N/A 0 5,000 115,000 4 0 5,750 N/A 0 5,000 120,000 5 0 6,000 N/A 0 5,000 125,000 6 0 6,250 N/A 0 5,000 130,000 7 0 6,500 N/A 0 5,000 135,000 8 0 6,750 N/A 0 5,000 140,000 9 0 7,000 N/A 0 5,000 145,000 10 0 7,250 N/A 0 5,000 150,000 11 0 7,500 $7,500(4) 7,500 0 142,500 12 0 7,500 7,500 7,500 0 135,000 13 0 7,500 7,500 7,500 0 127,500 14 0 7,500 7,500 7,500 0 120,000 15 0 7,500 7,500 7,500 0 112,500 20 0 7,500 7,500 7,500 0 75,000 25 0 7,500 7,500 7,500 0 37,500 30 0 7,500 7,500 7,500 0 0 31+ 0 0 7,500 7,500 0 0
(1) The initial Guaranteed Withdrawal Balance is equal to the initial payment of $100,000. The initial Guaranteed Withdrawal Amount is equal to 5% of the initial Guaranteed Withdrawal Balance (.05 X $100,000 = $5,000). The Guaranteed Withdrawal Balance is used to determine the Guaranteed Withdrawal Amount , the Lifetime Income Amount and the rider fee. It is not available for withdrawal as a lump sum. (2) In this example, there is no withdrawal during the first Contract Year so a bonus will be added to the Guaranteed Withdrawal Balance. The bonus amount is equal to 5% of the total Purchase Payments to date (.05 X $100,000 = $5,000). (3) Following a bonus, the Guaranteed Withdrawal Balance and the Guaranteed Withdrawal Amount are recalculated. The new Guaranteed Withdrawal Balance is equal to the Guaranteed Withdrawal Balance before the bonus increased by the amount of the bonus ($100,000 + $5,000 = $105,000). The Guaranteed Withdrawal Amount is equal to the greater of (a) the Guaranteed Withdrawal Amount prior to the bonus ($5,000) or 5% of the Guaranteed Withdrawal Balance after the bonus (.05 X $105,000 = $5,250). (4) The Lifetime Income Amount is calculated on the Contract Anniversary after the Covered Person's attains age 59 1/2 (oldest Covere d Person for Principal Plus for Life - Spousal Protection Rider). The Lifetime Income Amount is initially equal to 5% of the Guaranteed Withdrawal Balance at that time (.05 X $150,000 = $7,500) EXAMPLE 5B. THIS EXAMPLE ILLUSTRATES ADDITIONAL PURCHASE PAYMENTS. Assume an initial Purchase Payment of $100,000 at age 65 of oldest Covered Person, an Additional Purchase Payment of $10,000 during Contract Year 1, and an additional Purchase Payment of $10,000 in year 2. Withdrawals are taken at the end of all Contract Years. Also assume that the Contract Value is less than the Benefit Base so there is no Step-up.
LIFETIME INCOME BENEFIT BASE ON LIFETIME INCOME PURCHASE BENEFIT BASE AFTER AMOUNT AFTER WITHDRAWAL CONTRACT AMOUNT ON CONTRACT CONTRACT YEAR PAYMENTS PURCHASE PAYMENT PURCHASE PAYMENT TAKEN ANNIVERSARY ANNIVERSARY - ------------- -------- ------------------ ---------------- ---------- --------------- ------------------ AT ISSUE $100,000 $100,000 $5,000 $ -- $100,000 $5,000 1 10,000(1) 110,000(1) 5,500(1) 5,500 104,500 5,500 2 10,000(2) 114,500(2) 5,725(2) 5,725 108,775 5,725
(1) In this example, there is an additional Purchase Payment during the first Contract Year. Following the Additional Purchase Payment, the Benefit Base is calculated as the initial Benefit Base plus the amount of the Additional Purchase Payment ($100,000 + $10,000 = $110,000). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X 110,000 = $5,500). (2) In the second year, there is another Additional Purchase Payment of $10,000. Following the Additional Purchase Payment, the Benefit Base is calculated as the previous Benefit Base plus the amount of the Additional Purchase Payment ($104,500 + $10,000 = $114,500). The Lifetime Income Amount is calculated as 5% of the Benefit Base immediately after the Purchase Payment (.05 X $114,500 = $5,725). C-9 EXAMPLE 5C. THIS EXAMPLE DEMONSTRATE THE IMPACT OF STEP-UPS. Assume a single Purchase Payment of $100,000 at the oldest Covered Person's age 65, no additional Purchase Payments are made, and withdrawals equal to the Guaranteed Withdrawal Amount are taken in Contract Years 1, 2, 3 and 4. Since withdrawals are taken every year, there are no bonuses. The Guaranteed Withdrawal Balance Steps-up at the end of Contract Year 3.
HYPOTHETICAL CONTRACT VALUE ON GUARANTEED GUARANTEED CONTRACT WITHDRAWAL WITHDRAWAL AMOUNT LIFETIME INCOME ANNIVERSARY BALANCE ON PURCHASE AFTER PURCHASE AMOUNT AFTER WITHDRAWAL PRIOR TO CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PURCHASE PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- ----------------- ---------------- ---------- ------------ ----------- At issue $100,000 $ -- $ -- $ -- $ -- $100,000 1 0 5,000 5,000 5,000 102,000 95,000 2 0 5,000 5,000 5,000 103,560 90,000 3 0 5,000 5,000 5,000 105,240(1) 105,240(1) 4 0 5,262(2) 5,262(2) 5,262 94,245 99,978
(1) At the end of Contract Year 3, the Contract Value in this example, $105,240 is greater than the Guaranteed Withdrawal Balance ($90,000 - $5,000 = $85,000). The Guaranteed Withdrawal Balance will Step-up to equal the Contract Value of $105,240. (2) Following the Step-up of the Guaranteed Withdrawal Balance, the Guaranteed Withdrawal Amount is recalculated as the greater of (a) the Guaranteed Withdrawal Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 X $105,240 = $5,262). The Lifetime Income Amount is also recalculated as the greater of (a) the Lifetime Income Amount prior to the Step-up $5,000 or (b) 5% of the Guaranteed Withdrawal Balance after the Step-up (.05 X $105,240 = $5,262). EXAMPLE 5D. THIS EXAMPLE ILLUSTRATE EXCESS WITHDRAWALS. Assume the same Purchase Payments and withdrawals as example 5c, but with a withdrawal of $10,000 at the end of year 4.
HYPOTHETICAL CONTRACT VALUE ON GUARANTEED GUARANTEED CONTRACT WITHDRAWAL WITHDRAWAL AMOUNT LIFETIME INCOME ANNIVERSARY BALANCE ON PURCHASE AFTER PURCHASE AMOUNT AFTER WITHDRAWAL PRIOR TO CONTRACT CONTRACT YEAR PAYMENTS PAYMENT PURCHASE PAYMENT TAKEN RIDER FEE ANNIVERSARY - ------------- -------- ----------------- ---------------- ---------- ------------ ----------- At issue $100,000 $ -- $ -- $ -- $ -- $100,000 1 0 5,000 5,000 5,000 102,000 95,000 2 0 5,000 5,000 5,000 103,560 90,000 3 0 5,000 5,000 5,000 105,240 105,240 4 0 5,262 5,262 10,000 89,507 89,507(1) 5 0 4,475(1) 4,475(1) 4,475 75,465 85,031
(1) The withdrawal of $10,000 exceeds the Guaranteed Withdrawal Amount and the Lifetime Income Amount of $5,262. The Benefit Base will be reset to equal the lesser of the Contract Value after the withdrawal ($89,507) or the Benefit Base prior to the withdrawal less the amount of the withdrawal ($105,240-$10,000 = $95,240). The Guaranteed Income Amount and the Lifetime Income Amount will equal 5% of the new Benefit Base (.05 x $89,507 = $4,475). C-10 Appendix D: Qualified Plan Types TRADITIONAL IRAS Individual Retirement Annuities Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity or IRA (sometimes referred to as a traditional IRA to distinguish it from the Roth IRA discussed below). IRAs are subject to limits on the amounts that may be contributed and deducted, the persons who may be eligible and on the time when distributions may commence. Also, distributions from certain other types of qualified retirement plans may be rolled over on a tax-deferred basis into an IRA. The Contract may not, however, be used in connection with an Education IRA under Section 530 of the Code. The Contract may be issued with a death benefit or certain benefits provided by an optional rider. The presence of such benefits may increase the amount of any required minimum distributions for IRAs and other Contracts subject to the required minimum distribution rules. Distributions In general, unless you have made non-deductible contributions to your IRA, all amounts paid out from a traditional IRA contract (in the form of an annuity, a single sum, death benefits or partial withdrawal), are taxable to the payee as ordinary income. As in the case of a Contract not purchased under a Qualified Plan, you may incur an additional 10% penalty tax if you make a surrender or withdrawal before you reach age 59 1/2 (unless certain exceptions apply as specified in Code section 72(t)). If you have made any non-deductible contributions to an IRA contract, all or part of any withdrawal or surrender proceeds, single sum death benefit or annuity payment, may be excluded from your taxable income when you receive the proceeds. The tax law requires that annuity payments under a traditional IRA contract begin no later than April 1 of the year following the year in which the Owner attains age 70 1/2. The amount that must be distributed each year is computed on the basis of the Owner's age and the value of the Contract, taking into account both the account balance and, in 2006 and subsequent years, the actuarial present value of other benefits provided under the Contract. ROTH IRAS Section 408A of the Code permits eligible individuals to contribute to a type of IRA known as a Roth IRA. Roth IRAs are generally subject to the same rules as non-Roth IRAs, but they differ in certain respects. Among the differences are that contributions to a Roth IRA are not deductible and qualified distributions from a Roth IRA are excluded from income. A qualified distribution is a distribution that satisfies two requirements. First, the distribution must be made in a taxable year that is at least five years after the first taxable year for which a contribution to any Roth IRA established for the Owner was made. Second, the distribution must be: - made after the Owner attains age 59 1/2; - made after the Owner's death; - attributable to the Owner being disabled; or - a qualified first-time homebuyer distribution within the meaning of Section 72(t)(2)(F) of the Code. In addition, distributions from Roth IRAs need not commence when the Owner attains age 70 1/2. A Roth IRA may accept a "qualified rollover contribution" from a traditional IRA or another Roth IRA. A Roth IRA, however, may not accept rollover contributions from other Qualified Plans, except (and only to the extent) that such rollover consists of designated Roth contributions to the rollover. If the Contract is issued with certain death benefits or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions for IRAs (which include Roth IRAs) and other Contracts subject to the minimum distribution rules. Also, the state tax treatment of a Roth IRA may differ from the Federal income tax treatment of a Roth IRA. If you intend to use the Contract in connection with a Roth IRA, you should seek independent tax advice. Conversion or Direct Rollover to a Roth IRA You can convert a traditional IRA to a Roth IRA or, beginning in 2008, directly roll over distributions that you receive from a retirement plan described in Sections 401(a), 403(a), or 403(b) of the Code or a governmental deferred compensation plan described in Section 457(b) of the Code to a Roth IRA unless: - you have adjusted gross income over $100,000; or - you are a married taxpayer filing a separate return. The Roth IRA annual contribution limit does not apply to converted or rollover amounts. D-1 You must, however, pay tax on any portion of the converted or rollover amount that would have been taxed if you had not converted or rolled over to a Roth IRA. No similar limitations apply to rollovers from one Roth IRA to another Roth IRA. Please note that the amount deemed to be the "converted amount" for tax purposes may be higher than the Contract Value because of the deemed value of guarantees. No similar limitations apply to rollovers from one Roth IRA to another Roth IRA. SIMPLE IRA PLANS In general, under Section 408(p) of the Code a small business employer may establish a SIMPLE IRA retirement plan if the employer employed 100 or fewer employees earning at least $5,000 during the preceding year. Under a SIMPLE IRA plan both employees and the employer make deductible contributions. SIMPLE IRAs are subject to various requirements, including limits on the amounts that may be contributed, the persons who may be eligible, and the time when distributions may commence. If the Contract is issued with certain death benefits or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions for IRAs (which would include SIMPLE IRAs) and other Contracts subject to the minimum distribution rules. The requirements for minimum distributions from a SIMPLE IRA retirement planare generally the same as those discussed above for distributions from a traditional IRA. The rules on taxation of distributions are also similar to those that apply to a traditional IRA, except that (i) tax free rollovers may be made from a SIMPLE IRA plan only to another SIMPLE IRA plan during the first two years of participation in the plan; and (ii) the penalty tax on early distribution from a SIMPLE IRA plan that occurs during the first two years of participation is 25%, instead of 10%. Employers intending to use the Contract in connection with such plans should seek independent tax advice. SIMPLIFIED EMPLOYEE PENSIONS (SEP-IRAS) Section 408(k) of the Code allows employers to establish simplified employee pension plans for their employees, using the employees' IRAs for such purposes, if certain criteria are met. Under these plans the employer may, within specified limits, make deductible contributions on behalf of the employees to IRAs. If the Contract is issued with certain death benefits or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions for IRAs (which would include SEP-IRAs) and other Contracts subject to the minimum distribution rules. The requirements for minimum distributions from a SEP-IRA, and rules on taxation of distributions from a SEP-IRA, are generally the same as those discussed above for distributions from a traditional IRA. TAX-SHELTERED ANNUITIES Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations to have their employers purchase annuity contracts for them and, subject to certain limitations, to exclude the Purchase Payments from gross income for tax purposes. These Contracts are commonly referred to as "tax-sheltered annuities." Purchasers of the Contracts for such purposes should seek competent advice as to eligibility, limitations on Purchase Payments, and other tax consequences. In particular, purchasers should note that the Contract provides death benefit options that may exceed the greater of the Purchase Payments and Contract Value. It is possible that the presence of the death benefit could be characterized by the IRS as an "incidental death benefit" and result in currently taxable income to the Owner. There also are limits on the amount of incidental benefits that may be provided under a tax-sheltered annuity. If a Contract is issued with a death benefit or benefits provided by an optional rider, the presence of these benefits may increase the amount of any required minimum distributions that must be made. Tax-sheltered annuity contracts must contain restrictions on withdrawals of: - contributions made pursuant to a salary reduction agreement in years beginning after December 31, 1988; - earnings on those contributions; and - earnings after 1988 on amounts attributable to salary reduction contributions (and earnings on those contributions) held as of the last day of 1988. These amounts can be paid only if the employee has reached age 59 1/2, separated from service, died, or become disabled (within the meaning of the tax law), or in the case of hardship (within the meaning of the tax law). Amounts permitted to be distributed in the event of hardship are limited to actual contributions for elective contributions made after 1988; earnings thereon cannot be distributed on account of hardship. Amounts subject to the withdrawal restrictions applicable to Section 403(b)(7) custodial accounts may be subject to more stringent restrictions. (These limitations on withdrawals do not apply to the extent we are directed to transfer some or all of the Contract Value to the issuer of another tax-sheltered annuity or into a Section 403(b)(7) custodial account). D-2 CORPORATE AND SELF-EMPLOYED ("H.R. 10" AND "KEOGH") PENSION AND PROFIT-SHARING PLANS Sections 401(a) and 403(a) of the code permit corporate employers to establish various types of tax-deferred retirement plans for employees. The Self-Employed Individuals' Tax Retirement Act of 1962, as amended, commonly referred to as "H.R. 10" or "Keogh", permits self-employed individuals to establish tax-favored retirement plans for themselves and their employees. Such retirement plans may permit the purchase of annuity contracts in order to provide benefits under the plans. The Contract provides death benefit options that in certain circumstances may exceed the greater of the Purchase Payments and Contract Value. It is possible that the presence of the death benefit could be characterized by the IRS as an "incidental death benefit" and result in currently taxable income to the participant. There also are limits on the amount of incidental benefits that may be provided under pension and profit sharing plans. If the Contract is issued with certain death benefits or benefits provided under an optional rider, the presence of these benefits may increase the amount of any required minimum distributions that must be made. Employers intending to use the Contract in connection with such plans should seek independent advice. Minimum distribution to the employee under an employer's pension and profit sharing plan qualified under Section 401(a) of the Code must begin no later than April 1 of the year following the calendar year in which the employee reaches age 70 1/2 or, if later, retires. In the case of an employee who is a 5 percent Owner as defined in Code section 416, the required beginning date is April 1 of the year following the calendar year in which employee reaches age 70 1/2. DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERNMENTS AND TAX-EXEMPT ORGANIZATIONS Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. Generally, a Contract purchased by a state or local government or a tax-exempt organization will not be treated as an annuity contract for Federal income tax purposes. - A Section 457 plan must satisfy several conditions, including the requirement that it must not permit distributions prior to your separation from service (except in the case of an unforeseen emergency). When we make payments under your Contract, the payment is taxed as ordinary income. Minimum distributions under a Section 457 plan must begin no later than April 1 of the year following the year in which the employee reaches age 70 1/2 or, if later, retires. D-3 (Page intentionally left blank.) Appendix E: Examples of Payment Enhancement Calculations The Payment Enhancement is determined based on the cumulative amount of your payments. The Payment Enhancements, as a percentage of payments, are shown in the table below.
CUMULATIVE PAYMENTS PAYMENT ENHANCEMENT(1) - ---------------------- ---------------------- $10,000 to $499,999 3.0% $500,000 to $2,499,999 4.0% $2,500,000 and above 5.0%
Payment Enhancements are payable as a percentage of the payment being made. The two examples below demonstrate how the Payment Enhancement is calculated: EXAMPLE 1. Assume an initial payment of $400,000 and a subsequent payment of $200,000. Payment Enhancements would be determined as follows(2): - A Payment Enhancement of $12,000 (3% x $400,000) would be allocated among the Investment Options in proportion to the allocation of the $400,000 initial payment, - A Payment Enhancement of $8,000 (4% x $200,000) would be allocated among the Investment Options in proportion to the allocation of the $200,000 subsequent payment. EXAMPLE 2. Assume an initial payment of $200,000 and a subsequent payment of $400,000. Payment Enhancements would be determined as follows(2): - A Payment Enhancement of $6,000 (3% x $200,000) would be allocated among the Investment Options in proportion to the allocation of the $200,000 initial payment, - A Payment Enhancement of $16,000 (4% x $400,000) would be allocated among the Investment Options in proportion to the allocation of the $400,000 subsequent payment. (1) Promotional Payment Enhancement rates that are currently in effect for new Contracts are higher (see "V. Description of the Contract - Payment Enhancements"). (2) Unless we receive a Letter of Intent from you representing that additional Purchase Payments will be received within 13 months of the issue date of the Contract. If we receive a Letter of Intent, the Payment Enhancement will be determined using the percentage associated with the total amount of Purchase Payments indicated in the Letter of Intent (see "V. Description of the Contract - Payment Enhancements"). E-1 (Page intentionally left blank.) APPENDIX U: TABLES OF ACCUMULATION UNIT VALUES The following table provides information about Variable Investment Options available under the Contracts described in this Prospectus. We present this information in columns that compare the value of various classes of accumulation units for each Variable Investment Option during the periods shown. We use accumulation units to measure the value of your investment in a particular Variable Investment Option. Each accumulation unit reflects the value of underlying shares of a particular Fund (including dividends and distributions made by that Fund), as well as the charges we deduct on a daily basis for Separate Account Annual Expenses (see the Fee Tables section of the Prospectus for additional information on these charges). The table contains information on different classes of accumulation units because we deduct different levels of daily charges. In particular, the table shows accumulation units reflecting the daily charges for: - Venture Vantage(R) Contracts with no optional benefit Riders; - Venture Vantage(R) Contracts with an optional Annual Step Death Benefit Rider; and - Previously issued Venture Vantage(R) Contracts with an optional Guaranteed Earnings Multiplier ("GEM") optional benefit Rider. Please note that fees for a guaranteed minimum withdrawal benefit Rider are deducted from Contract Value and, therefore, are not reflected in the accumulation unit values. U-1 Vantage New Sales JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H ACCUMULATION UNIT VALUES- VANTAGE VARIABLE ANNUITY
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ---------- ---------- ---------- ---------- ---------- -------- -------- -------- -------- -------- AMERICAN BOND TRUST - SERIES II SHARES (units first credited 8-01-2005) Contracts with no Optional Benefits Value at Start of Year $12.410162 $12.500000 -- -- -- -- -- -- -- -- Value at End of Year 13.012317 12.410162 -- -- -- -- -- -- -- -- No. of Units 3,087,417 791,907 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 12.399892 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 12.975650 12.399892 -- -- -- -- -- -- -- -- No. of Units 1,989,870 561,066 -- -- -- -- -- -- -- -- AMERICAN GROWTH TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 19.130193 16.807957 15.254034 12.500000 -- -- -- -- -- -- Value at End of Year 20.653351 19.130193 16.807957 15.254034 -- -- -- -- -- -- No. of Units 6,656,145 5,934,668 4,644,778 418,891 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 19.028876 16.752296 15.234022 12.500000 -- -- -- -- -- -- Value at End of Year 20.503034 19.028876 16.752296 15.234022 -- -- -- -- -- -- No. of Units 2,791,715 2,148,990 1,426,218 391,517 -- -- -- -- -- -- AMERICAN GROWTH-INCOME TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 17.233995 16.623657 15.372805 12.500000 -- -- -- -- -- -- Value at End of Year 19.450139 17.233995 16.623657 15.372805 -- -- -- -- -- -- No. of Units 5,744,824 4,904,505 3,699,484 233,294 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 17.142690 16.568595 15.352637 12.500000 -- -- -- -- -- -- Value at End of Year 19.308566 17.142690 16.568595 15.352637 -- -- -- -- -- -- No. of Units 2,756,448 2,110,126 1,371,928 258,399 -- -- -- -- -- -- AMERICAN INTERNATIONAL TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 22.946316 19.280394 16.491401 12.500000 -- -- -- -- -- -- Value at End of Year 26.734523 22.946316 19.280394 16.491401 -- -- -- -- -- -- No. of Units 3,450,578 2,717,581 1,774,536 98,509 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 22.824807 19.216554 16.469766 12.500000 -- -- -- -- -- -- Value at End of Year 26.539979 22.824807 19.216554 16.469766 -- -- -- -- -- -- No. of Units 1,451,379 1,083,099 611,849 67,542 -- -- -- -- -- -- BLUE CHIP GROWTH TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.431593 13.910241 12.981709 10.219054 12.500000 -- -- -- -- -- Value at End of Year 15.533561 14.431593 13.910241 12.981709 10.219054 -- -- -- -- -- No. of Units 1,089,323 1,204,800 1,158,877 617,589 418,888 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.327062 13.837048 12.939311 10.206043 12.500000 -- -- -- -- -- Value at End of Year 15.390317 14.327062 13.837048 12.939311 10.206043 -- -- -- -- -- No. of Units 291,720 297,497 213,224 30,882 10,085 -- -- -- -- -- CAPITAL APPRECIATION TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.654969 13.089938 12.171848 9.556431 12.500000 -- -- -- -- -- Value at End of Year 14.727981 14.654969 13.089938 12.171848 9.556431 -- -- -- -- -- No. of Units 563,128 182,168 195,765 211,754 124,844 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.548803 13.021044 12.132085 9.544262 12.500000 -- -- -- -- -- Value at End of Year 12.964816 14.548803 13.021044 12.132085 9.544262 -- -- -- -- -- No. of Units 128,538 15,268 6,137 3,248 4,124 -- -- -- -- --
U-2 Vantage New Sales
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ---------- ---------- ---------- ---------- ---------- -------- -------- -------- -------- -------- CLASSIC VALUE TRUST - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year $14.792845 $13.754542 $12.500000 -- -- -- -- -- -- -- Value at End of Year 16.872448 14.792845 13.754542 -- -- -- -- -- -- -- No. of Units 354,296 162,522 66,024 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.743839 13.736322 12.500000 -- -- -- -- -- -- -- Value at End of Year 16.783055 14.743839 13.736322 -- -- -- -- -- -- -- No. of Units 61,604 29,081 11,947 -- -- -- -- -- -- -- CORE EQUITY TRUST - SERIES II SHARES (units first credited 5-03-2004) Contracts with no Optional Benefits Value at Start of Year 14.648304 14.064773 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.357367 14.648304 14.064773 -- -- -- -- -- -- -- No. of Units 336,984 456,258 300,879 -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.599758 14.046138 12.500000 -- -- -- -- -- -- -- Value at End of Year 15.275960 14.599758 14.046138 -- -- -- -- -- -- -- No. of Units 165,723 202,252 97,703 -- -- -- -- -- -- -- EQUITY-INCOME TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.825708 14.516669 12.864713 10.419024 12.500000 -- -- -- -- -- Value at End of Year 17.337374 14.825708 14.516669 12.864713 10.419024 -- -- -- -- -- No. of Units 1,560,317 1,745,873 1,642,979 1,114,993 766,558 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.718317 14.440278 12.822685 10.405752 12.500000 -- -- -- -- -- Value at End of Year 17.177495 14.718317 14.440278 12.822685 10.405752 -- -- -- -- -- No. of Units 421,534 431,365 266,760 80,834 16,980 -- -- -- -- -- FINANCIAL SERVICES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.738520 14.580230 13.451522 10.241025 12.500000 -- -- -- -- -- Value at End of Year 19.025897 15.738520 14.580230 13.451522 10.241025 -- -- -- -- -- No. of Units 223,983 208,038 206,195 190,654 125,127 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 15.624517 14.503495 13.407583 10.227986 12.500000 -- -- -- -- -- Value at End of Year 18.850460 15.624517 14.503495 13.407583 10.227986 -- -- -- -- -- No. of Units 39,487 30,059 26,277 15,535 836 -- -- -- -- -- FUNDAMENTAL VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.822838 14.783043 13.472600 10.559943 12.500000 -- -- -- -- -- Value at End of Year 17.798619 15.822838 14.783043 13.472600 10.559943 -- -- -- -- -- No. of Units 1,613,638 1,236,685 999,806 788,137 722,275 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 15.708228 14.705246 13.428610 10.546509 12.500000 -- -- -- -- -- Value at End of Year 17.634502 15.708228 14.705246 13.428610 10.546509 -- -- -- -- -- No. of Units 660,220 433,555 197,850 31,408 11,638 -- -- -- -- -- GLOBAL ALLOCATION TRUST (FORMERLY TACTICAL ALLOCATION TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.605849 14.002434 12.638742 10.149550 12.500000 -- -- -- -- -- Value at End of Year 16.291586 14.605849 14.002434 12.638742 10.149550 -- -- -- -- -- No. of Units 1,124,811 798,432 434,763 117,087 64,984 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.500051 13.928749 12.597473 10.136635 12.500000 -- -- -- -- -- Value at End of Year 16.141369 14.500051 13.928749 12.597473 10.136635 -- -- -- -- -- No. of Units 786,453 535,067 234,440 9,046 830 -- -- -- -- -- GLOBAL BOND TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.162566 17.584406 16.225841 14.308974 12.500000 -- -- -- -- -- Value at End of Year 16.721256 16.162566 17.584406 16.225841 14.308974 -- -- -- -- -- No. of Units 951,122 689,169 505,945 331,386 221,118 -- -- -- -- --
U-3 Vantage New Sales
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ---------- ---------- ---------- ---------- ---------- -------- -------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year $16.045535 $17.491941 $16.172895 $14.290823 $12.500000 -- -- -- -- -- Value at End of Year 16.567109 16.045535 17.491941 16.172895 14.290823 -- -- -- -- -- No. of Units 505,289 348,357 163,463 58,633 9,679 -- -- -- -- -- HEALTH SCIENCES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 17.830852 16.107097 14.220030 10.626002 12.500000 -- -- -- -- -- Value at End of Year 18.991253 17.830852 16.107097 14.220030 10.626002 -- -- -- -- -- No. of Units 386,178 357,276 331,788 300,443 187,281 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 17.701664 16.022313 14.173571 10.612467 12.500000 -- -- -- -- -- Value at End of Year 18.816077 17.701664 16.022313 14.173571 10.612467 -- -- -- -- -- No. of Units 73,278 74,870 56,393 33,516 5,305 -- -- -- -- -- HIGH YIELD TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.941511 15.633635 14.324530 11.713618 12.500000 -- -- -- -- -- Value at End of Year 17.304026 15.941511 15.633635 14.324530 11.713618 -- -- -- -- -- No. of Units 465,143 527,606 644,525 535,198 182,041 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 15.826048 15.551396 14.277775 11.698735 12.500000 -- -- -- -- -- Value at End of Year 17.144483 15.826048 15.551396 14.277775 11.698735 -- -- -- -- -- No. of Units 111,397 215,221 181,616 173,522 76,459 -- -- -- -- -- INCOME & VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.743097 14.261910 13.484978 10.844734 12.500000 -- -- -- -- -- Value at End of Year 15.739087 14.743097 14.261910 13.484978 10.844734 -- -- -- -- -- No. of Units 519,624 553,526 611,366 449,663 310,937 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.636323 14.186875 13.440953 10.830938 12.500000 -- -- -- -- -- Value at End of Year 15.593967 14.636323 14.186875 13.440953 10.830938 -- -- -- -- -- No. of Units 104,558 106,569 93,132 51,598 4,107 -- -- -- -- -- INDEX ALLOCATION TRUST - SERIES II SHARES (units first credited 2-13-2006) Contracts with no Optional Benefits Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.503317 -- -- -- -- -- -- -- -- -- No. of Units 770,055 -- -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 12.500000 -- -- -- -- -- -- -- -- -- Value at End of Year 13.479737 -- -- -- -- -- -- -- -- -- No. of Units 347,176 -- -- -- -- -- -- -- -- -- INTERNATIONAL CORE TRUST (FORMERLY, INTERNATIONAL STOCK TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.071601 14.106539 12.420452 9.684206 12.500000 -- -- -- -- -- Value at End of Year 19.720898 16.071601 14.106539 12.420452 9.684206 -- -- -- -- -- No. of Units 182,584 148,278 174,243 145,022 116,451 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 15.955163 14.032279 12.379856 9.671864 12.500000 -- -- -- -- -- Value at End of Year 19.539027 15.955163 14.032279 12.379856 9.671864 -- -- -- -- -- No. of Units 40,486 19,364 9,947 5,510 3,919 -- -- -- -- -- INTERNATIONAL OPPORTUNITIES TRUST - SERIES II SHARES (units first credited 5-01-2005) Contracts with no Optional Benefits Value at Start of Year 15.351670 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 18.729394 15.351670 -- -- -- -- -- -- -- -- No. of Units 370,887 113,101 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 15.331369 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 18.667360 15.331369 -- -- -- -- -- -- -- -- No. of Units 51,402 16,220 -- -- -- -- -- -- -- --
U-4 Vantage New Sales
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ----------- ----------- ----------- ---------- ---------- -------- -------- -------- -------- -------- INTERNATIONAL SMALL CAP TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year $ 19.377439 $ 17.910728 $ 15.050495 $ 9.878693 $12.500000 -- -- -- -- -- Value at End of Year 24.337272 19.377439 17.910728 15.050495 9.878693 -- -- -- -- -- No. of Units 158,412 166,799 170,357 87,054 53,743 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 19.237114 17.816506 15.001355 9.866121 12.500000 -- -- -- -- -- Value at End of Year 24.112910 19.237114 17.816506 15.001355 9.866121 -- -- -- -- -- No. of Units 86,241 82,013 56,009 17,077 497 -- -- -- -- -- INTERNATIONAL VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 18.070607 16.636993 13.921688 9.783417 12.500000 -- -- -- -- -- Value at End of Year 23.001890 18.070607 16.636993 13.921688 9.783417 -- -- -- -- -- No. of Units 948,384 916,366 833,752 625,371 529,848 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 17.939725 16.549456 13.876213 9.770965 12.500000 -- -- -- -- -- Value at End of Year 22.789826 17.939725 16.549456 13.876213 9.770965 -- -- -- -- -- No. of Units 193,480 186,031 90,653 26,197 9,713 -- -- -- -- -- INVESTMENT QUALITY BOND TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.581393 14.514565 14.086938 13.341290 12.500000 -- -- -- -- -- Value at End of Year 14.840203 14.581393 14.514565 14.086938 13.341290 -- -- -- -- -- No. of Units 599,015 437,529 319,935 334,870 200,438 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.475739 14.438164 14.040925 13.324346 12.500000 -- -- -- -- -- Value at End of Year 14.703313 14.475739 14.438164 14.040925 13.324346 -- -- -- -- -- No. of Units 274,281 159,444 66,125 37,853 4,969 -- -- -- -- -- LARGE CAP GROWTH TRUST (MERGED INTO CAPITAL APPRECIATION TRUST EFF 4-28-2006) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year -- 13.003457 12.459436 10.103824 12.500000 -- -- -- -- -- Value at End of Year -- 12.800895 13.003457 12.459436 10.103824 -- -- -- -- -- No. of Units -- 528,213 555,743 525,535 408,713 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year -- 12.935008 12.418740 10.090965 12.500000 -- -- -- -- -- Value at End of Year -- 12.708135 12.935008 12.418740 10.090965 -- -- -- -- -- No. of Units -- 123,910 97,380 37,435 3,838 -- -- -- -- -- LIFESTYLE AGGRESSIVE TRUST (FORMERLY LIFESTYLE AGGRESSIVE 1000 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.536348 15.201986 13.303764 10.014935 12.500000 -- -- -- -- -- Value at End of Year 18.756146 16.536348 15.201986 13.303764 10.014935 -- -- -- -- -- No. of Units 1,120,419 1,148,674 1,022,079 652,925 469,497 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 16.416565 15.121981 13.260309 10.002183 12.500000 -- -- -- -- -- Value at End of Year 18.583189 16.416565 15.121981 13.260309 10.002183 -- -- -- -- -- No. of Units 302,739 269,469 111,190 227,621 215,430 -- -- -- -- -- LIFESTYLE BALANCED TRUST (FORMERLY, LIFESTYLE BALANCED 640 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.261645 15.462674 13.847840 11.344216 12.500000 -- -- -- -- -- Value at End of Year 18.014631 16.261645 15.462674 13.847840 11.344216 -- -- -- -- -- No. of Units 33,120,895 24,211,507 12,415,096 3,242,220 2,169,689 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 16.143848 15.381311 13.802621 11.329788 12.500000 -- -- -- -- -- Value at End of Year 17.848505 16.143848 15.381311 13.802621 11.329788 -- -- -- -- -- No. of Units 13,861,070 9,885,418 4,522,346 714,035 348,694 -- -- -- -- --
U-5 Vantage New Sales
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ----------- ----------- ----------- ---------- ---------- -------- -------- -------- -------- -------- LIFESTYLE CONSERVATIVE TRUST (FORMERLY, LIFESTYLE CONSERVATIVE 280 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year $ 14.827729 $ 14.647741 $ 13.710475 $12.482816 $12.500000 -- -- -- -- -- Value at End of Year 15.786743 14.827729 14.647741 13.710475 12.482816 -- -- -- -- -- No. of Units 2,984,536 2,477,002 1,848,666 846,094 483,478 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.720320 14.570649 13.665685 12.466950 12.500000 -- -- -- -- -- Value at End of Year 15.641174 14.720320 14.570649 13.665685 12.466950 -- -- -- -- -- No. of Units 1,265,059 1,182,877 802,698 252,968 72,309 -- -- -- -- -- LIFESTYLE GROWTH TRUST (FORMERLY, LIFESTYLE GROWTH 820 TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.405116 15.353990 13.607605 10.676694 12.500000 -- -- -- -- -- Value at End of Year 18.298882 16.405116 15.353990 13.607605 10.676694 -- -- -- -- -- No. of Units 39,243,411 24,747,793 11,814,241 2,783,038 1,647,423 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 16.286288 15.273191 13.563170 10.663111 12.500000 -- -- -- -- -- Value at End of Year 18.130144 16.286288 15.273191 13.563170 10.663111 -- -- -- -- -- No. of Units 19,387,383 12,065,922 5,041,971 755,261 336,348 -- -- -- -- -- LIFESTYLE MODERATE TRUST (FORMERLY, LIFESTYLE MODERATE 460) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.455954 15.093076 13.805228 11.899608 12.500000 -- -- -- -- -- Value at End of Year 16.768280 15.455954 15.093076 13.805228 11.899608 -- -- -- -- -- No. of Units 8,240,533 7,038,621 3,928,697 1,474,624 859,403 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 15.344003 15.013674 13.760160 11.884486 12.500000 -- -- -- -- -- Value at End of Year 16.613664 15.344003 15.013674 13.760160 11.884486 -- -- -- -- -- No. of Units 3,397,173 2,578,618 1,348,141 333,204 48,506 -- -- -- -- -- MID CAP CORE TRUST (MERGED INTO MID CAP INDEX TRUST EFF 12-01-2006) - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year -- 17.019053 15.145084 12.500000 -- -- -- -- -- -- Value at End of Year -- 17.745050 17.019053 15.145084 -- -- -- -- -- -- No. of Units -- 201,165 259,908 38,056 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year -- 16.962682 15.125220 12.500000 -- -- -- -- -- -- Value at End of Year -- 17.651047 16.962682 15.125220 -- -- -- -- -- -- No. of Units -- 64,652 54,409 27,272 -- -- -- -- -- -- MID CAP INDEX TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.582133 15.064068 13.229759 10.003045 12.500000 -- -- -- -- -- Value at End of Year 17.869677 16.582133 15.064068 13.229759 10.003045 -- -- -- -- -- No. of Units 322,356 296,910 255,414 235,468 165,624 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 16.462022 14.984785 13.186545 9.990307 12.500000 -- -- -- -- -- Value at End of Year 17.704889 16.462022 14.984785 13.186545 9.990307 -- -- -- -- -- No. of Units 122,868 76,107 62,541 18,879 2,557 -- -- -- -- -- MID CAP STOCK TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 18.617492 16.523886 14.132733 10.110257 12.500000 -- -- -- -- -- Value at End of Year 20.771118 18.617492 16.523886 14.132733 10.110257 -- -- -- -- -- No. of Units 642,322 652,533 458,499 354,941 224,592 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 18.482630 16.436929 14.086575 10.097385 12.500000 -- -- -- -- -- Value at End of Year 20.579558 18.482630 16.436929 14.086575 10.097385 -- -- -- -- -- No. of Units 118,178 97,800 65,417 29,443 7,166 -- -- -- -- -- MONEY MARKET TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 12.298010 12.190012 12.306299 12.450973 12.500000 -- -- -- -- -- Value at End of Year 12.621942 12.298010 12.190012 12.306299 12.450973 -- -- -- -- -- No. of Units 3,208,681 2,410,775 2,036,705 1,853,729 2,789,943 -- -- -- -- --
U-6 Vantage New Sales
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ----------- ----------- ----------- ---------- ---------- -------- -------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year $ 12.208916 $ 12.125860 $ 12.266109 $12.435154 $12.500000 -- -- -- -- -- Value at End of Year 12.505535 12.208916 12.125860 12.266109 12.435154 -- -- -- -- -- No. of Units 1,152,304 937,159 1,060,830 390,915 115,361 -- -- -- -- -- NATURAL RESOURCES TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 31.340000 21.737618 17.798104 12.500000 -- -- -- -- -- -- Value at End of Year 37.658616 31.340000 21.737618 17.798104 -- -- -- -- -- -- No. of Units 839,163 891,398 515,521 48,703 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 31.174124 21.665649 17.774754 12.500000 -- -- -- -- -- -- Value at End of Year 37.384678 31.174124 21.665649 17.774754 -- -- -- -- -- -- No. of Units 202,337 191,510 72,421 15,496 -- -- -- -- -- -- PACIFIC RIM TRUST (FORMERLY, PACIFIC RIM EMERGING MARKETS TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 19.490423 15.781873 13.723612 9.918704 12.500000 -- -- -- -- -- Value at End of Year 21.287020 19.490423 15.781873 13.723612 9.918704 -- -- -- -- -- No. of Units 177,297 354,056 200,985 184,678 117,626 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued on or after 1-29-01 and prior to 5-5-03) Value at Start of Year 19.455050 15.761085 13.712408 9.915550 12.500000 -- -- -- -- -- Value at End of Year 21.237781 19.455050 15.761085 13.712408 9.915550 -- -- -- -- -- No. of Units 106,054 107,739 85,032 94,203 36,228 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 19.349286 15.698845 13.678796 9.906070 12.500000 -- -- -- -- -- Value at End of Year 21.090748 19.349286 15.698845 13.678796 9.906070 -- -- -- -- -- No. of Units 23,387 29,037 12,170 5,683 605 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued prior to 5-5-03) Value at Start of Year 19.314161 15.678158 13.667613 9.902913 12.500000 -- -- -- -- -- Value at End of Year 21.041964 19.314161 15.678158 13.667613 9.902913 -- -- -- -- -- No. of Units 18,026 24,271 16,774 12,133 8,249 -- -- -- -- -- Contracts with the Annual Step Death Benefit and GEM (issued on or after 5-5-03) Value at Start of Year 25.733555 20.920290 18.264938 12.500000 -- -- -- -- -- -- Value at End of Year 27.993711 25.733555 20.920290 18.264938 -- -- -- -- -- -- No. of Units 2,688 7,277 7,141 -- -- -- -- -- -- -- REAL ESTATE SECURITIES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 23.088749 21.000811 16.187204 11.832903 12.500000 -- -- -- -- -- Value at End of Year 31.333425 23.088749 21.000811 16.187204 11.832903 -- -- -- -- -- No. of Units 505,248 549,302 578,054 455,136 366,719 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 22.921571 20.890350 16.134374 11.817865 12.500000 -- -- -- -- -- Value at End of Year 31.044639 22.921571 20.890350 16.134374 11.817865 -- -- -- -- -- No. of Units 119,488 105,556 64,907 32,471 9,067 -- -- -- -- -- SCIENCE & TECHNOLOGY TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 13.710251 13.674291 13.779908 9.301177 12.500000 -- -- -- -- -- Value at End of Year 14.225598 13.710251 13.674291 13.779908 9.301177 -- -- -- -- -- No. of Units 424,690 445,073 507,193 473,288 189,623 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 13.610927 13.602330 13.734908 9.289319 12.500000 -- -- -- -- -- Value at End of Year 14.094385 13.610927 13.602330 13.734908 9.289319 -- -- -- -- -- No. of Units 126,500 116,322 98,293 -- -- -- -- -- -- -- SMALL CAP GROWTH TRUST - SERIES II SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits Value at Start of Year 15.811284 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 17.626074 15.811284 -- -- -- -- -- -- -- -- No. of Units 293,586 178,315 -- -- -- -- -- -- -- --
U-7 Vantage New Sales
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ---------- ---------- ---------- ---------- ---------- -------- -------- -------- -------- -------- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year $15.790370 $12.500000 -- -- -- -- -- -- -- -- Value at End of Year 17.567684 15.790370 -- -- -- -- -- -- -- -- No. of Units 48,063 29,006 -- -- -- -- -- -- -- -- SMALL CAP OPPORTUNITIES TRUST - SERIES II SHARES (units first credited 5-05-2003) Contracts with no Optional Benefits Value at Start of Year 22.651428 21.377714 17.303217 12.500000 -- -- -- -- -- -- Value at End of Year 24.576972 22.651428 21.377714 17.303217 -- -- -- -- -- -- No. of Units 210,222 234,997 275,279 11,805 -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 22.531494 21.306957 17.280544 12.500000 -- -- -- -- -- -- Value at End of Year 24.398109 22.531494 21.306957 17.280544 -- -- -- -- -- -- No. of Units 49,937 47,527 17,063 6,233 -- -- -- -- -- -- SMALL CAP VALUE TRUST - SERIES II SHARES (units first credited 4-29-2005) Contracts with no Optional Benefits Value at Start of Year 14.243703 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 16.694597 14.243703 -- -- -- -- -- -- -- -- No. of Units 729,819 486,060 -- -- -- -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.224850 12.500000 -- -- -- -- -- -- -- -- Value at End of Year 16.639285 14.224850 -- -- -- -- -- -- -- -- No. of Units 132,780 92,550 -- -- -- -- -- -- -- -- SMALL COMPANY VALUE TRUST - SERIES II SHARES (units first credited 5-01-2004) Contracts with no Optional Benefits Value at Start of Year 17.385141 16.534394 13.441223 10.220525 12.500000 -- -- -- -- -- Value at End of Year 19.721725 17.385141 16.534394 13.441223 10.220525 -- -- -- -- -- No. of Units 781,620 723,156 965,084 740,786 501,816 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 17.259237 16.447403 13.397323 10.207514 12.500000 -- -- -- -- -- Value at End of Year 19.539902 17.259237 16.447403 13.397323 10.207514 -- -- -- -- -- No. of Units 132,066 133,055 101,306 44,866 18,730 -- -- -- -- -- STRATEGIC BOND TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 15.316028 15.184102 14.495147 13.036506 12.500000 -- -- -- -- -- Value at End of Year 16.116200 15.316028 15.184102 14.495147 13.036506 -- -- -- -- -- No. of Units 763,949 844,231 659,837 257,912 189,217 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 15.205102 15.104238 14.447843 13.019956 12.500000 -- -- -- -- -- Value at End of Year 15.967600 15.205102 15.104238 14.447843 13.019956 -- -- -- -- -- No. of Units 259,992 278,355 204,907 36,764 5,488 -- -- -- -- -- TOTAL RETURN TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 14.286631 14.190100 13.764147 13.329613 12.500000 -- -- -- -- -- Value at End of Year 14.548416 14.286631 14.190100 13.764147 13.329613 -- -- -- -- -- No. of Units 1,552,236 2,119,976 2,254,339 2,344,730 1,898,403 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.183124 14.115409 13.719187 13.312683 12.500000 -- -- -- -- -- Value at End of Year 14.414224 14.183124 14.115409 13.719187 13.312683 -- -- -- -- -- No. of Units 307,878 296,922 536,727 434,630 348,765 -- -- -- -- -- U.S. GOVERNMENT SECURITIES TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 13.252212 13.265780 13.119753 13.115897 12.500000 -- -- -- -- -- Value at End of Year 13.595638 13.252212 13.265780 13.119753 13.115897 -- -- -- -- -- No. of Units 1,131,909 1,360,290 1,720,836 1,594,705 1,388,586 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 13.156206 13.195972 13.076906 13.099241 12.500000 -- -- -- -- -- Value at End of Year 13.470255 13.156206 13.195972 13.076906 13.099241 -- -- -- -- -- No. of Units 59,377 74,149 74,867 82,366 116,017 -- -- -- -- --
U-8 Vantage New Sales
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ---------- ---------- ---------- ---------- ---------- -------- -------- -------- -------- -------- U.S. LARGE CAP TRUST (FORMERLY U.S. LARGE CAP VALUE TRUST) - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year $14.919872 $14.331439 $13.340177 $ 9.912272 $12.500000 -- -- -- -- -- Value at End of Year 16.212471 14.919872 14.331439 13.340177 9.912272 -- -- -- -- -- No. of Units 748,540 832,991 930,750 744,065 611,671 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 14.811805 14.256031 13.296623 9.899663 12.500000 -- -- -- -- -- Value at End of Year 16.062972 14.811805 14.256031 13.296623 9.899663 -- -- -- -- -- No. of Units 110,459 128,668 114,004 40,698 14,742 -- -- -- -- -- VALUE TRUST - SERIES II SHARES (units first credited 5-13-2002) Contracts with no Optional Benefits Value at Start of Year 16.255092 14.693262 12.972509 9.505656 12.500000 -- -- -- -- -- Value at End of Year 19.334420 16.255092 14.693262 12.972509 9.505656 -- -- -- -- -- No. of Units 321,546 274,214 333,067 196,588 134,449 -- -- -- -- -- Contracts with the Annual Step Death Benefit (issued prior to 1/29/01 or on or after 5-5-03) or GEM (all issue dates) Value at Start of Year 16.137336 14.615931 12.930141 9.493546 12.500000 -- -- -- -- -- Value at End of Year 19.156131 16.137336 14.615931 12.930141 9.493546 -- -- -- -- -- No. of Units 52,155 31,701 54,054 17,188 3,602 -- -- -- -- --
U-9 PART B INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION Statement of Additional Information dated May 1, 2007 [JOHN HANCOCK ANNUITIES LOGO] Statement of Additional Information John Hancock Life Insurance Company of New York Separate Account A THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS. This Statement of Additional Information should be read in conjunction with the Prospectuses dated the same date as this Statement of Additional Information. This Statement of Additional Information describes additional information regarding the variable portion of the flexible purchase payment individual deferred combination fixed and variable annuity contracts (singly, a "Contract and collectively, the "Contracts" issued by JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK ("John Hancock New York") in New York as follows: PROSPECTUSES ISSUED BY JOHN HANCOCK NEW YORK ( to be read with this Statement of Additional Information) Venture Vantage Variable Annuity Venture Variable Annuity Wealthmark Variable Annuity Venture III Variable Annuity Wealthmark ML3 Variable Annuity Venture Vision Variable Annuity You may obtain a copy of the Prospectuses listed above by contacting us at the following addresses: JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK Annuity Service Center Mailing Address 601 Congress Street Post Office Box 55013 Boston, Massachusetts 02210-2805 Boston, Massachusetts 02205-5013 (877) 391-3748 or (800) 551-2078 www.jhannuitiesnewyork.com JHNY SEP ACCT A SAI 5/07 Table of Contents GENERAL INFORMATION AND HISTORY........................... 3 ACCUMULATION UNIT VALUE TABLES............................ 3 SERVICES.................................................. 3 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM........... 3 SERVICING AGENT......................................... 3 PRINCIPAL UNDERWRITER................................... 3 Special Compensation and Reimbursement Arrangements.......................................... 4 LEGAL AND REGULATORY MATTERS.............................. 7 APPENDIX A: AUDITED FINANCIAL STATEMENTS 1
General Information and History John Hancock Life Insurance Company of New York Separate Account A (the "Separate Account") (formerly, The Manufacturers Life Insurance Company of New York Separate Account A) is a separate investment account of John Hancock Life Insurance Company of New York ("we" or "us"), a stock life insurance company organized under the laws of New York in 1992. John Hancock New York's principal office is located at 100 Summit Lake Drive, Valhalla, New York 10595. It also has an Annuity Service Center located at 601 Congress Street, Boston, Massachusetts 02210. John Hancock New York is a wholly-owned subsidiary of John Hancock Life Insurance Company (U.S.A.) ("John Hancock USA") (formerly, The Manufacturers Life Insurance Company of New York), a stock life insurance company incorporated in Maine on August 20, 1955 by a special act of the Maine legislature and redomesticated under the laws of Michigan. The ultimate parent of John Hancock USA is Manulife Financial Corporation ("MFC") based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial. John Hancock New York established the Separate Account on March 4, 1992 as a separate account under the laws of New York. Our financial statements which are included in the Statement of Additional Information should be considered only as bearing on our ability to meet our obligations under the contracts. They should not be considered as bearing on the investment performance of the assets held in the Separate Account. Accumulation Unit Value Tables The Accumulation Unit Value Tables are located in Appendix U of the product prospectus. Services INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The financial statements of John Hancock Life Insurance Company of New York at December 31, 2006 and 2005 and for each of the three years in the period ended December 31, 2006, and the financial statements of John Hancock Life Insurance Company of New York Separate Account A at December 31, 2006, and for each of the two years in the period ended December 31, 2006, appearing in this Statement of Additional Information of the Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing. SERVICING AGENT Computer Sciences Corporation Financial Services Group ("CSC FSG") provides to us a computerized data processing recordkeeping system for variable annuity administration. CSC FSG provides various daily, semimonthly, monthly, semiannual and annual reports including: - - daily updates on accumulation unit values, variable annuity participants and transactions, and agent production and commissions; - - semimonthly commission statements; - - monthly summaries of agent production and daily transaction reports; - - semiannual statements for contract owners; and - - annual contract owner tax reports. We pay CSC FSG approximately $7.80 per policy per year, plus certain other fees for the services provided. PRINCIPAL UNDERWRITER John Hancock Distributors, LLC, ("JH Distributors"), an indirect wholly owned subsidiary of MFC, serves as principal underwriter of the contracts. Contracts are offered on a continuous basis. The aggregate dollar amounts of underwriting commissions paid to JH Distributors in 2006, 2005, and 2004 were $516,555,523, $510,874,858 and $403,619,081, respectively. 3 Special Compensation and Reimbursement Arrangements The Contracts are primarily sold through selected firms. The Contracts' principal distributor, JH Distributors, and its affiliates (collectively, "JHD") pay compensation to broker-dealers (firms) for the promotion and sale of the Contracts. The compensation JHD pays may vary depending on each firm's selling agreement, but compensation (inclusive of wholesaler overrides and expense allowances) paid to the firms for sale of the Contracts (not including riders) is not expected to exceed the standard compensation amounts referenced in the product prospectuses. The amount and timing of this compensation may differ among firms. The registered representative through whom your Contract is sold will be compensated pursuant to that registered representative's own arrangement with his or her broker-dealer. The registered representative and the firm may have multiple options on how they wish to allocate their commissions and/or compensation. We are not involved in determining your registered representative's compensation. You are encouraged to ask your registered representative about the basis upon which he or she will be personally compensated for the advice or recommendations provided in connection with the sale of your Contract. Compensation to firms for the promotion and sale of the Contracts is not paid directly by Contract owners, but we expect to recoup it through the fees and charges imposed under the Contract. We may, directly or through JHD, make, either from 12b-1 distribution fees received from the Contracts' underlying investment funds or out of our own resources, additional payments to firms. These payments are sometimes referred to as "revenue sharing." Revenue sharing expenses are any payments made to broker-dealers or other intermediaries to either (i) compensate the intermediary for expenses incurred in connection with the promotion and/or sale of John Hancock investment products or (ii) obtain promotional and/or distribution services for John Hancock investment products. Many firms that sell the Contracts receive one or more types of these cash payments. We are among several insurance companies that pay additional payments to certain firms to receive "preferred" or recommended status. These privileges include: additional or special access to sales staff; opportunities to provide and/or attend training and other conferences; advantageous placement of our products on customer lists ("shelf-space arrangements"); and other improvements in sales by featuring our products over others. The categories of payments that we provide, directly or through JHD, to firms are described below. These categories are not mutually exclusive and we may make additional types of revenue sharing payments in the future. The same firms may receive payments under more than one or all categories. These payments assist in our efforts to promote the sale of the Contracts. We agree with the firm on the methods for calculating any additional compensation, which may include the level of sales or assets attributable to the firm. Not all firms receive additional compensation and the amount of compensation varies. These payments could be significant to a firm. We determine which firms to support and the extent of the payments it is willing to make. We generally choose to compensate firms that have a strong capability to distribute the Contracts and that are willing to cooperate with our promotional efforts. We do not make an independent assessment of the cost of providing such services. The following list includes the names of member firms of the NASD (or their affiliated broker-dealers) that we are aware (as of December 1, 2007) received a revenue sharing payment of more than $5,000 with respect to annuity business during the last calendar year. Your registered representative can provide you with more information about the compensation arrangements that apply upon the sale of the Contract: NAME OF FIRM DISTRIBUTOR 1st Global Capital Corp. A. G. Edwards & Sons, Inc. AIG - Advantage Capital Corporation AIG - FSC Securities Corporation AIG - Royal Alliance Associates, Inc. American General Securities Incorporated American Portfolios Financial Services, Inc. Berthal, Fisher & Company Financial Services, Inc. Centaurus Financial, Inc. Citicorp Investment Services Citigroup Global Markets, Inc. Comerica Securities Commonwealth Financial Network 4 DISTRIBUTOR Compass Brokerage, Inc. Crown Capital Securities, L.P. CUSO Financial Services, L.P. Founders Financial Securities, LLC Geneos Wealth Management, Inc. H.D. Vest Investment Services Harbour Investments, Inc. HSBC Securities (USA) Inc. ING - Financial Network Investment Corporation ING - Multi-Financial Securities Corporation ING - Primevest Financial Services, Inc. ING Financial Partners, Inc. InterSecurities, Inc. Investacorp, Inc. Investment Professionals, Inc. J.J.B. Hilliard, W.L. Lyons, Inc. Jefferson Pilot Securities Corporation LaSalle St Securities, L.L.C. Lincoln Financial Advisors Corporation Linsco/Private Ledger Corp. M Holdings Securities, Inc. Main Street Securities, LLC McDonald Investments Inc. Merrill Lynch, Pierce, Fenner & Smith Inc. Money Concepts Capital Corp Morgan Keegan & Company, Inc. Next Financial Group, Inc. NFP Securities, Inc. NPH - SII Investments, Inc. NPH - Invest Financial Corporation NPH - Investment Centers of America, Inc. NPH - National Planning Corporation Ohio Savings Securities, Inc. PAC of America - Associated Securities Corp. PAC of America - Mutual Service Corporation PAC of America - United Planners' Financial Services PAC of America - Waterstone Financial Group, Inc. Packerland Brokerage Services, Inc. Pension Planners Securities, Inc. Prime Capital Services, Inc. ProEquities, Inc. Prospera Financial Services, Inc. Questar Capital Corporation Raymond James & Associates, Inc. Raymond James Financial Services, Inc. RBC Dain Rauscher, Inc. Sammons Securities Company, LLC Scott & Stringfellow, Inc. Securities America, Inc. Sigma Financial Corporation Signator Investors, Inc. (subsidiary of John Hancock) SWS Financial Services The Huntington Investment Company Tower Square Securities, Inc. Transamerica Financial Advisors, Inc. UBS Financial Services, Inc. US Advisors Network 5 DISTRIBUTOR US Bancorp Piper Jaffray & Co. USAllianz Securites, Inc. Uvest Financial Services Group, Inc. Wachovia Securities, LLC Walnut Street Securities, Inc. Webster Investment Services, Inc. Woodbury Financial Services, Inc. Inclusion on this list does not imply that these sums necessarily constitute "special cash compensation" as defined by NASD Conduct Rule 2830(l)(4). We will endeavor to update this listing annually; interim arrangements may not be reflected. We assume no duty to notify any investor whether his or her registered representative is or should be included in any such listing. You are encouraged to review the prospectus for each Fund for any other compensation arrangements pertaining to the distribution of Fund shares. We may, directly or through JHD, also have arrangements with intermediaries that are not members of the NASD. Sales and Asset Based Payments. We may, directly or through JHD, make revenue sharing payments as incentives to certain firms to promote and sell the Contracts. We hope to benefit from revenue sharing by increasing Contract sales. In consideration for revenue sharing, a firm may feature the Contracts in its sales system or give us additional access to members of its sales force or management. In addition, a firm may agree to participate in our marketing efforts by allowing us to participate in conferences, seminars or other programs attended by the firm's sales force. Although a firm may seek revenue sharing payments to offset costs incurred by the firm in servicing its clients that have purchased the Contracts, the firm may earn a profit on these payments. Revenue sharing payments may provide a firm with an incentive to favor the Contracts in its sales efforts. The revenue sharing payments we make may be calculated on sales of our products by the firm ("Sales-Based Payments"). These payments are based upon a percentage of the total amount of money received, or anticipated to be received, for sales through a firm of some or all of the insurance products that we and/or our affiliates offer. We make these payments on a periodic basis. Such payments also may be calculated based upon the "assets under management" attributable to a particular firm ("Asset-Based Payments"). These payments are based upon a percentage of the contract value of some or all of our (and/or our affiliates') insurance products that were sold through the firm. We make these payments on a periodic basis. Sales-Based Payments primarily create incentives to make new sales of our insurance products and Asset-Based Payments primarily create incentives to service and maintain previously sold Contracts. We may pay a firm either or both Sales-Based Payments and Asset-Based Payments. Administrative and Processing Support Payments. We may, directly or through JHD, also make payments to certain firms that sell our products for certain administrative services, including record keeping and sub-accounting Contract owner accounts, and in connection with account maintenance support, statement preparation and transaction processing. The types of payments that we may make under this category include, among others, payment of ticket charges per purchase or exchange order placed by a firm, payment of networking fees in connection with certain mutual fund trading systems, or one-time payments for ancillary services such as setting up funds on a firm's mutual fund trading system. Other Payments. We may, directly or through JHD, also provide, either from the12b-1 distribution fees received from the funds underlying the Contracts or out of our own resources, additional compensation to firms that sell or arrange for the sale of Contracts. Such compensation may include seminars for the public, advertising and sales campaigns regarding the Contracts to assist a firm in connection with its systems, operations and marketing expenses, or for other activities of a selling firm or wholesaler. We may contribute to, as well as sponsor, various educational programs, sales contests and/or promotions in which participating firms and their sales persons may receive prizes such as merchandise, cash, or other awards. Other compensation may be offered to the extent not prohibited by federal or state laws or any self-regulatory agency, such as the NASD. We make payments for entertainment events we deem appropriate, subject to our guidelines and applicable law. These payments may vary widely, depending upon the nature of the event or the relationship. We may make these payments upon the initiation of a relationship with a firm, and at any time thereafter. We may have other relationships with firms relating to the provisions of services to the Contacts, such as providing omnibus account services, transaction processing services, or effecting portfolio transactions for funds. If a firm provides these services, we may compensate the firm for these services. In addition, a firm may have other compensated or uncompensated relationships with us that are not related to the Contracts. Signator Investors, Inc. may pay their respective registered representatives additional cash incentives in the form of bonus payments, expense payments, employment benefits or the waiver of overhead costs or expenses in connection with the sale of the Contracts that they would not receive in connection with the sale of contracts issued by unaffiliated companies. Legal and Regulatory Matters There are no legal proceedings to which we, the Separate Account or the principal underwriter is a party, or to which the assets of the Separate Account are subject, that are likely to have a material adverse effect on: - the Separate Account; or - the ability of the principal underwriter to perform its contract with the Separate Account; or - on our ability to meet our obligations under the variable annuity contracts funded through the Separate Account. 7 APPENDIX A: Audited Financial Statements A-1 AUDITED FINANCIAL STATEMENTS John Hancock Life Insurance Company of New York Years Ended December 31, 2006, 2005 and 2004 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK INDEX TO AUDITED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm.................. F-2 Audited Financial Statements: Balance Sheets as of December 31, 2006 and 2005.......................... F-3 Statements of Income for the years ended December 31, 2006, 2005, and 2004................................................................... F-4 Statements of Changes in Shareholder's Equity and Comprehensive Income for the years ended December 31, 2006, 2005, and 2004.................. F-5 Statements of Cash Flows for the years ended December 31, 2006, 2005, and 2004............................................................... F-6 Notes to Financial Statements............................................ F-7 Report of Independent Registered Public Accounting Firm The Board of Directors John Hancock Life Insurance Company of New York We have audited the accompanying balance sheets of John Hancock Life Insurance Company of New York ("The Company") as of December 31, 2006 and 2005, and the related statements of income, changes in shareholder's equity and other comprehensive income, and cash flows for each of the three years in the period ended December 31, 2006. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of John Hancock Life Insurance Company of New York at December 31, 2006 and 2005 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. As discussed in Note 1 to the financial statements, in 2004 the Company changed its method of accounting for certain nontraditional long duration contracts and for separate accounts. /s/ ERNST & YOUNG LLP Boston, Massachusetts April 20, 2007 F-2 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK BALANCE SHEETS December 31, --------------------- 2006 2005 ---------- ---------- (in thousands) Assets Investments Fixed maturities: Available-for-sale - at fair value (cost: 2006 - $357,078, 2005 - $256,611)............ $ 357,642 $ 256,315 Investment in unconsolidated affiliate................... 800 800 Policy loans............................................. 28,345 21,564 Short-term investments................................... 153,598 169,414 ---------- ---------- Total Investments..................................... 540,385 448,093 Cash and cash equivalents................................ 25,448 24,144 Accrued investment income................................ 16,610 12,549 Deferred acquisition costs............................... 299,620 248,817 Deferred sales inducements............................... 31,645 30,065 Federal income tax recoverable........................... -- 624 Reinsurance recoverable.................................. 31,404 17,176 Other assets............................................. 12,141 13,363 Separate account assets.................................. 5,451,543 4,103,680 ---------- ---------- Total Assets.......................................... $6,408,796 $4,898,511 ========== ========== Liabilities and Shareholder's Equity Liabilities: Future policy benefits................................... $ 519,898 $ 472,158 Unearned revenue......................................... 14,690 10,674 Unpaid claims and claim expense reserves................. 3,246 2,173 Amounts due to affiliates................................ 6,341 10,060 Amounts payable for securities........................... -- 7,238 Deferred income tax liability............................ 47,753 49,831 Federal income tax payable to affiliates................. 43,435 -- Other liabilities........................................ 11,808 6,046 Separate account liabilities............................. 5,451,543 4,103,680 ---------- ---------- Total Liabilities..................................... 6,098,714 4,661,860 Shareholder's Equity: Common stock............................................. 2,000 2,000 Additional paid in capital............................... 113,306 113,306 Retained earnings........................................ 193,749 121,276 Accumulated other comprehensive income................... 1,027 69 ---------- ---------- Total Shareholder's Equity............................ 310,082 236,651 ---------- ---------- Total Liabilities and Shareholder's Equity............ $6,408,796 $4,898,511 ========== ========== The accompanying notes are an integral part of these financial statements. F-3 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK STATEMENTS OF INCOME For the years ended December 31, --------------------------- 2006 2005 2004 -------- -------- ------- (in thousands) Revenues Premiums.................................... $ 164 $ 302 $ 348 Fee income.................................. 110,718 73,647 46,988 Net investment income....................... 136,194 80,856 48,965 Net realized investment (losses) gains...... (2,657) (263) 3,015 -------- -------- ------- Total revenues.......................... 244,419 154,542 99,316 Benefits and expenses Benefits to policyholders................... 30,548 14,067 26,299 Other operating costs and expenses.......... 39,655 34,066 25,030 Amortization of deferred acquisition costs and deferred sales inducements............ 61,840 29,339 1,062 -------- -------- ------- Total benefits and expenses............. 132,043 77,472 52,391 -------- -------- ------- Income before income taxes and cumulative effect of accounting changes................. 112,376 77,070 46,925 Income taxes................................... 39,903 24,515 15,422 -------- -------- ------- Income before cumulative effect of accounting changes...................................... 72,473 52,555 31,503 Cumulative effect of accounting changes, net of tax....................................... -- -- 287 -------- -------- ------- Net income .................................... $ 72,473 $ 52,555 $31,790 ======== ======== ======= The accompanying notes are an integral part of these financial statements. F-4 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY AND COMPREHENSIVE INCOME
Accumulated Additional Other Total Common Paid In Retained Comprehensive Shareholder's Outstanding Stock Capital Earnings Income Equity Shares ------ ---------- -------- ------------- ------------- ----------- (in thousands) Balance at January 1, 2004........................ $2,000 $113,306 $ 36,931 $ 2,550 $154,787 2,000 Comprehensive income: Net income..................................... 31,790 31,790 Other comprehensive income, net of tax:........ Net unrealized losses...................... (2,116) (2,116) -------- Comprehensive income........................... 29,674 ------ -------- -------- ------- -------- ----- Balance at December 31, 2004...................... $2,000 $113,306 $ 68,721 $ 434 $184,461 2,000 ====== ======== ======== ======= ======== ===== Comprehensive income: Net income..................................... 52,555 52,555 Other comprehensive income, net of tax:........ Net unrealized losses...................... (365) (365) -------- Comprehensive income........................... 52,190 ------ -------- -------- ------- -------- ----- Balance at December 31, 2005...................... $2,000 $113,306 $121,276 $ 69 $236,651 2,000 ====== ======== ======== ======= ======== ===== Comprehensive income: Net income..................................... 72,473 72,473 Other comprehensive income, net of tax:........ Net unrealized gains....................... 958 958 -------- Comprehensive income........................... 73,431 ------ -------- -------- ------- -------- ----- Balance at December 31, 2006...................... $2,000 $113,306 $193,749 $ 1,027 $310,082 2,000 ====== ======== ======== ======= ======== =====
The accompanying notes are an integral part of these financial statements. F-5 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK STATEMENTS OF CASH FLOWS
For the years ended December 31, ------------------------------- 2006 2005 2004 --------- --------- --------- (in thousands) Cash flows provided by operating activities: Net income................................................................................ $ 72,473 $ 52,555 $ 31,790 Adjustments to reconcile net income to net cash provided by operating activities: Change in accounting principle........................................................ -- -- (287) Net realized investment losses/(gains)................................................ 2,657 263 (3,015) Increase in reinsurance recoverable................................................... (14,228) (7,054) (3,124) Deferral of acquisition costs and sales inducements................................... (114,573) (88,651) (61,852) Amortization of deferred acquisition costs and deferred sales inducements............. 61,840 29,339 1,062 Increase in accrued investment income................................................. (4,061) (3,654) (283) Increase (decrease) in other assets and other liabilities, net........................ 45,430 (4,444) 12,352 Increase in policyholder liabilities and accruals, net................................ 13,641 10,351 12,227 (Decrease) increase in deferred income tax liability.................................. (2,594) 19,564 15,560 --------- --------- --------- Net cash provided by operating activities............................................. 60,585 8,269 4,430 Cash flows used in investing activities: Sales and maturities of fixed maturities available-for-sale............................... 139,818 132,430 111,928 Purchases of fixed maturities available-for-sale.......................................... (243,091) (181,590) (175,841) Net purchases of short-term investments................................................... 16,675 (2,834) 39,437 Policy loans advanced, net................................................................ (6,781) (3,604) (6,851) Net change in payable for undeliverable securities........................................ -- 7,238 -- --------- --------- --------- Net cash used in investing activities................................................. (93,379) (48,360) (31,327) Cash flows provided by financing activities: Deposits and interest credited to policyholder account balances........................... 224,127 174,846 112,541 Net transfers to separate accounts from policyholders..................................... (98,483) (73,030) (24,456) Return of policyholder funds.............................................................. (91,546) (73,528) (44,235) --------- --------- --------- Net cash provided by financing activities................................................. 34,098 28,288 43,850 --------- --------- --------- Net increase (decrease) in cash and cash equivalents...................................... 1,304 (11,803) 16,953 Cash and cash equivalents at beginning of year............................................... 24,144 35,947 18,994 --------- --------- --------- Cash and cash equivalents at end of year..................................................... $ 25,448 $ 24,144 $ 35,947 ========= ========= =========
The accompanying notes are an integral part of these financial statements. F-6 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS (IN THOUSANDS UNLESS OTHERWISE STATED) Note 1 - Summary of Significant Accounting Policies Business John Hancock Life Insurance Company of New York (the "Company") is a stock life insurance company, which was organized on February 10, 1992 under the laws of the State of New York. The New York Insurance Department (the "Department") granted the Company a license to operate on July 22, 1992. Effective January 1, 2002, the Company became a wholly owned subsidiary of John Hancock Life Insurance Company (U.S.A) ("JHUSA"). JHUSA is a wholly-owned subsidiary of The Manufacturers Investment Corporation ("MIC"). MIC is an indirect, wholly-owned subsidiary of The Manufacturers Life Insurance Company ("MLI"). MLI, in turn, is a wholly owned subsidiary of Manulife Financial Corporation ("MFC"), a Canadian-based publicly traded company. MFC and its subsidiaries are collectively known as "Manulife Financial". The Company was formerly known as The Manufacturers Life Insurance Company of New York. As a result of the 2004 merger between MFC and John Hancock Financial Services, Inc. ("JHFS"), the Company changed its name to John Hancock Life Insurance Company of New York effective January 1, 2005. The Company offers and issues individual and group annuity contracts and individual life insurance and group pension contracts. All of these contracts (collectively, the "contracts") are sold exclusively in the State of New York. Amounts invested in the fixed portion of the contracts are allocated to the general account of the Company. Amounts invested in the variable portion of the contracts are allocated to the separate accounts of the Company. Each of these separate accounts invest in either the shares of various portfolios of the John Hancock Trust ("JHT"), a no-load, open-end investment management company organized as a Massachusetts business trust, or in various portfolios of open-end investment management companies offered and managed by unaffiliated third parties. John Hancock Investment Management Services, LLC ("JHIMS"), an affiliate of the Company, is the investment advisor to JHT. On October 1, 2002, JHUSA exchanged a 30% ownership interest in JHIMS for one common share of the Company. This transaction increased the Company's ownership of JHIMS from 10% to 40%. On November 1, 2005, JHIMS amended its Limited Liability Company Agreement to admit a new member. This amendment decreased the company's ownership in JHIMS to 38%. The Company's investment in JHIMS amounts to $800 and is accounted for using the equity method. Basis of Presentation The accompanying financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles, which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. F-7 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 1 - Summary of Significant Accounting Policies - (continued) Investments The Company classifies all of its fixed-maturity securities as available-for-sale and records these securities at fair value. Realized gains and losses on sales of securities classified as available-for-sale are recognized in net income using a specific identification method. A decline in the value of a specific security that is considered other-than-temporary results in a write-down of the cost basis of the security and a charge to income in the period of recognition. Unrealized gains and losses, other than unrealized losses that are considered to be other-than-temporary, are reflected in accumulated other comprehensive income after adjustments for deferred income taxes, deferred acquisition costs and deferred sales inducements. The cost of fixed-maturity securities is adjusted for the amortization of premiums and accretion of discounts, which are calculated using the effective interest method. Policy loans are reported at aggregate unpaid balances, which approximate fair value. Short-term investments, which include investments with maturities greater than 90 days and less than one year, are reported at fair value. Cash and Cash Equivalents Cash and cash equivalents include cash and all highly liquid debt investments with a remaining maturity of three months or less. Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Deferred Policy Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI") Commissions and other expenses that vary with, and are primarily related to, the production of new business are deferred to the extent recoverable and included as an asset. Acquisition costs associated with annuity contracts and group pension contracts are being amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality, and expense margins. The amortization is adjusted retrospectively when estimates of current or future gross profits are revised. Assuming the unrealized gains or losses on securities had been realized at year-end, DAC is adjusted for the impact on estimated future gross profits for such unrealized gains (losses). The impact of any such adjustments is included in net unrealized gains (losses) in accumulated other comprehensive income. DAC associated with traditional non-participating individual insurance contracts is amortized over the premium-paying period of the related policies. DAC is reviewed annually to determine recoverability from future income and, if not recoverable, is immediately expensed. As of December 31, 2006, the Company's DAC was deemed recoverable. The Company currently offers enhanced crediting rates or bonus payments to contract holders on certain of its individual annuity products (Deferred Sales Inducements). Those inducements that are incremental to amounts the Company credits on similar contracts without sales inducements and are higher than the contracts' expected ongoing crediting rates for periods after the inducement are capitalized at inception. The capitalized amounts are then amortized over the life of the underlying contracts consistent with the methodology used to amortize DAC. DSI is reviewed annually to determine recoverability from future income, and if not recoverable, is immediately expensed. As of December 31, 2006, the Company's DSI was deemed recoverable. Reinsurance The Company utilizes reinsurance agreements to provide for greater diversification of business, allowing management to control exposure to potential losses arising from large risks and provide additional capacity for growth. Assets and liabilities related to reinsurance ceded contracts are reported on a gross basis. The accompanying statements of income reflect premiums, benefits and settlement expenses net of reinsurance ceded. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The Company remains liable to its policyholders to the extent that counterparties to reinsurance ceded contracts do not meet their contractual obligations. Refer to Note 5 -- Reinsurance for additional disclosures regarding this topic. F-8 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 1 - Summary of Significant Accounting Policies - (continued) Separate Accounts Separate account assets and liabilities reported in the Company's balance sheets represent funds that are administered for investment contracts related to group pension business, as well as for variable annuity and variable life contracts, and invested by the Company to meet specific investment objectives of the contractholders. Net investment income and net realized investment and other gains (losses) generally accrue directly to such contractholders who bear the investment risk, subject, in some cases to principal guarantees and minimum guaranteed rates of income. The assets of each separate account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate account assets are reported at fair value. Deposits, net investment income and net realized investment and other gains (losses) of separate accounts are not included in the revenues of the Company. Fees charged to contractholders, principally mortality, policy administration and surrender charges, are included in the revenue of the Company. Future Policy Benefits For fixed and variable annuities, group pension contracts, variable life contracts and universal life contracts with no substantial mortality or morbidity risk, policyholder liabilities equal the policyholder account values. Account values are increased for deposits received and interest credited and are reduced by withdrawals, mortality charges, and administrative expenses charged to the policyholders. For traditional non-participating life insurance policies, policyholder liabilities are computed using the net level premium method and are based upon estimates as to future mortality, persistency, maintenance expenses, and interest rate yields that are applicable in the year of issue. The assumptions include a provision for adverse deviation. Benefits for fixed and variable annuity, variable life contracts and for universal life contracts include interest credited to policyholder account balances and benefit claims incurred during the period in excess of policyholder account balances. Revenue Recognition Fee income from separate accounts, annuity contracts and group pension contracts consists of charges for mortality, expenses, surrender and administration charges that have been assessed against the policyholder account balances. Premiums on traditional non-participating life insurance policies are recognized as revenue when due. Investment income is recorded on the accrual basis of accounting and is adjusted for any amortization of premiums or discounts, where applicable. Federal Income Taxes Income taxes have been provided for in accordance with SFAS No. 109, "Accounting for Income Taxes". Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that likely will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Recent Accounting Pronouncements Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities ("SFAS 159") In February 2007, the Financial Accounting Standards Board (the "FASB") issued SFAS 159. SFAS 159's objective is to enable companies to mitigate earnings volatility which is caused by measuring related assets and liabilities differently, without having to apply complex hedge accounting provisions. SFAS 159 provides the option to use fair value accounting for most financial assets and financial liabilities, with changes in fair value reported in earnings. Selection of the fair value option is irrevocable, and can be applied on a partial basis, i.e. to some but not all similar financial assets or liabilities. SFAS 159 will be effective for the Company's financial statements beginning January 1, 2008, and will then be prospectively applicable. The Company is currently evaluating the impact SFAS 159 will have on its financial position or results of operations. F-9 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 1 - Summary of Significant Accounting Policies - (continued) Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157") In September 2006, the FASB issued SFAS No. 157. This standard, which provides guidance on how to measure fair values of assets and liabilities, applies whenever other standards require or permit assets or liabilities to be measured at fair value, but does not discuss when to use fair value accounting. SFAS 157 establishes a fair value measurement hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, and requires fair value measurements to be separately disclosed by level within the hierarchy. SFAS 157 will be effective for the Company beginning January 1, 2008 and will then be generally prospectively applicable. The Company is still evaluating the impact SFAS 157 will have on its financial position or results of operations. FASB Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes ("FIN 48") The FASB issued FIN 48 in June 2006. FIN 48 prescribes a recognition and measurement model for the impact of tax positions taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 requires evaluation of whether a tax position taken on a tax return is more likely than not to be sustained if challenged, and if so, evaluation of the largest benefit that is more than 50% likely of being realized on ultimate settlement. Differences between these benefits and actual tax positions result in either A) an increase in a liability for income taxes payable or a reduction of an income tax refund receivable, B) a reduction in a deferred tax asset or an increase in a deferred tax liability, or both A and B. FIN 48 requires recording a cumulative effect of adoption in retained earnings as of beginning of year of adoption. FIN 48 will be effective for the Company's financial statements beginning January 1, 2007 and will be prospectively applied. Adoption of FIN 48 is not expected to result in a material impact on the Company's financial position or results of operations. Statement of Financial Accounting Standards No. 155, Accounting for Certain Hybrid Instruments ("SFAS 155") In February 2006, the Financial Accounting Standards Board (FASB) issued SFAS 155 which is an amendment of FASB Statements No. 133 and No. 140 and which brings consistency to accounting and reporting for certain hybrid financial instruments by simplifying and eliminating exceptions to the accounting for them. SFAS 155 allows financial instruments that have embedded derivatives to be accounted for as a whole (eliminating the need to bifurcate the derivative from its host) if the holder elects to account for the whole instrument on a fair value basis. SFAS 155 also clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS 133, establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation, clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives, and amends Statement 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. SFAS 155 will be effective for the Company's financial statements beginning January 1, 2007 and will be applied to financial instruments created or modified after that date. Adoption of SFAS155 is not expected to result in a material impact on the Company's financial position or results of operations. AICPA Statement of Position 05-1- "Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts" ("SOP 05-1") In September 2005, the Accounting Standards Executive Committee ("AcSEC") of the American Institute of Certified Public Accountants ("AICPA") issued SOP 05-1. SOP 05-1 provides guidance on accounting for deferred acquisition costs of internal replacements of insurance and investment contracts. An internal replacement that is determined to result in a replacement contract that is substantially changed from the replaced contract should be accounted for as an extinguishment of the replaced contract. Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from extinguished contracts should no longer be deferred and charged off to expense. F-10 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 1 - Summary of Significant Accounting Policies - (continued) SOP 05-1 is effective for the Company's internal replacements occurring on or after January 1, 2007. Retrospective adoption is not permitted. In connection with the Company's adoption of SOP 05-1 as of January 1, 2007, there was no cumulative effect adjustment recorded to the Company's financial position or results of operations. Statement of Financial Accounting Standards No. 154 - Accounting Changes and Error Corrections--a replacement of APB Opinion No. 20 and FASB Statement No. 3 ("SFAS No. 154") In May 2005, the FASB issued SFAS No 154, which replaces APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes the accounting and reporting requirements for a change in accounting principle. This Statement applies to all voluntary changes in accounting principle, and also to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS No. 154 requires retrospective application to prior periods' financial statements of changes in accounting principle. SFAS No. 154 carries forward without change the guidance contained in APB Opinion No. 20 for reporting the correction of an error in previously issued financial statements and reporting a change in accounting estimate, and also carries forward requirements for justification of a change in accounting principle on the basis of preferability. SFAS No. 154 was effective for the Company on January 1, 2006 and had no immediate impact on the Company's financial position or results of operations. Statement of Position 03-1 - "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" ("SOP 03-1") In July 2003, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued SOP 03-1. SOP 03-1 provides guidance on a number of topics including separate account presentation, interests in separate accounts, gains and losses on the transfer of assets from the general account to a separate account, liability valuation, returns based on a contractually referenced pool of assets or index, accounting for contracts that contain death or other insurance benefit features, accounting for reinsurance and other similar contracts, accounting for annuitization guarantees, and sales inducements to contract holders. SOP 03-1 was effective for the Company's financial statements on January 1, 2004, and resulted in an increase in net income and shareholder's equity of $287 (net of tax of $154) and an increase in net income of $287 (net of tax $154). Note 2 - Related Party Transactions The Company utilizes various services provided by MLI and its affiliates. Such services include legal, personnel, marketing, investment accounting, and other corporate services. Management believes the allocation methods used are reasonable and appropriate in the circumstances; however, the Company's balance sheet may not necessarily be indicative of the financial condition that would have existed if the Company operated as an unaffiliated entity. Pursuant to an administrative services agreement effective for 2001 and beyond, all inter-company services, except for investment services, are billed through JHUSA to the Company. Pursuant to an investment services agreement, all investment services are billed directly by MLI to the Company. For the years ended December 31, 2006, 2005, and 2004, the Company was billed administrative and investment service expenses of $38,088, $34,562 and $23,450, respectively, from the MLI group of affiliated companies. At December 31, 2006 and 2005, the Company had a net liability to the MLI group of affiliated companies of $6,230 and $9,743, respectively, for services provided. John Hancock Distributors, LLC, a wholly owned subsidiary of JHUSA, is the exclusive distributor of all variable annuity, variable life, and group pension contracts issued by the Company. For the years ended December 31, 2006, 2005, and 2004, the Company was billed underwriting commissions of $107,671, $79,589 and $53,748, respectively. The Company had a net liability for services provided of $111 and $317 at December 31, 2006 and 2005, respectively. In addition, the Company had a receivable from JHIMS relating to distributions of $9,332 and $7,011, which was included in accrued investment income at December 31, 2006 and 2005, respectively. F-11 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 3 - Investments The following information summarizes the components of net investment income and net realized investment (losses) gains: For the years ended December 31, ------------------------------- 2006 2005 2004 -------- ------- ------- (in thousands) Net investment income Fixed maturities ................ $ 20,004 $12,864 $ 5,594 Short-term investments........... 2,398 1,317 2,953 Other invested assets ........... 114,601 67,060 40,759 -------- ------- ------- Gross investment income.......... 137,003 81,241 49,306 Less investment expenses..... 809 385 341 -------- ------- ------- Net investment income .............. $136,194 $80,856 $48,965 ======== ======= ======= Net realized investment (losses) gains Fixed maturities ................ $ (2,554) $ (206) $ 3,017 Short-term investments .......... 0 (10) (2) Other invested assets ........... (103) (47) 0 -------- ------- ------- Net realized investment (losses) gains............................. $ (2,657) $ (263) $ 3,015 ======== ======= ======= The Company includes income earned from its investment in JHIMS in the other invested assets category. Income earned from the Company's investment in JHIMS was $112,874, $65,793, and $39,907 for the years ended December 31, 2006, 2005, and 2004, respectively. As of December 31, 2006 and 2005, all fixed-maturity securities have been classified as available-for-sale and reported at fair value. The amortized cost and fair value are summarized below for the years indicated: December 31, 2006 ------------------------------------------ Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value --------- ---------- ---------- ---------- (in thousands) Available-for-Sale: U.S. government..................... $263,162 $2,083 $(1,098) $264,147 Foreign governments................. 10,160 -- (166) 9,994 Corporate securities................ 83,756 71 (326) 83,501 -------- ------ ------- -------- Total fixed maturities available-for-sale............. $357,078 $2,154 $(1,590) $357,642 ======== ====== ======= ======== December 31, 2005 ------------------------------------------ Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value --------- ---------- ---------- ---------- (in thousands) Available-for-Sale: U.S. government..................... $148,727 $1,154 $ (868) $149,013 Foreign governments................. 96,559 206 (580) 96,185 Corporate securities................ 11,325 -- (208) 11,117 -------- ------ ------- -------- Total fixed maturities available-for-sale............. $256,611 $1,360 $(1,656) $256,315 ======== ====== ======= ======== F-12 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 3 -- Investments - (continued) Proceeds from sales of fixed-maturity securities during 2006, 2005, and 2004 were $45,385, $31,293, and $58,924, respectively. Gross gains realized on the sale of available-for-sale securities were $0, $95 and $3,380 for the years ended December 31, 2006, 2005, and 2004, respectively. Gross losses realized on the sale of available-for-sale securities were $1,131, $301, and $365 for the years ended December 31, 2006, 2005 and 2004, respectively. During 2006, other-than-temporary impairments on fixed maturity securities of $1,562 (2005 - $0; 2004 - $0) were recognized in the statements of income. The Company has a process in place to identify securities that could potentially have an impairment that is other than temporary. This process involves monitoring market events that could impact issuers' credit ratings, business climate, management changes, litigation and government actions, and other similar factors. This process also involves monitoring late payments, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. At the end of each quarter, the Manulife Loan Review Committee reviews all securities where market value is less than eighty percent of amortized cost for six months or more to determine whether impairments need to be taken. This committee meets with the head of workouts, the head of each industry team, and the head of portfolio management. The analysis focuses on each investee company's or project's ability to service its debts in a timely fashion and the length of time the security has been trading below amortized cost. The results of this analysis are reviewed by the Credit Committee at Manulife. This committee includes Manulife's Chief Financial Officer, Chief Investment Officer, Chief Risk Officer, Chief Credit Officer, and other senior management. This quarterly process includes a fresh assessment of the credit quality of each investment in the entire fixed maturities portfolio. The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other than temporary. Relevant facts and circumstances considered include (1) the length of time the fair value has been below cost; (2) the financial position of the issuer, including the current and future impact of any specific events; and (3) the Company's ability and intent to hold the security to maturity or until it recovers in value. To the extent the Company determines that a security is deemed to be other than temporarily impaired, the difference between amortized cost and fair value is charged to earnings. There are a number of significant risks and uncertainties inherent in the process of monitoring impairments and determining if impairment is other than temporary. The risks and uncertainties include (1) the risk that our assessment of an issuer's ability to meet all of its contractual obligations will change based on changes in the credit characteristics of that issuer, (2) the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated, (3) the risk that fraudulent information could be provided to our investment professionals who determine the fair value estimates and other than temporary impairments, and (4) the risk that new information obtained by us or changes in other facts and circumstances lead us to change our intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a charge to earnings in a future period. F-13 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 3 -- Investments - (continued) At December 31, 2006, there were 53 fixed maturities that had a gross unrealized loss of $1,590. These securities had a fair value of $217,762 at December 31, 2006. The amount of unrealized losses related to fixed maturity securities in an unrealized loss position for greater than twelve months was $1,447 on 23 securities with a fair value of $101,105 at December 31, 2006. The Company has the ability and intent to hold these debt securities until they recover or mature. The contractual maturities of fixed-maturity securities at December 31, 2006 are shown below. Unrealized Losses on Fixed Maturity Securities
As of December 31, 2006 ---------------------------------------------------------------- Less than 12 months 12 months or more Total -------------------- -------------------- -------------------- Carrying Carrying Carrying Value of Value of Value of Securities Securities Securities with Gross with Gross with Gross Unrealized Unrealized Unrealized Unrealized Unrealized Unrealized Description of securities: Loss Losses Loss Losses Loss Losses - -------------------------- ---------- ---------- ---------- ---------- ---------- ---------- US Treasury obligations and direct obligations of U.S.government agencies......................... $ 66,297 $(101) $ 71,563 $ (997) $137,860 $(1,098) Corporate bonds.................... 50,360 (42) 19,548 (284) 69,908 (326) Debt securities issued by foreign governments...................... 9,994 (166) 9,994 (166) -------- ----- -------- ------- -------- ------- Total........................... $116,657 $(143) $101,105 $(1,447) $217,762 $(1,590) ======== ===== ======== ======= ======== =======
At December 31, 2005, there were 64 debt securities that had a gross unrealized loss of $1,656. These securities had a fair value of $211,273 at December 31, 2005. The amount of unrealized losses related to fixed maturity securities in an unrealized loss position for greater than twelve months was $1,090 on 24 securities with a fair value of $78,789 at December 31, 2005. The amortized cost and fair value of fixed maturities at December 31, 2006, by contractual maturity, are shown below: Amortized Cost Fair Value -------------- ---------- (in thousands) Available-for-Sale: Due in one year or less.............................. $108,164 $107,150 Due after one year through five years................ 139,154 138,686 Due after five years through ten years............... 59,284 60,174 Due after ten years.................................. 50,476 51,632 -------- -------- Total............................................. $357,078 $357,642 ======== ======== Fixed-maturity securities with a fair value of $476 and $495 at December 31, 2006 and 2005, respectively, were on deposit with or in custody accounts on behalf of the Department to satisfy regulatory requirements. Equity Method Investments As of December 31, 2006 and 2005, total assets for JHIMS were $34,086 and $27,968, and total liabilities were $31,980 and $25,863. For the years ended December 31, 2006, 2005, and 2004, net income of JHIMS was $283,029, $164,500, and $99,769, respectively. F-14 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 4--Income Taxes The Company will participate with its affiliates in a consolidated federal income tax return for the year ended December 31, 2006. The Company filed a separate federal income tax return for the years ended December 31, 2005 and 2004. In accordance with the income tax-sharing agreements in effect for 2006, the Company's income tax provision (or benefit) is computed as if the Company filed a separate federal income tax return. The tax charge to the Company will not be more than that which the Company would have paid on a separate return basis. Intercompany settlements of income taxes are made through an increase or reduction to amounts due to or from affiliates. Such settlements occur on a periodic basis in accordance with the tax sharing agreement. Tax benefits from operating losses are provided at the U.S. statutory rate plus any tax credits attributable, provided the consolidated group utilizes such benefits currently, The components of income taxes were as follows: For the Years Ended December 31, ------------------------------- 2006 2005 2004 ------- ------- ------- (in thousands) Current federal taxes......... $37,581 $ 4,952 $ (138) Deferred federal taxes........ 2,322 19,563 15,560 ------- ------- ------- Total income taxes............ $39,903 $24,515 $15,422 ======= ======= ======= Total expenses differ from the statutory rate due principally to the dividends received deduction. A reconciliation of income taxes computed by applying the 35% federal income tax rate to income before income taxes and cumulative effect of accounting change to income tax expense charged to operations follows: For the Years Ended December 31, ------------------------- 2006 2005 2004 ------- ------- ------- (in thousands) Tax at 35%.......................................... $39,331 $26,975 $16,424 Add (deduct): Prior year taxes................................. (8) (760) -- Dividends received deduction..................... (1,909) (1,707) (1,019) Other............................................ 2,489 7 17 ------- ------- ------- Total income taxes........................... $39,903 $24,515 $15,422 ======= ======= ======= F-15 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 4--Income Taxes- (continued) Deferred income tax assets and liabilities result from tax affecting the differences between the financial statement values and tax values of assets and liabilities at each consolidated balance sheet date. The significant components of the Company's deferred tax assets and liabilities were as follows: December 31, ------------------ 2006 2005 -------- -------- (in thousands) Deferred tax assets: Policy reserves adjustments............................. $ 45,879 $ 27,052 Other................................................... 3,208 -- -------- -------- Total deferred tax assets........................... $ 49,087 $ 27,052 -------- -------- Deferred tax liabilities: Deferred acquisition costs.............................. $(63,194) $(55,425) Unrealized (gains) losses on securities available-for-sale.................................... (473) 166 Reinsurance............................................. (33,173) (19,994) Other................................................... -- (1,630) -------- -------- Total deferred tax liabilities...................... (96,840) (76,883) -------- -------- Net deferred tax liabilities........................ $(47,753) $(49,831) ======== ======== At December 31, 2006 and 2005, the Company had no operating loss carry-forwards. The Company believes that it will realize the full benefit of its deferred tax assets. The Company received a tax refund of $492 in 2006 and paid taxes of $4,744 and $308 in 2005 and 2004, respectively. Note 5 - Reinsurance At December 31, 2006, the Company had treaties with twenty re-insurers, eighteen non-affiliated and two affiliated. The per policy life risk retained by the Company is 10% to 30% of a policy, up to a maximum of $100. In 2006, there were eight recoveries under these agreements totaling a recovery of $2,204 on $3,911 of death claims. In 2005, there were three recoveries under these agreements totaling a recovery of $1,906 on $3,214 of death claims. In 2004, there were three recoveries under these agreements totaling a recovery of $4,768 on $4,850 of death claims; of which a recovery of $200 on a $3,000 death claim related to an affiliated reinsurer. At December 31, 2006, the Company had deferred stop loss reinsurance agreements with two unaffiliated reinsurers to cover a portion of the risk associated with variable annuity minimum death benefit guarantee claims. The Company paid $4,026, $3,828 and $3,492 in reinsurance premiums for the years ended December 31, 2006, 2005, and 2004, respectively. The agreements have a term of fifteen years, at the end of which a settlement will be made. The Company has accounted for these agreements using the deposit method. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under the reinsurance agreements. Failure of the reinsurers to honor their obligations could result in losses to the Company; consequently, estimates are established for amounts deemed or estimated to be uncollectible. To minimize its exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar characteristics among the reinsurers. F-16 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 6 - Pension Benefit Plans and Other Postretirement Benefit Plans The Company participates in a non-contributory pension plan entitled "the Manulife Financial U.S. Cash Balance Plan ("The Plan"), which is sponsored by the Company's parent, JHUSA. Pension benefits are provided to participants of the Plan after three years of vesting service with the Company and are a function of the length of service together with final average earnings. The normal form of payment under the Plan is a life annuity, payable at the normal retirement age of 65, and is actuarially equivalent to the cash balance account. Various optional forms of payment are available including lump sum. Early retirement benefits are actuarially equivalent to the cash balance account, but are subsidized for participants who were age 45 with five or more years vesting service with the Company as of July 1, 1998 and who terminate employment after attaining age 50 and have completed 10 years of service. Cash balance accounts under the Plan are credited annually with contribution credits and semi-annually with interest credits. Future contribution credits will vary based on service. Interest credits are based on the greater of one-year U.S. Treasury Constant Maturity Bond yields plus 0.25% and 5.25% per annum. Actuarial valuation of accumulated plan benefits are based on projected salaries, an assumed discount rate, and best estimates of investment yields on plan assets, mortality of participants, employee termination, and ages at retirement. Pension costs that relate to current service are funded as they accrue and are charged to earnings of the Company in the current period. Vested benefits are fully funded. Experience gains and losses are amortized to income of the Company over the estimated average remaining service lives of the plan participants. No contributions were made for the years ended December 31, 2006, 2005, and 2004 because the Plan was subject to the full funding limitation under the Internal Revenue Code. As of December 31, 2006 and 2005, the projected benefit obligation to the participants of the Plan was $87.7 million and $85.0 million, and the accumulated benefit obligation was $76.6 million and $74.0 million respectively. This was based on a discount interest rate of 5.75% and 5.50% for December 31, 2006 and 2005, respectively. The fair value of the Plan assets totaled $74.8 million and $71.1 million as of December 31, 2006 and 2005. The expected return on plan assets was 8.25% in both 2006 and 2005, respectively. The costs associated with the Plan were charged to the Company and were not material for the years ended December 31, 2006, 2005 and 2004. JHUSA adopted Statement of Financial Accounting Standards No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirment Plans, an amendment of FASB Statements No. 87, 88, 106 and 123(R) ("SFAS 158") as of December 31, 2006. JHUSA recorded a loss of ($2) million net of tax benefit to accumulated other comprehensive income to recognize the funded status of its defined benefit pension and other post-retirement benefit plans. The Company participates in a defined contribution 401(k) savings plan sponsored by JHUSA. This plan is subject to the provisions of the Employee Retirement Income Security Act of 1974. The costs associated with the Plan were charged to the Company and were not material for the years ended December 31, 2006, 2005 and 2004. In addition to the retirement plans, the Company participates in a post-retirement benefit plan that is sponsored by JHUSA. This plan provides retiree medical and life insurance benefits to those who have attained age 50 and have 10 or more years of service with the Company. This plan provides primary medical coverage for retirees and spouses under age 65. When the retirees or the covered spouses reach age 65, Medicare provides primary coverage and this plan provides secondary coverage. This plan is contributory with the amount of contribution based on the service of the employees as at the time of retirement. It also provides the employee with a life insurance benefit of 100% of the salary just prior to retirement up to a maximum of $150. This life insurance benefit is reduced to 65% on the first of January following retirement, and is further reduced to 30% at age 70. The postretirement benefit cost, which includes the expected cost of postretirement benefits for newly eligible employees and for vested employees, interest cost, and gains/losses arising from differences between actuarial assumptions and actual experience, is accounted for by the plan sponsor, JHUSA. This plan is unfunded. F-17 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 7 - Commitments and Contingencies Commitments. The Company leases office space under various operating lease agreements, which will expire in March of 2009. For the years ended December 31, 2006, 2005, and 2004 the Company incurred rent expense of $94, $181, and $160, respectively. The minimum lease payments associated with the office space under the operating lease agreement are as follows: Minimum Lease Payments -------------- (in thousands) 2007............................... $ 66 2008............................... 70 2009............................... 18 ---- Total.............................. $154 ==== The Company is subject to various lawsuits that have arisen in the course of its business. Contingent liabilities arising from litigation, income taxes and other matters are not considered material in relation to the financial position of the Company. Legal Proceedings. The Company is regularly involved in litigation both as a defendant and as a plaintiff. The litigation naming it as a defendant ordinarily involves its activities as a provider of insurance protection and wealth management products, as well as an investment adviser, employer and taxpayer. In addition, state regulatory bodies, state attorneys general, the United States Securities and Exchange Commission and other government and regularity bodies regularly make inquiries and, from time to time, require the production of information or conduct examinations concerning compliance with, among other things, insurance laws, securities laws, and laws governing activities of broker-dealers. As with many other companies in the financial industry, the Company has been requested or required by such government and regulatory authorities to provide information with respect to market timing, late trading and sales compensation and broker-dealer practices with respect to variable investment options underlying variable life and annuity products and other separate account products. It is believed that these inquiries are similar to those made to many financial services companies by various agencies into practices, policies and procedures relating to trading in mutual funds shares and sales compensation and broker-dealer practices. The Company intends to continue to cooperate fully with government and regulatory authorities in connection with their respective inquiries. The Company does not believe that the conclusion of any current legal or regulatory matters, either individually or in the aggregate, will have a material adverse effect on its financial condition or results of operations. F-18 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 8 - Shareholder's Equity (a) Common Stock The Company has one class of capital stock: common stock ($1 par value, 3,000,000 shares authorized and 2,000,001 shares issued and outstanding) at December 31, 2006 and 2005. (b)Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income for the years indicated are presented below: Accumulated Net Other Unrealized Comprehensive Gains Income ---------- ------------- Balance at January 1, 2004............................ $ 2,550 $ 2,550 Gross unrealized losses (net of deferred income tax benefit of $248).................................... (459) (459) Reclassification adjustment for gains realized in net income (net of income tax expense of $1,055)........ (1,960) (1,960) Adjustment to deferred acquisition costs (net of deferred income tax expense of $185)................ 343 343 Adjustment to deferred sales inducements (net of deferred income tax benefit of $21)................. (40) (40) ------- ------- Net unrealized losses................................. (2,116) (2,116) ------- ------- Balance at December 31, 2004.......................... 434 434 ======= ======= Gross unrealized losses (net of deferred income tax benefit of $602).................................... (1,119) (1,119) Reclassification adjustment for losses realized in net income (net of income tax benefit of $72)....... 134 134 Adjustment to deferred acquisition costs (net of deferred income tax expense of $286)................ 531 531 Adjustment to deferred sales inducements (net of deferred income tax expense of $47)................. 89 89 ------- ------- Net unrealized losses ................................ (365) (365) ------- ------- Balance at December 31, 2005.......................... 69 69 ======= ======= Gross unrealized gains (net of deferred income tax expense of $242).................................... 451 451 Reclassification adjustment for losses realized in net income (net of income tax benefit of $396)...... 735 735 Adjustment to deferred acquisition costs (net of deferred income tax benefit of $106)................ (198) (198) Adjustment to deferred sales inducements (net of deferred income tax benefit of $16)................. (30) (30) ------- ------- Net unrealized gains.................................. 958 958 ------- ------- Balance at December 31, 2006.......................... $ 1,027 $ 1,027 ======= ======= F-19 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 8 - Shareholder's Equity - (continued) Net unrealized investment gains, included in the balance sheets as a component of shareholder's equity, are summarized as follows: 2006 2005 2004 ------ ----- ------ (in thousands) Balance at end of year comprises: Fixed maturities..................................... $ 564 $(296) $1,353 Short-term and other investments..................... 786 (178) (312) ------ ----- ------ Total................................................... 1,350 (474) 1,041 Amounts of unrealized investment losses (gains) attributable to: Deferred acquisition costs........................... 201 505 (312) Deferred sales inducements........................... 29 75 (61) Deferred federal income taxes........................ (553) (37) (234) ------ ----- ------ Total................................................... (323) 543 (607) ------ ----- ------ Net unrealized investment gains......................... $1,027 $ 69 $ 434 ====== ===== ====== (c) Statutory Results The Company prepares its statutory-basis financial statements in accordance with accounting practices prescribed or permitted by the state of domicile. 2006 2005 2004 -------- -------- ------- (in thousands) Statutory net income................................. $ 63,057 $ 13,230 $20,629 Statutory surplus.................................... 166,325 100,870 50,980 The maximum amount of dividends that may be paid by life insurance companies without prior approval of the New York Insurance Commissioner is subject to restrictions relating to statutory surplus and net statutory gain from operations. State regulatory authorities prescribe statutory accounting practices that differ in certain respects from GAAP followed by stock life insurance companies in the United States. The significant differences relate to investments, deferred acquisition costs, deferred income taxes, non-admitted asset balances, and reserves. NAIC statutory reserving guidelines and/or interpretations of those guidelines may change in the future. Such changes may require the Company to modify, perhaps materially, its statutory-based reserves for variable annuity contracts. Note 9 - Capital Maintenance Agreement Pursuant to a capital maintenance agreement and subject to regulatory approval, MLI has agreed to maintain the Company's statutory capital and surplus at a specified level and to ensure that sufficient funds are available for the timely payment of contractual obligations. Note 10 - Segment Information The Company's reportable segments are strategic business units offering different products and services. The reportable segments are managed separately, as they focus on different products, markets and distribution channels. Protection Segment. Offers a variety of individual life insurance, including whole life, term life, universal life and variable life insurance. Products are distributed through multiple distribution channels, including insurance agents and brokers and alternative distribution channels that include banks, financial planners, and direct marketing. F-20 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 10 - Segment Information - (continued) Wealth Management Segment. Offers variable annuities and group pension contracts. This segment distributes its products through multiple distribution channels, including insurance agents and brokers affiliated with the Company, securities brokerage firms, financial planners, and banks. Corporate Segment. Includes corporate operations primarily related to certain financing activities and income on capital not specifically allocated to the reporting segments. The accounting policies of the segments are the same as those described in Note 1 - (Summary of Significant Accounting Policies). Allocations of net investment income are based on the amount of assets allocated to each segment. Other costs and operating expenses are allocated to each segment based on a review of the nature of such costs, cost allocations utilizing time studies, and other relevant allocation methodologies. The following tables summarize selected financial information by segment for the periods indicated:
Wealth Protection Management Corporate Consolidated ---------- ---------- --------- ------------ (in thousands) Year ended December 31, 2006 Revenues: Revenue from external customers................ $ 35,299 $ 75,583 $ -- $ 110,882 Net investment income.......................... 4,497 25,611 106,086 136,194 Net realized investment (losses) gains......... (1,677) (190) (790) (2,657) -------- ---------- -------- ---------- Revenues....................................... $ 38,119 $ 101,004 $105,296 $ 244,419 ======== ========== ======== ========== Net (loss) income:............................. $ (2,510) $ 6,724 $ 68,259 $ 72,473 ======== ========== ======== ========== Supplemental Information: Equity in net income of investees accounted for by the equity method..................... $ 98 $ 17,034 $ 95,742 $ 112,874 Carrying value of investments accounted for by the equity method............................ -- -- 800 800 Amortization of deferred acquisition costs and deferred sales inducements................... 24,353 37,487 -- 61,840 Income tax (benefit) expense................... (964) 3,502 37,365 39,903 Segment assets................................. $261,106 $5,784,006 $363,684 $6,408,796
F-21 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 10 - Segment Information - (continued)
Wealth Protection Management Corporate Consolidated ---------- ---------- --------- ------------ (in thousands) Year ended December 31, 2005 Revenues: Revenue from external customers..................... $ 17,448 $ 56,494 $ 7 $ 73,949 Net investment income............................... 2,192 17,867 60,797 80,856 Net realized investment (losses) gains.............. (329) 75 (9) (263) -------- ---------- -------- ---------- Revenues............................................ $ 19,311 $ 74,436 $ 60,795 $ 154,542 ======== ========== ======== ========== Net (loss) income:.................................. $ (431) $ 15,397 $ 37,589 $ 52,555 ======== ========== ======== ========== Supplemental Information: Equity in net income of investees accounted for by the equity method................................. $ 70 $ 11,629 $ 54,094 $ 65,793 Carrying value of investments accounted for by the equity method..................................... 0 -- 800 800 Amortization of deferred acquisition costs and deferred sales inducements........................ 9,367 19,972 -- 29,339 Income tax (benefit) expense........................ (619) 4,506 20,628 24,515 Segment assets...................................... $164,902 $4,504,239 $229,370 $4,898,511 Wealth Protection Management Corporate Consolidated ---------- ---------- --------- ------------ (in thousands) Year ended December 31, 2004 Revenues: Revenue from external customers..................... $ 7,538 $ 39,493 $ 305 $ 47,336 Net investment income............................... 774 9,898 38,293 48,965 Net realized investment (losses) gains.............. 35 1,529 1,451 3,015 -------- ---------- -------- ---------- Revenues............................................ $ 8,347 $ 50,920 $ 40,049 $ 99,316 ======== ========== ======== ========== Net (loss) income:.................................. $ (661) $ 7,968 $ 24,483 $ 31,790 ======== ========== ======== ========== Supplemental Information: Equity in net income of investees accounted for by the equity method................................. $ 1,742 $ 5,489 $ 32,676 $ 39,907 Carrying value of investments accounted for by the equity method..................................... -- -- 800 800 Amortization of deferred acquisition costs and deferred sales inducements........................ 1,952 (890) -- 1,062 Income tax (benefit) expense........................ (382) 2,114 13,690 15,422 Segment assets...................................... $ 98,088 $3,461,994 $179,753 $3,739,835
F-22 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 11 - Fair Value of Financial Instruments The following discussion outlines the methodologies and assumptions used to determine the fair value of the Company's financial instruments. The aggregate fair value amounts presented below do not represent the underlying value of the Company and, accordingly, care should be exercised in drawing conclusions about the Company's business or financial condition based on the fair value information presented below. For fixed maturity securities fair values were based on quoted market prices where available. Where no quoted market price was available, fair values were estimated using values obtained from independent pricing services. The carrying values for policy loans, short-term investments and cash and cash equivalents approximates their respective fair values. The fair value for insurance investment contracts, which do not subject the Company to significant mortality or morbidity risks, were estimated using cash flows discounted at market rates. The following table presents the carrying amounts and fair values of the Company's financial instruments:
December 31, --------------------------------------- 2006 2005 ------------------- ------------------- Carrying Carrying Value Fair Value Value Fair Value -------- ---------- -------- ---------- (in thousands) Assets: Fixed maturities.......................... $357,642 $357,642 $256,315 $256,315 Policy loans.............................. 28,345 28,345 21,564 21,564 Short-term investments.................... 153,598 153,598 169,414 169,414 Cash and cash equivalents................. 25,448 25,448 24,144 24,144 Liabilities: Fixed rate deferred and immediate annuities............................... $285,563 $277,992 $323,103 $313,474
F-23 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 12 - Certain Separate Accounts The Company issues 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 contract holder. All contracts contain certain guarantees, which are discussed more fully below. The Company also has an immaterial amount of variable life insurance contracts in force, which will not be discussed further. During 2006 and 2005, there were no gains or losses on transfers of assets from the general account to the separate account. The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as summary total separate account assets with an equivalent summary total reported for liabilities. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenue and changes in liabilities for minimum guarantees are included in policyholder benefits in the Statements of Income. Separate account net investment income, net investment gains and losses, and the related liability changes are offset within the same line item in the Statements of Income. The variable annuity contracts are issued through separate accounts and the Company contractually guarantees the contract holder either (a) a return of no less than total deposits made to the contract less any partial withdrawals, (b) total deposits made to the contract less any partial withdrawals plus a minimum return, or (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary. Contracts issued after December 31, 2002 have a proportional partial withdrawal benefit instead of a dollar-for-dollar relationship. As of December 31, 2006, 60% of the inforce contract values have reduction of benefit on a dollar-for-dollar basis, and 40% on a proportional basis. In September 2001, the Company introduced a Guaranteed Income Benefit Rider ("GRIP"), which provides a guaranteed minimum annuity payout if the policy holder elects to annuitize after a waiting period of 10 years. In December 2002, the GRIP rider was replaced by a newer version - GRIP II, which provides a more generous benefit base but with a higher rider charge. The Company discontinued the sales of the GRIP and GRIP II riders in 2004. In 2004, the Company introduced a Guaranteed Minimum Withdrawal Benefit Rider (GMWB) named Principal Plus (PP). This rider provides a guaranteed withdrawal amount referred to as the Guaranteed Withdrawal Balance (GWB) as long as withdrawals do not exceed 5% of the GWB per annum. In 2005, a newer version of the GMWB rider, Principal Plus for Life (PPFL) was introduced. This new rider retains all the features of the PP rider and adds an alternative guarantee of a Life Time Income Amount available for the life of the covered person. In February 2006, the PPFL rider was upgraded to a new "Enhanced" version featuring a key change to the Step-Up option. Previously, Step-Ups occurred automatically every third contract year until the 30th. After the upgrade, Step-Ups will begin to occur annually after the ninth year. In October 2006, the Company added two new versions of the "Enhanced" PPFL rider to the PPFL family: . Principal Plus for Life PLUS Automatic Annual Step-Up, provides clients with the additional advantage that the Step-Up feature will occur annually beginning with the very first contract anniversary. . Principal Plus For Life PLUS Spousal Protection, provides clients with the additional advantage that the rider will continue to provide the spouse with a guaranteed lifetime income even after the owner's death. Reinsurance has been utilized to mitigate risk related to Guaranteed Minimum Death Benefits ("GMDB") and Guaranteed Minimum Income Benefits ("GMIB"). The Company's variable annuity contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed on the following page are not mutually exclusive. For guarantees of amounts in the event of death, the net amount at risk is defined as the current GMDB in excess of the current account balance at the balance sheet date. For guarantees of amounts at annuitization, the net amount at risk is defined as the excess of the current annuitization income base over the current account value. For guarantees of partial withdrawal amounts, the net amount at risk is defined as the current guaranteed withdrawal amount minus the current account value. For all the guarantees, the net amount at risk is floored at zero at the single contract level. F-24 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 12 - Certain Separate Accounts - (continued) As of December 31, 2006 and 2005, the Company had the following variable contracts with guarantees: December 31, December 31, 2006 2005 ------------ ------------ (in millions) Guaranteed minimum death benefit Return of net deposits in the event of death Account value..................................... $ 770.8 $ 392.8 Net amount at risk - gross........................ 0.4 0.6 Net amount at risk - net.......................... 0.1 -- Highest specified anniversary account value minus withdrawals post anniversary in the event of death Account value..................................... $3,215.2 $2,860.5 Net amount at risk - gross........................ 95.0 132.1 Net amount at risk - net.......................... 28.7 39.8 Guaranteed Minimum Income Benefit Account value..................................... $ 767.9 $ 741.8 Net amount at risk - gross........................ 2.2 3.0 Net amount at risk - net.......................... -- -- Guaranteed Minimum Withdrawal Benefit Account value..................................... $1,740.1 $ 918.9 Net amount at risk - gross........................ 0.1 0.3 Net amount at risk - net.......................... 0.1 0.3 Account balances of variable contracts with guarantees invest in variable separate accounts in various mutual funds with the following characteristics:
December 31, December 31, Asset Class Index 2006 2005 - ----------- -------------------------------------------- ------------ ------------ (in millions) Large Cap Equity......... S&P 500 $1,063.9 $ 901.1 High Quality Bond........ Ibbottson US Intermediate Term Gov't Bond 637.5 617.2 High Yield Bond.......... Ibbottson Domestic High Yield Bond 54.6 56.0 Balanced................. 60% Large Cap Equity, 40% High Quality Bond 1,824.3 1,152.2 Small Cap Equity......... Ibbottson US Small Cap Stock 239.5 255.7 International Equity..... MSCI EAFE 103.1 87.9 Global Equity............ MSCI World 46.9 40.6 Real Estate.............. NAREIT 31.8 25.1 -------- -------- Total $4,001.6 $3,135.8 ======== ========
F-25 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 12 - Certain Separate Accounts - (continued) The reserve roll forwards for the separate accounts as of December 31, 2006 and 2005 are as follows:
Guaranteed Guaranteed Guaranteed Minimum Minimum Death Minimum Income Withdrawal Benefit Benefit (GMDB) Benefit (GMIB) (GMWB) Totals -------------- -------------- ------------------ ------ (in millions) Balance at January 1, 2006......... $ 7.8 $(6.3) $(1.5) $ -- Incurred guarantee benefits........ (2.7) -- -- (2.7) Other reserve changes.............. 4.6 8.6 7.9 21.1 ----- ----- ----- ----- Balance at December 31, 2006....... 9.7 2.3 6.4 18.4 Reinsurance recoverable............ (0.2) (5.5) -- (5.7) ----- ----- ----- ----- Net Balance at December 31, 2006... 9.5 (3.2) 6.4 12.7 ===== ===== ===== ===== Balance at January 1, 2005......... 6.2 1.5 -- 7.7 Incurred guarantee benefits........ (3.6) -- -- (3.6) Other reserve changes.............. 5.2 0.4 (1.5) 4.1 ----- ----- ----- ----- Balance at December 31, 2005....... 7.8 1.9 (1.5) 8.2 Reinsurance recoverable............ -- (8.2) -- (8.2) ----- ----- ----- ----- Net Balance at December 31, 2005... $ 7.8 $(6.3) $(1.5) $ -- ===== ===== ===== =====
The gross reserves and ceded assets for GMDB and the gross reserve for GMIB are determined using SOP 03-1, where as the ceded asset for GMIB and gross reserve for GMWB was determined in accordance with SFAS 133. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The following assumptions and methodology were used to determine the above amounts at December 31, 2006 and 2005: . Data used included 1,000 stochastically generated investment performance scenarios. For SFAS 133 calculations, risk neutral scenarios have been used. . Mean return and volatility assumptions have been determined for each of the asset classes noted above. . For 2006, annuity mortality was based on 1994 MGDB table multiplied by factors varied by rider types (living benefit/GMDB only) and qualified/non-qualified business. For 2005, annuity mortality was assumed to be 90% of the Annuity 2000 table. . Annuity base lapse rates vary by contract type and duration and range from 1 percent to 45 percent, adjusted by in-the-moneyness of guaranteed benefits if applicable. . Partial withdrawal rates are approximately 4% per year. . The discount rate is 7.0% (inforce issued before 2004) or 6.4% (inforce issued after 2003) in the SOP 03-1 calculations and for SFAS 133 calculations, 5.24% and 5% for the years ended December 31, 2006 and 2005, respectively. F-26 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK NOTES TO FINANCIAL STATEMENTS - (CONTINUED) Note 13 - Deferred Acquisition Costs and Deferred Sales Inducements The components of the change in Deferred Acquisition Costs were as follows: For the year ended December 31, 2006 2005 - ------------------------------- -------- -------- (in thousands) Balance, January 1......................................... $248,817 $191,464 Capitalization............................................. 108,097 81,652 Amortization............................................... (56,990) (25,116) Effect of net unrealized (losses) gains on available-for-sale securities............................ (304) 817 -------- -------- Balance, December 31....................................... $299,620 $248,817 ======== ======== The components of the change in Deferred Sales Inducements were as follows: For the year ended December 31, 2006 2005 - ------------------------------- -------- -------- (in thousands) Balance, January 1......................................... $ 30,065 $ 27,153 Capitalization............................................. 6,476 6,999 Amortization............................................... (4,850) (4,223) Effect of net unrealized (losses) gains on available-for-sale securities............................ (46) 136 -------- -------- Balance, December 31....................................... $ 31,645 $ 30,065 ======== ======== F-27 AUDITED FINANCIAL STATEMENTS John Hancock Life Insurance Company of New York Separate Account A December 31, 2006 John Hancock Life Insurance Company of New York Separate Account A Audited Financial Statements December 31, 2006 CONTENTS Audited Financial Statements Report of Ernst & Young LLP, Independent Registered Public Accounting Firm ... 1 Statement of Assets and Liabilities .......................................... 4 Statement of Operations and Changes in Contract Owners' Equity ............... 15 Notes to Financial Statements ................................................ 103
REPORT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Contract Owners of John Hancock Life Insurance Company of New York Separate Account A We have audited the accompanying statement of assets and liabilities of John Hancock Life Insurance Company of New York Separate Account A, the "Account," comprising respectively the following sub-accounts, Strategic Opportunities -- A Strategic Opportunities -- B Investment Quality Bond -- A Investment Quality Bond -- B U.S. Core -- A U.S. Core -- B Blue Chip Growth -- A Blue Chip Growth -- B Money Market -- A Money Market -- B Global Trust -- A Global Trust -- B Global Bond -- A Global Bond -- B U.S. Government Securities -- A U.S. Government Securities -- B Income & Value -- A Income & Value -- B Equity-Income -- A Equity-Income -- B Strategic Bond -- A Strategic Bond -- B All Cap Core -- A All Cap Core -- B All Cap Growth -- A All Cap Growth -- B International Small Cap -- A International Small Cap -- B Pacific Rim -- A Pacific Rim -- B Science & Technology -- A Science & Technology -- B Emerging Small Company -- A Emerging Small Company -- B International Core -- A International Core -- B Value -- A Value -- B Real Estate Securities -- A Real Estate Securities -- B High Yield -- A High Yield -- B Lifestyle Aggressive -- A Lifestyle Aggressive -- B Lifestyle Growth -- A Lifestyle Growth -- B Lifestyle Balanced -- A Lifestyle Balanced -- B Lifestyle Moderate -- A Lifestyle Moderate -- B Lifestyle Conservative -- A Lifestyle Conservative -- B Small Company Value -- A Small Company Value -- B International Value -- A International Value -- B Total Return -- A Total Return -- B U.S. Large Cap -- A U.S. Large Cap -- B Mid Cap Stock -- A Mid Cap Stock -- B Global Allocation -- A Global Allocation -- B Dynamic Growth -- A Dynamic Growth -- B Total Stock Market Index -- A Total Stock Market Index -- B 500 Index -- A 500 Index -- B Mid-Cap Index -- A Mid-Cap Index -- B Small Cap Index -- A Small Cap Index -- B Capital Appreciation -- A Capital Appreciation -- B Health Sciences -- A Health Sciences -- B 1 Financial Services -- A Financial Services -- B Quantitative Mid Cap -- A Quantitative Mid Cap -- B All Cap Value -- A All Cap Value -- B Utilities -- A Utilities -- B Mid Cap Value -- A Mid Cap Value -- B Fundamental Value -- A Fundamental Value -- B Emerging Growth -- B Natural Resources -- B Quantitative All Cap -- B Large Cap Value -- B Small Cap Opportunities -- A Small Cap Opportunities -- B Special Value-- B Real Return Bond -- B American International -- B American Growth -- B American Blue Chip Income & Growth -- B American Growth Income -- B American Bond Fund-- B American Century Small Company -- B PIMCO VIT All Asset LMFC Core Equity -- B PIM Classic Value -- B Quantitative Value -- B US Global Leaders Growth-- A US Global Leaders Growth-- B John Hancock Strategic Income B John Hancock Int'l Eq Index-- A John Hancock Int'l Eq Index -- B Active Bond-- A Active Bond-- B CGTC Overseas Equity -- B Independence Investment LLC Small Cap-- B Marisco International Opportunities-- B T Rowe Price Mid Value-- B UBS Large Cap-- B U.S. High Yield Bond-- B Wellington Small Cap Growth -- B Wellington Small Cap Value -- B Wells Capital Core Bond-- B Index Allocation-- B Large Cap Value -- A Scudder Capital Growth -- B Scudder Global Discovery -- B Scudder Growth & Income -- B Scudder Health Sciences -- B Scudder International -- B Scudder Mid Cap Growth -- B Scudder Blue Chip -- B Scudder Contrarian Value -- B Scudder Global Blue Chip -- B Scudder Government Securities -- B Scudder High Income -- B Scudder International Select Equity -- B Scudder Fixed Income -- B Scudder Money Market -- B Scudder Small Cap Growth -- B Scudder Technology Growth -- B Scudder Total Return -- B Scudder Davis Venture Value -- B Scudder Dreman High Return Equity -- B Scudder Dreman Small Cap Value -- B Scudder Janus Growth & Income -- B Scudder Turner Mid Cap Growth -- B Scudder Real Estate -- B Scudder Strategic Income -- B Scudder Moderate Allocation-- B Scudder Conservative Allocation-- B Scudder Growth Allocation-- B Scudder Bond -- B Scudder Equity 500 Index -- B Alger American Balanced -- B Alger American Leveraged All Cap -- B Credit Suisse Emerging Markets -- B Credit Suisse Global Post Venture Capital -- B Dreyfus Socially Responsible Growth -- B Dreyfus VIF Mid Cap Stock -- B AIM VI Utilities -- B 2 as of December 31, 2006, and the related statements of operations and changes in contract owners' equity for those sub-accounts and for the Large Cap Growth - A, Large Cap Growth - B, Strategic Value - A, Strategic Value - B, Mid Cap Core - B, Scudder Dreman Financial Services - B, Scudder Salomon Aggressive Growth - B, Scudder Janus Growth Opportunities - B, Scudder MFS Strategic - B, Scudder Oak Strategic Equity - B, Scudder Income Allocation - B, Scudder Templeton Foreign Value - B, Scudder Mercury Large Cap Core - B sub-accounts for each of the two years in the period then ended. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Account's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the sub-accounts of John Hancock Life Insurance Company of New York Separate Account A at December 31, 2006, and the results of their operations and changes in their contract owners' equity for each of the two years in the period then ended, in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Boston, Massachusetts April 13, 2007 3 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2006
Strategic Strategic Investment Quality Investment Quality Opportunities - A Opportunities - B Bond A Bond B U.S. Core A ----------------- ----------------- ------------------ ------------------ ----------- ASSETS Investments in shares of portfolios at value: $25,876,550 $1,588,987 $11,394,453 $26,873,489 $65,920,872 ----------- ---------- ----------- ----------- ----------- Total Assets $25,876,550 $1,588,987 $11,394,453 $26,873,489 $65,920,872 =========== ========== =========== =========== =========== NET ASSETS: Contracts in accumulation $25,876,550 $1,588,987 $11,375,357 $26,873,489 $65,910,732 Contracts in payout (annuitization) 19,096 10,140 ----------- ---------- ----------- ----------- ----------- Total net assets $25,876,550 $1,588,987 $11,394,453 $26,873,489 $65,920,872 =========== ========== =========== =========== =========== Units outstanding 1,035,971 119,093 545,376 1,825,924 2,724,668 =========== ========== =========== =========== =========== Unit value (in accumulation) $ 24.98 $ 13.34 $ 20.89 $ 14.72 $ 24.19 =========== ========== =========== =========== ===========
Blue Chip Blue Chip U.S. Core B Growth - A Growth - B Money Market - A Money Market - B ----------- ----------- ----------- ---------------- ---------------- ASSETS Investments in shares of portfolios at value: $12,039,251 $45,398,866 $21,092,687 $24,874,821 $33,361,074 ----------- ----------- ----------- ----------- ----------- Total Assets $12,039,251 $45,398,866 $21,092,687 $24,874,821 $33,361,074 =========== =========== =========== =========== =========== NET ASSETS: Contracts in accumulation $12,039,251 $45,324,624 $21,092,687 $24,862,905 $33,361,074 Contracts in payout (annuitization) 74,242 11,916 ----------- ----------- ----------- ----------- ----------- Total net assets $12,039,251 $45,398,866 $21,092,687 $24,874,821 $33,361,074 =========== =========== =========== =========== =========== Units outstanding 841,598 2,287,525 1,373,545 1,593,153 2,653,029 =========== =========== =========== =========== =========== Unit value (in accumulation) $ 14.31 $ 19.85 $ 15.36 $ 15.61 $ 12.57 =========== =========== =========== =========== ===========
U.S. Government Global Trust - A Global Trust - B Global Bond - A Global Bond - B Securities - A ---------------- ---------------- --------------- --------------- --------------- ASSETS Investments in shares of portfolios at value: $22,073,377 $4,726,247 $5,851,451 $17,309,561 $19,539,399 ----------- ---------- ---------- ----------- ----------- Total Assets $22,073,377 $4,726,247 $5,851,451 $17,309,561 $19,539,399 =========== ========== ========== =========== =========== NET ASSETS: Contracts in accumulation $22,057,165 $4,726,247 $5,851,451 $17,309,561 $19,539,399 Contracts in payout (annuitization) 16,212 ----------- ---------- ---------- ----------- ----------- Total net assets $22,073,377 $4,726,247 $5,851,451 $17,309,561 $19,539,399 =========== ========== ========== =========== =========== Units outstanding 722,237 252,152 251,995 1,044,798 1,009,726 =========== ========== ========== =========== =========== Unit value (in accumulation) $ 30.56 $ 18.74 $ 23.22 $ 16.57 $ 19.35 =========== ========== ========== =========== ===========
See accompanying notes. 4 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
U.S. Government Income & Income & Equity- Equity- Securities - B Value - A Value - B Income - A Income - B --------------- ----------- ----------- ----------- ----------- ASSETS Investments in shares of portfolios at value: $10,951,709 $19,390,320 $10,855,361 $65,058,317 $37,726,795 ----------- ----------- ----------- ----------- ----------- Total Assets $10,951,709 $19,390,320 $10,855,361 $65,058,317 $37,726,795 =========== =========== =========== =========== =========== NET ASSETS: Contracts in accumulation $10,951,709 $19,373,541 $10,855,361 $65,019,417 $37,726,795 Contracts in payout (annuitization) 16,779 38,900 ----------- ----------- ----------- ----------- ----------- Total net assets $10,951,709 $19,390,320 $10,855,361 $65,058,317 $37,726,795 =========== =========== =========== =========== =========== Units outstanding 809,227 832,350 695,326 2,087,098 2,176,518 =========== =========== =========== =========== =========== Unit value (in accumulation) $ 13.53 $ 23.30 $ 15.61 $ 31.17 $ 17.33 =========== =========== =========== =========== ===========
Strategic Strategic All Cap All Cap All Cap Bond - A Bond - B Core - A Core - B Growth - A ----------- ----------- ---------- ---------- ----------- ASSETS Investments in shares of portfolios at value: $15,541,347 $14,373,396 $9,534,890 $1,341,296 $16,657,204 ----------- ----------- ---------- ---------- ----------- Total Assets $15,541,347 $14,373,396 $9,534,890 $1,341,296 $16,657,204 =========== =========== ========== ========== =========== NET ASSETS: Contracts in accumulation $15,541,347 $14,357,015 $9,534,890 $1,341,296 $16,657,204 Contracts in payout (annuitization) 16,381 ----------- ----------- ---------- ---------- ----------- Total net assets $15,541,347 $14,373,396 $9,534,890 $1,341,296 $16,657,204 =========== =========== ========== ========== =========== Units outstanding 757,790 891,732 522,038 72,518 1,006,212 =========== =========== ========== ========== =========== Unit value (in accumulation) $ 20.51 $ 16.12 $ 18.26 $ 18.50 $ 16.55 =========== =========== ========== ========== ===========
All Cap International International Growth - B Small Cap - A Small Cap - B Pacific Rim - A Pacific Rim - B ---------- ------------- ------------- --------------- --------------- ASSETS Investments in shares of portfolios at value: $4,253,303 $8,036,555 $6,935,770 $3,135,010 $3,968,537 ---------- ---------- ---------- ---------- ---------- Total Assets $4,253,303 $8,036,555 $6,935,770 $3,135,010 $3,968,537 ========== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $4,253,303 $8,035,352 6,935,770 $3,134,010 $3,968,537 Contracts in payout (annuitization) 1,203 1,000 ---------- ---------- ---------- ---------- ---------- Total net assets $4,253,303 $8,036,555 $6,935,770 $3,135,010 $3,968,537 ========== ========== ========== ========== ========== Units outstanding 288,286 360,008 289,674 221,132 186,801 ========== ========== ========== ========== ========== Unit value (in accumulation) $ 14.75 $ 22.32 $ 23.94 $ 14.18 $ 21.24 ========== ========== ========== ========== ==========
See accompanying notes. 5 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Science & Science & Emerging Small Emerging Small International Technology - A Technology - B Company - A Company - B Core - A -------------- -------------- -------------- -------------- ------------- ASSETS Investments in shares of portfolios at value: $13,945,003 $5,689,348 $5,866,398 $4,966,937 $5,223,393 ----------- ---------- ---------- ---------- ---------- Total Assets $13,945,003 $5,689,348 $5,866,398 $4,966,937 $5,223,393 =========== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $13,900,357 $5,689,348 $5,866,398 $4,966,937 $5,213,015 Contracts in payout (annuitization) 44,646 10,378 ----------- ---------- ---------- ---------- ---------- Total net assets $13,945,003 $5,689,348 $5,866,398 $4,966,937 $5,223,393 =========== ========== ========== ========== ========== Units outstanding 1,476,977 413,029 379,283 334,932 307,959 =========== ========== ========== ========== ========== Unit value (in accumulation) $ 9.44 $ 13.77 $ 15.47 $ 14.83 $ 16.96 =========== ========== ========== ========== ==========
International Real Estate Real Estate Core - B Value - A Value - B Securities - A Securities - B ------------- ----------- ---------- -------------- -------------- ASSETS Investments in shares of portfolios at value: $3,122,997 $12,458,196 $4,785,628 $11,138,143 $15,580,397 ---------- ----------- ---------- ----------- ----------- Total Assets $3,122,997 $12,458,196 $4,785,628 $11,138,143 $15,580,397 ========== =========== ========== =========== =========== NET ASSETS: Contracts in accumulation $3,122,997 $12,453,627 $4,785,628 $11,131,624 $15,580,397 Contracts in payout (annuitization) 4,569 6,519 ---------- ----------- ---------- ----------- ----------- Total net assets $3,122,997 $12,458,196 $4,785,628 $11,138,143 $15,580,397 ========== =========== ========== =========== =========== Units outstanding 159,184 471,644 249,611 296,380 503,126 ========== =========== ========== =========== =========== Unit value (in accumulation) $ 19.62 $ 26.41 $ 19.17 $ 37.58 $ 30.97 ========== =========== ========== =========== ===========
High High Lifestyle Lifestyle Lifestyle Yield - A Yield - B Aggressive - A Aggressive - B Growth - A ---------- ----------- -------------- -------------- ----------- ASSETS Investments in shares of portfolios at value: $8,973,774 $11,892,705 $5,389,730 $58,043,905 $34,748,092 ---------- ----------- ---------- ----------- ----------- Total Assets $8,973,774 $11,892,705 $5,389,730 $58,043,905 $34,748,092 ========== =========== ========== =========== =========== NET ASSETS: Contracts in accumulation $8,964,151 $11,887,898 $5,389,730 $58,043,905 $34,748,092 Contracts in payout (annuitization) 9,623 4,807 ---------- ----------- ---------- ----------- ----------- Total net assets $8,973,774 $11,892,705 $5,389,730 $58,043,905 $34,748,092 ========== =========== ========== =========== =========== Units outstanding 576,074 693,917 319,879 3,105,824 1,922,170 ========== =========== ========== =========== =========== Unit value (in accumulation) $ 15.58 $ 17.14 $ 16.85 $ 18.69 $ 18.08 ========== =========== ========== =========== ===========
See accompanying notes. 6 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Lifestyle Lifestyle Lifestyle Life style Lifestyle Growth - B Balanced - A Balanced - B Moderate - A Moderate - B ------------ ------------ ------------ ------------ ------------ ASSETS Investments in shares of portfolios at value: $707,068,757 $56,071,367 $636,830,827 $27,295,247 $171,943,264 ------------ ----------- ------------ ----------- ------------ Total Assets $707,068,757 $56,071,367 $636,830,827 $27,295,247 $171,943,264 ============ =========== ============ =========== ============ NET ASSETS: Contracts in accumulation $706,904,310 $56,026,307 $636,830,827 $27,295,247 $171,943,264 Contracts in payout (annuitization) 164,447 45,060 ------------ ----------- ------------ ----------- ------------ Total net assets $707,068,757 $56,071,367 $636,830,827 $27,295,247 $171,943,264 ============ =========== ============ =========== ============ Units outstanding 39,974,250 2,968,742 36,438,509 1,516,621 10,417,109 ============ =========== ============ =========== ============ Unit value (in accumulation) $ 17.69 $ 18.89 $ 17.48 $ 18.00 $ 16.51 ============ =========== ============ =========== ============
Lifestyle Lifestyle Small Company Small Company International Conservative - A Conservative - B Value - A Value - B Value - A ---------------- ---------------- ------------- ------------- ------------- ASSETS Investments in shares of portfolios at value: $15,451,134 $69,236,484 $11,305,636 $22,490,017 $19,989,547 ----------- ----------- ----------- ----------- ----------- Total Assets $15,451,134 $69,236,484 $11,305,636 $22,490,017 $19,989,547 =========== =========== =========== =========== =========== NET ASSETS: Contracts in accumulation $15,451,134 $69,236,484 $11,305,636 $22,490,017 $19,985,669 Contracts in payout (annuitization) 3,878 ----------- ----------- ----------- ----------- ----------- Total net assets $15,451,134 $69,236,484 $11,305,636 $22,490,017 $19,989,547 =========== =========== =========== =========== =========== Units outstanding 855,575 4,437,341 468,226 1,133,762 988,293 =========== =========== =========== =========== =========== Unit value (in accumulation) $ 18.06 $ 15.60 $ 24.15 $ 19.84 $ 20.23 =========== =========== =========== =========== ===========
International Value - B Total Return - A Total Return - B U.S. Large Cap - A U.S. Large Cap - B ------------- ---------------- ---------------- ------------------ ------------------ ASSETS Investments in shares of portfolios at value: $23,439,980 $29,476,396 $31,877,437 $14,499,019 $12,561,262 ----------- ----------- ----------- ----------- ----------- Total Assets $23,439,980 $29,476,396 $31,877,437 $14,499,019 $12,561,262 =========== =========== =========== =========== =========== NET ASSETS: Contracts in accumulation $23,439,980 $29,442,725 $31,877,437 $14,499,019 $12,561,262 Contracts in payout (annuitization) 33,671 ----------- ----------- ----------- ----------- ----------- Total net assets $23,439,980 $29,476,396 $31,877,437 $14,499,019 $12,561,262 =========== =========== =========== =========== =========== Units outstanding 1,023,166 1,760,340 2,196,259 977,700 784,347 =========== =========== =========== =========== =========== Unit value (in accumulation) $ 22.91 $ 16.74 $ 14.51 $ 14.83 $ 16.01 =========== =========== =========== =========== ===========
See accompanying notes. 7 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Mid Cap Mid Cap Global Global Dynamic Stock - A Stock - B Allocation - A Allocation - B Growth - A ----------- ----------- -------------- -------------- ----------- ASSETS Investments in shares of portfolios at value: $19,508,037 $20,874,772 $2,640,763 $17,185,220 $4,168,025 ----------- ----------- ---------- ----------- ---------- Total Assets $19,508,037 $20,874,772 $2,640,763 $17,185,220 $4,168,025 =========== =========== ========== =========== ========== NET ASSETS: Contracts in accumulation $19,508,037 $20,874,772 $2,640,763 $17,185,220 $4,168,025 Contracts in payout (annuitization) ----------- ----------- ---------- ----------- ---------- Total net assets $19,508,037 $20,874,772 $2,640,763 $17,185,220 $4,168,025 =========== =========== ========== =========== ========== Units outstanding 1,177,671 1,015,920 210,352 1,089,529 716,782 =========== =========== ========== =========== ========== Unit value (in accumulation) $ 16.56 $ 20.55 $ 12.55 $ 15.77 $ 5.81 =========== =========== ========== =========== ==========
Total Stock Total Stock Dynamic Market Index Market Index Growth - B A B 500 Index - A 500 Index - B ---------- ------------ ------------ ------------- ------------- ASSETS Investments in shares of portfolios at value: $2,795,510 $1,820,509 $7,113,974 $8,946,418 $18,635,642 ---------- ---------- ---------- ---------- ----------- Total Assets $2,795,510 $1,820,509 $7,113,974 $8,946,418 $18,635,642 ========== ========== ========== ========== =========== NET ASSETS: Contracts in accumulation $2,795,510 $1,820,509 $7,113,974 $8,946,418 $18,635,642 Contracts in payout (annuitization) ---------- ---------- ---------- ---------- ----------- Total net assets $2,795,510 $1,820,509 $7,113,974 $8,946,418 $18,635,642 ========== ========== ========== ========== =========== Units outstanding 168,083 142,866 423,681 752,204 1,168,020 ========== ========== ========== ========== =========== Unit value (in accumulation) $ 16.63 $ 12.74 $ 16.79 $ 11.89 $ 15.95 ========== ========== ========== ========== ===========
Mid Cap Mid Cap Small Cap Small Cap Capital Index - A Index - B Index - A Index - B Appreciation - A ---------- ----------- ----------- ---------- ---------------- ASSETS Investments in shares of portfolios at value: $2,584,111 $10,240,430 $1,515,233 $6,336,060 $13,948,542 ---------- ----------- ---------- ---------- ----------- Total Assets $2,584,111 $10,240,430 $1,515,233 $6,336,060 $13,948,542 ========== =========== ========== ========== =========== NET ASSETS: Contracts in accumulation $2,584,111 $10,240,430 $1,515,233 $6,336,060 $13,948,542 Contracts in payout (annuitization) ---------- ----------- ---------- ---------- ----------- Total net assets $2,584,111 $10,240,430 $1,515,233 $6,336,060 $13,948,542 ========== =========== ========== ========== =========== Units outstanding 133,983 573,750 85,006 341,731 1,496,412 ========== =========== ========== ========== =========== Unit value (in accumulation) $ 19.29 $ 17.85 $ 17.83 $ 18.54 $ 9.32 ========== =========== ========== ========== ===========
See accompanying notes. 8 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Capital Health Health Financial Financial Appreciation - B Sciences - A Sciences - B Services - A Services - B ---------------- ------------ ------------ ------------ ------------ ASSETS Investments in shares of portfolios at value: $12,653,702 $4,022,386 $8,396,603 $3,472,031 $5,827,535 ----------- ---------- ---------- ---------- ---------- Total Assets $12,653,702 $4,022,386 $8,396,603 $3,472,031 $5,827,535 =========== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $12,653,702 $4,022,386 $8,396,603 $3,472,031 $5,827,535 Contracts in payout (annuitization) ----------- ---------- ---------- ---------- ---------- Total net assets $12,653,702 $4,022,386 $8,396,603 $3,472,031 $5,827,535 =========== ========== ========== ========== ========== Units outstanding 868,259 233,208 451,917 199,320 309,288 =========== ========== ========== ========== ========== Unit value (in accumulation) $ 14.57 $ 17.25 $ 18.58 $ 17.42 $ 18.84 =========== ========== ========== ========== ==========
Quantitative Mid Quantitative Mid All Cap All Cap Cap - A Cap - B Value - A Value - B Utilities - A ---------------- ---------------- ---------- ---------- ------------- ASSETS Investments in shares of portfolios at value: $473,133 $1,111,143 $3,882,934 $8,774,689 $5,351,150 -------- ---------- ---------- ---------- ---------- Total Assets $473,133 $1,111,143 $3,882,934 $8,774,689 $5,351,150 ======== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $473,133 $1,111,143 $3,882,934 $8,774,689 $5,351,150 Contracts in payout (annuitization) -------- ---------- ---------- ---------- ---------- Total net assets $473,133 $1,111,143 $3,882,934 $8,774,689 $5,351,150 ======== ========== ========== ========== ========== Units outstanding 33,937 62,862 242,555 514,050 307,337 ======== ========== ========== ========== ========== Unit value (in accumulation) $ 13.94 $ 17.68 $ 16.01 $ 17.07 $ 17.41 ======== ========== ========== ========== ==========
Mid Cap Mid Cap Fundamental Fundamental Utilities - B Value - A Value - B Value - A Value - B ------------- ----------- ----------- ----------- ----------- ASSETS Investments in shares of portfolios at value: $7,562,389 $10,450,341 $24,092,484 $9,076,447 $36,931,857 ---------- ----------- ----------- ---------- ----------- Total Assets $7,562,389 $10,450,341 $24,092,484 $9,076,447 $36,931,857 ========== =========== =========== ========== =========== NET ASSETS: Contracts in accumulation $7,562,389 $10,431,335 $24,092,484 $9,076,447 $36,931,857 Contracts in payout (annuitization) 19,006 ---------- ----------- ----------- ---------- ----------- Total net assets $7,562,389 $10,450,341 $24,092,484 $9,076,447 $36,931,857 ========== =========== =========== ========== =========== Units outstanding 284,084 513,445 1,254,692 560,424 2,101,067 ========== =========== =========== ========== =========== Unit value (in accumulation) $ 26.62 $ 20.35 $ 19.20 $ 16.20 $ 17.58 ========== =========== =========== ========== ===========
See accompanying notes. 9 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Emerging Natural Quantitative Large Cap Small Cap Growth - B Resources - B All Cap - B Value - B Opportunities A ---------- ------------- ------------ ---------- --------------- ASSETS Investments in shares of portfolios at value: $1,425,855 $14,263,906 $524,053 $8,694,438 $3,977,136 ---------- ----------- -------- ---------- ---------- Total Assets $1,425,855 $14,263,906 $524,053 $8,694,438 $3,977,136 ========== =========== ======== ========== ========== NET ASSETS: Contracts in accumulation $1,425,855 $14,263,906 $524,053 $8,694,438 $3,977,136 Contracts in payout (annuitization) ---------- ----------- -------- ---------- ---------- Total net assets $1,425,855 $14,263,906 $524,053 $8,694,438 $3,977,136 ========== =========== ======== ========== ========== Units outstanding 72,550 389,272 24,965 356,215 161,169 ========== =========== ======== ========== ========== Unit value (in accumulation) $ 19.65 $ 36.64 $ 20.99 $ 24.41 $ 24.68 ========== =========== ======== ========== ==========
Small Cap Real Return American American Opportunities - B Special Value - B Bond - B International - B Growth - B ----------------- ----------------- ----------- ----------------- ------------ ASSETS Investments in shares of portfolios at value: $8,806,545 $734,563 $10,855,118 $94,938,637 $160,868,508 ---------- -------- ----------- ----------- ------------ Total Assets $8,806,545 $734,563 $10,855,118 $94,938,637 $160,868,508 ========== ======== =========== =========== ============ NET ASSETS: Contracts in accumulation $8,806,545 $734,563 $10,855,118 $94,938,637 $160,868,508 Contracts in payout (annuitization) ---------- -------- ----------- ----------- ------------ Total net assets $8,806,545 $734,563 $10,855,118 $94,938,637 $160,868,508 ========== ======== =========== =========== ============ Units outstanding 359,558 35,319 796,645 3,719,089 7,987,934 ========== ======== =========== =========== ============ Unit value (in accumulation) $ 24.49 $ 20.80 $ 13.63 $ 25.53 $ 20.14 ========== ======== =========== =========== ============
American Blue Chip American American American Century- PIMCO VIT Income & Growth - B Growth-Income - B Bond - B Small Company All Asset ------------------- ----------------- ----------- ----------------- ---------- ASSETS Investments in shares of portfolios at value: $20,894,226 $142,470,165 $74,051,885 $279,833 $4,791,554 ----------- ------------ ----------- -------- ---------- Total Assets $20,894,226 $142,470,165 $74,051,885 $279,833 $4,791,554 =========== ============ =========== ======== ========== NET ASSETS: Contracts in accumulation $20,894,226 $142,470,165 $74,051,885 $279,833 $4,791,554 Contracts in payout (annuitization) ----------- ------------ ----------- -------- ---------- Total net assets $20,894,226 $142,470,165 $74,051,885 $279,833 $4,791,554 =========== ============ =========== ======== ========== Units outstanding 1,055,102 7,484,418 5,696,893 17,140 322,832 =========== ============ =========== ======== ========== Unit value (in accumulation) $ 19.80 $ 19.04 $ 13.00 $ 16.33 $ 14.84 =========== ============ =========== ======== ==========
See accompanying notes. 10 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
U.S. Global U.S. Global LMFC Core PIM Classic Quantitative Leaders Leaders Equity - B Value - B Value - B Growth - A Growth - B ---------- ----------- ------------ ----------- ----------- ASSETS Investments in shares of portfolios at value: $6,529,884 $2,389,001 $191,308 $1,543,647 $3,911,188 ---------- ---------- -------- ---------- ---------- Total Assets $6,529,884 $2,389,001 $191,308 $1,543,647 $3,911,188 ========== ========== ======== ========== ========== NET ASSETS: Contracts in accumulation $6,529,884 $2,389,001 $191,308 $1,543,647 $3,911,188 Contracts in payout (annuitization) ---------- ---------- -------- ---------- ---------- Total net assets $6,529,884 $2,389,001 $191,308 $1,543,647 $3,911,188 ========== ========== ======== ========== ========== Units outstanding 425,444 142,588 10,319 119,228 301,704 ========== ========== ======== ========== ========== Unit value (in accumulation) $ 15.35 $ 16.75 $ 18.54 $ 12.95 $ 12.96 ========== ========== ======== ========== ==========
John Hancock John Hancock John Hancock International International Strategic Equity Equity Income - B Index - A Index - B Active Bond - A Active Bond - B ------------ ------------- ------------- --------------- --------------- ASSETS Investments in shares of portfolios at value: $2,243,582 $1,708,421 $4,102,152 $8,599,561 $63,915,334 ---------- ---------- ---------- ---------- ----------- Total Assets $2,243,582 $1,708,421 $4,102,152 $8,599,561 $63,915,334 ========== ========== ========== ========== =========== NET ASSETS: Contracts in accumulation $2,243,582 $1,708,421 $4,102,152 $8,599,561 $63,915,334 Contracts in payout (annuitization) ---------- ---------- ---------- ---------- ----------- Total net assets $2,243,582 $1,708,421 $4,102,152 $8,599,561 $63,915,334 ========== ========== ========== ========== =========== Units outstanding 162,655 82,188 198,515 665,775 4,967,587 ========== ========== ========== ========== =========== Unit value (in accumulation) $ 13.79 $ 20.79 $ 20.66 $ 12.92 $ 12.87 ========== ========== ========== ========== ===========
Independence Marisco CGTC Overseas Investment LLC International T Rowe Price UBS Large Equity - B Small Cap - B Opportunities - B Mid Value - B Cap - B ------------- -------------- ----------------- ------------- --------- ASSETS Investments in shares of portfolios at value: $820,248 $71,548 $3,092,105 $1,147,048 $149,863 -------- ------- ---------- ---------- -------- Total Assets $820,248 $71,548 $3,092,105 $1,147,048 $149,863 ======== ======= ========== ========== ======== NET ASSETS: Contracts in accumulation $820,248 $71,548 $3,092,105 $1,147,048 $149,863 Contracts in payout (annuitization) -------- ------- ---------- ---------- -------- Total net assets $820,248 $71,548 $3,092,105 $1,147,048 $149,863 ======== ======= ========== ========== ======== Units outstanding 45,990 4,787 165,812 69,509 9,655 ======== ======= ========== ========== ======== Unit value (in accumulation) $ 17.84 $ 14.95 $ 18.65 $ 16.50 $ 15.52 ======== ======= ========== ========== ========
See accompanying notes. 11 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Wellington Wellington U.S. High Small Cap Small Cap Wells Capital Index Yield - B Growth - B Value - B Core Bond B Allocation - B --------- ---------- ---------- ------------- -------------- ASSETS Investments in shares of portfolios at value: $286,200 $1,272,844 $2,179,610 $210,742 $13,000,554 -------- ---------- ---------- -------- ----------- Total Assets $286,200 $1,272,844 $2,179,610 $210,742 $13,000,554 ======== ========== ========== ======== =========== NET ASSETS: Contracts in accumulation $286,200 $1,272,844 $2,179,610 $210,742 $13,000,554 Contracts in payout (annuitization) -------- ---------- ---------- -------- ----------- Total net assets $286,200 $1,272,844 $2,179,610 $210,742 $13,000,554 ======== ========== ========== ======== =========== Units outstanding 20,699 72,325 131,783 16,571 967,096 ======== ========== ========== ======== =========== Unit value (in accumulation) $ 13.83 $ 17.60 $ 16.54 $ 12.72 $ 13.44 ======== ========== ========== ======== ===========
Large Cap Scudder Capital Scudder Global Scudder Growth Scudder Health Value - A Growth - B Discovery - B & Income - B Sciences - B ---------- --------------- -------------- -------------- -------------- ASSETS Investments in shares of portfolios at value: $2,993,004 $7,913,455 $3,038,614 $4,286,788 $2,626,140 ---------- ---------- ---------- ---------- ---------- Total Assets $2,993,004 $7,913,455 $3,038,614 $4,286,788 $2,626,140 ========== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $2,993,004 $7,913,455 $3,038,614 $4,286,788 $2,626,140 Contracts in payout (annuitization) ---------- ---------- ---------- ---------- ---------- Total net assets $2,993,004 $7,913,455 $3,038,614 $4,286,788 $2,626,140 ========== ========== ========== ========== ========== Units outstanding 122,803 386,234 85,703 200,836 129,423 ========== ========== ========== ========== ========== Unit value (in accumulation) $ 24.37 $ 20.49 $ 35.46 $ 21.34 $ 20.29 ========== ========== ========== ========== ==========
Scudder Global Scudder Scudder Mid Cap Scudder Blue Scudder Blue International - B Growth - B Chip - B Contrarian - B Chip - B ----------------- --------------- ------------ -------------- -------------- ASSETS Investments in shares of portfolios at value: $4,877,661 $1,659,543 $4,532,688 $4,743,244 $1,907,609 ---------- ---------- ---------- ---------- ---------- Total Assets $4,877,661 $1,659,543 $4,532,688 $4,743,244 $1,907,609 ========== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $4,877,661 $1,659,543 $4,532,688 $4,743,244 $1,907,609 Contracts in payout (annuitization) ---------- ---------- ---------- ---------- ---------- Total net assets $4,877,661 $1,659,543 $4,532,688 $4,743,244 $1,907,609 ========== ========== ========== ========== ========== Units outstanding 181,134 68,644 193,560 212,865 63,735 ========== ========== ========== ========== ========== Unit value (in accumulation) $ 26.93 $ 24.18 $ 23.42 $ 22.28 $ 29.93 ========== ========== ========== ========== ==========
See accompanying notes. 12 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Scudder Scudder Government Scudder High International Scudder Fixed Scudder Money Securities - B Income - B Select Equity - B Income - B Market - B -------------- ------------ ----------------- ------------- ------------- ASSETS Investments in shares of portfolios at value: $3,118,524 $3,554,882 $3,733,980 $7,540,078 $3,172,913 ---------- ---------- ---------- ---------- ---------- Total Assets $3,118,524 $3,554,882 $3,733,980 $7,540,078 $3,172,913 ========== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $3,118,524 $3,554,882 $3,733,980 $7,540,078 $3,172,913 Contracts in payout (annuitization) ---------- ---------- ---------- ---------- ---------- Total net assets $3,118,524 $3,554,882 $3,733,980 $7,540,078 $3,172,913 ========== ========== ========== ========== ========== Units outstanding 236,424 180,158 135,351 550,105 252,661 ========== ========== ========== ========== ========== Unit value (in accumulation) $ 13.19 $ 19.73 $ 27.59 $ 13.71 $ 12.56 ========== ========== ========== ========== ==========
Scudder Small Scudder Scudder Davis Scudder Dreman Cap Technology Scudder Total Venture High Growth - B Growth - B Return - B Value - B Return Equity - B ------------- ---------- ------------- ------------- ----------------- ASSETS Investments in shares of portfolios at value: $3,204,814 $1,573,653 $2,592,613 $7,462,622 $13,598,912 ---------- ---------- ---------- ---------- ----------- Total Assets $3,204,814 $1,573,653 $2,592,613 $7,462,622 $13,598,912 ========== ========== ========== ========== =========== NET ASSETS: Contracts in accumulation $3,204,814 $1,573,653 $2,592,613 $7,462,622 $13,598,912 Contracts in payout (annuitization) ---------- ---------- ---------- ---------- ----------- Total net assets $3,204,814 $1,573,653 $2,592,613 $7,462,622 $13,598,912 ========== ========== ========== ========== =========== Units outstanding 146,523 69,450 146,794 313,853 524,163 ========== ========== ========== ========== =========== Unit value (in accumulation) $ 21.87 $ 22.66 $ 17.66 $ 23.78 $ 25.94 ========== ========== ========== ========== ===========
Scudder Scudder Janus Scudder Turner Scudder Dreman Small Growth & Mid Cap Scudder Real Strategic Cap Value - B Income - B Growth - B (20) Estate - B Income - B ------------- ------------- --------------- ------------ ---------- ASSETS Investments in shares of portfolios at value: $6,209,295 $2,177,259 $2,514,672 $5,127,427 $2,498,289 ---------- ---------- ---------- ---------- ---------- Total Assets $6,209,295 $2,177,259 $2,514,672 $5,127,427 $2,498,289 ========== ========== ========== ========== ========== NET ASSETS: Contracts in accumulation $6,209,295 $2,177,259 $2,514,672 $5,127,427 $2,498,289 Contracts in payout (annuitization) ---------- ---------- ---------- ---------- ---------- Total net assets $6,209,295 $2,177,259 $2,514,672 $5,127,427 $2,498,289 ========== ========== ========== ========== ========== Units outstanding 199,185 102,729 99,209 176,423 171,984 ========== ========== ========== ========== ========== Unit value (in accumulation) $ 31.17 $ 21.19 $ 25.35 $ 29.06 $ 14.53 ========== ========== ========== ========== ==========
See accompanying notes. 13 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF ASSETS AND LIABILITIES - (CONTINUED) DECEMBER 31, 2006
Scudde Modera Scudder Conservative Scudder Growth Scudder Equity 500 Allocation - B Allocation - B Allocation - B Scudder Bond - B Index - B -------------- -------------------- -------------- ---------------- ------------------ ASSETS Investments in shares of portfolios at value: 26,278,906 $9,026,528 $35,349,837 $507,024 $8,244,994 ---------- ---------- ----------- -------- ---------- Total Assets 26,278,906 $9,026,528 $35,349,837 $507,024 $8,244,994 ========== ========== =========== ======== ========== NET ASSETS: Contracts in accumulation 26,278,906 $9,026,528 $35,349,837 $507,024 $8,244,994 Contracts in payout (annuitization) ---------- ---------- ----------- -------- ---------- Total net assets 26,278,906 $9,026,528 $35,349,837 $507,024 $8,244,994 ========== ========== =========== ======== ========== Units outstanding 1,729,500 620,609 2,231,087 39,469 372,391 ========== ========== =========== ======== ========== Unit value (in accumulation) $ 15.19 $ 14.54 $ 15.84 $ 12.85 $ 22.14 ========== ========== =========== ======== ==========
Alger American Credit Suisse Credit Suisse Global Dreyfus Socially Alger American Leveraged Emerging Post Venture Responsible Balanced - B Cap All - B Markets - B Capital - B Growth - B -------------- -------------- ------------- -------------------- ---------------- ASSETS Investments in shares of portfolios at value: $3,689,737 $ 1,697,665 $ 2,016,715 $467,199 $302,623 ---------- ----------- ----------- -------- -------- Total Assets $3,689,737 $ 1,697,665 $ 2,016,715 $467,199 $302,623 ========== =========== =========== ======== ======== NET ASSETS: Contracts in accumulation $3,689,737 $ 1,697,665 $ 2,016,715 $467,199 $302,623 Contracts in payout (annuitization) ---------- ----------- ----------- -------- -------- Total net assets $3,689,737 $ 1,697,665 $ 2,016,715 $467,199 $302,623 ========== =========== =========== ======== ======== Units outstanding $ 219,460 72,889 53,280 16,017 15,642 ========== =========== =========== ======== ======== Unit value (in accumulation) $ 16.81 $ 23.29 $ 37.85 $ 29.17 $ 19.35 ========== =========== =========== ======== ========
Dreyfus VIF Mid Cap Stock - B AIM VI Utilities - B Total -------------------- -------------------- -------------- ASSETS Investments in shares of portfolios at value: $5,134,681 $1,592,451 $3,763,342,289 ---------- ---------- -------------- Total Assets $5,134,681 $1,592,451 $3,763,342,289 ========== ========== ============== NET ASSETS: Contracts in accumulation $5,134,681 $1,592,451 $3,762,789,816 Contracts in payout (annuitization) $ 552,473 ---------- ---------- -------------- Total net assets $5,134,681 $1,592,451 $3,763,342,289 ========== ========== ============== Units outstanding $ 224,468 58,181 211,722,434 ========== ========== ============== Unit value (in accumulation) $ 22.87 $ 27.37 $ 17.77 ========== ========== ==============
See accompanying notes. 14 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------- Strategic Strategic Opportunities- A Opportunities- B ------------------------- ---------------------- 2006 2005 2006 2005 ----------- ------------ ---------- ---------- Income: Dividends $ 3,307 $ 133,746 $ -- $ 4,099 Expenses: Mortality and expense risk and administration charges 400,314 431,557 24,460 24,314 ----------- ------------ ---------- ---------- Net investment income (loss) (397,007) (297,811) (24,460) (20,215) Net realized gain (loss) (2,708,729) (4,714,536) 121,697 80,205 Unrealized appreciation (depreciation) during the period 5,859,222 7,218,004 57,082 70,484 ----------- ------------ ---------- ---------- Net increase (decrease) in contract owners equity from operations 2,753,486 2,205,657 154,319 130,474 Changes from principal transactions: Purchase payments 135,994 176,638 121,839 83,550 Transfers between sub-accounts and the company (1,965,543) (1,644,159) (52,062) (56,364) Withdrawals (4,133,018) (4,743,472) (288,754) (89,219) Annual contract fee (18,809) (20,945) (5,052) (5,249) ----------- ------------ ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (5,981,376) (6,231,938) (224,029) (67,282) ----------- ------------ ---------- ---------- Total increase (decrease) in contract owners' equity (3,227,890) (4,026,281) (69,710) 63,192 Contract owners' equity at beginning of period 29,104,440 33,130,721 1,658,697 1,595,505 ----------- ------------ ---------- ---------- Contract owners' equity at end of period $25,876,550 $29,104,440 $1,588,987 $1,658,697 =========== ============ ========== ==========
See accompanying notes. 15 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Investment Quality Investment Quality Bond-A Bond-B ------------------------- ------------------------ 2006 2005 2006 2005 ----------- ----------- ---------- ------------ Income: Dividends $ 786,622 $ 911,979 $ 1,256,389 $ 367,207 Expenses: Mortality and expense risk and administration charges 191,960 239,369 370,548 156,317 ----------- ----------- ----------- ----------- Net investment income (loss) 594,662 672,610 885,841 210,890 Net realized gain (loss) (64,491) 117,725 (289,583) (45,972) Unrealized appreciation (depreciation) during the period (324,384) (686,326) (153,022) (126,136) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 205,787 104,009 443,236 38,782 Changes from principal transactions: Purchase payments 69,990 19,055 8,556,306 9,271,994 Transfers between sub-accounts and the company (353,482) (772,202) 2,236,077 1,259,426 Withdrawals (2,225,802) (2,667,910) (1,350,366) (783,094) Annual contract fee (5,816) (6,848) (18,615) (12,328) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (2,515,110) (3,427,905) 9,423,402 9,735,998 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (2,309,323) (3,323,896) 9,866,638 9,774,780 Contract owners' equity at beginning of period 13,703,776 17,027,672 17,006,851 7,232,071 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $11,394,453 $13,703,776 $26,873,489 $17,006,851 =========== =========== =========== ===========
See accompanying notes. 16 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------------- U.S. Core - A (1) U.S. Core - B (1) -------------------------- ------------------------- 2006 2005 2006 2005 ------------ ------------ ----------- ----------- Income: Dividends $ 9,198,975 $ 3,098,239 $ 1,510,631 $ 497,345 Expenses: Mortality and expense risk and administration charges 1,016,164 1,249,156 194,586 243,518 ------------ ----------- ----------- ----------- Net investment income (loss) 8,182,811 1,849,083 1,316,045 253,827 Net realized gain (loss) (5,852,206) (6,517,241) 512,294 940,101 Unrealized appreciation (depreciation) during the period 2,549,706 4,929,380 (977,652) (1,153,758) ------------ ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 4,880,311 261,222 850,687 40,170 Changes from principal transactions: Purchase payments 557,071 540,933 383,179 726,830 Transfers between sub-accounts and the company (3,722,485) (6,884,561) (2,361,116) (1,726,620) Withdrawals (11,545,316) (13,210,155) (1,153,353) (1,019,244) Annual contract fee (42,625) (53,676) (27,701) (36,719) ------------ ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (14,753,355) (19,607,459) (3,158,991) (2,055,753) ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (9,873,044) (19,346,237) (2,308,304) (2,015,583) Contract owners' equity at beginning of period 75,793,916 95,140,153 14,347,555 16,363,138 ------------ ------------ ----------- ----------- Contract owners' equity at end of period $ 65,920,872 $ 75,793,916 $12,039,251 $14,347,555 ============ ============ =========== ===========
(1) On May 1, 2006, the Growth & Income sub-account was renamed U.S. Core sub-account through a vote of the Board of Directors. See accompanying notes. 17 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Blue Chip Growth- A Blue Chip Growth- B ------------------------- ------------------------ 2006 2005 2006 2005 ----------- ------------ ----------- ----------- Income: Dividends $ 100,180 $ 223,479 $ 7,096 $ -- Expenses: Mortality and expense risk and administration charges 692,848 790,145 330,255 292,134 ----------- ------------ ----------- ----------- Net investment income (loss) (592,668) (566,666) (323,159) (292,134) Net realized gain (loss) (771,782) (1,814,466) 1,117,163 616,879 Unrealized appreciation (depreciation) during the period 4,849,621 4,263,555 724,698 561,605 ----------- ------------ ----------- ----------- Net increase (decrease) in contract owners equity from operations 3,485,171 1,882,423 1,518,702 886,350 Changes from principal transactions: Purchase payments 447,640 352,740 1,488,206 5,386,270 Transfers between sub-accounts and the company (2,001,130) (3,716,010) (1,244,572) (125,938) Withdrawals (7,723,488) (7,214,574) (1,886,091) (563,694) Annual contract fee (28,795) (33,759) (36,756) (31,901) ----------- ------------ ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (9,305,773) (10,611,603) (1,679,213) 4,664,737 ----------- ------------ ----------- ----------- Total increase (decrease) in contract owners' equity (5,820,602) (8,729,180) (160,511) 5,551,087 Contract owners' equity at beginning of period 51,219,468 59,948,648 21,253,198 15,702,111 ----------- ------------ ----------- ----------- Contract owners' equity at end of period $45,398,866 $ 51,219,468 $21,092,687 $21,253,198 =========== ============ =========== ===========
See accompanying notes. 18 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Money Market- A Money Market- B ------------------------ ------------------------ 2006 2005 2006 2005 ------------ ----------- ----------- ----------- Income: Dividends $ 1,271,165 $ 722,403 $ 1,303,975 $ 513,522 Expenses: Mortality and expense risk and administration charges 447,589 423,826 507,287 347,456 ----------- ----------- ----------- ----------- Net investment income (loss) 823,576 298,577 796,688 166,066 Net realized gain (loss) (856) (157,668) (15,011) 151,156 Unrealized appreciation (depreciation) during the period 0 0 0 0 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 822,720 140,909 781,677 317,222 Changes from principal transactions: Purchase payments 1,091,589 783,956 7,581,160 6,023,309 Transfers between sub-accounts and the company (6,233,891) 3,701,684 11,594,710 876,816 Withdrawals (684,001) (4,550,729) (7,561,269) (5,682,075) Annual contract fee (18,346) (16,225) (55,615) (51,214) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (5,844,649) (81,314) 11,558,986 1,166,836 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (5,021,929) 59,595 12,340,663 1,484,058 Contract owners' equity at beginning of period 29,896,750 29,837,155 21,020,411 19,536,353 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $24,874,821 $29,896,750 $33,361,074 $21,020,411 =========== =========== =========== ===========
See accompanying notes. 19 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Global Trust- A (2) Global Trust- B (2) ------------------------ ---------------------- 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ 290,111 $ 314,018 $ 48,207 $ 35,881 Expenses: Mortality and expense risk and administration charges 309,808 337,487 67,306 49,691 ----------- ----------- ---------- ---------- Net investment income (loss) (19,697) (23,469) (19,099) (13,810) Net realized gain (loss) 291,383 (1,214,468) 177,777 139,434 Unrealized appreciation (depreciation) during the period 3,432,914 3,273,900 570,776 182,069 ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 3,704,600 2,035,963 729,454 307,693 Changes from principal transactions: Purchase payments 84,395 131,528 331,707 381,992 Transfers between sub-accounts and the company (402,013) (675,702) (32,401) 1,000,125 Withdrawals (2,867,350) (6,044,411) (128,590) (111,747) Annual contract fee (13,171) (14,211) (13,181) (9,676) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (3,198,139) (6,602,796) 157,535 1,260,694 ----------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity 506,461 (4,566,833) 886,989 1,568,387 Contract owners' equity at beginning of period 21,566,916 26,133,749 3,839,258 2,270,871 ----------- ----------- ---------- ---------- Contract owners' equity at end of period $22,073,377 $21,566,916 $4,726,247 $3,839,258 =========== =========== ========== ==========
(2) On May 1, 2006, the Global Equity sub-account was renamed Global Trust sub-account through a vote of the Board of Directors. See accompanying notes. 20 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Global Bond- A Global Bond- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 77,389 $ 386,525 $ 149,501 $ 417,351 Expenses: Mortality and expense risk and administration charges 90,132 102,611 211,561 141,124 ---------- ---------- ----------- ----------- Net investment income (loss) (12,743) 283,914 (62,060) 276,227 Net realized gain (loss) 71,233 118,004 (9,680) 75,621 Unrealized appreciation (depreciation) during the period 154,768 (973,363) 484,854 (1,093,236) ---------- ---------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 213,258 (571,445) 413,114 (741,388) Changes from principal transactions: Purchase payments 15,399 40,389 4,774,187 2,833,616 Transfers between sub-accounts and the company 81,480 446,490 2,441,238 403,235 Withdrawals (783,135) (843,093) (560,821) (326,660) Annual contract fee (3,363) (3,809) (15,520) (14,303) ---------- ---------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (689,619) (360,023) 6,639,084 2,895,888 ---------- ---------- ----------- ----------- Total increase (decrease) in contract owners' equity (476,361) (931,468) 7,052,198 2,154,500 Contract owners' equity at beginning of period 6,327,812 7,259,280 10,257,363 8,102,863 ---------- ---------- ----------- ----------- Contract owners' equity at end of period $5,851,451 $6,327,812 $17,309,561 $10,257,363 ========== ========== =========== ===========
See accompanying notes. 21 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------------------- U.S. Government Securities-A U.S. Government Securities-B ---------------------------- ---------------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 1,062,392 $ 948,285 $ 594,087 $ 460,965 Expenses: Mortality and expense risk and administration charges 332,964 395,776 212,424 240,834 ----------- ----------- ----------- ----------- Net investment income (loss) 729,428 552,509 381,663 220,131 Net realized gain (loss) (192,707) (159,373) (185,571) (88,048) Unrealized appreciation (depreciation) during the period 73,234 (396,915) 137,648 (141,987) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 609,955 (3,779) 333,740 (9,904) Changes from principal transactions: Purchase payments 135,557 248,583 523,225 704,179 Transfers between sub-accounts and the company (912,037) (1,956,645) (1,019,960) (1,350,039) Withdrawals (3,081,280) (3,762,882) (2,053,816) (889,150) Annual contract fee (7,573) (9,937) (19,891) (23,183) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (3,865,333) (5,480,881) (2,570,442) (1,558,193) ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (3,255,378) (5,484,660) (2,236,702) (1,568,097) Contract owners' equity at beginning of period 22,794,777 28,279,437 13,188,411 14,756,508 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $19,539,399 $22,794,777 $10,951,709 $13,188,411 =========== =========== =========== ===========
See accompanying notes. 22 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Income & Value- A Income & Value- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 420,959 $ 387,895 $ 197,808 $ 151,823 Expenses: Mortality and expense risk and administration charges 300,022 335,274 175,021 164,485 ----------- ----------- ----------- ----------- Net investment income (loss) 120,937 52,621 22,787 (12,662) Net realized gain (loss) 483,238 (314,934) 423,489 261,408 Unrealized appreciation (depreciation) during the period 753,849 1,003,673 255,973 98,435 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 1,358,024 741,360 702,249 347,181 Changes from principal transactions: Purchase payments 221,303 93,661 581,860 669,212 Transfers between sub-accounts and the company (158,180) (1,232,708) (403,628) 76,800 Withdrawals (3,627,008) (3,288,229) (804,844) (234,066) Annual contract fee (12,217) (14,024) (34,864) (31,018) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (3,576,102) (4,441,300) (661,476) 480,928 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (2,218,078) (3,699,940) 40,773 828,109 Contract owners' equity at beginning of period 21,608,398 25,308,338 10,814,588 9,986,479 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $19,390,320 $21,608,398 $10,855,361 $10,814,588 =========== =========== =========== ===========
See accompanying notes. 23 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------------- Large Cap Growth- A (3) Large Cap Growth- B (3) ---------------------------------------------------- 2006 2005 2006 2005 ------------ ----------- ------------ ----------- Income: Dividends $ 57,780 $ 130,806 $ 16,375 $ 73,944 Expenses: Mortality and expense risk and administration charges 76,660 259,241 63,833 205,957 ------------ ----------- ------------ ----------- Net investment income (loss) (18,880) (128,435) (47,458) (132,013) Net realized gain (loss) 593,464 (909,418) 1,587,609 565,104 Unrealized appreciation (depreciation) during the period (284,825) 746,555 (1,321,430) (643,953) ------------ ----------- ------------ ----------- Net increase (decrease) in contract owners equity from operations 289,759 (291,298) 218,721 (210,862) Changes from principal transactions: Purchase payments 18,272 143,545 318,565 1,026,996 Transfers between sub-accounts and the company (15,273,652) (855,934) (12,346,823) (848,475) Withdrawals (760,944) (2,272,989) (780,868) (791,960) Annual contract fee (4,565) (11,438) (18,583) (43,565) ------------ ----------- ------------ ----------- Net increase (decrease) in contract owners' equity from principal transactions: (16,020,889) (2,996,816) (12,827,709) (657,004) ------------ ----------- ------------ ----------- Total increase (decrease) in contract owners' equity (15,731,130) (3,288,114) (12,608,988) (867,866) Contract owners' equity at beginning of period 15,731,130 19,019,244 12,608,988 13,476,854 ------------ ----------- ------------ ----------- Contract owners' equity at end of period $ -- $15,731,130 $ -- $12,608,988 ============ =========== ============ ===========
(3) On May 1, 2006, the Large Cap Growth sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 24 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account --------------------------------------------------- Equity-Income- A Equity-Income- B ------------------------- ------------------------ 2006 2005 2006 2005 ----------- ------------ ----------- ----------- Income: Dividends $ 4,999,039 $ 3,382,991 $ 2,658,350 $ 1,292,904 Expenses: Mortality and expense risk and administration charges 936,597 1,016,691 553,267 494,998 ----------- ------------ ----------- ----------- Net investment income (loss) 4,062,442 2,366,300 2,105,083 797,906 Net realized gain (loss) 1,475,888 (76,187) 1,431,458 766,599 Unrealized appreciation (depreciation) during the period 4,625,087 (770,439) 1,900,710 (829,555) ----------- ------------ ----------- ----------- Net increase (decrease) in contract owners equity from operations 10,163,417 1,519,674 5,437,251 734,950 Changes from principal transactions: Purchase payments 236,841 422,900 2,306,441 5,329,586 Transfers between sub-accounts and the company (651,126) (1,766,898) (1,071,719) 1,925,958 Withdrawals (9,196,663) (9,805,552) (2,627,874) (1,373,547) Annual contract fee (36,318) (39,835) (74,673) (66,596) ----------- ------------ ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (9,647,266) (11,189,385) (1,467,825) 5,815,401 ----------- ------------ ----------- ----------- Total increase (decrease) in contract owners' equity 516,151 (9,669,711) 3,969,426 6,550,351 Contract owners' equity at beginning of period 64,542,166 74,211,877 33,757,369 27,207,018 ----------- ------------ ----------- ----------- Contract owners' equity at end of period $65,058,317 $ 64,542,166 $37,726,795 $33,757,369 =========== ============ =========== ===========
See accompanying notes. 25 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Strategic Bond-A Strategic Bond-B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 1,114,130 $ 541,262 $ 935,284 $ 223,912 Expenses: Mortality and expense risk and administration charges 244,214 278,472 224,828 188,325 ----------- ----------- ----------- ----------- Net investment income (loss) 869,916 262,790 710,456 35,587 Net realized gain (loss) 251,132 809,645 5,208 114,354 Unrealized appreciation (depreciation) during the period (287,610) (860,155) (45,143) (59,385) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 833,438 212,280 670,521 90,556 Changes from principal transactions: Purchase payments 43,668 42,619 1,145,204 4,713,246 Transfers between sub-accounts and the company 1,061,745 (601,473) 58,217 300,141 Withdrawals (2,914,550) (3,894,242) (1,158,639) (448,209) Annual contract fee (8,807) (10,511) (16,596) (15,048) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (1,817,944) (4,463,607) 28,186 4,550,130 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (984,506) (4,251,327) 698,707 4,640,686 Contract owners' equity at beginning of period 16,525,853 20,777,180 13,674,689 9,034,003 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $15,541,347 $16,525,853 $14,373,396 $13,674,689 =========== =========== =========== ===========
See accompanying notes. 26 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ All Cap Core- A All Cap Core- B ------------------------ ---------------------- 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ 71,918 $ 88,776 $ 6,659 $ 5,357 Expenses: Mortality and expense risk and administration charges 144,509 163,097 20,902 15,016 ----------- ----------- ---------- ---------- Net investment income (loss) (72,591) (74,321) (14,243) (9,659) Net realized gain (loss) (289,378) (1,259,761) 67,149 25,619 Unrealized appreciation (depreciation) during the period 1,590,589 2,106,711 98,393 65,202 ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 1,228,620 772,629 151,299 81,162 Changes from principal transactions: Purchase payments 64,323 67,152 82,088 80,625 Transfers between sub-accounts and the company (785,825) (874,437) (14,958) 303,091 Withdrawals (1,496,532) (1,772,683) (67,509) (58,385) Annual contract fee (5,949) (6,984) (3,916) (2,365) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (2,223,983) (2,586,952) (4,295) 322,966 ----------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity (995,363) (1,814,323) 147,004 404,128 Contract owners' equity at beginning of period 10,530,253 12,344,576 1,194,292 790,164 ----------- ----------- ---------- ---------- Contract owners' equity at end of period $ 9,534,890 $10,530,253 $1,341,296 $1,194,292 =========== =========== ========== ==========
See accompanying notes. 27 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------- All Cap Growth- A All Cap Growth- B ------------------------ ----------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ---------- Income: Dividends $ -- $ -- $ -- $ -- Expenses: Mortality and expense risk and administration charges 260,736 293,443 73,477 78,621 ----------- ----------- ----------- ---------- Net investment income (loss) (260,736) (293,443) (73,477) (78,621) Net realized gain (loss) (410,797) (2,372,078) 420,409 213,222 Unrealized appreciation (depreciation) during the period 1,549,277 3,969,952 (137,086) 175,455 ----------- ----------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 877,744 1,304,431 209,846 310,056 Changes from principal transactions: Purchase payments 162,745 158,540 300,973 131,878 Transfers between sub-accounts and the company (857,774) (1,406,615) (43,563) (452,269) Withdrawals (2,821,069) (2,954,282) (1,122,550) (258,008) Annual contract fee (12,473) (14,052) (14,204) (14,701) ----------- ----------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (3,528,571) (4,216,409) (879,344) (593,100) ----------- ----------- ----------- ---------- Total increase (decrease) in contract owners' equity (2,650,827) (2,911,978) (669,498) (283,044) Contract owners' equity at beginning of period 19,308,031 22,220,009 4,922,801 5,205,845 ----------- ----------- ----------- ---------- Contract owners' equity at end of period $16,657,204 $19,308,031 $ 4,253,303 $4,922,801 =========== =========== =========== ==========
See accompanying notes. 28 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------------ International Small Cap- A International Small Cap- B -------------------------- -------------------------- 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ 88,177 $ 66,486 $ 56,902 $ 10,652 Expenses: Mortality and expense risk and administration charges 109,401 109,257 95,965 74,427 ----------- ----------- ---------- ---------- Net investment income (loss) (21,224) (42,771) (39,063) (63,775) Net realized gain (loss) 919,298 1,437,895 510,369 344,553 Unrealized appreciation (depreciation) during the period 805,777 (722,186) 837,653 82,907 ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 1,703,851 672,938 1,308,959 363,685 Changes from principal transactions: Purchase payments 27,220 29,216 675,068 533,614 Transfers between sub-accounts and the company 860,709 (634,378) 272,839 (269,784) Withdrawals (1,276,094) (1,223,744) (255,770) (63,414) Annual contract fee (5,004) (4,996) (15,681) (13,602) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (393,169) (1,833,902) 676,456 186,814 ----------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity 1,310,682 (1,160,964) 1,985,415 550,499 Contract owners' equity at beginning of period 6,725,873 7,886,837 4,950,355 4,399,856 ----------- ----------- ---------- ---------- Contract owners' equity at end of period $ 8,036,555 $ 6,725,873 $6,935,770 $4,950,355 =========== =========== ========== ==========
See accompanying notes. 29 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Pacific Rim -A (4) Pacific Rim -B (4) ---------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ----------- ---------- Income: Dividends $ 32,750 $ 26,715 $ 31,206 $ 16,619 Expenses: Mortality and expense risk and administration charges 49,493 42,189 65,414 40,350 ---------- ---------- ----------- ---------- Net investment income (loss) (16,743) (15,474) (34,208) (23,731) Net realized gain (loss) 545,287 224,287 556,356 239,071 Unrealized appreciation (depreciation) during the period (246,008) 432,178 (219,437) 410,575 ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 282,536 640,991 302,711 625,915 Changes from principal transactions: Purchase payments 21,085 22,943 886,932 357,244 Transfers between sub-accounts and the company (251,368) 481,731 (1,088,754) 1,092,358 Withdrawals (496,397) (368,292) (203,569) (55,091) Annual contract fee (1,811) (1,678) (11,514) (7,090) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (728,491) 134,704 (416,905) 1,387,421 ---------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity (445,955) 775,695 (114,194) 2,013,336 Contract owners' equity at beginning of period 3,580,965 2,805,270 4,082,731 2,069,395 ---------- ---------- ----------- ---------- Contract owners' equity at end of period $3,135,010 $3,580,965 $ 3,968,537 $4,082,731 ========== ========== =========== ==========
(4) On May 1, 2006, the Pacific Rim Emerging Markets sub-account was renamed Pacific Rim sub-account through a vote of the Board of Directors. See accompanying notes. 30 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Science & Technology- A Science & Technology- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ -- $ -- $ -- $ -- Expenses: Mortality and expense risk and administration charges 218,124 258,491 93,497 97,912 ----------- ----------- ---------- ----------- Net investment income (loss) (218,124) (258,491) (93,497) (97,912) Net realized gain (loss) (1,975,309) (5,894,006) 82,741 92,001 Unrealized appreciation (depreciation) during the period 2,688,193 6,138,903 164,808 (75,965) ----------- ----------- ---------- ----------- Net increase (decrease) in contract owners equity from operations 494,760 (13,594) 154,052 (81,876) Changes from principal transactions: Purchase payments 191,328 196,968 291,047 396,269 Transfers between sub-accounts and the company (1,154,221) (1,520,231) (516,316) (1,233,233) Withdrawals (2,126,599) (2,012,759) (580,398) (302,850) Annual contract fee (13,642) (16,035) (21,153) (21,402) ----------- ----------- ---------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (3,103,134) (3,352,057) (826,820) (1,161,216) ----------- ----------- ---------- ----------- Total increase (decrease) in contract owners' equity (2,608,374) (3,365,651) (672,768) (1,243,092) Contract owners' equity at beginning of period 16,553,377 19,919,028 6,362,116 7,605,208 ----------- ----------- ---------- ----------- Contract owners' equity at end of period $13,945,003 $16,553,377 $5,689,348 $ 6,362,116 =========== =========== ========== ===========
See accompanying notes. 31 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account --------------------------------------------------- Emerging Small Company- A Emerging Small Company-B ------------------------- ------------------------ 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ 345,860 $ -- $ 288,406 $ -- Expenses: Mortality and expense risk and administration charges 95,858 104,810 85,699 78,862 ----------- ----------- ---------- ---------- Net investment income (loss) 250,002 (104,810) 202,707 (78,862) Net realized gain (loss) 61,550 (319,072) 221,812 293,031 Unrealized appreciation (depreciation) during the period (224,141) 623,708 (402,375) (49,243) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 87,411 199,826 22,144 164,926 Changes from principal transactions: Purchase payments 56,814 41,582 268,115 338,995 Transfers between sub-accounts and the company (198,620) (523,928) (249,444) (167,826) Withdrawals (975,770) (843,076) (399,888) (160,231) Annual contract fee (4,182) (4,692) (17,266) (15,971) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (1,121,758) (1,330,114) (398,483) (5,033) ----------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity (1,034,347) (1,130,288) (376,339) 159,893 Contract owners' equity at beginning of period 6,900,745 8,031,033 5,343,276 5,183,383 ----------- ----------- ---------- ---------- Contract owners' equity at end of period $ 5,866,398 $ 6,900,745 $4,966,937 $5,343,276 =========== =========== ========== ==========
See accompanying notes. 32 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------------- International Core- A (5) International Core- B (5) ------------------------- ------------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 243,950 $ 32,271 $ 106,418 $ -- Expenses: Mortality and expense risk and administration charges 71,652 63,876 37,028 21,561 ---------- ---------- ---------- ---------- Net investment income (loss) 172,298 (31,605) 69,390 (21,561) Net realized gain (loss) 339,140 79,988 355,989 103,799 Unrealized appreciation (depreciation) during the period 440,223 517,699 44,382 105,308 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 951,661 566,082 469,761 187,546 Changes from principal transactions: Purchase payments 44,628 47,411 329,528 115,827 Transfers between sub-accounts and the company 314,946 130,997 935,327 57,915 Withdrawals (580,704) (416,090) (186,565) (24,486) Annual contract fee (2,430) (2,395) (5,813) (3,644) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (223,560) (240,077) 1,072,477 145,612 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 728,101 326,005 1,542,238 333,158 Contract owners' equity at beginning of period 4,495,292 4,169,287 1,580,759 1,247,601 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $5,223,393 $4,495,292 $3,122,997 $1,580,759 ========== ========== ========== ==========
(5) On May 1, 2006, the International Stock sub-account was renamed International Core sub-account through a vote of the Board of Directors. See accompanying notes. 33 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Value- A Value- B ------------------------ ---------------------- 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ 1,689,379 $ 74,276 $ 556,993 $ 14,843 Expenses: Mortality and expense risk and administration charges 176,590 176,248 67,172 55,139 ----------- ----------- ---------- ---------- Net investment income (loss) 1,512,789 (101,972) 489,821 (40,296) Net realized gain (loss) 526,096 426,175 362,414 147,419 Unrealized appreciation (depreciation) during the period 9,705 845,951 (107,071) 249,073 ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 2,048,590 1,170,154 745,164 356,196 Changes from principal transactions: Purchase payments 53,974 97,751 602,408 358,411 Transfers between sub-accounts and the company 321,324 (571,952) 124,653 (71,988) Withdrawals (1,493,339) (1,475,715) (414,340) (68,481) Annual contract fee (5,976) (6,017) (9,686) (7,954) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (1,124,017) (1,955,933) 303,035 209,988 ----------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity 924,573 (785,779) 1,048,199 566,184 Contract owners' equity at beginning of period 11,533,623 12,319,402 3,737,429 3,171,245 ----------- ----------- ---------- ---------- Contract owners' equity at end of period $12,458,196 $11,533,623 $4,785,628 $3,737,429 =========== =========== ========== ==========
See accompanying notes. 34 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Real Estate Real Estate Securities- A Securities- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 1,919,740 $ 1,450,147 $ 2,468,436 $ 1,651,659 Expenses: Mortality and expense risk and administration charges 155,682 139,753 221,081 175,900 ----------- ----------- ----------- ----------- Net investment income (loss) 1,764,058 1,310,394 2,247,355 1,475,759 Net realized gain (loss) 598,372 1,083,028 576,674 652,477 Unrealized appreciation (depreciation) during the period 697,774 (1,591,956) 1,321,809 (1,162,570) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 3,060,204 801,466 4,145,838 965,666 Changes from principal transactions: Purchase payments 74,405 120,248 1,353,844 2,072,611 Transfers between sub-accounts and the company 98,281 (366,172) (764,388) (789,514) Withdrawals (991,873) (1,172,163) (947,170) (398,437) Annual contract fee (5,930) (6,020) (26,131) (26,784) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (825,117) (1,424,107) (383,845) 857,876 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity 2,235,087 (622,641) 3,761,993 1,823,542 Contract owners' equity at beginning of period 8,903,056 9,525,697 11,818,404 9,994,862 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $11,138,143 $ 8,903,056 $15,580,397 $11,818,404 =========== =========== =========== ===========
See accompanying notes. 35 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- High Yield- A High Yield- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 639,652 $ 543,694 $ 759,056 $ 458,024 Expenses: Mortality and expense risk and administration charges 147,728 179,093 180,572 212,024 ----------- ----------- ----------- ----------- Net investment income (loss) 491,924 364,601 578,484 246,000 Net realized gain (loss) 185,543 540,228 85,758 566,218 Unrealized appreciation (depreciation) during the period 73,623 (689,722) 192,701 (576,219) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 751,090 215,107 856,943 235,999 Changes from principal transactions: Purchase payments 13,829 94,464 667,321 968,251 Transfers between sub-accounts and the company (486,256) (1,422,060) (613,699) (3,514,261) Withdrawals (1,370,262) (1,685,660) (996,712) (755,403) Annual contract fee (5,244) (5,889) (18,452) (20,561) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (1,847,933) (3,019,145) (961,542) (3,321,974) ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (1,096,843) (2,804,038) (104,599) (3,085,975) Contract owners' equity at beginning of period 10,070,617 12,874,655 11,997,304 15,083,279 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $ 8,973,774 $10,070,617 $11,892,705 $11,997,304 =========== =========== =========== ===========
See accompanying notes. 36 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------------ Lifestyle Aggressive -A(6) Lifestyle Aggressive -B(6) -------------------------- -------------------------- 2006 2005 2006 2005 ---------- ----------- ----------- ----------- Income: Dividends $1,476,405 $ 195,161 $16,141,376 $ 1,626,920 Expenses: Mortality and expense risk and administration charges 82,295 89,328 886,372 764,969 ---------- ----------- ----------- ----------- Net investment income (loss) 1,394,110 105,833 15,255,004 861,951 Net realized gain (loss) 152,032 78,555 947,456 1,225,719 Unrealized appreciation (depreciation) during the period (862,318) 300,807 (9,030,540) 2,326,301 ---------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 683,824 485,195 7,171,920 4,413,971 Changes from principal transactions: Purchase payments 98,336 155,563 2,768,625 2,491,886 Transfers between sub-accounts and the company (246,474) (350,681) (1,008,230) 2,602,887 Withdrawals (654,651) (812,477) (4,288,213) (2,098,381) Annual contract fee (5,221) (5,332) (230,995) (212,204) ---------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (808,010) (1,012,927) (2,758,813) 2,784,188 ---------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (124,186) (527,732) 4,413,107 7,198,159 Contract owners' equity at beginning of period 5,513,916 6,041,648 53,630,798 46,432,639 ---------- ----------- ----------- ----------- Contract owners' equity at end of period $5,389,730 $ 5,513,916 $58,043,905 $53,630,798 ========== =========== =========== ===========
(6) On May 1, 2006, the Lifestyle Aggressive 1000 sub-account was renamed Lifestyle Aggressive sub-account through a vote of the Board of Directors. See accompanying notes. 37 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------------- Lifestyle Growth -A (7) Lifestyle Growth -B (7) ------------------------ -------------------------- 2006 2005 2006 2005 ----------- ----------- ------------ ------------ Income: Dividends $ 4,400,699 $ 1,141,621 $ 59,262,252 $ 6,668,786 Expenses: Mortality and expense risk and administration charges 527,132 505,613 8,506,585 3,808,191 ----------- ----------- ------------ ------------ Net investment income (loss) 3,873,567 636,008 50,755,667 2,860,595 Net realized gain (loss) 540,024 549,892 3,092,886 3,582,090 Unrealized appreciation (depreciation) during the period (718,878) 1,053,522 5,551,586 12,708,450 ----------- ----------- ------------ ------------ Net increase (decrease) in contract owners equity from operations 3,694,713 2,239,422 59,400,139 19,151,135 Changes from principal transactions: Purchase payments 277,797 380,555 272,268,763 178,127,668 Transfers between sub-accounts and the company 2,340,131 1,886,229 33,635,379 5,763,283 Withdrawals (3,652,666) (5,857,424) (17,655,372) (5,845,293) Annual contract fee (24,283) (26,065) (560,879) (414,322) ----------- ----------- ------------ ------------ Net increase (decrease) in contract owners' equity from principal transactions: (1,059,021) (3,616,705) 287,687,891 177,631,336 ----------- ----------- ------------ ------------ Total increase (decrease) in contract owners' equity 2,635,692 (1,377,283) 347,088,030 196,782,471 Contract owners' equity at beginning of period 32,112,400 33,489,683 359,980,727 163,198,256 ----------- ----------- ------------ ------------ Contract owners' equity at end of period $34,748,092 $32,112,400 $707,068,757 $359,980,727 =========== =========== ============ ============
(7) On May 1, 2006, the Lifestyle Growth 820 sub-account was renamed Lifestyle Growth sub-account through a vote of the Board of Directors. See accompanying notes. 38 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------------- Lifestyle Balanced -A (8) Lifestyle Balanced -B (8) ------------------------- -------------------------- 2006 2005 2006 2005 ----------- ------------ ------------ ------------ Income: Dividends $ 6,606,190 $ 3,100,740 $ 54,562,825 $ 11,395,885 Expenses: Mortality and expense risk and administration charges 860,026 868,774 8,203,793 4,126,236 ----------- ----------- ------------ ------------ Net investment income (loss) 5,746,164 2,231,966 46,359,032 7,269,649 Net realized gain (loss) 1,004,796 743,469 3,494,149 1,185,411 Unrealized appreciation (depreciation) during the period (985,821) (85,024) 3,876,654 7,247,736 ----------- ----------- ------------ ------------ Net increase (decrease) in contract owners equity from operations 5,765,139 2,890,411 53,729,835 15,702,796 Changes from principal transactions: Purchase payments 304,061 389,153 187,557,519 177,737,385 Transfers between sub-accounts and the company 1,522,248 3,746,305 30,444,416 32,200,881 Withdrawals (7,949,637) (7,290,668) (22,543,815) (8,258,157) Annual contract fee (28,179) (29,709) (523,957) (326,295) ----------- ----------- ------------ ------------ Net increase (decrease) in contract owners' equity from principal transactions: (6,151,507) (3,184,919) 194,934,163 201,353,814 ----------- ----------- ------------ ------------ Total increase (decrease) in contract owners' equity (386,368) (294,508) 248,663,998 217,056,610 Contract owners' equity at beginning of period 56,457,735 56,752,243 388,166,829 171,110,219 ----------- ----------- ------------ ------------ Contract owners' equity at end of period $56,071,367 $56,457,735 $636,830,827 $388,166,829 =========== =========== ============ ============
(8) On May 1, 2006, the Lifestyle Balanced 640 sub-account was renamed Lifestyle Balanced sub-account through a vote of the Board of Directors. See accompanying notes. 39 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------------- Lifestyle Moderate -A (9) Lifestyle Moderate -B (9) ------------------------- -------------------------- 2006 2005 2006 2005 ----------- ------------ ------------ ------------ Income: Dividends $ 2,508,290 $ 1,957,184 $ 12,191,696 $ 5,201,848 Expenses: Mortality and expense risk and administration charges 435,073 443,128 2,367,615 1,412,573 ----------- ----------- ------------ ------------ Net investment income (loss) 2,073,217 1,514,056 9,824,081 3,789,275 Net realized gain (loss) 481,039 349,037 578,254 628,784 Unrealized appreciation (depreciation) during the period (312,527) (1,208,884) 1,883,208 (1,845,450) ----------- ----------- ------------ ------------ Net increase (decrease) in contract owners equity from operations 2,241,729 654,209 12,285,543 2,572,609 Changes from principal transactions: Purchase payments 87,798 128,113 41,472,743 45,504,190 Transfers between sub-accounts and the company 1,754,218 1,695,588 9,895,343 8,711,216 Withdrawals (3,534,621) (3,865,532) (7,970,583) (4,537,780) Annual contract fee (11,182) (11,044) (136,937) (98,020) ----------- ----------- ------------ ------------ Net increase (decrease) in contract owners' equity from principal transactions: (1,703,787) (2,052,875) 43,260,566 49,579,606 ----------- ----------- ------------ ------------ Total increase (decrease) in contract owners' equity 537,942 (1,398,666) 55,546,109 52,152,215 Contract owners' equity at beginning of period 26,757,305 28,155,971 116,397,155 64,244,940 ----------- ----------- ------------ ------------ Contract owners' equity at end of period $27,295,247 $26,757,305 $171,943,264 $116,397,155 =========== =========== ============ ============
(9) On May 1, 2006, the Lifestyle Moderate 460 sub-account was renamed Lifestyle Moderate sub-account through a vote of the Board of Directors. See accompanying notes. 40 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account --------------------------------------------------------------- Lifestyle Conservative - A (10) Lifestyle Conservative -B (10) ------------------------------- ------------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 1,160,656 $ 1,215,736 $ 4,436,848 $ 3,012,392 Expenses: Mortality and expense risk and administration charges 246,626 247,717 1,012,833 705,706 ----------- ----------- ----------- ----------- Net investment income (loss) 914,030 968,019 3,424,015 2,306,686 Net realized gain (loss) 92,480 273,681 (703,201) 244,051 Unrealized appreciation (depreciation) during the period 1,002 (1,061,998) 1,152,897 (1,967,164) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 1,007,512 179,702 3,873,711 583,573 Changes from principal transactions: Purchase payments 135,194 147,168 10,784,404 16,860,377 Transfers between sub-accounts and the company 361,264 692,701 4,585,056 5,377,401 Withdrawals (1,409,087) (1,752,399) (3,248,194) (1,935,659) Annual contract fee (10,289) (9,400) (64,363) (53,255) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (922,918) (921,930) 12,056,903 20,248,864 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity 84,594 (742,228) 15,930,614 20,832,437 Contract owners' equity at beginning of period 15,366,540 16,108,768 53,305,870 32,473,433 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $15,451,134 $15,366,540 $69,236,484 $53,305,870 =========== =========== =========== ===========
(10) On May 1, 2006, the Lifestyle Conservative 280 sub-account was renamed Lifestyle Conservative sub-account through a vote of the Board of Directors. See accompanying notes. 41 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Small Company Value- A Small Company Value- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 2,049,149 $ 261,026 $ 3,375,562 $ 326,658 Expenses: Mortality and expense risk and administration charges 198,107 204,390 361,099 315,858 ----------- ----------- ----------- ----------- Net investment income (loss) 1,851,042 56,636 3,014,463 10,800 Net realized gain (loss) 1,532,470 1,151,712 1,537,203 878,665 Unrealized appreciation (depreciation) during the period (1,766,981) (622,660) (1,827,566) 113,311 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 1,616,531 585,688 2,724,100 1,002,776 Changes from principal transactions: Purchase payments 75,193 68,108 1,476,550 1,982,896 Transfers between sub-accounts and the company (1,277,036) (744,098) (703,512) (183,180) Withdrawals (1,980,912) (1,845,271) (1,972,646) (782,387) Annual contract fee (7,530) (7,621) (56,562) (49,907) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (3,190,285) (2,528,882) (1,256,170) 967,422 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (1,573,754) (1,943,194) 1,467,930 1,970,198 Contract owners' equity at beginning of period 12,879,390 14,822,584 21,022,087 19,051,889 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $11,305,636 $12,879,390 $22,490,017 $21,022,087 =========== =========== =========== ===========
See accompanying notes. 42 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY -(CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- International Value- A International Value- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 1,178,784 $ 159,395 $ 1,254,065 $ 287,535 Expenses: Mortality and expense risk and administration charges 278,208 210,792 327,489 259,979 ----------- ----------- ----------- ----------- Net investment income (loss) 900,576 (51,397) 926,576 27,556 Net realized gain (loss) 969,484 909,416 1,743,288 1,471,574 Unrealized appreciation (depreciation) during the period 2,710,517 826,146 2,386,674 15,574 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 4,580,577 1,684,165 5,056,538 1,514,704 Changes from principal transactions: Purchase payments 120,809 76,121 1,675,774 1,522,126 Transfers between sub-accounts and the company 527,991 10,748,238 (571,637) 2,862,559 Withdrawals (2,623,418) (1,863,884) (1,349,145) (352,318) Annual contract fee (10,741) (11,495) (61,135) (51,010) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (1,985,359) 8,948,980 (306,143) 3,981,357 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity 2,595,218 10,633,145 4,750,395 5,496,061 Contract owners' equity at beginning of period 17,394,329 6,761,184 18,689,585 13,193,524 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $19,989,547 $17,394,329 $23,439,980 $18,689,585 =========== =========== =========== ===========
See accompanying notes. 43 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Total Return- A Total Return- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 1,094,016 $ 1,810,939 $ 1,088,609 $ 1,590,364 Expenses: Mortality and expense risk and administration charges 511,625 594,449 534,055 590,253 ----------- ----------- ----------- ----------- Net investment income (loss) 582,391 1,216,490 554,554 1,000,111 Net realized gain (loss) (120,654) (25,735) (286,502) (241,026) Unrealized appreciation (depreciation) during the period 108,801 (900,231) 306,606 (529,832) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 570,538 290,524 574,658 229,253 Changes from principal transactions: Purchase payments 194,635 189,810 1,300,202 1,773,051 Transfers between sub-accounts and the company (531,141) (1,549,050) (1,765,903) (307,289) Withdrawals (4,700,350) (4,566,111) (4,138,451) (2,144,250) Annual contract fee (13,321) (15,816) (73,457) (80,488) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (5,050,177) (5,941,167) (4,677,609) (758,976) ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (4,479,639) (5,650,643) (4,102,951) (529,723) Contract owners' equity at beginning of period 33,956,035 39,606,678 35,980,388 36,510,111 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $29,476,396 $33,956,035 $31,877,437 $35,980,388 =========== =========== =========== ===========
See accompanying notes. 44 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- U.S. Large Cap- A U.S. Large Cap- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 87,661 $ 75,435 $ 51,535 $ 16,666 Expenses: Mortality and expense risk and administration charges 234,938 260,576 208,637 230,454 ----------- ----------- ----------- ----------- Net investment income (loss) (147,277) (185,141) (157,102) (213,788) Net realized gain (loss) 746,949 416,831 1,144,450 994,682 Unrealized appreciation (depreciation) during the period 688,126 393,465 78,023 (257,916) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 1,287,798 625,155 1,065,371 522,978 Changes from principal transactions: Purchase payments 108,696 129,872 790,556 600,513 Transfers between sub-accounts and the company (818,123) (1,090,798) (878,837) (1,948,105) Withdrawals (2,155,790) (2,011,639) (2,215,289) (591,708) Annual contract fee (9,837) (10,979) (43,518) (47,309) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (2,875,054) (2,983,544) (2,347,088) (1,986,609) ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (1,587,256) (2,358,389) (1,281,717) (1,463,631) Contract owners' equity at beginning of period 16,086,275 18,444,664 13,842,979 15,306,610 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $14,499,019 $16,086,275 $12,561,262 $13,842,979 =========== =========== =========== ===========
See accompanying notes. 45 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Mid Cap Stock- A Mid Cap Stock- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 829,036 $ 302,291 $ 827,112 $ 444,744 Expenses: Mortality and expense risk and administration charges 302,361 237,985 311,065 242,405 ----------- ----------- ----------- ----------- Net investment income (loss) 526,675 64,306 516,047 202,339 Net realized gain (loss) 1,353,787 1,310,430 1,013,140 937,296 Unrealized appreciation (depreciation) during the period 231,087 2,049,538 659,186 1,493,620 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 2,111,549 3,424,274 2,188,373 2,633,255 Changes from principal transactions: Purchase payments 369,839 132,619 1,080,675 1,175,811 Transfers between sub-accounts and the company (312,351) 9,083,373 (540,111) 3,499,655 Withdrawals (2,083,106) (1,863,795) (1,012,370) (686,092) Annual contract fee (11,889) (8,017) (61,355) (48,800) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (2,037,507) 7,344,180 (533,161) 3,940,574 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity 74,042 10,768,454 1,655,212 6,573,829 Contract owners' equity at beginning of period 19,433,995 8,665,541 19,219,560 12,645,731 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $19,508,037 $19,433,995 $20,874,772 $19,219,560 =========== =========== =========== ===========
See accompanying notes. 46 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Global Allocation-A Global Allocation-B ---------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ----------- ---------- Income: Dividends $ 29,889 $ 28,007 $ 83,937 $ 37,227 Expenses: Mortality and expense risk and administration charges 42,099 42,263 185,180 89,313 ---------- ---------- ----------- ---------- Net investment income (loss) (12,210) (14,256) (101,243) (52,086) Net realized gain (loss) 162,240 35,502 196,479 162,241 Unrealized appreciation (depreciation) during the period 156,714 102,314 1,205,196 191,076 ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 306,744 123,560 1,300,432 301,231 Changes from principal transactions: Purchase payments 2,286 1,554 5,617,138 3,454,502 Transfers between sub-accounts and the company 187,166 130,960 2,709,590 182,074 Withdrawals (661,403) (300,377) (154,006) (75,265) Annual contract fee (1,223) (1,190) (8,188) (5,975) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (473,174) (169,053) 8,164,534 3,555,336 ---------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity (166,430) (45,493) 9,464,966 3,856,567 Contract owners' equity at beginning of period 2,807,193 2,852,686 7,720,254 3,863,687 ---------- ---------- ----------- ---------- Contract owners' equity at end of period $2,640,763 $2,807,193 $17,185,220 $7,720,254 ========== ========== =========== ==========
See accompanying notes. 47 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Dynamic Growth- A Dynamic Growth- B ----------------------- ---------------------- 2006 2005 2006 2005 ----------- ---------- ---------- ---------- Income: Dividends $ -- $ -- $ -- $ -- Expenses: Mortality and expense risk and administration charges 74,711 81,549 47,340 47,231 ----------- ---------- ---------- ---------- Net investment income (loss) (74,711) (81,549) (47,340) (47,231) Net realized gain (loss) 483,726 103,743 318,366 200,446 Unrealized appreciation (depreciation) during the period 19,095 472,703 (21,280) 143,155 ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 428,110 494,897 249,746 296,370 Changes from principal transactions: Purchase payments 31,096 43,864 55,494 169,761 Transfers between sub-accounts and the company (600,251) (444,579) (120,612) (325,251) Withdrawals (646,718) (373,191) (467,497) (93,275) Annual contract fee (3,734) (4,041) (7,679) (8,062) ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (1,219,607) (777,947) (540,294) (256,827) ----------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (791,497) (283,050) (290,548) 39,543 Contract owners' equity at beginning of period 4,959,522 5,242,572 3,086,058 3,046,515 ----------- ---------- ---------- ---------- Contract owners' equity at end of period $ 4,168,025 $4,959,522 $2,795,510 $3,086,058 =========== ========== ========== ==========
See accompanying notes. 48 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------------- Total Stock Market Index- A Total Stock Market Index- B --------------------------- --------------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 27,939 $ 20,278 $ 85,175 $ 57,250 Expenses: Mortality and expense risk and administration charges 29,076 28,901 105,766 103,228 ---------- ---------- ---------- ---------- Net investment income (loss) (1,137) (8,623) (20,591) (45,978) Net realized gain (loss) 168,936 52,840 257,052 184,293 Unrealized appreciation (depreciation) during the period 58,243 17,730 586,445 85,226 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 226,042 61,947 822,906 223,541 Changes from principal transactions: Purchase payments 53,703 43,909 310,067 216,047 Transfers between sub-accounts and the company 59,165 (56,741) 241,046 (216,258) Withdrawals (352,474) (110,369) (735,381) (245,409) Annual contract fee (1,442) (1,528) (21,292) (21,118) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (241,048) (124,729) (205,560) (266,738) ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (15,006) (62,782) 617,346 (43,197) Contract owners' equity at beginning of period 1,835,515 1,898,297 6,496,628 6,539,825 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $1,820,509 $1,835,515 $7,113,974 $6,496,628 ========== ========== ========== ==========
See accompanying notes. 49 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- 500 Index- A 500 Index- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 77,934 $ 171,042 $ 141,001 $ 248,509 Expenses: Mortality and expense risk and administration charges 134,151 171,134 288,709 285,103 ----------- ----------- ----------- ----------- Net investment income (loss) (56,217) (92) (147,708) (36,594) Net realized gain (loss) 610,817 1,336,362 863,485 1,265,905 Unrealized appreciation (depreciation) during the period 405,077 (1,075,672) 1,468,982 (801,139) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 959,677 260,598 2,184,759 428,172 Changes from principal transactions: Purchase payments 67,407 62,005 696,126 857,396 Transfers between sub-accounts and the company (816,084) (1,790,353) (1,451,951) (459,651) Withdrawals (1,189,426) (1,449,303) (1,259,480) (1,020,713) Annual contract fee (5,212) (6,889) (48,171) (46,231) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (1,943,315) (3,184,540) (2,063,476) (669,199) ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (983,638) (2,923,942) 121,283 (241,027) Contract owners' equity at beginning of period 9,930,056 12,853,998 18,514,359 18,755,386 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $ 8,946,418 $ 9,930,056 $18,635,642 $18,514,359 =========== =========== =========== ===========
See accompanying notes. 50 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Mid Cap Index- A Mid Cap Index- B ---------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ----------- ---------- Income: Dividends $ 113,460 $ 84,986 $ 355,814 $ 233,944 Expenses: Mortality and expense risk and administration charges 35,484 34,658 119,080 103,323 ---------- ---------- ----------- ---------- Net investment income (loss) 77,976 50,328 236,734 130,621 Net realized gain (loss) 155,876 257,611 474,517 247,824 Unrealized appreciation (depreciation) during the period (68,507) (86,524) (199,535) 247,753 ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 165,345 221,415 511,716 626,198 Changes from principal transactions: Purchase payments 15,978 12,168 460,755 371,577 Transfers between sub-accounts and the company 451,378 5,172 2,693,687 210,509 Withdrawals (302,617) (181,760) (589,767) (311,785) Annual contract fee (1,734) (1,766) (20,807) (19,769) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 163,005 (166,186) 2,543,868 250,532 ---------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity 328,350 55,229 3,055,584 876,730 Contract owners' equity at beginning of period 2,255,761 2,200,532 7,184,846 6,308,116 ---------- ---------- ----------- ---------- Contract owners' equity at end of period $2,584,111 $2,255,761 $10,240,430 $7,184,846 ========== ========== =========== ==========
See accompanying notes. 51 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- Small Cap Index- A Small Cap Index- B ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 52,455 $ 74,025 $ 190,757 $ 230,422 Expenses: Mortality and expense risk and administration charges 25,058 27,310 99,491 93,316 ---------- ---------- ---------- ---------- Net investment income (loss) 27,397 46,715 91,266 137,106 Net realized gain (loss) 83,452 93,758 288,767 272,364 Unrealized appreciation (depreciation) during the period 111,509 (117,423) 516,792 (325,186) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 222,358 23,050 896,825 84,284 Changes from principal transactions: Purchase payments 2,255 19,742 220,791 303,423 Transfers between sub-accounts and the company 7,619 (196,252) (231,924) (358,667) Withdrawals (230,686) (289,755) (409,587) (453,405) Annual contract fee (1,308) (1,504) (19,252) (19,131) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (222,120) (467,769) (439,972) (527,780) ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 238 (444,719) 456,853 (443,496) Contract owners' equity at beginning of period 1,514,995 1,959,714 5,879,207 6,322,703 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $1,515,233 $1,514,995 $6,336,060 $5,879,207 ========== ========== ========== ==========
See accompanying notes 52 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------- Capital Appreciation- A Capital Appreciation- B ------------------------ ----------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ---------- Income: Dividends $ 148,109 $ -- $ 356,627 $ -- Expenses: Mortality and expense risk and administration charges 153,817 23,860 155,223 45,309 ----------- ---------- ----------- ---------- Net investment income (loss) (5,708) (23,860) 201,404 (45,309) Net realized gain (loss) 58,367 111,952 219,346 168,068 Unrealized appreciation (depreciation) during the period (61,934) 92,662 (436,949) 225,790 ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations (9,275) 180,754 (16,199) 348,549 Changes from principal transactions: Purchase payments 93,970 21,339 342,466 104,615 Transfers between sub-accounts and the company 13,461,302 595,591 10,857,050 146,016 Withdrawals (1,590,560) (184,913) (1,734,963) (135,418) Annual contract fee (5,696) (762) (27,894) (8,811) ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 11,959,016 431,255 9,436,659 106,402 ----------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity 11,949,741 612,009 9,420,460 454,951 Contract owners' equity at beginning of period 1,998,801 1,386,792 3,233,242 2,778,291 ----------- ---------- ----------- ---------- Contract owners' equity at end of period $13,948,542 $1,998,801 $12,653,702 $3,233,242 =========== ========== =========== ==========
See accompanying notes. 53 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Health Sciences- A Health Sciences- B ----------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 364,786 $ 300,247 $ 724,294 $ 500,044 Expenses: Mortality and expense risk and administration charges 62,840 61,243 125,246 107,568 ---------- ---------- ---------- ---------- Net investment income (loss) 301,946 239,004 599,048 392,476 Net realized gain (loss) 196,257 187,751 235,688 326,985 Unrealized appreciation (depreciation) during the period (272,261) (91,336) (340,250) 6,042 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 225,942 335,419 494,486 725,503 Changes from principal transactions: Purchase payments 14,728 22,717 617,679 466,791 Transfers between sub-accounts and the company 168,848 (360,428) 429,278 (141,498) Withdrawals (320,368) (402,472) (900,815) (173,831) Annual contract fee (3,336) (3,390) (25,765) (22,059) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (140,128) (743,573) 120,377 129,403 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 85,814 (408,154) 614,863 854,906 Contract owners' equity at beginning of period 3,936,572 4,344,726 7,781,740 6,926,834 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $4,022,386 $3,936,572 $8,396,603 $7,781,740 ========== ========== ========== ==========
See accompanying notes. 54 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- Financial Services- A Financial Services- B ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 8,565 $ 9,313 $ 9,822 $ 8,355 Expenses: Mortality and expense risk and administration charges 40,307 36,279 75,456 64,520 ---------- ---------- ---------- ---------- Net investment income (loss) (31,742) (26,966) (65,634) (56,165) Net realized gain (loss) 209,829 123,958 350,169 182,215 Unrealized appreciation (depreciation) during the period 345,490 47,593 641,905 177,832 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 523,577 144,585 926,440 303,882 Changes from principal transactions: Purchase payments 14,910 4,130 495,589 237,540 Transfers between sub-accounts and the company 822,604 (268,445) 505,388 (229,036) Withdrawals (219,286) (151,371) (389,175) (186,007) Annual contract fee (1,747) (1,552) (13,439) (12,248) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 616,481 (417,238) 598,363 (189,751) ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 1,140,058 (272,653) 1,524,803 114,131 Contract owners' equity at beginning of period 2,331,973 2,604,626 4,302,732 4,188,601 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $3,472,031 $2,331,973 $5,827,535 $4,302,732 ========== ========== ========== ==========
See accompanying notes. 55 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------- Quantitative Mid Cap- A Quantitative Mid Cap- B ----------------------- ------------------------ 2006 2005 2006 2005 --------- ----------- ---------- ---------- Income: Dividends $ 182,721 $ -- $ 408,660 $ -- Expenses: Mortality and expense risk and administration charges 8,832 25,961 20,180 24,615 --------- ----------- ---------- ---------- Net investment income (loss) 173,889 (25,961) 388,480 (24,615) Net realized gain (loss) 4,237 364,585 (45,860) 238,764 Unrealized appreciation (depreciation) during the period (167,098) (139,024) (328,794) (43,477) --------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 11,028 199,600 13,826 170,672 Changes from principal transactions: Purchase payments 5,459 4,440 13,924 79,333 Transfers between sub-accounts and the company (94,949) (942,617) (142,560) (95,941) Withdrawals (94,431) (299,602) (121,458) (86,353) Annual contract fee (626) (1,282) (3,430) (2,778) --------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (184,547) (1,239,061) (253,524) (105,739) --------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity (173,519) (1,039,461) (239,698) 64,933 Contract owners' equity at beginning of period 646,652 1,686,113 1,350,841 1,285,908 --------- ----------- ---------- ---------- Contract owners' equity at end of period $ 473,133 $ 646,652 $1,111,143 $1,350,841 ========= =========== ========== ==========
See accompanying notes. 56 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- All Cap Value- A All Cap Value- B ---------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ----------- ---------- Income: Dividends $ 865,121 $ 163,835 $ 1,949,551 $ 317,669 Expenses: Mortality and expense risk and administration charges 63,454 58,689 141,648 129,909 ---------- ---------- ----------- ---------- Net investment income (loss) 801,667 105,146 1,807,903 187,760 Net realized gain (loss) 109,751 232,603 206,873 459,445 Unrealized appreciation (depreciation) during the period (477,458) (137,124) (1,051,207) (329,093) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 433,960 200,625 963,569 318,112 Changes from principal transactions: Purchase payments 15,482 59,165 445,421 706,863 Transfers between sub-accounts and the company 132,078 437,493 151,154 (293,481) Withdrawals (487,004) (274,657) (1,176,159) (366,994) Annual contract fee (2,234) (2,493) (26,411) (26,028) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (341,678) 219,508 (605,995) 20,360 ---------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity 92,282 420,133 357,574 338,472 Contract owners' equity at beginning of period 3,790,652 3,370,519 8,417,115 8,078,643 ---------- ---------- ----------- ---------- Contract owners' equity at end of period $3,882,934 $3,790,652 $ 8,774,689 $8,417,115 ========== ========== =========== ==========
See accompanying notes. 57 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Strategic Value- A (11) Strategic Value- B (11) ----------------------- ----------------------- 2006 2005 2006 2005 ----------- ---------- ----------- ---------- Income: Dividends $ 354,060 $ 159,518 $ 1,158,165 $ 405,299 Expenses: Mortality and expense risk and administration charges 21,649 25,704 61,480 67,009 ----------- ---------- ----------- ---------- Net investment income (loss) 332,411 133,814 1,096,685 338,290 Net realized gain (loss) (36,729) 14,810 (500,570) 51,831 Unrealized appreciation (depreciation) during the period (163,701) (178,750) (195,560) (482,618) ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 131,981 (30,126) 400,555 (92,497) Changes from principal transactions: Purchase payments 20,503 38,933 190,123 342,768 Transfers between sub-accounts and the company (1,400,116) (123,022) (4,976,954) 415,526 Withdrawals (217,544) (135,831) (160,892) (68,918) Annual contract fee (1,235) (1,445) (14,702) (15,673) ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (1,598,392) (221,365) (4,962,425) 673,703 ----------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity (1,466,411) (251,491) (4,561,870) 581,206 Contract owners' equity at beginning of period 1,466,411 1,717,902 4,561,870 3,980,664 ----------- ---------- ----------- ---------- Contract owners' equity at end of period $ -- $1,466,411 $ -- $4,561,870 =========== ========== =========== ==========
(11) On December 4, 2006, the Strategic Value - A sub-account and Strategic Value - B sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 58 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- Utilities- A Utilities- B ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 564,497 $ 232,904 $ 856,752 $ 244,447 Expenses: Mortality and expense risk and administration charges 65,879 56,772 102,281 68,333 ---------- ---------- ---------- ---------- Net investment income (loss) 498,618 176,132 754,471 176,114 Net realized gain (loss) 234,132 381,852 350,344 331,896 Unrealized appreciation (depreciation) during the period 369,470 (71,706) 529,876 80,146 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 1,102,220 486,278 1,634,691 588,156 Changes from principal transactions: Purchase payments 34,234 37,174 875,445 1,045,045 Transfers between sub-accounts and the company 786,244 (77,193) 224,930 471,253 Withdrawals (215,488) (264,753) (226,231) (127,663) Annual contract fee (3,301) (2,532) (12,308) (11,111) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 601,689 (307,304) 861,836 1,377,524 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 1,703,909 178,974 2,496,527 1,965,680 Contract owners' equity at beginning of period 3,647,241 3,468,267 5,065,862 3,100,182 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $5,351,150 $3,647,241 $7,562,389 $5,065,862 ========== ========== ========== ==========
See accompanying notes. 59 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Mid Cap Value- A Mid Cap Value- B ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 1,930,482 $ 460,085 $ 4,172,961 $ 818,865 Expenses: Mortality and expense risk and administration charges 173,091 189,501 381,085 363,821 ----------- ----------- ----------- ----------- Net investment income (loss) 1,757,391 270,584 3,791,876 455,044 Net realized gain (loss) 816,324 605,977 1,014,969 1,185,021 Unrealized appreciation (depreciation) during the period (1,520,521) (152,667) (2,561,998) (253,272) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 1,053,194 723,894 2,244,847 1,386,793 Changes from principal transactions: Purchase payments 54,562 76,178 1,084,736 2,869,946 Transfers between sub-accounts and the company (838,414) 945,406 (1,888,772) (843,542) Withdrawals (2,054,098) (1,217,135) (1,727,171) (711,870) Annual contract fee (7,630) (7,591) (65,460) (65,463) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (2,845,580) (203,142) (2,596,667) 1,249,071 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (1,792,386) 520,752 (351,820) 2,635,864 Contract owners' equity at beginning of period 12,242,727 11,721,975 24,444,304 21,808,440 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $10,450,341 $12,242,727 $24,092,484 $24,444,304 =========== =========== =========== ===========
See accompanying notes. 60 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------- Fundamental Value- A Fundamental Value- B ----------------------- ------------------------ 2006 2005 2006 2005 ----------- ---------- ----------- ----------- Income: Dividends $ 383,296 $ 43,898 $ 1,097,954 $ 40,532 Expenses: Mortality and expense risk and administration charges 147,822 156,864 474,209 310,922 ----------- ---------- ----------- ----------- Net investment income (loss) 235,474 (112,966) 623,745 (270,390) Net realized gain (loss) 731,872 379,066 1,071,362 524,961 Unrealized appreciation (depreciation) during the period 96,211 373,515 1,972,672 1,183,605 ----------- ---------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 1,063,557 639,615 3,667,779 1,438,176 Changes from principal transactions: Purchase payments 19,232 48,066 7,901,600 4,742,426 Transfers between sub-accounts and the company 126,327 (33,416) 2,636,558 1,071,013 Withdrawals (1,675,092) (839,375) (1,150,940) (543,476) Annual contract fee (6,075) (5,951) (58,500) (46,221) ----------- ---------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (1,535,608) (830,676) 9,328,718 5,223,742 ----------- ---------- ----------- ----------- Total increase (decrease) in contract owners' equity (472,051) (191,061) 12,996,497 6,661,918 Contract owners' equity at beginning of period 9,548,498 9,739,559 23,935,360 17,273,442 ----------- ---------- ----------- ----------- Contract owners' equity at end of period $ 9,076,447 $9,548,498 $36,931,857 $23,935,360 =========== ========== =========== ===========
See accompanying notes. 61 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- Emerging Growth- B Natural Resources- B -------------------- ------------------------ 2006 2005 2006 2005 ---------- -------- ----------- ----------- Income: Dividends $ 551,446 $ -- $ 2,779,707 $ 166,699 Expenses: Mortality and expense risk and administration charges 22,396 11,040 231,171 136,811 ---------- -------- ----------- ----------- Net investment income (loss) 529,050 (11,040) 2,548,536 29,888 Net realized gain (loss) (216,140) 27,072 2,088,004 960,722 Unrealized appreciation (depreciation) during the period (229,817) 29,010 (2,477,972) 2,046,008 ---------- -------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 83,093 45,042 2,158,568 3,036,618 Changes from principal transactions: Purchase payments 58,163 85,774 2,047,844 1,102,006 Transfers between sub-accounts and the company 639,513 122,522 (1,120,223) 3,193,709 Withdrawals (250,229) (21,871) (919,851) (388,008) Annual contract fee (4,229) (2,321) (29,830) (18,420) ---------- -------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: 443,218 184,104 (22,060) 3,889,287 ---------- -------- ----------- ----------- Total increase (decrease) in contract owners' equity 526,311 229,146 2,136,508 6,925,905 Contract owners' equity at beginning of period 899,544 670,398 12,127,398 5,201,493 ---------- -------- ----------- ----------- Contract owners' equity at end of period $1,425,855 $899,544 $14,263,906 $12,127,398 ========== ======== =========== ===========
See accompanying notes. 62 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Mid Cap Core- B (12) Quantitative All Cap-B ------------------------ ---------------------- 2006 2005 2006 2005 ----------- ----------- --------- -------- Income: Dividends $ 856,482 $ 458,834 $ 47,664 $ 49,430 Expenses: Mortality and expense risk and administration charges 51,224 61,756 8,066 7,194 ----------- ----------- --------- -------- Net investment income (loss) 805,258 397,078 39,598 42,236 Net realized gain (loss) (482,446) 86,331 21,324 10,620 Unrealized appreciation (depreciation) during the period (84,254) (377,303) 4,337 (19,966) ----------- ----------- -------- -------- Net increase (decrease) in contract owners equity from operations 238,558 106,106 65,259 32,890 Changes from principal transactions: Purchase payments 358,262 382,615 15,512 92,644 Transfers between sub-accounts and the company (3,664,020) (1,532,573) (165,658) 164,959 Withdrawals (283,312) (176,989) (20,257) (10,540) Annual contract fee (9,494) (13,194) (1,610) (1,453) ----------- ----------- --------- -------- Net increase (decrease) in contract owners' equity from principal transactions: (3,598,564) (1,340,141) (172,013) 245,610 ----------- ----------- ------------------- Total increase (decrease) in contract owners' equity (3,360,006) (1,234,035) (106,754) 278,500 Contract owners' equity at beginning of period 3,360,006 4,594,041 630,807 352,307 ----------- ----------- --------- -------- Contract owners' equity at end of period $ -- $ 3,360,006 $ 524,053 $630,807 =========== =========== ========= ========
(12) On December 4, 2006, the Mid Cap Core B sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 63 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Small Cap Large Cap Value- B Opportunities- A (13) ----------------------- ---------------------- 2006 2005 2006 2005 ----------- ---------- ---------- ---------- Income: Dividends $ 472,260 $ -- $ 145,456 $ -- Expenses: Mortality and expense risk and administration charges 97,273 61,471 67,080 47,712 ----------- ---------- ---------- ---------- Net investment income (loss) 374,987 (61,471) 78,376 (47,712) Net realized gain (loss) (1,324,245) 240,815 226,036 810,426 Unrealized appreciation (depreciation) during the period (27,560) 365,134 80,123 587,353 ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations (976,818) 544,478 384,535 1,350,067 Changes from principal transactions: Purchase payments 650,257 520,126 4,724 3,380 Transfers between sub-accounts and the company 4,490,143 1,742,067 (252,454) 3,821,147 Withdrawals (415,753) (396,240) (744,885) (586,078) Annual contract fee (12,060) (8,598) (1,831) (1,469) ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 4,712,587 1,857,355 (994,446) 3,236,980 ----------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 3,735,769 2,401,833 (609,911) 4,587,047 Contract owners' equity at beginning of period 4,958,669 2,556,836 4,587,047 0 ----------- ---------- ---------- ---------- Contract owners' equity at end of period $ 8,694,438 $4,958,669 $3,977,136 $4,587,047 =========== ========== ========== ==========
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors See accompanying notes. 64 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Small Cap Opportunities- B Special Value- B -------------------------- -------------------- 2006 2005 2006 2005 ---------- ---------- --------- --------- Income: Dividends $ 272,048 $ 55,557 $ 88,478 $ 3,508 Expenses: Mortality and expense risk and administration charges 136,613 101,872 12,873 13,968 ---------- ---------- --------- --------- Net investment income (loss) 135,435 (46,315) 75,605 (10,460) Net realized gain (loss) 319,175 (485,854) 27,564 40,014 Unrealized appreciation (depreciation) during the period 235,631 863,421 (44,329) 3,279 ---------- ---------- --------- --------- Net increase (decrease) in contract owners equity from operations 690,241 331,252 58,840 32,833 Changes from principal transactions: Purchase payments 780,978 360,180 46,611 59,408 Transfers between sub-accounts and the company (551,108) 5,422,246 (59,057) 7,552 Withdrawals (447,529) (190,461) (121,444) (143,859) Annual contract fee (29,352) (20,531) (1,404) (2,036) ---------- ---------- --------- --------- Net increase (decrease) in contract owners' equity from principal transactions: (247,011) 5,571,434 (135,294) (78,935) ---------- ---------- --------- --------- Total increase (decrease) in contract owners' equity 443,230 5,902,686 (76,454) (46,102) Contract owners' equity at beginning of period 8,363,315 2,460,629 811,017 857,119 ---------- ---------- --------- --------- Contract owners' equity at end of period $8,806,545 $8,363,315 $ 734,563 $ 811,017 ========== ========== ========= =========
See accompanying notes. 65 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Real Return Bond- B American International- B ------------------------ ------------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 606,271 $ 648,867 $ 1,313,186 $ 2,587,932 Expenses: Mortality and expense risk and administration charges 215,117 247,904 1,249,358 614,944 ----------- ----------- ----------- ----------- Net investment income (loss) 391,154 400,963 63,828 1,972,988 Net realized gain (loss) (148,287) 228,570 2,847,679 752,610 Unrealized appreciation (depreciation) during the period (434,936) (698,824) 8,762,244 5,710,075 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations (192,069) (69,291) 11,673,751 8,435,673 Changes from principal transactions: Purchase payments 254,074 1,095,990 24,790,953 23,766,350 Transfers between sub-accounts and the company (3,425,010) 3,690,240 5,713,158 5,749,944 Withdrawals (2,195,885) (647,411) (5,421,311) (1,330,197) Annual contract fee (30,738) (31,791) (77,995) (39,388) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (5,397,559) 4,107,028 25,004,805 28,146,709 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (5,589,628) 4,037,737 36,678,556 36,582,382 Contract owners' equity at beginning of period 16,444,746 12,407,009 58,260,081 21,677,699 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $10,855,118 $16,444,746 $94,938,637 $58,260,081 =========== =========== =========== ===========
See accompanying notes. 66 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------------- American Blue Chip American Growth- B Income & Growth- B -------------------------- ------------------------ 2006 2005 2006 2005 ------------ ------------ ----------- ----------- Income: Dividends $ 1,068,507 $ 83,653 $ 421,912 $ 1,895,911 Expenses: Mortality and expense risk and administration charges 2,193,255 1,191,642 316,716 277,090 ------------ ------------ ----------- ----------- Net investment income (loss) (1,124,748) (1,107,989) 105,196 1,618,821 Net realized gain (loss) 3,175,803 1,232,420 514,031 (1,835,456) Unrealized appreciation (depreciation) during the period 8,337,417 11,256,349 2,165,784 (1,025,325) ------------ ------------ ----------- ----------- Net increase (decrease) in contract owners equity from operations 10,388,472 11,380,780 2,785,011 (1,241,960) Changes from principal transactions: Purchase payments 38,400,115 42,436,636 751,565 3,115,741 Transfers between sub-accounts and the company 9,356,140 8,516,160 523,928 267,421 Withdrawals (6,916,761) (2,379,388) (1,561,435) (917,613) Annual contract fee (167,805) (120,358) (51,212) (46,288) ------------ ------------ ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: 40,671,689 48,453,050 (337,154) 2,419,261 ------------ ------------ ----------- ----------- Total increase (decrease) in contract owners' equity 51,060,161 59,833,830 2,447,857 1,177,301 Contract owners' equity at beginning of period 109,808,347 49,974,517 18,446,369 17,269,068 ------------ ------------ ----------- ----------- Contract owners' equity at end of period $160,868,508 $109,808,347 $20,894,226 $18,446,369 ============ ============ =========== ===========
See accompanying notes. 67 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------------- American Growth Income-B American Bond Fund- B (14) ------------------------- -------------------------- 2006 2005 2006 2005 ------------ ----------- ----------- ----------- Income: Dividends $ 1,224,110 $ 274,067 $ -- $ -- Expenses: Mortality and expense risk and administration charges 1,914,716 1,005,471 808,940 68,523 ------------ ----------- ----------- ----------- Net investment income (loss) (690,606) (731,404) (808,940) (68,523) Net realized gain (loss) 1,903,390 361,746 (21,850) 2,123,654 Unrealized appreciation (depreciation) during the period 13,162,582 3,635,898 3,363,463 98,216 ------------ ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 14,375,366 3,266,240 2,532,673 2,153,347 Changes from principal transactions: Purchase payments 37,322,905 43,086,413 37,946,958 16,177,038 Transfers between sub-accounts and the company 5,271,952 9,482,333 12,222,254 4,178,612 Withdrawals (6,806,996) (2,784,772) (1,094,851) (60,549) Annual contract fee (103,307) (72,242) (3,262) (335) ------------ ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: 35,684,554 49,711,732 49,071,099 20,294,766 ------------ ----------- ----------- ----------- Total increase (decrease) in contract owners' equity 50,059,920 52,977,972 51,603,772 22,448,113 Contract owners' equity at beginning of period 92,410,245 39,432,273 22,448,113 0 ------------ ----------- ----------- ----------- Contract owners' equity at end of period $142,470,165 $92,410,245 $74,051,885 $22,448,113 ============ =========== =========== ===========
(14) On August 1, 2005, the American Bond - B sub-account commenced operations through a vote of the Board of Directors. See accompanying notes. 68 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------------ American Century-Small Company PIMCO VIT All Asset ------------------------------ ---------------------- 2006 2005 2006 2005 --------- -------- ---------- ---------- Income: Dividends $ 48,177 $ 10,636 $ 266,753 $ 194,421 Expenses: Mortality and expense risk and administration charges 5,324 6,264 84,597 63,203 --------- -------- ---------- ---------- Net investment income (loss) 42,853 4,372 182,156 131,218 Net realized gain (loss) 12,100 1,468 38,053 34,884 Unrealized appreciation (depreciation) during the period (36,782) 19,987 (91,052) 15,375 --------- -------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 18,171 25,827 129,157 181,477 Changes from principal transactions: Purchase payments 16,617 84,310 464,203 471,216 Transfers between sub-accounts and the company (225,490) 340,765 (746,652) 2,727,188 Withdrawals (36,748) (9,287) (475,226) (153,862) Annual contract fee (585) (414) (14,660) (6,723) --------- -------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (246,206) 415,374 (772,335) 3,037,819 --------- -------- ---------- ---------- Total increase (decrease) in contract owners' equity (228,035) 441,201 (643,178) 3,219,296 Contract owners' equity at beginning of period 507,868 66,667 5,434,732 2,215,436 --------- -------- ---------- ---------- Contract owners' equity at end of period $ 279,833 $507,868 $4,791,554 $5,434,732 ========= ======== ========== ==========
See accompanying notes. 69 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- LMFC Core Equity PIM Classic Value ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 371,850 $ -- $ 60,188 $ 63,264 Expenses: Mortality and expense risk and administration charges 92,645 58,064 28,716 17,686 ---------- ---------- ---------- ---------- Net investment income (loss) 279,205 (58,064) 31,472 45,578 Net realized gain (loss) 34,543 107,153 88,125 20,045 Unrealized appreciation (depreciation) during the period (48,854) 259,595 141,272 29,521 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 264,894 308,684 260,869 95,144 Changes from principal transactions: Purchase payments 506,742 2,568,696 311,420 328,094 Transfers between sub-accounts and the company 781,179 697,418 599,138 104,214 Withdrawals (290,920) (96,009) (55,274) (11,443) Annual contract fee (5,381) (677) (1,246) (106) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 991,620 3,169,428 854,038 420,759 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 1,256,514 3,478,112 1,114,907 515,903 Contract owners' equity at beginning of period 5,273,370 1,795,258 1,274,094 758,191 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $6,529,884 $5,273,370 $2,389,001 $1,274,094 ========== ========== ========== ==========
See accompanying notes. 70 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------ U.S. Global Leaders Quantitative Value Growth- A (13) ------------------ ---------------------- 2006 2005 2006 2005 -------- -------- ---------- ---------- Income: Dividends $ 25,266 $ 3,251 $ 15,395 $ 31,049 Expenses: Mortality and expense risk and administration charges 3,550 1,840 26,759 19,579 -------- -------- ---------- ---------- Net investment income (loss) 21,716 1,411 (11,364) 11,470 Net realized gain (loss) (6,957) 407 4,981 20,342 Unrealized appreciation (depreciation) during the period 7,749 320 3,021 102,256 -------- -------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 22,508 2,138 (3,362) 134,068 Changes from principal transactions: Purchase payments 0 107,275 7,914 1,100 Transfers between sub-accounts and the company 48,874 (83,272) (1,362) 1,610,477 Withdrawals (3,594) (9,393) (132,053) (70,375) Annual contract fee (392) (554) (1,715) (1,045) -------- -------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 44,888 14,056 (127,216) 1,540,157 -------- -------- ---------- ---------- Total increase (decrease) in contract owners' equity 67,396 16,194 (130,578) 1,674,225 Contract owners' equity at beginning of period 123,912 107,718 1,674,225 0 -------- -------- ---------- ---------- Contract owners' equity at end of period $191,308 $123,912 $1,543,647 $1,674,225 ======== ======== ========== ==========
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors. See accompanying notes. 71 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- U.S. Global Leaders John Hancock Growth- B Strategic Income ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 41,110 $ 77,720 $ 65,060 $ 64,464 Expenses: Mortality and expense risk and administration charges 67,324 52,569 35,485 22,506 ---------- ---------- ---------- ---------- Net investment income (loss) (26,214) 25,151 29,575 41,958 Net realized gain (loss) 51,514 14,972 13,230 2,627 Unrealized appreciation (depreciation) during the period (28,664) 258,262 (369) (33,686) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations (3,364) 298,385 42,436 10,899 Changes from principal transactions: Purchase payments 86,836 412,467 112,712 509,783 Transfers between sub-accounts and the company (562,212) 3,366,414 596,580 478,448 Withdrawals (176,294) (82,851) (224,424) (25,832) Annual contract fee (10,010) (7,232) (2,232) (328) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (661,680) 3,688,798 482,636 962,071 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (665,044) 3,987,183 525,072 972,970 Contract owners' equity at beginning of period 4,576,232 589,049 1,718,510 745,540 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $3,911,188 $4,576,232 $2,243,582 $1,718,510 ========== ========== ========== ==========
See accompanying notes. 72 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- John Hancock Intl' Eq John Hancock Intl' Eq Index- A (15) Index- B (15) ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ----------- Income: Dividends $ 24,117 $ 81,598 $ 50,744 $ 216,386 Expenses: Mortality and expense risk and administration charges 23,124 14,357 57,311 39,430 ---------- ---------- ---------- ---------- Net investment income (loss) 993 67,241 (6,567) 176,956 Net realized gain (loss) 101,943 52,007 144,078 65,492 Unrealized appreciation (depreciation) during the period 210,630 1,152 614,466 123,557 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 313,566 120,400 751,977 366,005 Changes from principal transactions: Purchase payments 9,603 8,799 165,046 414,759 Transfers between sub-accounts and the company 468,292 59,449 318,854 (72,890) Withdrawals (169,322) (106,470) (199,673) (58,120) Annual contract fee (792) (744) (11,380) (8,193) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 307,781 (38,966) 272,847 275,556 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 621,347 81,434 1,024,824 641,561 Contract owners' equity at beginning of period 1,087,074 1,005,640 3,077,328 2,435,767 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $1,708,421 $1,087,074 $4,102,152 $3,077,328 ========== ========== ========== ==========
(14) On April 29, 2005, the John Hancock VST International Equity Index sub-account was renamed John Hancock International Equity Index sub-account through a vote of the Board of Directors. See accompanying notes. 73 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------- Active Bond- A (13) Active Bond-B (12) ------------------------ ------------------------ 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Income: Dividends $ 266,708 $ 25,253 $ 1,630,598 $ 141,673 Expenses: Mortality and expense risk and administration charges 148,494 113,766 1,010,529 614,408 ----------- ----------- ----------- ----------- Net investment income (loss) 118,214 (88,513) 620,069 (472,735) Net realized gain (loss) 17,125 13,544 (159,193) (39,589) Unrealized appreciation (depreciation) during the period 112,153 134,635 930,155 578,289 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 247,492 59,666 1,391,031 65,965 Changes from principal transactions: Purchase payments 36,496 6,735 3,001,154 16,016,427 Transfers between sub-accounts and the company (656,928) 11,186,344 524,626 48,032,511 Withdrawals (1,241,941) (1,029,999) (4,175,660) (889,323) Annual contract fee (4,944) (3,360) (40,977) (10,420) ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (1,867,317) 10,159,720 (690,857) 63,149,195 ----------- ----------- ----------- ----------- Total increase (decrease) in contract owners' equity (1,619,825) 10,219,386 700,174 63,215,160 Contract owners' equity at beginning of period 10,219,386 0 63,215,160 0 ----------- ----------- ----------- ----------- Contract owners' equity at end of period $ 8,599,561 $10,219,386 $63,915,334 $63,215,160 =========== =========== =========== ===========
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors. See accompanying notes. 74 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account --------------------------------------------------------- Independence Investment LLC CGTC Overseas Equity- B (13) Small Cap-B (13) ---------------------------- --------------------------- 2006 2005 2006 2005 -------- -------- ------- ------- Income: Dividends $ 22,005 $ 1,778 $ 7,986 $ -- Expenses: Mortality and expense risk and administration charges 9,851 768 1,267 224 -------- -------- ------- ------- Net investment income (loss) 12,154 1,010 6,719 (224) Net realized gain (loss) 19,307 4,871 (3,307) 120 Unrealized appreciation (depreciation) during the period 60,669 7,950 (3,429) 1,741 -------- -------- ------- ------- Net increase (decrease) in contract owners equity from operations 92,130 13,831 (17) 1,637 Changes from principal transactions: Purchase payments 220,178 61,421 11,032 500 Transfers between sub-accounts and the company 386,615 95,528 2,191 58,069 Withdrawals (46,827) (877) (1,646) 0 Annual contract fee (1,588) (163) (211) (7) -------- -------- ------- ------- Net increase (decrease) in contract owners' equity from principal transactions: 558,378 155,909 11,366 58,562 -------- -------- ------- ------- Total increase (decrease) in contract owners' equity 650,508 169,740 11,349 60,199 Contract owners' equity at beginning of period 169,740 0 60,199 0 -------- -------- ------- ------- Contract owners' equity at end of period $820,248 $169,740 $71,548 $60,199 ======== ======== ======= =======
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors. See accompanying notes. 75 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------------- Marisco International Opportunities- B (13) T Rowe Price Mid Value- B (13) --------------------- ------------------------------ 2006 2005 2006 2005 ---------- -------- ---------- -------- Income: Dividends $ 64,504 $ -- $ 45,662 $ 803 Expenses: Mortality and expense risk and administration charges 25,699 2,869 11,431 551 ---------- -------- ---------- -------- Net investment income (loss) 38,805 (2,869) 34,231 252 Net realized gain (loss) 22,125 17,293 5,623 165 Unrealized appreciation (depreciation) during the period 256,056 66,290 86,774 2,907 ---------- -------- ---------- -------- Net increase (decrease) in contract owners equity from operations 316,986 80,714 126,628 3,324 Changes from principal transactions: Purchase payments 471,657 86,675 270,357 91,005 Transfers between sub-accounts and the company 1,861,746 437,323 605,884 94,503 Withdrawals (156,343) (3,951) (42,433) (1,237) Annual contract fee (2,619) (83) (962) (21) ---------- -------- ---------- -------- Net increase (decrease) in contract owners' equity from principal transactions: 2,174,441 519,964 832,846 184,250 ---------- -------- ---------- -------- Total increase (decrease) in contract owners' equity 2,491,427 600,678 959,474 187,574 Contract owners' equity at beginning of period 600,678 0 187,574 0 ---------- -------- ---------- -------- Contract owners' equity at end of period $3,092,105 $600,678 $1,147,048 $187,574 ========== ======== ========= ========
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors. See accompanying notes. 76 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------- UBS Large U.S. High Yield Cap- B(13) Bond- B (13) ------------------- ----------------- 2006 2005 2006 2005 --------- -------- -------- ------- Income: Dividends $ 2,541 $ -- $ 3,446 $ -- Expenses: Mortality and expense risk and administration charges 1,560 205 2,126 175 --------- -------- -------- ------- Net investment income (loss) 981 (205) 1,320 (175) Net realized gain (loss) 3,416 7 637 6 Unrealized appreciation (depreciation) during the period 10,491 2,094 8,668 922 --------- -------- -------- ------- Net increase (decrease) in contract owners equity from operations 14,888 1,896 10,625 753 Changes from principal transactions: Purchase payments 6,976 16,500 4,302 3,215 Transfers between sub-accounts and the company 27,834 82,689 214,715 63,635 Withdrawals (523) 0 (10,750) (259) Annual contract fee (397) 0 (36) 0 --------- -------- -------- ------- Net increase (decrease) in contract owners' equity from principal transactions: 33,890 99,189 208,231 66,591 --------- -------- -------- ------- Total increase (decrease) in contract owners' equity 48,778 101,085 218,856 67,344 Contract owners' equity at beginning of period 101,085 0 67,344 0 --------- -------- -------- ------- Contract owners' equity at end of period $ 149,863 $101,085 $286,200 $67,344 ========= ======== ======== =======
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors. See accompanying notes. 77 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------ Wellington Small Cap Wellington Small Cap Growth- B (13) Value-B (13) -------------------- -------------------- 2006 2005 2006 2005 ---------- -------- ---------- -------- Income: Dividends $ -- $ 4,582 $ 251,761 $ 4,794 Expenses: Mortality and expense risk and administration charges 17,618 1,725 25,622 3,456 ---------- -------- ---------- -------- Net investment income (loss) (17,618) 2,857 226,139 1,338 Net realized gain (loss) 48,389 1,457 (74,427) 3,155 Unrealized appreciation (depreciation) during the period 57,102 22,448 102,762 4,349 ---------- -------- ---------- -------- Net increase (decrease) in contract owners equity from operations 87,873 26,762 254,474 8,842 Changes from principal transactions: Purchase payments 299,467 72,226 294,001 238,855 Transfers between sub-accounts and the company 436,606 379,134 903,361 582,700 Withdrawals (27,769) (28) (97,958) (2,778) Annual contract fee (1,289) (138) (1,740) (147) ---------- -------- ---------- -------- Net increase (decrease) in contract owners' equity from principal transactions: 707,015 451,194 1,097,664 818,630 ---------- -------- ---------- -------- Total increase (decrease) in contract owners' equity 794,888 477,956 1,352,138 827,472 Contract owners' equity at beginning of period 477,956 0 827,472 0 ---------- -------- ---------- -------- Contract owners' equity at end of period $1,272,844 $477,956 $2,179,610 $827,472 ========== ======== ========== ========
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors. See accompanying notes. 78 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account --------------------------------------------------------- Wells Capital Core Index Large Cap Bond-B (13) Allocation - B (16) Value - A (17) ------------------ -------------------- --------------- 2006 2005 2006 2006 --------- ------- -------------------- --------------- Income: Dividends $ 3,170 $ -- $ 130,376 $ -- Expenses: Mortality and expense risk and administration charges 3,263 430 65,347 3,702 --------- ------- ----------- ---------- Net investment income (loss) (93) (430) 65,029 (3,702) Net realized gain (loss) 4,926 (47) (3,785) 1,756,598 Unrealized appreciation (depreciation) during the period 4,788 336 560,089 46,682 --------- ------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 9,621 (141) 621,333 1,799,578 Changes from principal transactions: Purchase payments 0 45,250 7,833,175 3,681 Transfers between sub-accounts and the company 252,364 39,407 4,560,581 1,214,311 Withdrawals (135,738) 0 (14,046) (23,796) Annual contract fee (21) -- (489) (770) --------- ------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 116,605 84,657 12,379,221 1,193,426 --------- ------- ----------- ---------- Total increase (decrease) in contract owners' equity 126,226 84,516 13,000,554 2,993,004 Contract owners' equity at beginning of period 84,516 -- -- -- --------- ------- ----------- ---------- Contract owners' equity at end of period $ 210,742 $84,516 $13,000,554 $2,993,004 ========= ======= =========== ==========
(13) Commencement of Operations, April 29, 2005, through a vote of the Board of Directors. (16) Commencement of Operations, February 16, 2006, through a vote of the Board of Directors. (17) Commencement of Operations, December 1, 2006, through a vote of the Board of Directors. See accompanying notes. 79 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------------- Scudder Capital Growth-B Scudder Global Discovery- B ------------------------ --------------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 10,213 $ 9,199 $ 24,506 $ 5,077 Expenses: Mortality and expense risk and administration charges 87,477 65,729 43,806 26,954 ---------- ---------- ---------- ---------- Net investment income (loss) (77,264) (56,530) (19,300) (21,877) Net realized gain (loss) 140,011 84,514 173,536 72,674 Unrealized appreciation (depreciation) during the period 264,363 451,187 336,614 248,719 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 327,110 479,171 490,850 299,516 Changes from principal transactions: Purchase payments 52,186 134,882 26,573 76,184 Transfers between sub-accounts and the company 2,549,524 3,571,835 139,574 833,481 Withdrawals (554,414) (102,031) (83,561) (19,938) Annual contract fee (20,125) (15,215) (11,474) (6,928) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 2,027,171 3,589,471 71,112 882,799 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 2,354,281 4,068,642 561,962 1,182,315 Contract owners' equity at beginning of period 5,559,174 1,490,532 2,476,652 1,294,337 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $7,913,455 $5,559,174 $3,038,614 $2,476,652 ========== ========== ========== ==========
See accompanying notes. 80 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------------- Scudder Growth & Income-B Scudder Health Sciences-B ------------------------- ------------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ----------- Income: Dividends $ 25,016 $ 27,710 $ 11,129 $ -- Expenses: Mortality and expense risk and administration charges 65,295 56,213 45,734 41,900 ---------- ---------- ---------- ----------- Net investment income (loss) (40,279) (28,503) (34,605) (41,900) Net realized gain (loss) 89,664 69,086 156,775 51,453 Unrealized appreciation (depreciation) during the period 405,625 169,217 (249) 153,695 ---------- ---------- ---------- ----------- Net increase (decrease) in contract owners equity from operations 455,010 209,800 121,921 163,248 Changes from principal transactions: Purchase payments 145,104 (125,978) 47,860 131,413 Transfers between sub-accounts and the company (5,307) 1,022,247 429,450 168,212 Withdrawals (276,458) (171,074) (772,867) (91,552) Annual contract fee (14,465) (13,283) (12,867) (10,232) ---------- ---------- ---------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (151,126) 711,912 (308,424) 197,841 ---------- ---------- ---------- ----------- Total increase (decrease) in contract owners' equity 303,884 921,712 (186,503) 361,089 Contract owners' equity at beginning of period 3,982,904 3,061,192 2,812,643 2,451,554 ---------- ---------- ---------- ----------- Contract owners' equity at end of period $4,286,788 $3,982,904 $2,626,140 $ 2,812,643 ========== ========== ========== ===========
See accompanying notes. 81 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------------------- Scudder International- B Scudder Mid Cap Growth- B (18) ------------------------ ------------------------------ 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 61,803 $ 48,516 $ -- $ -- Expenses: Mortality and expense risk and administration charges 64,718 56,401 25,068 20,019 ---------- ---------- ---------- ---------- Net investment income (loss) (2,915) (7,885) (25,068) (20,019) Net realized gain (loss) 366,951 173,043 121,644 35,237 Unrealized appreciation (depreciation) during the period 482,663 287,287 7,959 121,361 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 846,699 452,445 104,535 136,579 Changes from principal transactions: Purchase payments 41,758 133,716 4,282 14,951 Transfers between sub-accounts and the company 1,021,707 (380,212) 402,784 (55,380) Withdrawals (765,554) (82,170) (207,864) (38,820) Annual contract fee (13,434) (10,805) (7,146) (5,328) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 284,477 (339,471) 192,056 (84,577) ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 1,131,176 112,974 296,591 52,002 Contract owners' equity at beginning of period 3,746,485 3,633,511 1,362,952 1,310,950 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $4,877,661 $3,746,485 $1,659,543 $1,362,952 ========== ========== ========== ==========
(18) On October 28, 2005, the Scudder Aggressive Growth - B sub-account was renamed Scudder Mid Cap Growth - B sub-account through a vote of the Board of Directors. See accompanying notes. 82 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account --------------------------------------------------- Scudder Blue Chip-B Scudder Contrarian Value-B ----------------------- -------------------------- 2006 2005 2006 2005 ----------- ---------- ---------- ---------- Income: Dividends $ 259,600 $ 24,193 $ 56,589 $ 70,170 Expenses: Mortality and expense risk and administration charges 74,110 68,094 73,434 72,803 ----------- ---------- ---------- ---------- Net investment income (loss) 185,490 (43,901) (16,845) (2,633) Net realized gain (loss) 335,523 109,014 123,382 76,935 Unrealized appreciation (depreciation) during the period 52,016 269,783 481,425 (79,785) ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 573,029 334,896 587,962 (5,483) Changes from principal transactions: Purchase payments 26,339 153,944 80,188 193,911 Transfers between sub-accounts and the company 569,748 34,985 (248,830) (436,455) Withdrawals (1,063,193) (184,926) (296,829) (131,863) Annual contract fee (17,821) (16,344) (19,266) (18,287) ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (484,927) (12,341) (484,737) (392,694) ----------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 88,102 322,555 103,225 (398,177) Contract owners' equity at beginning of period 4,444,586 4,122,031 4,640,019 5,038,196 ----------- ---------- ---------- ---------- Contract owners' equity at end of period $ 4,532,688 $4,444,586 $4,743,244 $4,640,019 =========== ========== ========== ==========
See accompanying notes. 83 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------------------- Scudder Global Blue Chip-B Scudder Government Securities-B -------------------------- ------------------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 179,974 $ -- $ 121,763 $ 161,376 Expenses: Mortality and expense risk and administration charges 33,523 29,700 55,629 59,558 ---------- ---------- ---------- ---------- Net investment income (loss) 146,451 (29,700) 66,134 101,818 Net realized gain (loss) 452,551 75,964 (22,525) (3,982) Unrealized appreciation (depreciation) during the period (50,115) 346,149 21,114 (76,888) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 548,887 392,413 64,723 20,948 Changes from principal transactions: Purchase payments 2,607 33,008 11,801 63,001 Transfers between sub-accounts and the company (562,874) 519,576 (193,060) 64,889 Withdrawals (348,913) (74,374) (365,559) (148,091) Annual contract fee (8,049) (7,565) (9,542) (10,857) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (917,229) 470,645 (556,360) (31,058) ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (368,342) 863,058 (491,637) (10,110) Contract owners' equity at beginning of period 2,275,951 1,412,893 3,610,161 3,620,271 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $1,907,609 $2,275,951 $3,118,524 $3,610,161 ========== ========== ========== ==========
See accompanying notes. 84 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- Scudder International Scudder High Income-B Select Equity-B ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 281,923 $ 385,095 $ 59,624 $ 62,560 Expenses: Mortality and expense risk and administration charges 58,136 63,158 61,073 45,843 ---------- ---------- ---------- ---------- Net investment income (loss) 223,787 321,937 (1,449) 16,717 Net realized gain (loss) (19,350) 24,450 228,904 173,012 Unrealized appreciation (depreciation) during the period 85,970 (293,642) 491,722 153,131 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 290,407 52,745 719,177 342,860 Changes from principal transactions: Purchase payments 30,508 140,013 34,290 215,219 Transfers between sub-accounts and the company (216,683) (461,555) (111,344) 477,494 Withdrawals (262,368) (230,460) (292,621) (88,393) Annual contract fee (12,950) (14,399) (15,992) (10,763) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (461,493) (566,401) (385,667) 593,557 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (171,086) (513,656) 333,510 936,417 Contract owners' equity at beginning of period 3,725,968 4,239,624 3,400,470 2,464,053 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $3,554,882 $3,725,968 $3,733,980 $3,400,470 ========== ========== ========== ==========
See accompanying notes. 85 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Scudder Fixed Income-B Scudder Money Market-B ---------------------- ------------------------ 2006 2005 2006 2005 ---------- ---------- ----------- ----------- Income: Dividends $ 238,167 $ 295,709 $ 158,840 $ 54,758 Expenses: Mortality and expense risk and administration charges 121,223 121,869 65,568 35,683 ---------- ---------- ----------- ----------- Net investment income (loss) 116,944 173,840 93,272 19,075 Net realized gain (loss) (58,469) (13,939) (4,725) (28) Unrealized appreciation (depreciation) during the period 124,429 (143,548) 0 0 ---------- ---------- ----------- ----------- Net increase (decrease) in contract owners equity from operations 182,904 16,353 88,547 19,047 Changes from principal transactions: Purchase payments 58,091 376,289 29,593 2,820,551 Transfers between sub-accounts and the company 287,579 55,309 1,676,957 (1,395,210) Withdrawals (560,109) (495,020) (2,348,049) (45,241) Annual contract fee (21,782) (23,626) (12,119) (11,703) ---------- ---------- ----------- ----------- Net increase (decrease) in contract owners' equity from principal transactions: (236,221) (87,048) (653,618) 1,368,397 ---------- ---------- ----------- ----------- Total increase (decrease) in contract owners' equity (53,317) (70,695) (565,071) 1,387,444 Contract owners' equity at beginning of period 7,593,395 7,664,090 3,737,984 2,350,540 ---------- ---------- ----------- ----------- Contract owners' equity at end of period $7,540,078 $7,593,395 $ 3,172,913 $ 3,737,984 ========== ========== =========== ===========
See accompanying notes. 86 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------------- Scudder Small Cap Growth-B Scudder Technology Growth-B -------------------------- --------------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ -- $ -- $ -- $ 1,871 Expenses: Mortality and expense risk and administration charges 56,727 53,441 27,353 25,407 ---------- ---------- ---------- ---------- Net investment income (loss) (56,727) (53,441) (27,353) (23,536) Net realized gain (loss) 147,127 76,657 34,804 14,801 Unrealized appreciation (depreciation) during the period 21,521 199,123 (53,895) 46,045 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 111,921 222,339 (46,444) 37,310 Changes from principal transactions: Purchase payments 52,607 151,572 30,518 125,654 Transfers between sub-accounts and the company (197,460) 470,432 109,466 107,382 Withdrawals (364,683) (119,974) (237,620) (82,175) Annual contract fee (12,377) (12,352) (6,673) (6,157) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (521,913) 489,678 (104,309) 144,704 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (409,992) 712,017 (150,753) 182,014 Contract owners' equity at beginning of period 3,614,806 2,902,789 1,724,406 1,542,392 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $3,204,814 $3,614,806 $1,573,653 $1,724,406 ========== ========== ========== ==========
See accompanying notes. 87 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------------- Scudder Total Return-B Scudder Davis Venture Value-B ---------------------- ----------------------------- 2006 2005 2006 2005 ---------- ---------- ----------- ---------- Income: Dividends $ 60,279 $ 69,683 $ 21,553 $ 25,330 Expenses: Mortality and expense risk and administration charges 43,445 47,620 123,512 114,281 ---------- ---------- ----------- ---------- Net investment income (loss) 16,834 22,063 (101,959) (88,951) Net realized gain (loss) 61,852 46,226 425,552 117,374 Unrealized appreciation (depreciation) during the period 128,842 (9,442) 561,526 482,134 ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 207,528 58,847 885,119 510,557 Changes from principal transactions: Purchase payments 19,425 126,375 85,667 409,179 Transfers between sub-accounts and the company (109,129) (40,245) (634,858) 431,063 Withdrawals (319,480) (624,809) (600,034) (122,214) Annual contract fee (11,123) (13,145) (26,986) (23,734) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (420,307) (551,824) (1,176,211) 694,294 ---------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity (212,779) (492,977) (291,092) 1,204,851 Contract owners' equity at beginning of period 2,805,392 3,298,369 7,753,714 6,548,863 ---------- ---------- ----------- ---------- Contract owners' equity at end of period $2,592,613 $2,805,392 $ 7,462,622 $7,753,714 ========== ========== =========== ==========
See accompanying notes. 88 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------- Scudder Dreman Financial Scudder Dreman High Services-B (19) Return Equity-B ------------------------ ----------------------- 2006 2005 2006 2005 ----------- ---------- ----------- ---------- Income: Dividends $ 368,730 $ 24,546 $ 628,282 $ 98,674 Expenses: Mortality and expense risk and administration charges 20,554 26,066 158,183 117,675 ----------- ---------- ----------- ---------- Net investment income (loss) 348,176 (1,520) 470,099 (19,001) Net realized gain (loss) (125,836) 10,772 490,903 118,475 Unrealized appreciation (depreciation) during the period (133,001) (42,147) 664,395 343,571 ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 89,339 (32,895) 1,625,397 443,045 Changes from principal transactions: Purchase payments 7,892 93,642 124,443 376,999 Transfers between sub-accounts and the company (1,607,059) 23,021 4,580,743 863,133 Withdrawals (200,316) (44,825) (932,903) (236,838) Annual contract fee (6,345) (6,922) (36,907) (28,954) ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (1,805,828) 64,916 3,735,376 974,340 ----------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity (1,716,489) 32,021 5,360,773 1,417,385 Contract owners' equity at beginning of period 1,716,489 1,684,468 8,238,139 6,820,754 ----------- ---------- ----------- ---------- Contract owners' equity at end of period $ -- $1,716,489 $13,598,912 $8,238,139 =========== ========== =========== ==========
(19) On September 18, 2006, the Scudder Dreman Financial Services - B sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 89 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account -------------------------------------------- Scudder Salomon Scudder Dreman Small Aggressive Cap Value-B Growth- B (20, 21) ---------------------- -------------------- 2006 2005 2006 2005 ---------- ---------- --------- --------- Income: Dividends $ 523,357 $ 472,814 $ 205,493 $ -- Expenses: Mortality and expense risk and administration charges 97,382 84,166 11,046 14,002 ---------- ---------- --------- --------- Net investment income (loss) 425,975 388,648 194,447 (14,002) Net realized gain (loss) 439,692 128,656 (13,285) 59,864 Unrealized appreciation (depreciation) during the period 426,308 (99,926) (115,057) 38,120 ---------- ---------- --------- --------- Net increase (decrease) in contract owners equity from operations 1,291,975 417,378 66,105 83,982 Changes from principal transactions: Purchase payments 115,043 276,151 2,015 30,296 Transfers between sub-accounts and the company (635,255) 304,378 (617,768) (392,722) Withdrawals (449,844) (135,883) (147,197) (14,752) Annual contract fee (24,399) (21,169) (2,739) (2,563) ---------- ---------- --------- --------- Net increase (decrease) in contract owners' equity from principal transactions: (994,455) 423,477 (765,689) (379,741) ---------- ---------- --------- --------- Total increase (decrease) in contract owners' equity 297,520 840,855 (699,584) (295,759) Contract owners' equity at beginning of period 5,911,775 5,070,920 699,584 995,343 ---------- ---------- --------- --------- Contract owners' equity at end of period $6,209,295 $5,911,775 $ -- $ 699,584 ========== ========== ========= =========
(20) On August 1, 2005, the Scudder Invesco Dynamic Growth -B sub-account was renamed Scudder Salomon Aggressive Growth - Bsub-account through a vote of the Board of Directors. (21) On December 6, 2006, Scudder Salomon Aggressive Growth - B sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 90 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Scudder Janus Growth & Scudder Janus Growth Income-B Opportunities-B (22) ---------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ----------- ---------- Income: Dividends $ 5,547 $ -- $ -- $ -- Expenses: Mortality and expense risk and administration charges 37,275 34,974 14,795 11,510 ---------- ---------- ----------- ---------- Net investment income (loss) (31,728) (34,974) (14,795) (11,510) Net realized gain (loss) 161,710 41,096 10,515 69,817 Unrealized appreciation (depreciation) during the period 15,832 216,492 (69,240) 5,198 ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 145,814 222,614 (73,520) 63,505 Changes from principal transactions: Purchase payments 14,976 187,812 4,029 32,866 Transfers between sub-accounts and the company (188,823) 119,334 (1,104,607) 723,184 Withdrawals (289,493) (79,883) (54,140) (31,129) Annual contract fee (7,858) (7,477) (4,446) (1,995) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (471,198) 219,786 (1,159,164) 722,926 ---------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity (325,384) 442,400 (1,232,684) 786,431 Contract owners' equity at beginning of period 2,502,643 2,060,243 1,232,684 446,253 ---------- ---------- ----------- ---------- Contract owners' equity at end of period $2,177,259 $2,502,643 $ -- $1,232,684 ========== ========== =========== ==========
(22) On December 6, 2006, the Scudder Janus Growth Opportunities - B sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 91 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Scudder MFS Scudder Oak Strategic Value-B (23) Strategic Equity-B (24) ----------------------- ----------------------- 2006 2005 2006 2005 ----------- ---------- ----------- ---------- Income: Dividends $ 192,778 $ 375,236 $ -- $ -- Expenses: Mortality and expense risk and administration charges 39,960 60,924 19,664 26,343 ----------- ---------- ----------- ---------- Net investment income (loss) 152,818 314,312 (19,664) (26,343) Net realized gain (loss) (5,780) 109,893 60,127 (6,378) Unrealized appreciation (depreciation) during the period (41,139) (529,226) (12,721) (72,835) ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 105,899 (105,021) 27,742 (105,556) Changes from principal transactions: Purchase payments 14,096 195,798 25,283 82,933 Transfers between sub-accounts and the company (3,622,290) (435,338) (1,289,996) (361,082) Withdrawals (143,509) (76,715) (174,438) (36,001) Annual contract fee (8,896) (11,813) (4,351) (6,039) ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (3,760,599) (328,068) (1,443,502) (320,189) ----------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity (3,654,700) (433,089) (1,415,760) (425,745) Contract owners' equity at beginning of period 3,654,700 4,087,789 1,415,760 1,841,505 ----------- ---------- ----------- ---------- Contract owners' equity at end of period $ -- $3,654,700 $ -- $1,415,760 =========== ========== =========== ==========
(23) On September 18, 2006, the Scudder MFS Strategic Value - B sub-account ceased operations through a vote of the Board of Directors. (24) On December 6, 2006, the Scudder Oak Strategic Equity - B sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 92 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Scudder Turner Mid Cap Growth-B Scudder Real Estate-B ----------------------- ---------------------- 2006 2005 2006 2005 ----------- ---------- ---------- ---------- Income: Dividends $ 218,164 $ -- $ 80,192 $ 380,352 Expenses: Mortality and expense risk and administration charges 42,626 36,427 75,436 68,312 ---------- ---------- ---------- ---------- Net investment income (loss) 175,538 (36,427) 4,756 312,040 Net realized gain (loss) (7,713) 151,640 409,151 218,951 Unrealized appreciation (depreciation) during the period (101,024) 113,067 1,017,684 (126,023) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 66,801 228,280 1,431,591 404,968 Changes from principal transactions: Purchase payments 54,025 135,866 88,965 158,789 Transfers between sub-accounts and the company (173,939) 513,305 (408,163) (240,349) Withdrawals (146,009) (36,062) (349,296) (98,620) Annual contract fee (11,408) (7,876) (18,472) (16,481) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (277,331) 605,233 (686,966) (196,661) ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (210,530) 833,513 744,625 208,307 Contract owners' equity at beginning of period 2,725,202 1,891,689 4,382,802 4,174,495 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $2,514,672 $2,725,202 $5,127,427 $4,382,802 ========== ========== ========== ==========
See accompanying notes. 93 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------------- Scudder Strategic Scudder Income Income-B Allocation - B (25, 26) ---------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ----------- ---------- Income: Dividends $ 130,939 $ 182,962 $ 79,412 $ 549 Expenses: Mortality and expense risk and administration charges 39,693 37,177 17,622 14,439 ---------- ---------- ----------- ---------- Net investment income (loss) 91,246 145,785 61,790 (13,890) Net realized gain (loss) (12,362) (3,817) (11,313) 10,695 Unrealized appreciation (depreciation) during the period 86,666 (135,618) (28,744) 27,232 ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners equity from operations 165,550 6,350 21,733 24,037 Changes from principal transactions: Purchase payments 14,378 196,360 75,475 1,002,256 Transfers between sub-accounts and the company 144,947 140,865 (1,329,176) 81,994 Withdrawals (171,746) (95,960) (27,788) (5,680) Annual contract fee (8,703) (7,779) (1,135) (1,521) ---------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (21,124) 233,486 (1,282,624) 1,077,049 ---------- ---------- ----------- ---------- Total increase (decrease) in contract owners' equity 144,426 239,836 (1,260,891) 1,101,086 Contract owners' equity at beginning of period 2,353,863 2,114,027 1,260,891 159,805 ---------- ---------- ----------- ---------- Contract owners' equity at end of period $2,498,289 $2,353,863 $ -- $1,260,891 ========== ========== =========== ==========
(25) On February 6, 2006, the Scudder Conservative Income Strategy - B sub-account was renamed Scudder Income Allocation - B sub-account through a vote of the Board of Directors. (26) On September 18, 2006 Scudder Income Allocation - B sub-account ceased operation through a vote of the Board of Directors. See accompanying notes. 94 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Scudder Moderate Scudder Conservative Allocation - B (27) Allocation - B (28) ------------------------ ---------------------- 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ 378,959 $ 17,059 $ 131,312 $ 6,825 Expenses: Mortality and expense risk and administration charges 403,121 218,825 128,198 68,090 ----------- ----------- ---------- ---------- Net investment income (loss) (24,162) (201,766) 3,114 (61,265) Net realized gain (loss) 102,600 150,139 92,710 11,470 Unrealized appreciation (depreciation) during the period 2,050,547 658,035 424,950 192,036 ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 2,128,985 606,408 520,774 142,241 Changes from principal transactions: Purchase payments 1,238,790 11,519,856 702,619 4,158,693 Transfers between sub-accounts and the company 589,932 2,222,392 1,445,610 402,362 Withdrawals (355,155) (441,820) (97,419) (209,876) Annual contract fee (13,421) (4,650) (3,394) (303) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 1,460,146 13,295,778 2,047,416 4,350,876 ----------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity 3,589,131 13,902,186 2,568,190 4,493,117 Contract owners' equity at beginning of period 22,689,775 8,787,589 6,458,338 1,965,221 ----------- ----------- ---------- ---------- Contract owners' equity at end of period $26,278,906 $22,689,775 $9,026,528 $6,458,338 =========== =========== ========== ==========
(27) On February 6, 2006, the Scudder Growth & Income Strategy - B sub-account was renamed Scudder Moderate Allocation - B sub-account through a vote of the Board of Directors. (28) On February 6, 2006, the Scudder Income & Growth Strategy - B sub-account was renamed Scudder Conservative Allocation - B sub-account through a vote of the Board of Directors. See accompanying notes. 95 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Scudder Growth Scudder Templeton Allocation - B (29) Foreign Value - B (30) ------------------------ ---------------------- 2006 2005 2006 2005 ----------- ----------- --------- -------- Income: Dividends $ 536,508 $ 20,452 $ 233,032 $ 1,342 Expenses: Mortality and expense risk and administration charges 550,379 270,974 8,252 1,298 ----------- ----------- --------- -------- Net investment income (loss) (13,871) (250,522) 224,780 44 Net realized gain (loss) 454,009 126,404 (146,226) 258 Unrealized appreciation (depreciation) during the period 2,976,851 1,191,640 (10,668) 7,810 ----------- ----------- --------- -------- Net increase (decrease) in contract owners equity from operations 3,416,989 1,067,522 67,886 8,112 Changes from principal transactions: Purchase payments 2,206,256 20,579,368 7,026 21,063 Transfers between sub-accounts and the company 226,572 2,711,349 (175,702) 44,423 Withdrawals (1,497,111) (210,250) (25,721) 0 Annual contract fee (27,652) (1,467) (756) (296) ----------- ----------- --------- -------- Net increase (decrease) in contract owners' equity from principal transactions: 908,065 23,079,000 (195,153) 65,190 ----------- ----------- --------- -------- Total increase (decrease) in contract owners' equity 4,325,054 24,146,522 (127,267) 73,302 Contract owners' equity at beginning of period 31,024,783 6,878,261 127,267 53,965 ----------- ----------- --------- -------- Contract owners' equity at end of period $35,349,837 $31,024,783 $ -- $127,267 =========== =========== ========= ========
(29) On February 6, 2006, the Scudder Growth Strategy - B sub-account was renamed Scudder Growth Allocation - B sub-account through a vote of the Board of Directors. (30) On December 6, 2006, Scudder Templeton Foreign Value Class B sub-account ceased operations through a vote of the Board of Directors. See accompanying notes. 96 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------- Scudder Mercury Large Cap Core - B(31) Scudder Bond-B (13) ---------------------- ------------------- 2006 2005 2006 2005 -------- -------- -------- ------- Income: Dividends $ 13,451 $ 130 $ 5,451 $ -- Expenses: Mortality and expense risk and administration charges 1,406 256 5,830 1,471 -------- -------- -------- -------- Net investment income (loss) 12,045 (126) (379) (1,471) Net realized gain (loss) 98 31 656 28 Unrealized appreciation (depreciation) during the period (3,364) 3,263 15,552 1,956 -------- -------- -------- -------- Net increase (decrease) in contract owners equity from operations 8,779 3,168 15,829 513 Changes from principal transactions: Purchase payments 0 5,000 0 26,830 Transfers between sub-accounts and the company (85,476) 72,600 394,549 128,052 Withdrawals (6,754) 0 (55,791) (884) Annual contract fee (390) (14) (1,566) (508) -------- -------- -------- -------- Net increase (decrease) in contract owners' equity from principal transactions: (92,620) 77,586 337,192 153,490 -------- -------- -------- -------- Total increase (decrease) in contract owners' equity (83,841) 80,754 353,021 154,003 Contract owners' equity at beginning of period 83,841 3,087 154,003 0 -------- -------- -------- -------- Contract owners' equity at end of period $ -- $ 83,841 $507,024 $154,003 ======== ======== ======== ========
(31) On December 6, 2006, the Scudder Mercury Large Cap Core - B sub-account ceased operation through a vote of the Board of Directors. (13) Commencement of Operations, April 29, 2005, through vote of the Board of Directors. See accompanying notes. 97 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ------------------------------------------------ Scudder Equity 500 Alger American Index - B (31) Balanced- B ------------------------ ---------------------- 2006 2005 2006 2005 ----------- ----------- ---------- ---------- Income: Dividends $ 75,375 $ -- $ 240,398 $ 62,242 Expenses: Mortality and expense risk and administration charges 135,066 44,695 59,410 65,391 ----------- ----------- ---------- ---------- Net investment income (loss) (59,691) (44,695) 180,988 (3,149) Net realized gain (loss) 132,222 (16,309) 25,763 86,049 Unrealized appreciation (depreciation) during the period 991,895 107,384 (112,409) 166,314 ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 1,064,426 46,380 94,342 249,214 Changes from principal transactions: Purchase payments 99,758 81,522 33,371 187,609 Transfers between sub-accounts and the company (1,589,566) 9,222,088 38,219 (904,380) Withdrawals (579,327) (61,963) (363,903) (89,977) Annual contract fee (38,324) 0 (14,849) (16,072) ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (2,107,459) 9,241,647 (307,162) (822,820) ----------- ----------- ---------- ---------- Total increase (decrease) in contract owners' equity (1,043,033) 9,288,027 (212,820) (573,606) Contract owners' equity at beginning of period 9,288,027 0 3,902,557 4,476,163 ----------- ----------- ---------- ---------- Contract owners' equity at end of period $ 8,244,994 $ 9,288,027 $3,689,737 $3,902,557 =========== =========== ========== ==========
(31) On September 16, 2005, the Scudder Equity 500 Index - B sub-account commenced operation through a vote of the Board of Directors. See accompanying notes. 98 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ---------------------------------------------- Alger American Credit Suisse Emerging Leveraged All Cap- B Markets-B ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ -- $ -- $ 38,236 $ 13,450 Expenses: Mortality and expense risk and administration charges 23,918 17,476 34,666 27,886 ---------- ---------- ---------- ---------- Net investment income (loss) (23,918) (17,476) 3,570 (14,436) Net realized gain (loss) 76,127 25,870 464,509 96,280 Unrealized appreciation (depreciation) during the period 172,840 119,375 90,497 369,095 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 225,049 127,769 558,576 450,939 Changes from principal transactions: Purchase payments 58,614 40,012 12,046 63,969 Transfers between sub-accounts and the company 355,770 (75,237) (340,933) 335,353 Withdrawals (114,060) (21,728) (341,690) (49,505) Annual contract fee (6,866) (4,722) (8,936) (6,947) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: 293,458 (61,675) (679,513) 342,870 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity 518,507 66,094 (120,937) 793,809 Contract owners' equity at beginning of period 1,179,158 1,113,064 2,137,652 1,343,843 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $1,697,665 $1,179,158 $2,016,715 $2,137,652 ========== ========== ========== ==========
See accompanying notes. 99 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account ----------------------------------------- Credit Suisse Global Dreyfus Socially Post Venture Responsible Capital-B Growth -B -------------------- ------------------- 2006 2005 2006 2005 --------- --------- -------- --------- Income: Dividends $ -- $ -- $ -- $ -- Expenses: Mortality and expense risk and administration charges 8,342 6,316 5,469 6,372 --------- --------- -------- --------- Net investment income (loss) (8,342) (6,316) (5,469) (6,372) Net realized gain (loss) 58,230 8,263 11,067 9,157 Unrealized appreciation (depreciation) during the period (1,712) 52,254 17,055 (3,880) --------- --------- -------- --------- Net increase (decrease) in contract owners equity from operations 48,176 54,201 22,653 (1,095) Changes from principal transactions: Purchase payments 1,306 24,103 670 12,964 Transfers between sub-accounts and the company 23,545 27,670 (41,969) (114,022) Withdrawals (58,291) (7,235) (26,887) (30,376) Annual contract fee (2,255) (1,741) (1,403) (1,539) --------- --------- -------- --------- Net increase (decrease) in contract owners' equity from principal transactions: (35,695) 42,797 (69,589) (132,973) --------- --------- -------- --------- Total increase (decrease) in contract owners' equity 12,481 96,998 (46,936) (134,068) Contract owners' equity at beginning of period 454,718 357,720 349,559 483,627 --------- --------- -------- --------- Contract owners' equity at end of period $ 467,199 $ 454,718 $302,623 $ 349,559 ========= ========= ======== =========
See accompanying notes. 100 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Sub-Account --------------------------------------------------- Dreyfus VIF Mid Cap Stock-B AIM VI Utilities- B --------------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Income: Dividends $ 929,199 $ 20,853 $ 81,953 $ 32,082 Expenses: Mortality and expense risk and administration charges 89,112 84,338 24,989 21,276 ---------- ---------- ---------- ---------- Net investment income (loss) 840,087 (63,485) 56,964 10,806 Net realized gain (loss) 170,324 80,639 138,184 62,323 Unrealized appreciation (depreciation) during the period (688,996) 366,496 122,726 96,254 ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners equity from operations 321,415 383,650 317,874 169,383 Changes from principal transactions: Purchase payments 63,100 159,449 8,680 27,552 Transfers between sub-accounts and the company (48,608) 116,949 (16,282) 222,190 Withdrawals (751,357) (137,625) (134,575) (15,122) Annual contract fee (22,414) (21,065) (5,236) (5,109) ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity from principal transactions: (759,279) 117,708 (147,413) 229,511 ---------- ---------- ---------- ---------- Total increase (decrease) in contract owners' equity (437,864) 501,358 170,461 398,894 Contract owners' equity at beginning of period 5,572,545 5,071,187 1,421,990 1,023,096 ---------- ---------- ---------- ---------- Contract owners' equity at end of period $5,134,681 $5,572,545 $1,592,451 $1,421,990 ========== ========== ========== ==========
See accompanying notes. 101 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS EQUITY - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31,
Total ------------------------------ 2006 2005 -------------- -------------- Income: Dividends $ 248,555,495 $ 78,042,482 Expenses: Mortality and expense risk and administration charges 52,456,173 37,690,595 -------------- -------------- Net investment income (loss) 196,099,322 40,351,887 Net realized gain (loss) 47,573,865 23,513,737 Unrealized appreciation (depreciation) during the period 83,895,568 64,866,245 -------------- -------------- Net increase (decrease) in contract owners equity from operations 327,568,755 128,731,869 Changes from principal transactions: Purchase payments 743,373,344 707,848,466 Transfers between sub-accounts and the company 103,694,240 77,607,977 Withdrawals (259,454,333) (180,428,714) Annual contract fee (4,275,247) (3,590,682) -------------- -------------- Net increase (decrease) in contract owners' equity from principal transactions: 583,338,004 601,437,047 -------------- -------------- Total increase (decrease) in contract owners' equity 910,906,759 730,168,916 Contract owners' equity at beginning of period 2,852,435,530 2,122,266,614 -------------- -------------- Contract owners' equity at end of period $3,763,342,289 $2,852,435,530 ============== ==============
See accompanying notes. 102 JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A) SEPARATE ACCOUNT H NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 1. ORGANIZATION John Hancock Life Insurance Company (U.S.A.) Separate Account H (the Account) is a separate account established by John Hancock Life Insurance Company (U.S.A.) (the Company). The Company established the Account on August 24, 1984 as a separate account under Delaware law. The Account operates as a Unit Investment Trust under the Investment Company Act of 1940, as amended, and consists of one hundred twenty six sub-accounts which are exclusively invested in corresponding portfolios of John Hancock Trust (the Trust), twenty nine sub-accounts which are invested in a corresponding Portfolio of the Scudder Variable Series Trust, two sub-accounts which are invested in a corresponding Portfolio of the Alger American Fund, two sub-accounts which are invested in a corresponding Portfolio of the Credit Suisse Trust, two sub-accounts which are invested in a corresponding Portfolio of the Dreyfus Service Corporation, one sub-account which is invested in a corresponding Portfolio of the Invesco VIF Funds and three sub-accounts which are invested in a corresponding Portfolio of Merrill Lynch Variable Series Funds, Inc (the "Outside Trusts"). The Account is a funding vehicle for variable annuity contracts (the Contracts) issued by the Company. The Account includes 214 contracts, distinguished principally by the level of expenses and surrender charges. These 214 contracts are as follows: Venture Variable Annuity 1, 3, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 22, 23, 25, 26, 27, 28, 30, 31, 32, 33, 34, 40, 41, 42, 43, 50, 51, 52, 53, 55, 56, 58, 60, 61, 63, 64, 65, 66, 67, 68, 70, 71, 73, 74, 75, 76, 77, 78, 80, 81, 82, 83, 84, 85, 86, 87, 88, 90, 91, 92, 93 (VEN 1, 3, 7, 8, 17, 18, 20, 21, 22, 23, 25, 26, 27, 28, 30, 31, 32, 33, 34, 40, 41, 42, 43, 50, 51, 52, 53, 55, 56, 58, 80, 81, 82, 83, 84, 90, 91, 92, 93 VENR 21, 23, 31, 41, 51, 53, 61, 71, 18, 60, 61, 63, 64, 65, 66, 67, 68, 70, 71, 73, 74, 75, 76, 77, 78, 80, 81, 83, 84, 85, 86, 87, 88), Venture Vantage Annuity 10, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22, 23, 25, 26, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 55, 56, 60, 61, 62, 63, 65, 66, 67, 68, 69, 70, 71, 72, 73, 75, 76, 80, 81, 82, 83, 85, 86 (VTG 10, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22, 23, 25, 26, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 55, 56, 60, 61, 62, 63, 65, 66, 67, 68, 69, 70, 71, 72, 73, 75, 76, 80, 81, 82, 83, 85, 86), Venture Vision Variable Annuity 5, 6, 25, 26, 27, 28, 29, 25B, 26B, 27B, 28B (VIS 5, 6, 25, 26, 27, 28, 29, 25B, 26B, 27B, 28B), Venture No-load Rollover Annuity (MRP) (MRPG01, MRPI01, VSTG01, VSTI01) Scudder Wealthmark Variable Annuity (WV A1E, A1I, A1W, A2E, A2I, A2W, A3E, A3I, A3W, B1E, B1I, B1W, B2E, B2I, B2W, B3E, B3I, B3W) and Scudder Wealthmark ML3 Variable Annuity (W3 A1I, A1W, A3I, A3W, B1I, B3I, B1W, B3W, G1I, G1W, G3I, G3W, N1I, N1W, N3I, N3W). Each sub-account holds shares of a particular series ("Portfolio") of a registered investment company. Sub-accounts that invest in Portfolios of the John Hancock Trust ("Trust) may offer two classes of units to fund variable annuity contracts issued by the Company. These classes, Class A and Class B, respectively, represent an interest in the same Trust Portfolio, but in different classes of that Portfolio. Class A represents interests in Series I shares of the Portfolio and Class B represents interests in Series II shares of the Trust's Portfolio. Series I and Series II shares differ in the level of 12b-1 fees and other expenses assessed against the Portfolio's assets. The Company is an indirect, wholly owned subsidiary of The Manufacturers Life Insurance Company (MLI). MLI, in turn, is an indirect, wholly owned subsidiary of Manulife Financial Corporation (MFC), a Canadian-based publicly traded stock life insurance company. MFC and its subsidiaries are known collectively as Manulife Financial. 103 JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A) SEPARATE ACCOUNT H NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 1. ORGANIZATION (CONTINUED) On April 29, 2005, fifteen sub-accounts ceased operations through a vote of the Board of Directors: Diversified Bond Class A and Class B, Overseas Class A and Class B, Aggressive Growth Class A and Class B, Small Company Blend Class A and Class B, Strategic Growth Class A and Class B, Great Companies Class B, Scudder 21st Century Growth, Scudder Eagle Focused Large Cap Growth, Scudder Focus Value and Growth. On April 29, 2005, fourteen sub-accounts commenced operations through a vote of the Board of Directors: Small Cap Opportunities Class A, US Global Leaders Class A, Active Bond Class A, Active Bond Class B, CGTC Overseas Equity Class B, Independence Investment LLC - Small Cap Class B, Marisco International Opportunities Class B, T Rowe Price Mid Value Class B, UBS Large Cap Class B, US High Yield Bond Class B, Wellington Small Cap Growth Class B, Wellington Small Cap Value Class B, Wells Capital Core Bond Class B, and Scudder Bond Class B. On April 29, 2005, the John Hancock VST International Equity Index sub-account was renamed John Hancock International Equity Index Class A through a vote of the Board of Directors. On August 1, 2005, the American Bond - B sub-account commenced operations through a vote of the Board of Directors. On August 1, 2005, the Scudder Invesco Dynamic Growth sub-account was renamed Scudder Salomon Aggressive Growth sub-account through a vote of the Board of Directors in order to reflect a name change of the corresponding underlying Portfolio. On September 16, 2005, the Scudder Index 500 - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder Equity 500 Index - B sub-account. On September 16, 2005, the Scudder Equity 500 Index - B sub-account commenced operations through a vote of the Board of Directors. On October 28, 2005, the Scudder Aggressive Growth - B sub-account was renamed Scudder Mid Cap Growth - B sub-account through vote of the Board of Directors in order to reflect a name change of the corresponding underlying Portfolio. On February 6, 2006, the Scudder Conservative Income - B sub-account was renamed Scudder Income Allocation - B sub-account through a vote of the Board of Directors. On February 6, 2006, the Scudder Growth & Income - B sub-account was renamed Scudder Moderate Allocation - B sub-account through a vote of the Board of Directors. On February 6, 2006, the Scudder Income & Growth - B sub-account was renamed Scudder Conservative Allocation - B sub-account through a vote of the Board of Directors. On February 6, 2006, the Scudder Growth Strategy - B sub-account was renamed Scudder Growth Allocation - B sub-account through a vote of the Board of Directors. On February 16, 2006, the Index Allocation - B sub-account commenced operations through a vote of the Board or Directors. On May 1, 2006, the Growth & Income sub-account was renamed U.S. Core through a vote of the Board of Directors. 104 JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A) SEPARATE ACCOUNT H NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 On May 1, 2006, the Global Equity - B sub-account was renamed Global Trust sub-account through a vote of the Board of Directors. 1. ORGANIZATION (CONTINUED) On May 1, 2006, the Pacific Rim Emerging Markets sub-account was renamed Pacific Rim sub-account through a vote of the Board of Directors. On May 1, 2006, the International Stock sub-account was renamed International Core sub-account through a vote of the Board of Directors. On May 1, 2006, the Lifestyle Aggressive 1000 sub-account was renamed Lifestyle Aggressive sub-account through a vote of the Board of Directors. On May 1, 2006, the Lifestyle Growth 820 sub-account was renamed Lifestyle Growth sub-account through a vote of the Board of Directors. On May 1, 2006, the Lifestyle Balanced 640 sub-account was renamed Lifestyle Balanced sub-account through a vote of the Board of Directors. On May 1, 2006, the Lifestyle Moderate 460 sub-account was renamed Lifestyle Moderate sub-account through a vote of the Board of Directors. On May 1, 2006, the Lifestyle Conservative 280 sub-account was renamed Lifestyle Conservative sub-account through a vote of the Board of Directors. On May 1, 2006, the Large Cap Growth sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Capital Appreciation sub-account. On September 18, 2006, the Scudder Dreman Financial Services - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder Dreman High Return -B sub-account. On September 18, 2006, the Scudder MFS Strategic Value - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder Dreman High Return - B sub-account. On September 18, 2006, the Scudder Income Allocation - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to Scudder Conservative Income - B sub-account. On December 1 2006, the Large Cap Value - A sub-account commenced operations through a vote of the Board of Directors. On December 4, 2006, the Mid Cap Core - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Mid Cap Index - B sub-account. On December 4, 2006, the Strategic Value - A sub-account and Strategic Value - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Large Cap Value - A sub-account and Large Cap Value - B sub-account. On December 6 2006, the Scudder Salomon Aggressive Growth - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder Capital Growth sub-account. 105 JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A) SEPARATE ACCOUNT H NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 On December 6, 2006, the Scudder Janus Growth Opportunities - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder Capital Growth - B sub-account. 1. ORGANIZATION (CONTINUED) On December 6, 2006, the Scudder Mercury Large Cap Core - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder Growth and Income - B sub-account. On December 6, 2006, the Scudder Oak Strategic Equity - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder Capital Growth - B sub-account. On December 6, 2006, the Scudder Templeton Foreign Value - B sub-account ceased operations through a vote of the Board of Directors. The funds were transferred to the Scudder International - B sub-account. In addition to the Account, a contract owner may also allocate funds to the Fixed Account, which is part of the Company's general account. Because of exemptive and exclusionary provisions, interests in the Fixed Account have not been registered under the Securities Act of 1933, and the Company's general account has not been registered as an investment company under the Investment Company Act of 1940. 2. SIGNIFICANT ACCOUNTING POLICIES ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates. VALUATION OF INVESTMENTS Investments made in the Portfolios of the Trust and of the outside Trusts are valued at the reported net asset values of such Portfolios. Investment transactions are recorded on the trade date. Income from dividends, and gains from realized gain distributions are recorded on the ex-dividend date. Realized gains and losses on the sales of investments are computed on the basis of the identified cost of the investment sold. Annuity reserves are computed for contracts under which periodic benefit payments are being made according to the 1983a Individual Annuitant Mortality Table. The assumed investment return is 4%, as regulated by the laws of the respective states. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Account by the Company. FEDERAL INCOME TAXES The operations of the Account are included in the federal income tax return of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code (the Code). Under the current provisions of the Code, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. The Company will review periodically the status of this decision based on changes in the tax law. Such a charge may be made in future years for any federal income taxes that would be attributable to the Account. 106 JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A) SEPARATE ACCOUNT H NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2006 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) EXPENSES The Company assumes mortality and expense risk of the Contracts and provides administrative charges to the account for which asset charges are deducted at various rates ranging from 0.05% to 1.50%, depending on the type of contract, of net assets of the sub-account. The Company makes certain other deductions from contract owner payments for premium taxes, guaranteed minimum death benefits, sales charges on purchases and the surrender fee and annual contract fee, which are accounted for as a reduction of net assets resulting from contract owner transactions AMOUNTS RECEIVABLE/PAYABLE Receivables/Payables from/to Portfolios/the Company are due to unsettled contract transactions (net of asset-based charges) and/or subsequent/preceding purchases/sales of the respective Portfolios' shares. The amounts are due from/to either the respective Portfolio and/or the Company for the benefit of contract owners. There are no unsettled policy transactions at December 31, 2006. STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 157, FAIR VALUE MEASUREMENTS ("SFAS 157") In September 2006, the FASB issued SFAS No. 157. This standard, which provides guidance on how to measure fair values of assets and liabilities, applies whenever other standards require or permit assets or liabilities to be measured at fair value, but does not discuss when to use fair value accounting. SFAS No. 157 establishes a fair value measurement hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, and requires fair value measurements to be separately disclosed by level within the hierarchy. SFAS No. 157 will be effective for the Company beginning January 1, 2008 and will then be generally prospectively applicable. The Company is still evaluating the impact SFAS No. 157 will have on its consolidated financial position or results of operations. 3. TRANSACTIONS WITH AFFILIATES The Company has an Administrative Services Agreement with Manulife Financial, whereby Manulife Financial or its designee, with the consent of the Company, performs certain services on behalf of the Company necessary for the operation of the Account. The Company has underwriting and distribution agreements with its affiliate, John Hancock Distributors, LLC (JH Distributors). JH Distributors is 60% owned by the Company and 40% owned by John Hancock Life Insurance Company of New York (JHNY). JHNY is a wholly owned subsidiary of the Company. 107 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS The details of the shares owned and cost and value of investments in the Portfolios of the Trust and of the Outside Trusts at December 31, 2006 were as follows:
Details of Investments ------------------------------------------ Sub-account Shares Owned Cost Value - ------------------------------------------------------------------------------------------- Strategic Opportunities -- A 1,932,528 $ 27,581,810 $ 25,876,550 Strategic Opportunities -- B 119,115 1,207,223 1,588,987 Investment Quality Bond -- A 977,226 11,839,950 11,394,453 Investment Quality Bond -- B 2,308,719 27,125,080 26,873,489 U.S. Core -- A 3,046,251 72,666,642 65,920,872 U.S. Core -- B 559,185 11,852,054 12,039,251 Blue Chip Growth -- A 2,341,355 39,622,839 45,398,866 Blue Chip Growth -- B 1,091,754 17,550,400 21,092,687 Money Market -- A 2,487,482 24,874,821 24,874,821 Money Market -- B 3,336,107 33,361,074 33,361,074 Global Trust -- A 1,149,655 16,918,217 22,073,377 Global Trust -- B 247,448 3,610,792 4,726,247 Global Bond -- A 391,926 5,757,962 5,851,451 Global Bond -- B 1,164,059 17,216,600 17,309,561 U.S. Government Securities -- A 1,444,154 19,687,423 19,539,399 U.S. Government Securities -- B 810,038 10,816,099 10,951,709 Income & Value -- A 1,601,182 16,104,096 19,390,320 Income & Value -- B 902,357 9,330,157 10,855,361 Equity-Income -- A 3,512,868 52,286,357 65,058,317 Equity-Income -- B 2,045,922 32,167,071 37,726,795 Strategic Bond -- A 1,292,957 14,576,583 15,541,347 Strategic Bond -- B 1,197,783 14,086,152 14,373,396 All Cap Core -- A 486,474 7,844,637 9,534,890 All Cap Core -- B 68,714 1,026,166 1,341,296 All Cap Growth -- A 934,223 13,966,844 16,657,204 All Cap Growth -- B 240,708 3,477,814 4,253,303 International Small Cap -- A 330,586 6,028,987 8,036,555 International Small Cap -- B 284,837 5,307,846 6,935,770 Pacific Rim -- A 240,415 2,447,229 3,135,010 Pacific Rim -- B 305,507 3,536,177 3,968,537 Science & Technology -- A 1,122,786 12,950,441 13,945,003 Science & Technology -- B 460,676 5,128,227 5,689,348 Emerging Small Company -- A 199,402 5,089,645 5,866,398 Emerging Small Company -- B 170,276 4,620,579 4,966,937 International Core -- A 344,324 3,750,079 5,223,393 International Core -- B 205,190 2,680,585 3,122,997 Value -- A 548,336 9,339,093 12,458,196 Value -- B 211,566 4,074,549 4,785,628 Real Estate Securities -- A 402,972 9,028,152 11,138,143 Real Estate Securities -- B 564,712 13,074,008 15,580,397 High Yield -- A 841,817 8,402,737 8,973,774 High Yield -- B 1,111,468 11,361,793 11,892,705 Lifestyle Aggressive -- A 478,237 5,035,003 5,389,730 Lifestyle Aggressive -- B 5,173,254 56,971,173 58,043,905 Lifestyle Growth -- A 2,492,690 30,431,058 34,748,092 Lifestyle Growth -- B 50,941,553 668,695,117 707,068,757 Lifestyle Balanced -- A 4,051,399 49,604,363 56,071,367 Lifestyle Balanced -- B 46,180,626 604,979,040 636,830,827 Lifestyle Moderate -- A 2,041,529 25,355,927 27,295,247 Lifestyle Moderate -- B 12,908,653 166,595,994 171,943,264
108 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS - (CONTINUED)
Details of Investments ------------------------------------------ Sub-account Shares Owned Cost Value - ------------------------------------------------------------------------------------------- Lifestyle Conservative -- A 1,150,494 $ 15,060,960 $ 15,451,134 Lifestyle Conservative -- B 5,178,495 68,183,346 69,236,484 Small Company Value -- A 516,475 9,342,642 11,305,636 Small Company Value -- B 1,033,549 19,899,083 22,490,017 International Value -- A 1,031,452 14,763,730 19,989,547 International Value -- B 1,214,507 17,680,691 23,439,980 Total Return -- A 2,131,337 29,757,603 29,476,396 Total Return -- B 2,311,634 31,894,663 31,877,437 US Large Cap Value -- A 893,347 10,896,515 14,499,019 US Large Cap Value -- B 777,306 9,783,969 12,561,262 Mid Cap Stock -- A 1,149,560 14,992,905 19,508,037 Mid Cap Stock -- B 1,241,069 16,343,979 20,874,772 Global Allocation -- A 206,632 2,127,674 2,640,763 Global Allocation -- B 1,352,102 15,305,008 17,185,220 Dynamic Growth -- A 690,070 2,585,402 4,168,025 Dynamic Growth -- B 466,696 2,066,567 2,795,510 Total Stock Market Index -- A 138,653 1,370,463 1,820,509 Total Stock Market Index -- B 544,298 5,609,072 7,113,974 500 Index -- A 725,581 7,604,326 8,946,418 500 Index -- B 1,520,036 15,546,065 18,635,642 Mid Cap Index -- A 137,161 2,231,751 2,584,111 Mid Cap Index -- B 546,156 9,134,366 10,240,430 Small Cap Index -- A 89,289 1,252,951 1,515,233 Small Cap Index -- B 375,137 5,268,050 6,336,060 Capital Appreciation -- A 1,537,877 13,725,226 13,948,542 Capital Appreciation -- B 1,407,531 12,430,746 12,653,702 Health Sciences -- A 256,040 3,622,414 4,022,386 Health Sciences -- B 539,627 7,791,153 8,396,603 Financial Services -- A 184,879 2,553,836 3,472,031 Financial Services -- B 312,134 4,430,048 5,827,535 Quantitative Mid Cap -- A 43,809 524,315 473,133 Quantitative Mid Cap -- B 104,333 1,264,805 1,111,143 All Cap Value -- A 298,000 3,752,419 3,882,934 All Cap Value -- B 675,496 8,712,931 8,774,689 Utilities -- A 365,017 4,305,365 5,351,150 Utilities -- B 519,395 6,374,684 7,562,389 Mid Cap Value -- A 595,122 9,149,413 10,450,341 Mid Cap Value -- B 1,378,289 21,611,286 24,092,484 Fundamental Value -- A 539,622 6,593,692 9,076,447 Fundamental Value -- B 2,206,204 30,911,987 36,931,857 Emerging Growth -- B 113,614 1,589,487 1,425,855 Natural Resources -- B 451,532 14,038,857 14,263,906 Quantitative All Cap -- B 30,240 500,896 524,053 Large Cap Value -- B 378,678 8,064,984 8,694,438 Small Cap Opportunities -- A 162,997 3,309,661 3,977,136 Small Cap Opportunities -- B 363,007 7,405,706 8,806,545 Special Value-- B 37,670 675,732 734,563 Real Return Bond -- B 840,830 11,313,671 10,855,118 American International -- B 3,818,931 78,168,726 94,938,637 American Growth -- B 7,433,850 136,551,401 160,868,508
109 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS - (CONTINUED)
Details of Investments ------------------------------------------ Sub-account Shares Owned Cost Value - ------------------------------------------------------------------------------------------- American Blue Chip Income & Growth -- B 1,144,262 $ 17,884,967 $ 20,894,226 American Growth-Income -- B 7,073,990 122,651,199 142,470,165 American Bond -- B 5,567,811 70,590,207 74,051,885 American Century Small Company -- B 19,406 289,141 279,833 PIMCO VIT All Asset 410,236 4,817,631 4,791,554 LMFC Core Equity B 433,591 6,123,923 6,529,884 PIM Classic Value B 147,560 2,156,914 2,389,001 Quantitative Value -- B 12,512 177,819 191,308 US Global Leaders Growth-- A 117,388 1,438,370 1,543,647 US Global Leaders Growth-- B 298,109 3,650,397 3,911,188 John Hancock Strategic Income B 169,072 2,251,738 2,243,582 John Hancock Int'l Eq Index-- A 80,662 1,367,295 1,708,421 John Hancock Int'l Eq Index -- B 194,047 3,042,677 4,102,152 Active Bond-- A 870,401 8,352,774 8,599,561 Active Bond-- B 6,475,718 62,406,890 63,915,334 CGTC Overseas Equity -- B 56,962 751,628 820,248 Independence Investment LLC Small Cap-- B 5,071 73,236 71,548 Marisco International Opportunities-- B 170,176 2,769,759 3,092,105 T Rowe Price Mid Value-- B 84,094 1,057,366 1,147,048 UBS Large Cap-- B 9,570 137,278 149,863 US High Yield-- B 21,169 276,610 286,200 Wellington Small Cap Growth -- B 110,875 1,193,294 1,272,844 Wellington Small Cap Value -- B 106,322 2,072,500 2,179,610 Wells Capital Core Bond-- B 16,646 205,619 210,742 Index Allocation-- B 972,368 12,440,465 13,000,554 Large Cap Value -- A 129,736 2,946,322 2,993,004 Scudder Capital Growth -- B 436,003 7,077,166 7,913,455 Scudder Global Discovery -- B 169,471 2,204,743 3,038,614 Scudder Growth & Income -- B 393,283 3,470,658 4,286,788 Scudder Health Sciences -- B 193,668 2,251,217 2,626,140 Scudder International -- B 364,549 3,602,057 4,877,661 Scudder Mid Cap Growth -- B 134,159 1,462,338 1,659,543 Scudder Blue Chip -- B 281,184 3,660,578 4,532,688 Scudder Contarian Value -- B 264,395 3,921,469 4,743,244 Scudder Global Blue Chip -- B 109,759 1,397,009 1,907,609 Scudder Government Securities -- B 254,573 3,146,928 3,118,524 Scudder High Income -- B 424,210 3,430,206 3,554,882 Scudder International Select Equity -- B 229,642 2,714,805 3,733,980 Scudder Fixed Income -- B 636,831 7,460,875 7,540,078 Scudder Money Market -- B 3,167,013 3,167,013 3,172,913 Scudder Small Cap Growth -- B 229,571 2,695,659 3,204,814 Scudder Technology Growth -- B 170,125 1,481,795 1,573,653 Scudder Total Return -- B 106,124 2,282,711 2,592,613 Scudder Davis Venture Value -- B 524,798 5,753,372 7,462,622 Scudder Dreman High Return Equity -- B 905,387 11,716,882 13,598,912 Scudder Dreman Small Cap Value -- B 271,385 4,915,400 6,209,295 Scudder Janus Growth & Income -- B 184,201 1,683,529 2,177,259 Scudder Turner Mid Cap Growth -- B 234,141 2,281,493 2,514,672 Scudder Real Estate -- B 229,415 3,306,740 5,127,427 Scudder Strategic Income-- B 212,801 2,415,341 2,498,289
110 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS - (CONTINUED)
Details of Investments ---------------------------------------- Sub-account Shares Owned Cost Value - ----------------------------------------------------------------------------------------- Scudder Moderate Allocation-- B 2,115,854 $23,195,351 $26,278,906 Scudder Conservative Allocation-- B 761,090 8,326,931 9,026,528 Scudder Growth Allocation-- B 2,731,827 30,843,805 35,349,837 Scudder Bond -- B 72,329 489,517 507,024 Scudder Equity 500 Index -- B 551,136 7,145,715 8,244,994 Alger American Balanced -- B 258,024 3,449,622 3,689,737 Alger American Leveraged All Cap -- B 41,437 1,305,588 1,697,665 Credit Suisse Emerging Markets -- B 92,298 1,292,946 2,016,715 Credit Suisse Global Post Venture Capital -- B 31,869 359,726 467,199 Dreyfus Socially Responsible Growth Fund -- B 10,724 257,325 302,623 Dreyfus VIF Midcap Stock -- B 296,460 4,860,378 5,134,681 AIM VI Utilities -- B 75,009 1,178,109 1,592,451
111 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS - (CONTINUED) Purchases, including reinvestment of dividend distributions, and proceeds from sales of shares in the Portfolios of the Trust and of the Outside Trusts during 2006 were as follows:
Details of Investments -------------------------- Sub-account Purchases Sales - --------------------------------------------------------------------------- Strategic Opportunities -- A $ 181,298 $ 6,559,681 Strategic Opportunities -- B 160,615 409,103 Investment Quality Bond -- A 1,180,543 3,100,990 Investment Quality Bond -- B 14,122,449 3,813,207 U.S. Core -- A 11,086,370 17,656,914 U.S. Core -- B 2,502,812 4,345,759 Blue Chip Growth -- A 1,009,054 10,907,496 Blue Chip Growth -- B 2,233,359 4,235,731 Money Market -- A 23,787,748 28,808,821 Money Market -- B 43,960,070 31,604,396 Global Trust -- A 857,150 4,074,986 Global Trust -- B 731,028 592,591 Global Bond -- A 1,005,651 1,708,013 Global Bond -- B 8,139,155 1,562,131 U.S. Government Securities -- A 3,704,952 6,840,857 U.S. Government Securities -- B 4,573,198 6,761,976 Income & Value -- A 1,155,212 4,610,378 Income & Value -- B 1,182,182 1,820,872 Large Cap Growth -- A 128,513 16,168,281 Large Cap Growth -- B 378,621 13,253,787 Equity-Income -- A 6,435,479 12,020,303 Equity-Income -- B 7,670,572 7,033,314 Strategic Bond -- A 2,815,568 3,763,597 Strategic Bond -- B 3,315,926 2,577,284 All Cap Core -- A 291,320 2,587,893 All Cap Core -- B 184,412 202,950 All Cap Growth -- A 313,246 4,102,554 All Cap Growth -- B 719,161 1,671,981 International Small Cap -- A 2,321,632 2,736,024 International Small Cap -- B 2,330,125 1,692,733 Pacific Rim -- A 742,093 1,487,326 Pacific Rim -- B 2,666,147 3,117,259 Science & Technology -- A 583,502 3,904,761 Science & Technology -- B 938,124 1,858,440 Emerging Small Company -- A 1,199,135 2,070,890 Emerging Small Company -- B 1,042,256 1,238,032 International Core -- A 1,342,405 1,393,665 International Core -- B 2,152,292 1,010,424 Value -- A 2,945,575 2,556,803 Value -- B 2,057,541 1,264,686 Real Estate Securities -- A 3,518,196 2,579,255 Real Estate Securities -- B 6,047,600 4,184,090 High Yield -- A 1,846,124 3,202,134 High Yield -- B 5,021,325 5,404,383 Lifestyle Aggressive -- A 1,935,306 1,349,206 Lifestyle Aggressive -- B 21,514,896 9,018,705 Lifestyle Growth -- A 8,835,177 6,020,631 Lifestyle Growth -- B 360,221,762 21,778,204 Lifestyle Balanced -- A 10,829,673 11,235,016
112 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS - (CONTINUED)
Details of Investments -------------------------- Sub-account Purchases Sales - --------------------------------------------------------------------------- Lifestyle Balanced -- B $268,478,316 $27,185,119 Lifestyle Moderate -- A 6,786,698 6,417,268 Lifestyle Moderate -- B 72,901,605 19,816,958 Lifestyle Conservative -- A 2,975,038 2,983,925 Lifestyle Conservative -- B 34,024,297 18,543,378 Small Company Value -- A 2,744,157 4,083,401 Small Company Value -- B 7,830,792 6,072,498 International Value -- A 3,112,337 4,197,119 International Value -- B 5,222,206 4,601,773 Total Return -- A 3,069,278 7,537,063 Total Return -- B 5,094,197 9,217,251 US Large Cap Value -- A 278,786 3,301,116 US Large Cap Value -- B 1,066,228 3,570,419 Mid Cap Stock -- A 2,907,023 4,417,855 Mid Cap Stock -- B 3,490,894 3,508,009 Global Allocation -- A 436,415 921,799 Global Allocation -- B 8,941,818 878,527 Dynamic Growth -- A 105,048 1,399,366 Dynamic Growth -- B 320,422 908,056 Total Stock Market Index -- A 321,917 564,102 Total Stock Market Index -- B 855,685 1,081,836 500 Index -- A 3,918,562 5,918,094 500 Index -- B 3,500,528 5,711,712 Mid Cap Index -- A 755,365 514,383 Mid Cap Index -- B 4,346,521 1,565,918 Small Cap Index -- A 264,102 458,825 Small Cap Index -- B 1,164,461 1,513,168 Capital Appreciation -- A 15,277,641 3,324,333 Capital Appreciation -- B 12,868,175 3,230,111 Health Sciences -- A 1,533,587 1,371,768 Health Sciences -- B 2,850,309 2,130,884 Financial Services -- A 1,175,410 590,671 Financial Services -- B 1,781,866 1,249,137 Quantitative Mid Cap -- A 244,608 255,266 Quantitative Mid Cap -- B 753,207 618,250 All Cap Value -- A 1,232,241 772,253 All Cap Value -- B 3,048,923 1,847,015 Strategic Value -- A 532,585 1,798,566 Strategic Value -- B 1,811,797 5,677,537 Utilities -- A 2,103,259 1,002,951 Utilities -- B 3,252,524 1,636,218 Mid Cap Value -- A 2,882,449 3,970,639 Mid Cap Value -- B 5,846,799 4,651,590 Fundamental Value -- A 1,218,028 2,518,162 Fundamental Value -- B 13,875,519 3,923,056 Emerging Growth -- B 1,706,479 734,212 Natural Resources -- B 11,929,326 9,402,850 Mid Cap Core -- B 1,526,581 4,319,886 Quantitative All Cap -- B 139,588 272,004 Large Cap Value -- B 8,601,384 3,513,808 Small Cap Opportunities -- A 340,223 1,256,292 Small Cap Opportunities -- B 1,617,496 1,729,071
113 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS - (CONTINUED)
Details of Investments ------------------------- Sub-account Purchases Sales - -------------------------------------------------------------------------- Special Value-- B $ 359,754 $ 419,444 Real Return Bond -- B 2,218,204 7,224,609 American International -- B 36,936,351 11,867,717 American Growth -- B 53,441,248 13,894,306 American Blue Chip Income & Growth -- B 2,802,490 3,034,447 American Growth-Income -- B 46,663,993 11,670,044 American Bond -- B 51,598,081 3,335,921 American Century Small Company -- B 76,789 280,143 PIMCO VIT All Asset 1,583,229 2,173,408 LMFC Core Equity B 2,576,431 1,305,607 PIM Classic Value B 1,667,853 782,342 Quantitative Value -- B 789,606 723,002 US Global Leaders Growth-- A 69,444 208,025 US Global Leaders Growth-- B 375,185 1,063,080 John Hancock Strategic Income B 929,289 417,079 John Hancock Int'l Eq Index-- A 760,834 452,060 John Hancock Int'l Eq Index -- B 835,937 569,658 Active Bond-- A 343,886 2,092,988 Active Bond-- B 8,244,995 8,315,783 CGTC Overseas Equity -- B 1,014,087 443,556 Independence Investment LLC Small Cap-- B 43,968 25,883 Marisco International Opportunities-- B 3,378,763 1,165,516 T Rowe Price Mid Value-- B 959,695 92,619 UBS Large Cap-- B 101,021 66,150 US High Yield-- B 248,333 38,782 Wellington Small Cap Growth -- B 1,336,132 646,736 Wellington Small Cap Value -- B 2,135,546 811,742 Wells Capital Core Bond-- B 549,888 433,375 Index Allocation-- B 12,861,668 417,419 Large Cap Value -- A 1,230,786 41,062 Scudder Capital Growth -- B 2,910,787 960,878 Scudder Global Discovery -- B 525,231 473,420 Scudder Growth & Income -- B 275,194 466,599 Scudder Health Sciences -- B 829,869 1,172,898 Scudder International -- B 1,474,656 1,193,093 Scudder Mid Cap Growth -- B 711,532 544,543 Scudder Blue Chip -- B 1,050,922 1,350,359 Scudder Contarian Value -- B 225,545 727,129 Scudder Global Blue Chip -- B 557,124 1,327,901 Scudder Government Securities -- B 289,465 779,690 Scudder High Income -- B 576,709 814,415 Scudder International Select Equity -- B 611,623 998,739 Scudder Fixed Income -- B 2,507,919 2,627,196 Scudder Money Market -- B 4,680,591 5,241,032 Scudder Small Cap Growth -- B 194,510 773,150 Scudder Technology Growth -- B 508,240 639,902 Scudder Total Return -- B 147,196 550,669 Scudder Davis Venture Value -- B 394,521 1,672,692 Scudder Dreman Financial Services -- B 852,565 2,310,216 Scudder Dreman High Return Equity -- B 6,008,205 1,802,731 Scudder Dreman Small Cap Value -- B 940,734 1,509,214 Scudder Salomon Growth -- B 268,703 839,945
114 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 4. DETAILS OF INVESTMENTS - (CONTINUED)
Details of Investments ----------------------- Sub-account Purchases Sales - ------------------------------------------------------------------------ Scudder Janus Growth & Income -- B $ 72,212 $ 575,138 Scudder Janus Growth Opportunities -- B 517,180 1,691,139 Scudder MFS Strategic Value -- B 230,512 3,838,293 Scudder Oak Strategic Equity -- B 89,252 1,552,419 Scudder Turner Mid Cap Growth -- B 946,538 1,048,331 Scudder Real Estate -- B 425,028 1,107,238 Scudder Strategic Income -- B 656,122 585,999 Scudder Conservative Income Strategy 604,113 1,824,947 Scudder Moderate Allocation -- B 2,702,655 1,266,671 Scudder Conservative Allocation -- B 3,134,834 1,084,304 Scudder Growth Allocation -- B 4,621,443 3,727,249 Scudder Templeton Foreign Value -- B 1,008,407 978,780 Scudder Mercury Large Cap Core -- B 16,541 97,116 Scudder Bond -- B 439,848 103,034 Scudder Equity 500 Index -- B 342,741 2,509,891 Alger American Balanced -- B 442,163 568,336 Alger American Leveraged All Cap -- B 503,828 234,288 Credit Suisse Emerging Markets -- B 402,889 1,078,833 Credit Suisse Global Post Venture Capital -- B 142,365 186,402 Dreyfus Socially Responsible Growth Fund -- B 13,594 88,651 Dreyfus VIF Midcap Stock -- B 1,189,394 1,108,585 AIM VI Utilities -- B 287,588 378,035
115 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 5. DETAILS OF DIVIDENDS The dividend income is comprised of distributions received from the underlying Portfolios as follows:
Dividend Income Capital Gain Distribution Distributuion Total ---------------------- ---------------------- ---------------------- Sub-account 2006 2005 2006 2005 2006 2005 - ------------------------------------------------------------------------------------------------------ Strategic Opportunities -- A $ 3,307 $ 133,746 $ -- $ -- $ 3,307 $ 133,746 Strategic Opportunities -- B -- 4,099 -- -- -- 4,099 Investment Quality Bond -- A 786,622 911,979 -- -- 786,622 911,979 Investment Quality Bond -- B 1,256,389 367,207 -- 1,256,389 367,207 U.S. Core -- A 866,853 1,214,806 8,332,122 1,883,433 9,198,975 3,098,239 U.S. Core -- B 121,222 177,673 1,389,409 319,672 1,510,631 497,345 Blue Chip Growth -- A 100,180 223,479 -- -- 100,180 223,479 Blue Chip Growth -- B 7,096 -- -- -- 7,096 -- Money Market -- A 1,271,165 722,403 -- -- 1,271,165 722,403 Money Market -- B 1,303,975 513,522 -- -- 1,303,975 513,522 Global Trust -- A 290,111 314,018 -- -- 290,111 314,018 Global Trust -- B 48,207 35,881 -- -- 48,207 35,881 Global Bond -- A -- 327,184 77,389 59,341 77,389 386,525 Global Bond -- B -- 348,099 149,501 69,252 149,501 417,351 U.S. Government Securities -- A 1,062,392 460,893 -- 487,392 1,062,392 948,285 U.S. Government Securities -- B 594,087 193,952 -- 267,013 594,087 460,965 Income & Value -- A 420,959 387,895 -- -- 420,959 387,895 Income & Value -- B 197,808 151,823 -- -- 197,808 151,823 Large Cap Growth -- A 57,780 130,806 -- -- 57,780 130,806 Large Cap Growth -- B 16,375 73,944 -- -- 16,375 73,944 Equity-Income -- A 977,415 898,791 4,021,624 2,484,200 4,999,039 3,382,991 Equity-Income -- B 473,388 274,759 2,184,962 1,018,145 2,658,350 1,292,904 Strategic Bond -- A 1,114,130 541,262 -- -- 1,114,130 541,262 Strategic Bond -- B 935,284 223,912 -- -- 935,284 223,912 All Cap Core -- A 71,918 88,776 -- -- 71,918 88,776 All Cap Core -- B 6,659 5,357 -- -- 6,659 5,357 International Small Cap -- A 88,177 66,486 -- -- 88,177 66,486 International Small Cap -- B 56,902 10,652 -- -- 56,902 10,652 Pacific Rim -- A 32,750 26,715 -- -- 32,750 26,715 Pacific Rim -- B 31,206 16,619 -- -- 31,206 16,619 Emerging Small Company -- -- -- 345,860 -- 345,860 -- Emerging Small Company -- -- -- 288,406 -- 288,406 -- International Core -- A 28,345 32,271 215,605 -- 243,950 32,271 International Core -- B 9,955 -- 96,463 -- 106,418 -- Value -- A 44,386 74,276 1,644,993 -- 1,689,379 74,276 Value -- B 7,918 14,843 549,075 -- 556,993 14,843 Real Estate Securities -- A 182,107 183,706 1,737,633 1,266,441 1,919,740 1,450,147 Real Estate Securities -- B 216,422 165,560 2,252,014 1,486,099 2,468,436 1,651,659
116 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 5. DETAILS OF DIVIDENDS -- (CONTINUED) The dividend income is comprised of distributions received from the underlying Portfolios as follows:
Dividend Income Capital Gain Distribution Distributuion Total ----------------------- ----------------------- ------------------------ Sub-account 2006 2005 2006 2005 2006 2005 - ---------------------------------------------------------------------------------------------------------- High Yield -- A $ 639,652 $ 543,694 $ -- $ -- $ 639,652 $ 543,694 High Yield -- B 759,056 458,024 -- -- 759,056 458,024 Lifestyle Aggressive -- A 404,691 110,070 1,071,714 85,091 1,476,405 195,161 Lifestyle Aggressive -- B 4,417,116 918,152 11,724,260 708,768 16,141,376 1,626,920 Lifestyle Growth -- A 2,054,580 934,905 2,346,119 206,716 4,400,699 1,141,621 Lifestyle Growth -- B 27,667,312 5,479,562 31,594,940 1,189,224 59,262,252 6,668,786 Lifestyle Balanced -- A 3,013,914 2,205,423 3,592,276 895,317 6,606,190 3,100,740 Lifestyle Balanced -- B 24,917,500 8,135,500 29,645,325 3,260,385 54,562,825 11,395,885 Lifestyle Moderate -- A 1,262,365 1,152,867 1,245,925 804,317 2,508,290 1,957,184 Lifestyle Moderate -- B 6,140,352 3,064,192 6,051,344 2,137,656 12,191,696 5,201,848 Lifestyle Conservative -- A 705,228 739,817 455,428 475,919 1,160,656 1,215,736 Lifestyle Conservative -- B 2,696,607 1,832,417 1,740,241 1,179,975 4,436,848 3,012,392 Small Company Value -- A 8,849 37,576 2,040,300 223,450 2,049,149 261,026 Small Company Value -- B -- 12,649 3,375,562 314,009 3,375,562 326,658 International Value -- A 346,818 69,029 831,966 90,366 1,178,784 159,395 International Value -- B 346,600 99,074 907,465 188,461 1,254,065 287,535 Total Return -- A 1,094,016 892,014 -- 918,925 1,094,016 1,810,939 Total Return -- B 1,088,609 718,565 -- 871,799 1,088,609 1,590,364 US Large Cap Value -- A 87,661 75,435 -- -- 87,661 75,435 US Large Cap Value -- B 51,535 16,666 -- -- 51,535 16,666 Mid Cap Stock -- A -- -- 829,036 302,291 829,036 302,291 Mid Cap Stock -- B -- -- 827,112 444,744 827,112 444,744 Global Allocation -- A 29,889 28,007 -- -- 29,889 28,007 Global Allocation -- B 83,937 37,227 -- -- 83,937 37,227 Total Stock Market Index -- A 18,202 20,278 9,737 -- 27,939 20,278 Total Stock Market Index -- B 51,985 57,250 33,190 -- 85,175 57,250 500 Index -- A 77,934 171,042 -- -- 77,934 171,042 500 Index -- B 141,001 248,509 -- -- 141,001 248,509 Mid Cap Index -- A 14,206 11,286 99,254 73,700 113,460 84,986 Mid Cap Index -- B 33,201 21,257 322,613 212,687 355,814 233,944 Small Cap Index -- A 8,192 9,540 44,263 64,485 52,455 74,025 Small Cap Index -- B 20,775 20,395 169,982 210,027 190,757 230,422 Capital Appreciation -- A -- -- 148,109 -- 148,109 -- Capital Appreciation -- B -- -- 356,627 -- 356,627 -- Health Sciences -- A -- -- 364,786 300,247 364,786 300,247 Health Sciences -- B -- -- 724,294 500,044 724,294 500,044 Financial Services -- A 8,518 9,313 47 -- 8,565 9,313 Financial Services -- B 9,729 8,355 93 -- 9,822 8,355 Quantitative Mid Cap -- A -- -- 182,721 -- 182,721 -- Quantitative Mid Cap -- B -- -- 408,660 -- 408,660 --
117 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 5. DETAILS OF DIVIDENDS -- (CONTINUED) The dividend income is comprised of distributions received from the underlying Portfolios as follows:
Dividend Income Capital Gain Distribution Distributuion Total -------------------- ---------------------- ---------------------- Sub-account 2006 2005 2006 2005 2006 2005 - ---------------------------------------------------------------------------------------------------- All Cap Value -- A $ 37,147 $ 20,426 $ 827,974 $ 143,409 $ 865,121 $ 163,835 All Cap Value -- B 69,860 9,559 1,879,691 308,110 1,949,551 317,669 Strategic Value -- A 36,123 12,091 317,937 147,427 354,060 159,518 Strategic Value -- B 103,144 15,008 1,055,021 390,291 1,158,165 405,299 Utilities -- A 90,601 16,931 473,896 215,973 564,497 232,904 Utilities -- B 128,712 12,774 728,040 231,673 856,752 244,447 Mid Cap Value -- A 77,915 53,256 1,852,567 406,829 1,930,482 460,085 Mid Cap Value -- B 125,026 57,414 4,047,935 761,451 4,172,961 818,865 Fundamental Value -- A 74,261 43,898 309,035 -- 383,296 43,898 Fundamental Value -- B 174,951 40,532 923,003 -- 1,097,954 40,532 Emerging Growth -- B -- -- 551,446 -- 551,446 -- Natural Resources -- B 59,681 -- 2,720,026 166,699 2,779,707 166,699 Mid Cap Core -- B 47,214 -- 809,268 458,834 856,482 458,834 Quantitative All Cap -- B 3,841 4,106 43,823 45,324 47,664 49,430 Large Cap Value -- B 15,812 -- 456,448 -- 472,260 -- Small Cap Opportunities -- A 30,684 -- 114,772 -- 145,456 -- Small Cap Opportunities -- B 46,132 -- 225,916 55,557 272,048 55,557 Special Value-- B -- -- 88,478 3,508 88,478 3,508 Real Return Bond -- B 333,814 18,699 272,457 630,168 606,271 648,867 American International -- B 562,658 179,351 750,528 2,408,581 1,313,186 2,587,932 American Growth -- B 225,678 -- 842,829 83,653 1,068,507 83,653 American Blue Chip Income & Growth -- B 84,087 7,724 337,825 1,888,187 421,912 1,895,911 American Growth-Income -- B 1,091,094 197,952 133,016 76,115 1,224,110 274,067 American Century Small Company -- B -- -- 48,177 10,636 48,177 10,636 PIMCO VIT All Asset 254,474 178,349 12,279 16,072 266,753 194,421 LMFC Core Equity B -- -- 371,850 -- 371,850 -- PIM Classic Value B 17,418 4,523 42,770 58,741 60,188 63,264 Quantitative Value -- B 2,387 -- 22,879 3,251 25,266 3,251 US Global Leaders Growth-- A -- 2,680 15,395 28,369 15,395 31,049 US Global Leaders Growth-- B -- -- 41,110 77,720 41,110 77,720 John Hancock Strategic Income B 64,468 60,568 592 3,896 65,060 64,464 John Hancock Int'l Eq Index-- A 11,981 8,499 12,136 73,099 24,117 81,598 John Hancock Int'l Eq Index-- B 22,206 17,677 28,538 198,709 50,744 216,386
118 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 5. DETAILS OF DIVIDENDS -- (CONTINUED) The dividend income is comprised of distributions received from the underlying Portfolios as follows:
Dividend Income Capital Gain Distribution Distribution Total -------------------- ------------------ -------------------- Sub-account 2006 2005 2006 2005 2006 2005 - ---------------------------------------------------------------------------------------------- Active Bond-- A $ 266,708 $ -- $ -- $ 25,253 $ 266,708 $ 25,253 Active Bond-- B 1,630,598 -- -- 141,673 1,630,598 141,673 CGTC Overseas Equity -- B 2,519 -- 19,486 1,778 22,005 1,778 Independence Investment LLC Small Cap-- B -- -- 7,986 -- 7,986 -- Marisco International Opportunities-- B 4,575 -- 59,929 -- 64,504 -- T Rowe Price Mid Value-- B 384 -- 45,278 803 45,662 803 UBS Large Cap-- B 246 -- 2,295 -- 2,541 -- US High Yield-- B 3,446 -- -- -- 3,446 -- Wellington Small Cap Growth - -- B -- -- -- 4,582 -- 4,582 Wellington Small Cap Value - -- B -- -- 251,761 4,794 251,761 4,794 Wells Capital Core Bond-- B 3,170 -- -- -- 3,170 -- Index Allocation-- B 130,376 -- -- -- 130,376 -- Large Cap Value -- A -- -- -- -- -- -- Scudder Capital Growth -- B 10,213 9,199 -- -- 10,213 9,199 Scudder Global Discovery -- B 24,506 5,077 -- -- 24,506 5,077 Scudder Growth & Income -- B 25,016 27,710 -- -- 25,016 27,710 Scudder Health Sciences -- B -- -- 11,129 -- 11,129 -- Scudder International -- B 61,803 48,516 -- -- 61,803 48,516 Scudder Mid Cap Growth -- B -- -- -- -- -- -- Scudder Blue Chip -- B 22,089 24,193 237,511 -- 259,600 24,193 Scudder Contarian Value -- B 56,589 70,170 -- -- 56,589 70,170 Scudder Global Blue Chip -- B 4,643 -- 175,331 -- 179,974 -- Scudder Government Securities -- B 121,763 132,754 -- 28,622 121,763 161,376 Scudder High Income -- B 281,923 385,095 -- 281,923 385,095 Scudder International Select Equity -- B 59,624 62,560 -- 59,624 62,560 Scudder Fixed Income -- B 236,980 227,834 1,187 67,875 238,167 295,709 Scudder Money Market -- B 158,840 54,758 -- -- 158,840 54,758 Scudder Technology Growth -- B -- 1,871 -- -- -- 1,871 Scudder Total Return -- B 60,279 69,683 -- -- 60,279 69,683
119 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 5. DETAILS OF DIVIDENDS -- (CONTINUED) The dividend income is comprised of distributions received from the underlying Portfolios as follows:
Dividend Income Capital Gain Distribution Distribution Total ------------------ ------------------ ------------------ Sub-account 2006 2005 2006 2005 2006 2005 - ------------------------------------------------------------------------------------------ Scudder Davis Venture Value - -- B $ 21,553 $ 25,330 $ -- $ -- $ 21,553 $ 25,330 Scudder Dreman Financial Services -- B 50,778 24,546 317,952 -- 368,730 24,546 Scudder Dreman High Return Equity -- B 117,424 98,674 510,858 -- 628,282 98,674 Scudder Dreman Small Cap Value -- B 24,602 18,847 498,755 453,967 523,357 472,814 Scudder Salomon Growth -- B -- -- 205,493 -- 205,493 -- Scudder Janus Growth & Income -- B 5,547 -- -- -- 5,547 -- Scudder MFS Strategic Value - -- B 22,357 25,357 170,421 349,879 192,778 375,236 Scudder Turner Mid Cap Growth -- B -- -- 218,164 -- 218,164 -- Scudder Real Estate -- B -- 96,020 80,192 284,332 80,192 380,352 Scudder Strategic Income -- B 108,500 177,416 22,439 5,546 130,939 182,962 Scudder Conservative Income Strategy 66,372 -- 13,040 549 79,412 549 Scudder Moderate Allocation-- B 210,533 -- 168,426 17,059 378,959 17,059 Scudder Conservative Allocation-- B 90,913 -- 40,399 6,825 131,312 6,825 Scudder Growth Allocation-- B 265,460 -- 271,048 20,452 536,508 20,452 Scudder Templeton Foreign Value 21,047 790 211,985 552 233,032 1,342 Scudder Mercury Large Cap Core -- 5 13,451 125 13,451 130 Scudder Bond -- B 5,265 -- 186 -- 5,451 -- Scudder Equity 500 Index -- B 75,375 -- -- -- 75,375 -- Alger American Balanced -- B 45,587 62,242 194,811 -- 240,398 62,242 Credit Suisse Emerging Markets -- B 11,063 13,450 27,173 -- 38,236 13,450 Dreyfus VIF Midcap Stock -- B 10,195 -- 919,004 20,853 929,199 20,853 AIM VI Utilities -- B 50,670 32,082 31,283 -- 81,953 32,082
120 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES A summary of unit values and units outstanding for variable annuity contracts and the expense and income ratios, excluding expenses of the underlying Portfolios, were as follows:
EXPENSE RATIO INVESTMENT TOTAL UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME RETURN HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- -------- -------------- ---------- ------------------- Strategic Opportunities - A 2006 1,036 $30.20 to $9.73 $ 25,877 1.75% to 1.40% 0.01% 10.60% to 10.22% 2005 1,295 27.30 to 8.83 29,104 1.75 to 1.40 0.45 8.20 to 7.83 2004 1,596 25.23 to 8.19 33,131 1.75 to 1.40 0.09 10.75 to 10.36 2003 1,878 22.79 to 7.42 35,115 1.75 to 1.40 0.00 24.09 to 23.66 2002 2,127 18.36 to 6.00 32,409 1.75 to 1.40 0.00 (39.62) to (39.83) Strategic Opportunities - B 2006 119 13.44 to 12.89 1,589 1.85 to 1.40 0.00 10.36 to 9.87 2005 137 12.18 to 11.71 1,659 1.85 to 1.40 0.26 8.03 to 4.76 2004 142 11.27 to 10.87 1,596 1.75 to 1.40 0.02 10.82 to 10.43 2003 128 10.17 to 9.83 1,292 1.75 to 1.40 0.00 23.87 to 23.44 2002 19 8.21 to 7.96 154 1.75 to 1.40 0.00 (9.50) to (36.35) Investment Quality Bond - A 2006 545 26.55 to 16.52 11,394 1.75 to 1.40 6.35 2.13 to 1.78 2005 659 25.99 to 16.23 13,684 1.75 to 1.40 5.85 0.84 to 0.49 2004 812 25.78 to 16.15 17,006 1.75 to 1.40 6.00 3.35 to 2.99 2003 953 24.94 to 15.68 19,568 1.75 to 1.40 5.30 5.83 to 5.46 2002 1,208 23.57 to 14.87 23,510 1.75 to 1.40 4.96 8.41 to 8.03 Investment Quality Bond - B 2006 1,826 14.94 to 12.99 26,873 1.85 to 1.15 5.47 4.16 to 1.47 2005 1,168 14.66 to 14.42 17,007 1.85 to 1.40 3.82 0.61 to (0.28) 2004 499 14.57 to 14.44 7,232 1.75 to 1.40 5.22 3.19 to 2.83 2003 466 14.15 to 14.04 6,562 1.75 to 1.40 4.25 5.75 to 5.38 2002 185 13.41 to 13.32 2,464 1.75 to 1.40 0.33 7.28 to 2.27 U.S. Core - A 2006 2,725 32.90 to 10.61 65,921 1.75 to 1.40 1.25 7.66 to 7.29 2005 3,340 30.56 to 9.89 75,782 1.75 to 1.40 1.43 0.62 to 0.27 2004 4,242 30.37 to 9.86 95,127 1.75 to 1.40 0.88 5.28 to 4.92 2003 4,833 28.85 to 9.40 105,349 1.75 to 1.40 1.00 24.83 to 24.39 2002 5,355 23.11 to 7.56 95,740 1.75 to 1.40 0.66 (25.39) to (25.65) U.S. Core - B 2006 842 14.58 to 13.33 12,039 1.85 to 1.40 1.00 7.48 to 7.00 2005 1,076 13.56 to 12.43 14,348 1.85 to 1.40 1.18 0.43 to (1.39) 2004 1,230 13.51 to 12.41 16,363 1.75 to 1.40 0.69 5.06 to 4.70 2003 966 12.86 to 11.84 12,269 1.75 to 1.40 0.81 24.65 to 24.22 2002 243 10.31 to 9.53 2,496 1.75 to 1.40 0.02 (6.48) to (23.80) Blue Chip Growth - A 2006 2,288 24.22 to 10.96 45,399 1.75 to 1.40 0.21 8.07 to 7.69 2005 2,774 22.46 to 10.18 51,140 1.75 to 1.40 0.42 4.13 to 3.77 2004 3,361 21.63 to 9.81 59,864 1.75 to 1.40 0.12 7.51 to 7.14 2003 3,812 20.17 to 9.15 63,875 1.75 to 1.40 0.04 27.38 to 26.93 2002 4,318 15.87 to 7.21 57,550 1.75 to 1.40 0.00 (25.31) to (25.57) Blue Chip Growth - B 2006 1,374 15.64 to 13.17 21,093 1.85 to 1.15 0.03 7.80 to 5.20 2005 1,489 14.51 to 13.41 21,253 1.85 to 1.40 0.00 3.90 to 2.29 2004 1,140 13.97 to 12.94 15,702 1.75 to 1.40 0.06 7.31 to 6.94 2003 699 13.01 to 12.09 8,975 1.75 to 1.40 0.11 27.22 to 26.78 2002 166 10.23 to 9.53 1,681 1.75 to 1.40 0.00 (6.75) to (23.78) Money Market - A 2006 1,593 17.82 to 13.05 24,875 1.75 to 1.40 4.35 2.99 to 2.63 2005 1,956 17.30 to 12.71 29,884 1.75 to 1.40 2.61 1.24 to 0.89 2004 1,963 17.09 to 12.59 29,824 1.75 to 1.40 0.80 (0.60) to (0.95) 2003 2,678 17.19 to 12.70 40,217 1.75 to 1.40 0.60 (0.82) to (1.16) 2002 4,836 17.33 to 12.83 71,391 1.75 to 1.40 1.17 (0.23) to (0.58)
121 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- ------------------ Money Market - B 2006 2,653 $12.77 to $12.45 $33,361 1.85% to 1.15% 4.20% 2.79% to 1.81% 2005 1,716 12.37 to 12.16 21,020 1.85 to 1.40 2.42 1.04 to 0.47 2004 1,606 12.24 to 12.13 19,536 1.75 to 1.40 0.53 (0.80) to (1.14) 2003 1,567 12.34 to 12.26 19,245 1.75 to 1.40 0.37 (1.01) to (1.36) 2002 968 12.46 to 12.42 12,039 1.75 to 1.40 0.59 (0.08) to (0.64) Global Trust - A 2006 722 33.14 to 16.14 22,073 1.75 to 1.40 1.34 18.65 to 18.24 2005 835 27.93 to 13.65 21,550 1.75 to 1.40 1.33 9.19 to 8.81 2004 1,093 25.58 to 12.54 26,117 1.75 to 1.40 1.77 13.16 to 12.76 2003 1,222 22.60 to 11.13 25,984 1.75 to 1.40 0.91 25.69 to 25.25 2002 1,451 17.99 to 8.88 24,611 1.75 to 1.40 1.39 (20.23) to (20.51) Global Trust - B 2006 252 18.91 to 18.43 4,726 1.85 to 1.40 1.11 18.43 to 17.90 2005 242 15.96 to 15.60 3,839 1.85 to 1.40 1.10 8.97 to 4.62 2004 156 14.65 to 14.35 2,271 1.75 to 1.40 1.22 12.94 to 12.54 2003 84 12.97 to 12.74 1,084 1.75 to 1.40 0.58 25.46 to 25.02 2002 24 10.34 to 10.18 250 1.75 to 1.40 0.02 (4.46) to (18.58) Global Bond - A 2006 252 27.35 to 17.51 5,851 1.75 to 1.40 0.00 3.81 to 3.45 2005 280 26.35 to 16.93 6,328 1.75 to 1.40 4.76 (7.84) to (8.16) 2004 290 28.59 to 18.43 7,259 1.75 to 1.40 3.76 8.71 to 8.33 2003 333 26.30 to 17.02 7,790 1.75 to 1.40 3.99 13.79 to 13.39 2002 446 23.11 to 15.01 9,221 1.75 to 1.40 0.00 18.45 to 18.04 Global Bond - B 2006 1,045 17.40 to 12.66 17,310 1.85 to 1.15 0.00 3.61 to 1.12 2005 632 16.83 to 15.99 10,257 1.85 to 1.40 3.99 (3.01) to (8.27) 2004 459 18.33 to 17.49 8,103 1.75 to 1.40 2.91 8.54 to 8.16 2003 316 16.93 to 16.17 5,160 1.75 to 1.40 3.49 13.57 to 13.17 2002 96 14.95 to 14.29 1,379 1.75 to 1.40 0.00 19.58 to 5.13 U.S. Government Securities - A 2006 1,010 23.58 to 15.24 19,539 1.75 to 1.40 4.92 2.94 to 2.58 2005 1,203 22.91 to 14.86 22,795 1.75 to 1.40 1.78 0.17 to (0.18) 2004 1,498 22.87 to 14.89 28,279 1.75 to 1.40 2.02 1.45 to 1.10 2003 1,852 22.54 to 14.72 34,707 1.75 to 1.40 3.48 0.32 to (0.03) 2002 2,576 22.47 to 14.73 47,851 1.75 to 1.40 3.14 6.49 to 6.12 U.S. Government Securities - B 2006 809 13.69 to 12.97 10,952 1.85 to 1.15 4.65 4.01 to 2.29 2005 998 13.33 to 13.11 13,188 1.85 to 1.40 1.34 0.05 to (0.34) 2004 1,114 13.35 to 13.20 14,757 1.75 to 1.40 1.69 1.27 to 0.91 2003 1,242 13.22 to 13.08 16,277 1.75 to 1.40 2.63 0.18 to (0.17) 2002 381 13.29 to 13.10 4,999 1.75 to 1.40 0.12 5.83 to 1.15 Income & Value - A 2006 832 27.95 to 15.12 19,390 1.75 to 1.40 2.08 7.16 to 6.78 2005 977 26.08 to 14.16 21,592 1.75 to 1.40 1.71 3.76 to 3.40 2004 1,195 25.14 to 13.70 25,291 1.75 to 1.40 1.25 6.14 to 5.77 2003 1,090 23.68 to 12.95 22,537 1.75 to 1.40 1.97 24.73 to 24.29 2002 1,169 18.99 to 10.42 19,697 1.75 to 1.40 2.10 (17.10) to (17.39) Income & Value - B 2006 695 15.85 to 12.97 10,855 1.85 to 1.15 1.81 6.92 to 3.62 2005 739 14.82 to 14.18 10,815 1.85 to 1.40 1.48 3.53 to 1.56 2004 705 14.32 to 13.73 9,986 1.75 to 1.40 0.91 5.92 to 5.55 2003 418 13.52 to13.00 5,604 1.75 to 1.40 1.34 24.53 to 24.10 2002 72 10.86 to 10.46 782 1.75 to 1.40 0.06 (5.24) to (16.31) Large Cap Growth - A 2006 -- 19.35 to 8.62 -- 1.75 to 1.40 0.38(a) 1.92 to 1.80(a) 2005 1,167 18.99 to 8.47 15,731 1.75 to 1.40 0.77 (1.15) to (1.49) 2004 1,389 19.21 to 8.59 19,019 1.75 to 1.40 0.28 4.70 to 4.33 2003 1,546 18.34 to 8.24 20,289 1.75 to 1.40 0.26 23.59 to 23.15 2002 1,748 14.84 to 6.69 18,491 1.75 to 1.40 0.33 (23.91) to (24.17)
122 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- ------------------ Large Cap Growth - B 2006 -- $13.11 to $12.30 -- 1.85% to 1.40% 0.14%(a) 1.85 to 1.70(a) 2005 992 12.87 to 12.08 12,609 1.85 to 1.40 0.58 (1.17) to (1.75) 2004 1,043 13.06 to 12.29 13,477 1.75 to 1.40 0.17 4.52 to 4.16 2003 792 12.49 to 11.78 9,813 1.75 to 1.40 0.25 23.50 to 23.07 2002 111 10.11 to 9.56 1,120 1.75 to 1.40 0.01 (6.30) to (23.48) Equity-Income - A 2006 2,087 36.09 to 20.12 65,058 1.75 to 1.40 1.53 17.37 to 16.96 2005 2,415 30.74 to 17.20 64,504 1.75 to 1.40 1.30 2.48 to 2.12 2004 2,836 30.00 to 16.84 74,171 1.75 to 1.40 1.31 13.21 to 12.81 2003 3,134 26.50 to 14.93 72,725 1.75 to 1.40 1.51 23.83 to 23.40 2002 3,515 21.40 to 12.10 66,375 1.75 to 1.40 1.38 (14.49) to (14.79) Equity-Income - B 2006 2,177 17.74 to 13.74 37,727 1.85 to 1.15 1.36 17.12 to 9.77 2005 2,271 15.18 to 14.66 33,757 1.85 to 1.40 0.88 2.28 to 0.18 2004 1,869 14.88 to 14.44 27,207 1.75 to 1.40 0.96 13.01 to 12.62 2003 1,249 13.20 to 12.82 16,139 1.75 to 1.40 1.10 23.66 to 23.23 2002 341 10.70 to 10.41 3,557 1.75 to 1.40 0.01 (3.87) to (16.75) Strategic Bond - A 2006 758 21.83 to 17.84 15,541 1.75 to 1.40 6.84 5.57 to 5.20 2005 847 20.68 to 16.96 16,526 1.75 to 1.40 2.89 1.27 to 0.92 2004 1,066 20.42 to 16.80 20,777 1.75 to 1.40 3.89 5.18 to 4.81 2003 1,279 19.41 to 16.03 23,715 1.75 to 1.40 4.98 11.54 to 11.15 2002 1,573 17.41 to 14.42 26,185 1.75 to 1.40 7.09 7.44 to 7.07 Strategic Bond - B 2006 892 16.27 to 13.27 14,373 1.85 to 1.15 6.66 6.42 to 4.91 2005 891 15.48 to 15.15 13,656 1.85 to 1.40 1.90 1.02 to 0.06 2004 594 15.36 to 15.10 9,013 1.75 to 1.40 2.79 4.91 to 4.54 2003 394 14.68 to 14.45 5,716 1.75 to 1.40 3.27 11.36 to 10.97 2002 110 13.22 to 13.02 1,432 1.75 to 1.40 0.36 5.74 to 1.36 All Cap Core - A 2006 522 20.83 to 9.21 9,535 1.75 to 1.40 0.72 13.16 to 12.76 2005 669 18.41 to 8.17 10,530 1.75 to 1.40 0.79 7.57 to 7.19 2004 839 17.11 to 7.62 12,345 1.75 to 1.40 0.46 14.71 to 14.31 2003 1,051 14.92 to 6.67 13,409 1.75 to 1.40 0.00 29.72 to 29.26 2002 1,179 11.50 to 5.16 11,921 1.75 to 1.40 0.00 (26.27) to (26.53) All Cap Core - B 2006 73 18.94 to 16.71 1,341 1.85 to 1.40 0.52 12.96 to 12.45 2005 73 16.76 to 14.83 1,194 1.85 to 1.40 0.58 7.38 to 2.89 2004 52 15.61 to 13.84 790 1.75 to 1.40 0.31 14.44 to 14.04 2003 40 13.64 to 12.13 537 1.75 to 1.40 0.00 29.43 to 28.98 2002 9 10.54 to 9.39 94 1.75 to 1.40 0.00 (4.53) to (24.86) All Cap Growth - A 2006 1,006 20.21 to 8.59 16,657 1.75 to 1.40 0.00 5.10 to 4.73 2005 1,229 19.23 to 8.20 19,308 1.75 to 1.40 0.00 7.48 to 7.11 2004 1,524 17.89 to 7.65 22,220 1.75 to 1.40 0.00 5.04 to 4.67 2003 1,856 17.03 to 7.31 25,993 1.75 to 1.40 0.00 27.44 to 27.00 2002 2,165 13.36 to 5.76 24,084 1.75 to 1.40 0.00 (25.46) to (25.72) All Cap Growth - B 2006 288 15.05 to 14.04 4,253 1.85 to 1.40 0.00 4.84 to 4.37 2005 348 14.36 to 13.42 4,923 1.85 to 1.40 0.00 7.26 to 5.24 2004 394 $13.39 to $12.54 5,206 1.75 to 1.40 0.00 4.85 to 4.48 2003 323 $12.77 to $11.99 4,079 1.75 to 1.40 0.00 27.20 to 26.76 2002 62 $10.04 to $9.45 613 1.75 to 1.40 0.00 (7.06) to (24.39)
123 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- ------------------ International Small Cap - A 2006 360 $26.22 to $13.67 $ 8,037 1.75% to 1.40% 1.17% 25.96% to 25.52% 2005 357 20.82 to 10.89 6,725 1.75 to 1.40 0.88 8.58 to 8.20 2004 449 19.17 to 10.06 7,886 1.75 to 1.40 0.13 19.38 to 18.96 2003 477 16.06 to 8.46 7,213 1.75 to 1.40 0.00 52.79 to 52.26 2002 539 10.51 to 5.56 5,297 1.75 to 1.40 0.00 (17.88) to (18.17) International Small Cap - B 2006 290 25.04 to 13.58 6,936 1.85 to 1.15 0.95 25.78 to 8.50 2005 255 19.96 to 19.17 4,950 1.85 to 1.40 0.23 8.35 to 3.91 2004 245 18.47 to 17.82 4,400 1.75 to 1.40 0.08 19.18 to 18.77 2003 128 15.53 to 15.00 1,932 1.75 to 1.40 0.00 52.58 to 52.05 2002 10 10.21 to 9.87 98 1.75 to 1.40 0.00 (6.40) to (21.07) Pacific Rim - A 2006 221 16.12 to 13.52 3,135 1.75 to 1.40 0.97 9.51 to 9.12 2005 277 14.77 to 12.38 3,580 1.75 to 1.40 0.92 24.01 to 23.58 2004 269 11.95 to 10.01 2,804 1.75 to 1.40 0.47 15.27 to 14.87 2003 271 10.40 to 8.70 2,433 1.75 to 1.40 0.14 38.77 to 38.28 2002 266 7.52 to 6.29 1,713 1.75 to 1.40 0.12 (13.75) to (14.06) Pacific Rim - B 2006 187 22.84 to 12.24 3,969 1.85 to 1.15 0.76 9.38 to (2.18) 2005 208 20.94 to 19.28 4,083 1.85 to 1.40 0.65 23.68 to 20.11 2004 130 16.97 to 15.70 2,069 1.75 to 1.40 0.37 15.17 to 14.77 2003 90 14.77 to 13.68 1,236 1.75 to 1.40 0.09 38.57 to 38.09 2002 8 10.69 to 9.91 80 1.75 to 1.40 0.00 (5.66) to (20.75) Science & Technology - A 2006 1,477 12.90 to 4.53 13,945 1.75 to 1.40 0.00 4.06 to 3.70 2005 1,845 12.40 to 4.37 16,503 1.75 to 1.40 0.00 0.67 to 0.32 2004 2,215 12.31 to 4.36 19,863 1.75 to 1.40 0.00 (0.53) to (0.88) 2003 2,590 12.38 to 4.40 23,957 1.75 to 1.40 0.00 48.31 to 47.79 2002 2,560 8.35 to 2.98 16,805 1.75 to 1.40 0.00 (41.59) to (41.79) Science & Technology - B 2006 413 14.32 to 11.23 5,689 1.85 to 1.15 0.00 3.91 to 0.92 2005 483 13.79 to 10.83 6,362 1.85 to 1.40 0.00 0.41 to (1.28) 2004 577 13.73 to 10.81 7,605 1.75 to 1.40 0.00 (0.62) to (0.97) 2003 400 13.81 to 10.91 5,261 1.75 to 1.40 0.00 48.37 to 47.86 2002 38 9.31 to 7.37 339 1.75 to 1.40 0.00 (13.47) to (41.05) Emerging Small Company - A 2006 379 19.70 to 9.08 5,866 1.75 to 1.40 0.00 0.99 to 0.63 2005 441 19.51 to 9.03 6,901 1.75 to 1.40 0.00 3.59 to 3.23 2004 532 18.84 to 8.74 8,031 1.75 to 1.40 0.00 9.97 to 9.58 2003 567 17.13 to 7.98 8,043 1.75 to 1.40 0.00 37.79 to 37.31 2002 613 12.43 to 5.81 6,457 1.75 to 1.40 0.00 (30.19) to (30.43) Emerging Small Company - B 2006 335 15.04 to 14.11 4,967 1.85 to 1.40 0.00 0.76 to 0.31 2005 362 14.92 to 14.04 5,343 1.85 to 1.40 0.00 3.40 to (0.21) 2004 363 14.43 to 13.61 5,183 1.75 to 1.40 0.00 9.76 to 9.38 2003 224 13.15 to 12.43 2,921 1.75 to 1.40 0.00 37.54 to 37.06 2002 42 9.56 to 9.06 399 1.75 to 1.40 0.00 (8.75) to (27.53) International Core - A 2006 308 18.57 to 13.50 5,223 1.75 to 1.40 0.60 23.04 to 22.61 2005 327 15.09 to 11.01 4,486 1.75 to 1.40 0.76 14.34 to 13.94 2004 344 13.20 to 9.66 4,161 1.75 to 1.40 0.86 13.98 to 13.58 2003 414 11.58 to 8.51 4,432 1.75 to 1.40 0.51 28.46 to 28.02 2002 492 9.01 to 6.65 4,125 1.75 to 1.40 0.44 (22.78) to (23.05) International Core - B 2006 159 20.21 to 13.32 3,123 1.85 to 1.15 0.42 22.89 to 6.43 2005 98 16.48 to 15.90 1,581 1.85 to 1.40 0.00 14.10 to 11.19 2004 88 14.48 to 14.03 1,248 1.75 to 1.40 0.68 13.75 to 13.35 2003 70 12.77 to 12.38 875 1.75 to 1.40 0.46 28.45 to 28.00 2002 37 9.96 to 9.67 365 1.75 to 1.40 0.09 (3.11) to (22.63)
124 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- ------------------ Value - A 2006 472 $27.46 to $24.34 $12,458 1.75% to 1.40% 0.38% 19.37% to 18.95% 2005 520 23.01 to 20.46 11,529 1.75 to 1.40 0.64 11.00 to 10.61 2004 615 20.73 to 18.50 12,315 1.75 to 1.40 0.60 13.57 to 13.17 2003 728 18.25 to 16.35 12,885 1.75 to 1.40 1.17 36.83 to 36.35 2002 831 13.34 to 11.99 10,768 1.75 to 1.40 0.84 (23.88) to (24.14) Value - B 2006 250 19.49 to 13.62 4,786 1.85 to 1.15 0.19 19.12 to 8.79 2005 230 16.40 to 16.08 3,737 1.85 to 1.40 0.43 10.80 to 3.39 2004 216 14.84 to 14.62 3,171 1.75 to 1.40 0.39 13.44 to 13.04 2003 125 13.11 to 12.93 1,622 1.75 to 1.40 1.12 36.68 to 36.20 2002 34 9.62 to 9.49 319 1.75 to 1.40 0.05 (4.57) to (24.05) Real Estate Securities - A 2006 296 38.25 to 36.74 11,138 1.75 to 1.40 1.81 36.19 to 35.72 2005 322 28.03 to 27.07 8,898 1.75 to 1.40 2.02 10.30 to 9.92 2004 379 25.46 to 24.63 9,520 1.75 to 1.40 2.48 30.20 to 29.74 2003 422 19.56 to 18.98 8,165 1.75 to 1.40 2.54 37.21 to 36.74 2002 430 14.25 to 13.88 6,082 1.75 to 1.40 2.79 1.16 to 0.80 Real Estate Securities - B 2006 503 33.50 to 15.65 15,580 1.85 to 1.15 1.58 35.91 to 25.03 2005 509 24.71 to 22.84 11,818 1.85 to 1.40 1.51 10.11 to (2.97) 2004 473 22.50 to 20.89 9,995 1.75 to 1.40 1.92 29.93 to 29.48 2003 316 17.36 to 16.13 5,149 1.75 to 1.40 2.07 37.00 to 36.53 2002 123 12.70 to 11.82 1,455 1.75 to 1.40 0.24 1.62 to (5.46) High Yield - A 2006 576 17.23 to 14.44 8,974 1.75 to 1.40 6.86 8.84 to 8.46 2005 696 15.83 to 13.31 10,061 1.75 to 1.40 4.80 2.26 to 1.90 2004 904 15.48 to 13.07 12,865 1.75 to 1.40 6.35 9.51 to 9.13 2003 1,398 14.14 to 11.97 18,071 1.75 to 1.40 5.11 22.72 to 22.29 2002 852 11.52 to 9.79 9,169 1.75 to 1.40 8.31 (8.17) to (8.49) High Yield - B 2006 694 17.42 to 13.24 11,893 1.85 to 1.15 6.91 8.71 to 5.80 2005 759 16.03 to 15.43 11,992 1.85 to 1.40 3.56 2.12 to 0 2004 974 15.70 to 15.15 15,077 1.75 to 1.40 4.72 9.30 to 8.92 2003 947 14.36 to 13.89 13,430 1.75 to 1.40 3.73 22.47 to 22.05 2002 78 11.72 to 11.37 910 1.75 to 1.40 0.85 (0.84) to (9.03) Lifestyle Aggressive - A 2006 320 18.82 to 14.63 5,390 1.75 to 1.40 7.66 13.86 to 13.46 2005 378 16.53 to 12.90 5,514 1.75 to 1.40 1.92 9.10 to 8.72 2004 442 15.15 to 11.86 6,042 1.75 to 1.40 0.77 14.44 to 14.04 2003 437 13.24 to 10.40 5,216 1.75 to 1.40 0.41 33.04 to 32.57 2002 466 9.95 to 7.85 4,239 1.75 to 1.40 0.83 (21.81) to (22.09) Lifestyle Aggressive - B 2006 3,106 18.89 to 13.01 58,044 1.85 to 1.15 7.68 13.59 to 4.07 2005 3,243 16.63 to 16.36 53,631 1.85 to 1.40 1.84 8.94 to 4.45 2004 3,055 15.26 to 15.12 46,433 1.75 to 1.40 0.63 14.44 to 14.04 2003 1,816 13.34 to 13.26 24,167 1.75 to 1.40 0.14 33.04 to 32.57 2002 126 10.02 to 9.99 1,264 1.75 to 1.40 0.00 (5.59) to (20.05) Lifestyle Growth - A 2006 1,922 20.82 to 15.25 34,748 1.75 to 1.40 6.04 11.93 to 11.54 2005 1,986 18.61 to 13.68 32,112 1.75 to 1.40 2.86 7.16 to 6.78 2004 2,178 17.36 to 12.81 33,490 1.75 to 1.40 1.45 12.99 to 12.60 2003 2,185 15.37 to 11.37 29,888 1.75 to 1.40 1.20 27.75 to 27.30 2002 2,202 12.03 to 8.93 23,853 1.75 to 1.40 2.17 (17.02) to (17.31) Lifestyle Growth - B 2006 39,974 18.43 to 13.09 706,919 1.85 to 1.15 5.22 11.71 to 4.69 2005 22,032 16.49 to 16.14 359,838 1.85 to 1.40 2.29 7.01 to 3.18 2004 10,656 15.41 to 15.12 163,056 1.75 to 1.40 0.83 13.00 to 12.61 2003 3,499 13.64 to 13.42 47,509 1.75 to 1.40 0.52 27.64 to 27.20 2002 424 10.69 to 10.54 4,523 1.75 to 1.40 0.04 (4.44) to (15.70)
125 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- ------------------ Lifestyle Balanced - A 2006 2,969 $21.97 to $16.17 $56,071 1.75% to 1.40% 5.48% 11.17% to 10.78% 2005 3,308 19.76 to 14.60 56,410 1.75 to 1.40 3.96 5.40 to 5.03 2004 3,491 18.75 to 13.90 56,752 1.75 to 1.40 2.24 11.91 to 11.52 2003 3,340 16.75 to 12.46 48,820 1.75 to 1.40 2.37 22.25 to 21.83 2002 2,920 13.70 to 10.23 35,380 1.75 to 1.40 3.25 (11.20) to (11.51) Lifestyle Balanced - B 2006 36,439 18.14 to 13.22 636,831 1.85 to 1.15 4.89 10.95 to 5.74 2005 24,002 16.35 to 15.98 388,167 1.85 to 1.40 3.17 5.32 to 2.07 2004 11,111 15.52 to 15.21 171,110 1.75 to 1.40 1.43 11.83 to 11.44 2003 4,784 13.88 to 13.64 66,050 1.75 to 1.40 1.47 22.25 to 21.83 2002 790 11.36 to 11.18 8,940 1.75 to 1.40 0.23 (2.58) to (10.56) Lifestyle Moderate - A 2006 1,517 21.79 to 16.17 27,295 1.75 to 1.40 4.68 8.88 to 8.51 2005 1,618 20.01 to 14.90 26,757 1.75 to 1.40 4.20 2.71 to 2.35 2004 1,721 19.48 to 14.56 28,156 1.75 to 1.40 2.90 9.49 to 9.11 2003 1,737 17.79 to 13.35 26,228 1.75 to 1.40 3.07 16.19 to 15.78 2002 1,709 15.32 to 11.53 22,372 1.75 to 1.40 3.40 (5.37) to (5.70) Lifestyle Moderate - B 2006 10,417 16.89 to 13.15 171,943 1.85 to 1.15 4.21 8.65 to 5.24 2005 7,557 15.54 to 15.29 116,397 1.85 to 1.40 3.53 2.56 to 1.04 2004 4,269 15.15 to 15.00 64,245 1.75 to 1.40 1.99 9.49 to 9.11 2003 1,961 13.83 to 13.73 27,023 1.75 to 1.40 1.79 16.19 to 15.78 2002 377 11.91 to 11.85 4,480 1.75 to 1.40 0.31 (1.16) to (5.20) Lifestyle Conservative - A 2006 856 21.39 to 16.50 15,451 1.75 to 1.40 4.62 6.93 to 6.56 2005 906 20.01 to 15.48 15,367 1.75 to 1.40 4.82 1.46 to 1.10 2004 951 19.72 to 15.31 16,109 1.75 to 1.40 3.70 7.07 to 6.70 2003 1,202 18.42 to 14.35 19,071 1.75 to 1.40 3.68 10.00 to 9.62 2002 1,420 16.74 to 13.09 20,441 1.75 to 1.40 2.80 0.31 to (0.04) Lifestyle Conservative - B 2006 4,437 15.90 to 13.12 69,236 1.85 to 1.15 4.41 6.63 to 4.99 2005 3,608 14.91 to 14.67 53,306 1.85 to 1.40 4.29 1.38 to 0.19 2004 2,223 14.71 to 14.57 32,473 1.75 to 1.40 3.04 7.00 to 6.62 2003 1,460 13.74 to 13.67 19,983 1.75 to 1.40 2.53 10.00 to 9.62 2002 314 12.53 to 12.47 3,913 1.75 to 1.40 0.16 0.53 to (0.26) Small Company Value - A 2006 468 24.91 to 23.15 11,306 1.75 to 1.40 0.07 13.82 to 13.42 2005 607 21.97 to 20.39 12,879 1.75 to 1.40 0.28 5.55 to 5.18 2004 738 20.88 to 19.36 14,823 1.75 to 1.40 0.16 23.45 to 23.02 2003 786 16.98 to 15.73 12,806 1.75 to 1.40 0.39 31.81 to 31.35 2002 846 12.92 to 11.96 10,438 1.75 to 1.40 0.30 (7.24) to (7.56) Small Company Value - B 2006 1,134 22.11 to 12.50 22,490 1.85 to 1.15 0.00 13.61 to (0.16) 2005 1,196 19.51 to 17.20 21,023 1.85 to 1.40 0.06 5.30 to 0.77 2004 1,139 18.58 to 16.45 19,052 1.75 to 1.40 0.09 23.20 to 22.77 2003 831 15.12 to 13.40 11,304 1.75 to 1.40 0.35 31.71 to 31.25 2002 208 11.51 to 10.21 2,134 1.75 to 1.40 0.04 (2.04) to (18.34) International Value - A 2006 988 20.35 to 19.93 19,990 1.75 to 1.40 1.86 27.79 to 27.35 2005 1,098 15.92 to 15.65 17,391 1.75 to 1.40 0.49 9.01 to 8.63 2004 466 14.61 to 14.40 6,761 1.75 to 1.40 1.26 19.85 to 19.43 2003 442 12.19 to 12.05 5,361 1.75 to 1.40 0.81 42.85 to 42.35 2002 410 8.53 to 8.45 3,484 1.75 to 1.40 0.65 (18.98) to (19.26) International Value - B 2006 1,023 24.17 to 14.10 23,440 1.85 to 1.15 1.67 27.48 to 12.65 2005 1,029 19.01 to 17.87 18,690 1.85 to 1.40 0.60 8.78 to 5.30 2004 790 17.52 to 16.55 13,194 1.75 to 1.40 0.98 19.68 to 19.26 2003 548 14.67 to 13.88 7,675 1.75 to 1.40 0.64 42.51 to 42.01 2002 113 10.32 to 9.77 1,110 1.75 to 1.40 0.00 (7.35) to (21.83)
126 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- ------------------ Total Return - A 2006 1,760 $17.10 to $16.52 $29,476 1.75% to 1.40% 3.46% 2.16% to 1.81% 2005 2,066 16.74 to 16.22 33,921 1.75 to 1.40 2.42 1.05 to 0.70 2004 2,430 16.56 to 16.11 39,569 1.75 to 1.40 3.92 3.49 to 3.13 2003 2,966 16.00 to 15.62 46,792 1.75 to 1.40 2.85 3.56 to 3.19 2002 3,392 15.46 to 15.14 51,821 1.75 to 1.40 2.41 7.99 to 7.62 Total Return - B 2006 2,196 14.65 to 12.90 31,877 1.85 to 1.15 3.26 3.44 to 1.53 2005 2,523 14.36 to 14.13 35,980 1.85 to 1.40 1.95 0.83 to (0.56) 2004 2,577 14.25 to 14.12 36,510 1.75 to 1.40 3.24 3.25 to 2.89 2003 2,424 13.80 to 13.72 33,338 1.75 to 1.40 2.20 3.41 to 3.05 2002 900 13.35 to 13.31 11,993 1.75 to 1.40 0.10 6.79 to 1.70 U.S. Large Cap - A 2006 978 15.17 to 14.37 14,499 1.75 to 1.40 0.58 9.12 to 8.74 2005 1,181 13.91 to 13.21 16,086 1.75 to 1.40 0.45 4.35 to 3.99 2004 1,411 13.33 to 12.71 18,445 1.75 to 1.40 0.28 7.87 to 7.49 2003 1,182 12.35 to 11.82 14,287 1.75 to 1.40 0.38 35.16 to 34.69 2002 1,169 9.14 to 8.78 10,493 1.75 to 1.40 0.29 (26.23) to (26.48) U.S. Large Cap - B 2006 784 16.33 to 12.89 12,561 1.85 to 1.15 0.40 8.83 to 3.02 2005 938 15.00 to 14.14 13,843 1.85 to 1.40 0.12 4.26 to 2.21 2004 1,079 14.39 to 13.59 15,307 1.75 to 1.40 0.21 7.59 to 7.22 2003 808 13.37 to 12.66 10,660 1.75 to 1.40 0.33 34.78 to 34.31 2002 136 9.92 to 9.42 1,338 1.75 to 1.40 0.02 (7.87) to (24.64) Mid Cap Stock - A 2006 1,178 16.70 to 16.20 19,508 1.75 to 1.40 0.00 11.97 to 11.58 2005 1,312 14.96 to 14.50 19,434 1.75 to 1.40 0.00 12.98 to 12.59 2004 659 13.29 to 12.87 8,666 1.75 to 1.40 0.00 17.38 to 16.97 2003 704 11.36 to 10.99 7,898 1.75 to 1.40 0.00 40.35 to 39.86 2002 610 8.12 to 7.85 4,887 1.75 to 1.40 0.00 (23.64) to (23.91) Mid Cap Stock - B 2006 1,016 20.92 to 12.79 20,875 1.85 to 1.15 0.00 11.73 to 2.16 2005 1,037 18.72 to 17.62 19,220 1.85 to 1.40 0.00 12.84 to 8.02 2004 769 16.59 to 15.65 12,646 1.75 to 1.40 0.00 17.10 to 16.69 2003 495 14.17 to 13.40 6,967 1.75 to 1.40 0.00 40.00 to 39.51 2002 86 10.12 to 9.60 865 1.75 to 1.40 0.00 (7.56) to (23.24) Global Allocation - A 2006 210 12.60 to 12.39 2,641 1.75 to 1.40 1.08 11.93 to 11.54 2005 250 11.25 to 11.10 2,807 1.75 to 1.40 1.00 4.73 to 4.37 2004 266 10.77 to 10.62 2,853 1.75 to 1.40 1.10 11.16 to 10.77 2003 383 9.72 to 9.58 3,701 1.75 to 1.40 0.42 24.67 to 24.23 2002 293 7.83 to 7.70 2,278 1.75 to 1.40 0.00 (24.28) to (24.54) Global Allocation - B 2006 1,090 16.41 to 13.29 17,185 1.85 to 1.15 0.73 11.71 to 6.14 2005 538 14.69 to 13.74 7,720 1.85 to 1.40 0.68 4.47 to 3.14 2004 278 14.06 to 13.18 3,864 1.75 to 1.40 0.74 10.96 to 10.57 2003 127 12.67 to 11.91 1,591 1.75 to 1.40 0.28 24.71 to 24.28 2002 19 10.16 to 9.58 194 1.75 to 1.40 0.00 (6.00) to (23.40) Dynamic Growth - A 2006 717 5.99 to 5.42 4,168 1.75 to 1.40 0.00 9.49 to 9.11 2005 934 5.49 to 4.96 4,960 1.75 to 1.40 0.00 10.84 to 10.45 2004 1,090 4.97 to 4.49 5,243 1.75 to 1.40 0.00 8.47 to 8.09 2003 1,344 4.60 to 4.15 5,946 1.75 to 1.40 0.00 27.24 to 26.80 2002 773 3.62 to 3.27 2,655 1.75 to 1.40 0.00 (29.36) to (29.61) Dynamic Growth - B 2006 168 16.87 to 15.80 2,796 1.85 to 1.40 0.00 9.19 to 8.70 2005 202 15.45 to 14.50 3,086 1.85 to 1.40 0.00 10.46 to 0.34 2004 220 13.99 to 13.16 3,047 1.75 to 1.40 0.00 8.49 to 8.11 2003 252 12.89 to 12.16 3,219 1.75 to 1.40 0.00 27.32 to 26.88 2002 11 10.13 to 9.58 110 1.75 to 1.40 0.00 (5.42) to (23.38)
127 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME TOTAL RETURN HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------ -------------- ---------- -------------------- Total Stock Market Index - A 2006 143 $12.78 to $12.49 $1,821 1.75% to 1.40% 1.00% 13.70% to 13.30% 2005 163 11.28 to 11.01 1,836 1.75 to 1.40 1.13 4.23 to 3.86 2004 176 10.86 to 10.59 1,898 1.75 to 1.40 0.62 10.18 to 9.80 2003 175 9.89 to 9.64 1,713 1.75 to 1.40 0.00 28.73 to 28.28 2002 174 7.71 to 7.50 1,332 1.75 to 1.40 1.02 (22.38) to (22.66) Total Stock Market Index - B 2006 424 17.06 to 16.20 7,114 1.85 to 1.40 0.80 13.50 to 12.99 2005 439 15.03 to 14.30 6,497 1.85 to 1.40 0.90 3.95 to 0.89 2004 458 14.46 to 13.80 6,540 1.75 to 1.40 0.46 10.04 to 9.66 2003 319 13.14 to 12.57 4,149 1.75 to 1.40 0.00 28.51 to 28.06 2002 28 10.23 to 9.80 289 1.75 to 1.40 3.00 (5.75) to (21.56) 500 Index - A 2006 752 11.94 to 11.66 8,946 1.75 to 1.40 0.92 13.66 to 13.26 2005 947 10.54 to 10.29 9,930 1.75 to 1.40 1.57 2.84 to 2.48 2004 1,259 10.29 to 10.03 12,854 1.75 to 1.40 0.88 8.72 to 8.34 2003 1,077 9.50 to 9.25 10,136 1.75 to 1.40 0.94 26.23 to 25.79 2002 1,238 7.55 to 7.34 9,218 1.75 to 1.40 0.00 (23.61) to (23.87) 500 Index - B 2006 1,168 16.29 to 15.21 18,636 1.85 to 1.40 0.78 13.47 to 12.96 2005 1,316 14.36 to 13.44 18,514 1.85 to 1.40 1.38 2.67 to 0.82 2004 1,368 13.12 to 12.89 18,755 1.75 to 1.40 0.64 8.46 to 8.08 2003 983 12.89 to 12.13 12,453 1.75 to 1.40 0.61 25.99 to 25.55 2002 184 10.23 to 9.65 1,862 1.75 to 1.40 0.00 (5.84) to (22.78) Mid Cap Index - A 2006 134 19.49 to 19.01 2,584 1.75 to 1.40 0.62 8.19 to 7.82 2005 126 18.01 to 17.63 2,256 1.75 to 1.40 0.50 10.47 to 10.08 2004 136 16.30 to 16.02 2,201 1.75 to 1.40 0.39 14.21 to 13.81 2003 146 14.27 to 14.07 2,073 1.75 to 1.40 0.00 32.70 to 32.23 2002 149 10.76 to 10.64 1,595 1.75 to 1.40 0.49 (16.34) to (16.64) Mid Cap Index - B 2006 574 18.59 to 12.70 10,240 1.85 to 1.15 0.44 7.93 to (0.70) 2005 431 17.27 to 16.40 7,185 1.85 to 1.40 0.33 10.24 to 1.77 2004 416 15.70 to 14.98 6,308 1.75 to 1.40 0.25 14.04 to 13.64 2003 280 13.80 to 13.19 3,735 1.75 to 1.40 0.00 32.46 to 31.99 2002 65 10.45 to 9.99 656 1.75 to 1.40 1.48 (4.69) to (20.08) Small Cap Index - A 2006 85 17.91 to 17.47 1,515 1.75 to 1.40 0.52 15.98 to 15.58 2005 98 15.50 to 15.10 1,515 1.75 to 1.40 0.55 2.45 to 2.09 2004 130 15.18 to 14.77 1,960 1.75 to 1.40 0.31 15.69 to 15.29 2003 136 13.17 to 12.80 1,775 1.75 to 1.40 0.00 43.76 to 43.26 2002 227 9.19 to 8.93 2,050 1.75 to 1.40 1.32 (22.57) to (22.84) Small Cap Index - B 2006 342 19.03 to 18.24 6,336 1.85 to 1.40 0.33 15.72 to 15.20 2005 366 16.48 to 15.83 5,879 1.85 to 1.40 0.35 2.26 to (1.64) 2004 402 16.16 to 15.59 6,323 1.75 to 1.40 0.20 15.50 to 15.09 2003 254 14.03 to 13.55 3,469 1.75 to 1.40 0.00 43.31 to 42.81 2002 52 9.81 to 9.48 496 1.75 to 1.40 2.40 (6.15) to (24.12) Capital Appreciation - A 2006 1,426 9.40 to 9.20 13,949 1.75 to 1.40 0.00 0.84 to 0.49 2005 216 9.32 to 9.15 1,999 1.75 to 1.40 0.00 12.41 to 12.02 2004 169 8.29 to 8.17 1,387 1.75 to 1.40 0.00 7.80 to 7.43 2003 171 7.69 to 7.61 1,307 1.75 to 1.40 0.00 27.67 to 27.23 2002 179 6.02 to 5.98 1,073 1.75 to 1.40 0.00 (31.58) to (31.82) Capital Appreciation - B 2006 868 14.83 to 12.61 12,654 1.85 to 1.15 0.00 1.15 to 0.20 2005 223 14.74 to 13.37 3,233 1.85 to 1.40 0.00 12.12 to 6.15 2004 214 13.14 to 11.95 2,778 1.75 to 1.40 0.00 7.70 to 7.33 2003 172 12.20 to 11.12 2,075 1.75 to 1.40 0.00 27.56 to 27.11 2002 45 9.57 to 8.74 422 1.75 to 1.40 0.00 (8.54) to (30.06)
128 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME TOTAL RETURN HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------ -------------- ---------- -------------------- Health Sciences - A 2006 233 $17.45 to $17.11 $4,022 1.75% to 1.40% 0.00% 6.87% to 6.50% 2005 244 16.33 to 16.06 3,937 1.75 to 1.40 0.00 11.08 to 10.69 2004 298 14.70 to 14.51 4,345 1.75 to 1.40 0.00 13.70 to 13.30 2003 322 12.93 to 12.81 4,131 1.75 to 1.40 0.00 34.32 to 33.86 2002 298 9.62 to 9.57 2,856 1.75 to 1.40 0.00 (28.25) to (28.50) Health Sciences - B 2006 452 19.12 to 13.36 8,397 1.85 to 1.15 0.00 7.16 to 6.19 2005 444 17.93 to 15.95 7,782 1.85 to 1.40 0.00 10.87 to 8.29 2004 437 16.17 to 14.42 6,927 1.75 to 1.40 0.00 13.44 to 13.04 2003 267 14.25 to 12.75 3,722 1.75 to 1.40 0.00 34.02 to 33.56 2002 57 10.64 to 9.53 594 1.75 to 1.40 0.00 (2.52) to (23.72) Financial Services - A 2006 199 17.58 to 17.24 3,472 1.75 to 1.40 0.34 21.41 to 20.99 2005 163 14.48 to 14.25 2,332 1.75 to 1.40 0.41 8.25 to 7.88 2004 196 13.38 to 13.21 2,605 1.75 to 1.40 0.40 8.84 to 8.46 2003 237 12.29 to 12.18 2,901 1.75 to 1.40 0.16 31.72 to 31.26 2002 221 9.33 to 9.28 2,058 1.75 to 1.40 0.00 (19.03) to (19.31) Financial Services - B 2006 309 19.16 to 14.39 5,828 1.85 to 1.15 0.20 21.07 to 14.95 2005 273 15.85 to 15.57 4,303 1.85 to 1.40 0.21 8.11 to 7.17 2004 287 14.70 to 14.50 4,189 1.75 to 1.40 0.25 8.55 to 8.17 2003 201 13.58 to 13.41 2,705 1.75 to 1.40 0.12 31.55 to 31.09 2002 41 10.35 to 10.23 418 1.75 to 1.40 0.00 (4.25) to (18.18) Quantitative Mid Cap - A 2006 34 14.11 to 13.84 473 1.75 to 1.40 0.00 2.65 to 2.29 2005 47 13.75 to 13.53 647 1.75 to 1.40 0.00 12.05 to 11.66 2004 138 12.27 to 12.11 1,686 1.75 to 1.40 0.00 16.56 to 16.15 2003 44 10.53 to 10.43 466 1.75 to 1.40 0.00 36.61 to 36.13 2002 50 7.71 to 7.66 386 1.75 to 1.40 0.00 (23.72) to (23.99) Quantitative Mid Cap - B 2006 63 17.93 to 17.43 1,111 1.85 to 1.40 0.00 2.35 to 1.89 2005 78 17.52 to 17.07 1,351 1.85 to 1.40 0.00 11.81 to 2.60 2004 83 15.67 to 15.31 1,286 1.75 to 1.40 0.00 16.25 to 15.84 2003 39 13.48 to 13.20 519 1.75 to 1.40 0.00 36.40 to 35.93 2002 12 9.88 to 9.70 121 1.75 to 1.40 0.00 (4.15) to (22.39) All Cap Value - A 2006 243 16.21 to 15.90 3,883 1.75 to 1.40 0.95 12.14 to 11.75 2005 265 14.46 to 14.22 3,791 1.75 to 1.40 0.56 4.25 to 3.88 2004 245 13.87 to 13.69 3,371 1.75 to 1.40 0.32 14.34 to 13.94 2003 217 12.13 to 12.02 2,613 1.75 to 1.40 0.08 36.44 to 35.96 2002 201 8.89 to 8.84 1,784 1.75 to 1.40 0.00 (28.84) to (29.09) All Cap Value - B 2006 514 17.52 to 15.89 8,775 1.85 to 1.40 0.79 11.96 to 11.45 2005 550 15.65 to 14.23 8,417 1.85 to 1.40 0.12 3.95 to 2.37 2004 545 15.05 to 13.73 8,079 1.75 to 1.40 0.23 14.18 to 13.78 2003 342 13.18 to 12.05 4,451 1.75 to 1.40 0.12 36.25 to 35.77 2002 63 9.67 to 8.87 594 1.75 to 1.40 0.00 (10.39) to (29.06) Strategic Value - A 2006 -- 12.18 to 11.94 -- 1.75 to 1.40 2.55(a) 10.19 to 9.83(a) 2005 134 11.05 to 10.87 1,466 1.75 to 1.40 0.77 (1.68) to (2.02) 2004 154 11.24 to 11.10 1,718 1.75 to 1.40 0.37 16.34 to 15.93 2003 174 9.66 to 9.57 1,667 1.75 to 1.40 0.02 26.99 to 26.55 2002 192 7.61 to 7.56 1,455 1.75 to 1.40 0.00 (28.21) to (28.46) Strategic Value - B 2006 -- 15.62 to 14.69 -- 1.85 to 1.40 2.40(a) 10.00 to 9.55(a) 2005 324 14.20 to 13.38 4,562 1.85 to 1.40 0.34 (1.91) to (2.80) 2004 277 14.48 to 13.68 3,981 1.75 to 1.40 0.27 16.15 to 15.74 2003 160 12.47 to 11.80 1,983 1.75 to 1.40 0.06 26.89 to 26.45 2002 43 9.83 to 9.33 418 1.75 to 1.40 0.00 (7.29) to (25.39)
129 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME TOTAL RETURN HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- -------------------- Utilities - A 2006 307 $17.59 to $17.24 $ 5,351 1.75% to 1.40% 2.18% 29.19% to 28.74% 2005 270 13.62 to 13.39 3,647 1.75 to 1.40 0.47 15.20 to 14.80 2004 295 11.82 to 11.67 3,468 1.75 to 1.40 0.93 27.62 to 27.17 2003 213 9.26 to 9.17 1,961 1.75 to 1.40 0.95 32.66 to 32.20 2002 188 6.98 to 6.94 1,307 1.75 to 1.40 0.01 (24.61) to (24.87) Utilities - B 2006 284 27.22 to 24.79 7,562 1.85 to 1.40 2.05 28.96 to 28.38 2005 244 21.11 to 19.27 5,066 1.85 to 1.40 0.30 14.94 to 3.24 2004 171 18.37 to 16.81 3,100 1.75 to 1.40 0.76 27.43 to 26.99 2003 79 14.41 to 13.22 1,133 1.75 to 1.40 0.76 32.39 to 31.93 2002 11 10.89 to 10.01 123 1.75 to 1.40 0.00 1.00 to (19.90) Mid Cap Value - A 2006 513 20.56 to 20.16 10,450 1.75 to 1.40 0.72 10.71 to 10.33 2005 664 18.57 to 18.27 12,224 1.75 to 1.40 0.45 6.51 to 6.13 2004 676 17.44 to 17.21 11,703 1.75 to 1.40 0.49 22.73 to 22.30 2003 594 14.21 to 14.08 8,390 1.75 to 1.40 0.41 23.62 to 23.18 2002 668 11.49 to 11.43 7,651 1.75 to 1.40 0.00 (11.36) to (11.67) Mid Cap Value - B 2006 1,255 20.07 to 18.86 24,092 1.85 to 1.40 0.52 10.48 to 9.98 2005 1,404 18.21 to 17.15 24,444 1.85 to 1.40 0.25 6.27 to (0.03) 2004 1,329 17.18 to 16.25 21,808 1.75 to 1.40 0.36 22.48 to 22.06 2003 916 14.06 to 13.32 12,294 1.75 to 1.40 0.29 23.40 to 22.97 2002 228 11.43 to 10.83 2,488 1.75 to 1.40 0.00 (3.11) to (13.36) Fundamental Value - A 2006 560 16.43 to 16.10 9,076 1.75 to 1.40 0.83 12.93 to 12.53 2005 664 14.55 to 14.31 9,548 1.75 to 1.40 0.46 7.33 to 6.96 2004 726 13.55 to 13.38 9,740 1.75 to 1.40 0.49 10.24 to 9.86 2003 716 12.29 to 12.18 8,737 1.75 to 1.40 0.28 28.03 to 27.59 2002 722 9.60 to 9.55 6,899 1.75 to 1.40 0.09 (17.37) to (17.66) Fundamental Value - B 2006 2,101 17.92 to 13.60 36,932 1.85 to 1.15 0.59 12.66 to 8.68 2005 1,514 15.91 to 15.65 23,935 1.85 to 1.40 0.21 7.19 to 4.28 2004 1,169 14.86 to 14.71 17,273 1.75 to 1.40 0.35 9.89 to 9.51 2003 684 13.55 to 13.43 9,220 1.75 to 1.40 0.25 27.77 to 27.33 2002 212 10.63 to 10.55 2,235 1.75 to 1.40 0.00 (3.19) to (15.63) Emerging Growth - B 2006 73 19.80 to 19.47 1,426 1.85 to 1.40 0.00 9.84 to 9.35 2005 50 18.02 to 17.81 900 1.85 to 1.40 0.00 5.89 to 1.00 2004 40 17.02 to 16.92 670 1.75 to 1.40 0.00 5.16 to 4.79 2003 22 16.19 to 16.15 362 1.75 to 1.40 0.00 29.48 to 29.19 Natural Resources - B 2006 389 37.87 to 12.31 14,264 1.85 to 1.15 0.40 20.34 to (1.62) 2005 387 31.46 to 31.09 12,127 1.85 to 1.40 0.00 44.39 to 14.68 2004 239 21.79 to 21.67 5,201 1.75 to 1.40 0.05 22.32 to 21.89 2003 82 17.82 to 17.77 1,464 1.75 to 1.40 0.00 42.52 to 42.20 Mid Cap Core - B 2006 -- 19.14 to 12.77 -- 1.85 to 1.15 1.33(a) 7.42 to 2.03(a) 2005 189 17.82 to 17.60 3,360 1.85 to 1.40 0.00 4.42 to (0.66) 2004 270 17.06 to 16.96 4,594 1.75 to 1.40 0.00 12.54 to 12.15 2003 139 15.16 to 15.13 2,105 1.75 to 1.40 0.00 21.28 to 21.00 Quantitative All Cap - B 2006 25 21.09 to 20.75 524 1.85 to 1.40 0.74 13.32 to 12.81 2005 34 18.61 to 18.39 631 1.85 to 1.40 0.89 6.86 to 2.59 2004 20 17.42 to 17.32 352 1.75 to 1.40 0.79 13.08 to 12.68 2003 6 15.41 to 15.37 92 1.75 to 1.40 0.00 23.24 to 22.96
130 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
UNIT FAIR VALUE EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS HIGHEST TO ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ---------------- -------- -------------- ---------- ----------------- Large Cap Value - B 2006 356 $24.55 to $24.15 $ 8,694 1.85% to 1.40% 0.26% 14.15% to 13.64% 2005 232 21.51 to 21.25 4,959 1.85 to 1.40 0.00 13.66 to 3.74 2004 136 18.92 to 18.81 2,557 1.75 to 1.40 0.89 19.84 to 19.42 2003 28 15.79 to 15.75 438 1.75 to 1.40 0.00 26.32 to 26.03 Small Cap Opportunities - A 2006 161 24.80 to 24.49 3,977 1.75 to 1.40 0.70 8.92 to 8.54 2005 202 22.77 to 22.56 4,587 1.75 to 1.40 0.00(a) 16.36 to 16.09(a) Small Cap Opportunities - B 2006 360 24.71 to 12.23 8,807 1.85 to 1.15 0.53 8.66 to (2.29) 2005 369 22.74 to 22.47 8,363 1.85 to 1.40 0.00 6.12 to (1.99) 2004 115 21.43 to 21.31 2,461 1.75 to 1.40 0.07 23.73 to 23.30 2003 39 17.32 to 17.28 682 1.75 to 1.40 0.00 38.56 to 38.24 Special Value - B 2006 35 20.97 to 20.63 735 1.85 to 1.40 0.00 9.06 to 8.57 2005 42 19.23 to 19.00 811 1.85 to 1.40 0.00 3.84 to (0.32) 2004 46 18.52 to 18.41 857 1.75 to 1.40 0.00 18.28 to 17.86 2003 7 15.66 to 15.62 111 1.75 to 1.40 0.00 25.24 to 24.96 Real Return Bond - B 2006 797 13.72 to 13.50 10,855 1.85 to 1.40 2.49 (1.20) to (1.64) 2005 1,190 13.89 to 13.72 16,445 1.85 to 1.40 0.12 0.12 to (0.54) 2004 895 13.92 to 13.84 12,407 1.75 to 1.40 0.25 7.21 to 6.84 2003 327 12.98 to 12.95 4,232 1.75 to 1.40 0.00 3.84 to 3.60 American International - B 2006 3,719 26.88 to 13.22 94,939 1.85 to 1.15 0.72 16.68 to 5.59 2005 2,544 23.04 to 22.76 58,260 1.85 to 1.40 0.46 19.19 to 14.04 2004 1,125 19.33 to 19.22 21,678 1.75 to 1.40 0.33 17.09 to 16.68 2003 211 16.51 to 16.47 3,474 1.75 to 1.40 0.00 32.06 to 31.76 American Growth - B 2006 7,988 20.77 to 12.83 160,869 1.85 to 1.15 0.16 8.12 to 2.53 2005 5,750 19.21 to 18.98 109,808 1.85 to 1.40 0.00 13.99 to 6.62 2004 2,975 16.85 to 16.75 49,975 1.75 to 1.40 0.00 10.35 to 9.97 2003 881 15.27 to 15.23 13,433 1.75 to 1.40 0.00 22.15 to 21.87 American Blue Chip Income & Growth - B 2006 1,055 19.94 to 19.62 20,894 1.85 to 1.40 0.42 15.17 to 14.66 2005 1,071 17.32 to 17.11 18,446 1.85 to 1.40 0.04 5.19 to 1.90 2004 1,052 16.46 to 16.37 17,269 1.75 to 1.40 0.00 7.61 to 7.23 2003 527 15.30 to 15.26 8,058 1.75 to 1.40 0.00 22.39 to 22.11 American Growth-Income - B 2006 7,484 19.56 to 13.49 142,470 1.85 to 1.15 0.92 13.03 to 7.76 2005 5,373 17.30 to 17.10 92,410 1.85 to 1.40 0.31 3.83 to 1.45 2004 2,374 16.67 to 16.57 39,432 1.75 to 1.40 0.22 8.30 to 7.92 2003 609 15.39 to 15.35 9,364 1.75 to 1.40 0.00 23.10 to 22.82 American Bond - B 2006 5,697 13.10 to 12.96 74,052 1.85 to 1.15 0.00 5.01 to 4.46 2005 1,810 12.42 to 12.39 22,448 1.85 to 1.40 0.00(a) (0.66) to (0.84)(a) American Century - Small Company 2006 17 16.37 to 16.18 280 1.85 to 1.40 0.00 3.95 to 3.48 2005 32 15.75 to 15.63 508 1.85 to 1.40 0.00 4.52 to (3.06) 2004 4 15.07 to 15.03 67 1.75 to 1.40 0.00 20.56 to 20.28 PIMCO VIT All Asset 2006 323 14.91 to 14.74 4,792 1.85 to 1.40 4.76 2.91 to 2.45 2005 376 14.49 to 14.38 5,435 1.85 to 1.40 4.34 4.47 to 1.39 2004 160 13.87 to 13.84 2,215 1.75 to 1.40 5.87 10.97 to 10.72 LMFC Core Equity 2006 425 15.42 to 13.39 6,530 1.85 to 1.15 0.00 7.37 to 4.53 2005 360 14.68 to 14.58 5,273 1.85 to 1.40 0.00 4.30 to 2.92 2004 128 14.08 to 14.05 1,795 1.75 to 1.40 0.00 12.63 to 12.37
131 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
UNIT FAIR VALUE EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS HIGHEST TO ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ---------------- -------- -------------- ---------- ----------------- PIM Classic Value 2006 143 $16.94 to $13.70 $ 2,389 1.85% to 1.15% 0.98% 14.23% to 9.49% 2005 86 14.83 to 14.72 1,274 1.85 to 1.40 0.42 7.71 to 3.37 2004 55 13.77 to 13.74 758 1.75 to 1.40 0.27 10.15 to 9.89 Quantitative Value 2006 10 18.61 to 18.38 191 1.85 to 1.40 1.02 19.37 to 18.84 2005 8 15.59 to 15.47 124 1.85 to 1.40 0.00 7.31 to 2.05 2004 7 15.52 to 14.49 108 1.75 to 1.40 0.00 16.20 to 15.93 US Global Leaders Growth - A 2006 119 13.06 to 12.94 1,544 1.75 to 1.40 0.00 0.39 to 0.04 2005 129 13.00 to 12.93 1,674 1.75 to 1.40 0.11(a) 8.29 to 8.04(a) US Global Leaders Growth - B 2006 302 13.03 to 12.87 3,911 1.85 to 1.40 0.00 0.09 to (0.36) 2005 353 13.02 to 12.92 4,576 1.85 to 1.40 0.00 (0.53) to (0.88) 2004 45 13.09 to 13.06 589 1.75 to 1.40 0.47 4.71 to 4.47 John Hancock Strategic Income 2006 163 13.89 to 13.73 2,244 1.85 to 1.40 3.01 2.43 to 1.97 2005 127 13.56 to 13.46 1,719 1.85 to 1.40 4.43 0.73 to 0.23 2004 55 13.48 to 13.45 746 1.75 to 1.40 1.87 7.86 to 7.61 John Hancock Intl' Eq Index - A 2006 82 20.87 to 20.68 1,708 1.75 to 1.40 0.81 23.75 to 23.31 2005 65 16.87 to 16.77 1,087 1.75 to 1.40 0.94 15.00 to 14.60 2004 69 14.67 to 14.64 1,006 1.75 to 1.40 0.48 17.35 to 17.08 John Hancock Intl' Eq Index - B 2006 199 20.76 to 20.52 4,102 1.85 to 1.40 0.61 23.52 to 22.97 2005 184 16.81 to 16.68 3,077 1.85 to 1.40 0.71 14.78 to 11.46 2004 166 16.65 to 14.61 2,436 1.75 to 1.40 0.38 17.17 to 16.89 Active Bond - A 2006 666 12.95 to 12.88 8,600 1.75 to 1.40 2.82 2.97 to 2.61 2005 813 12.58 to 12.55 10,219 1.75 to 1.40 0.00(a) 0.64 to 0.41(a) Active Bond - B 2006 4,968 12.91 to 12.82 63,915 1.85 to 1.40 2.61 2.76 to 2.30 2005 5,038 12.57 to 12.53 63,215 1.85 to 1.40 0.00(a) 0.54 to (0.13)(a) CGTC Overseas Equity - B 2006 46 17.89 to 17.75 820 1.85 to 1.40 0.40 17.98 to 17.45 2005 11 15.16 to 15.11 170 1.85 to 1.40 0.00(a) 21.28 to 15.28(a) Independence Investment LLC Small Cap - B 2006 5 16.60 to 14.90 72 1.85 to 1.40 0.00 5.92 to 5.45 2005 4 15.71 to 14.13 60 1.85 to 1.40 0.00(a) 13.34 to (0.08)(a) Marisco International Opportunities - B 2006 166 18.78 to 13.31 3,092 1.85 to 1.15 0.27 22.18 to 6.37 2005 39 15.37 to 15.32 601 1.85 to 1.40 0.00(a) 22.94 to 17.57(a) T Rowe Price Mid Value - B 2006 70 16.55 to 16.43 1,147 1.85 to 1.40 0.05 18.39 to 17.86 2005 13 13.98 to 13.94 188 1.85 to 1.40 0.00(a) 11.85 to 1.41(a) UBS Large Cap - B 2006 10 15.53 to 15.41 150 1.85 to 1.40 0.22 14.45 to 12.07 2005 7 15.29 to 13.75 101 1.85 to 1.40 0.00(a) 10.35 to 2.72(a) US High Yield - B 2006 21 13.90 to 13.80 286 1.85 to 1.40 2.75 7.94 to 7.46 2005 5 12.88 to 12.84 67 1.85 to 1.40 0.00(a) 3.04 to 0.15(a) Wellington Small Cap Growth - B 2006 72 17.67 to 12.39 1,273 1.85 to 1.15 0.00 11.64 to (1.04) 2005 30 15.83 to 15.78 478 1.85 to 1.40 0.00(a) 26.62 to 7.70(a) Wellington Small Cap Value - B 2006 132 16.74 to 13.57 2,180 1.85 to 1.15 0.00 17.38 to 8.40 2005 58 14.26 to 14.22 827 1.85 to 1.40 0.00(a) 14.06 to (2.00)(a) Wells Capital Core Bond - B 2006 17 12.76 to 12.66 211 1.85 to 1.40 1.59 2.18 to 1.72 2005 7 12.48 to 12.44 85 1.85 to 1.40 0.00(a) (0.13) to (0.46)(a)
132 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
UNIT FAIR VALUE EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS HIGHEST TO ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ---------------- -------- -------------- ---------- ----------------- 1.85% to Index Allocation - B 2006 967 $13.52 to $13.21 $13,001 1.15% 2.84%(a) 8.17% to 5.51%(a) Large Cap Value - A 2006 123 24.56 to 24.24 2,993 1.75 to 1.40 0.00(a) 1.48 to 1.45(a) Scudder Capital Growth - B 2006 386 20.65 to 20.26 7,913 1.85 to 1.40 0.18 6.67 to 6.19 2005 289 19.36 to 19.08 5,560 1.85 to 1.40 0.22 7.01 to 1.77 2004 83 18.09 to 17.95 1,491 1.75 to 1.40 0.15 6.06 to 5.69 2003 45 17.06 to 16.98 758 1.75 to 1.40 0.00 24.76 to 24.32 Scudder Global Discovery - B 2006 86 35.72 to 35.04 3,039 1.85 to 1.40 0.88 20.19 to 19.65 2005 84 29.72 to 29.29 2,477 1.85 to 1.40 0.30 16.43 to 7.64 2004 51 25.52 to 25.33 1,294 1.75 to 1.40 0.00 21.41 to 20.98 2003 20 21.02 to 20.93 410 1.75 to 1.40 0.00 46.70 to 46.19 Scudder Growth & Income - B 2006 201 21.52 to 21.11 4,287 1.85 to 1.40 0.61 11.71 to 11.21 2005 208 19.26 to 18.98 3,983 1.85 to 1.40 0.78 4.27 to 1.64 2004 166 18.47 to 18.33 3,061 1.75 to 1.40 0.41 8.25 to 7.87 2003 57 17.06 to 16.99 967 1.75 to 1.40 0.00 24.79 to 24.35 Scudder Health Sciences - B 2006 129 20.48 to 20.10 2,626 1.85 to 1.40 0.00 4.31 to 3.84 2005 144 19.64 to 19.35 2,813 1.85 to 1.40 0.00 6.56 to 0.31 2004 134 18.43 to 18.28 2,452 1.75 to 1.40 0.00 7.64 to 7.27 2003 69 17.12 to 17.05 1,186 1.75 to 1.40 0.00 31.36 to 30.90 Scudder International - B 2006 181 27.14 to 26.63 4,878 1.85 to 1.40 1.52 23.70 to 23.15 2005 172 21.94 to 21.63 3,746 1.85 to 1.40 1.38 14.11 to 10.68 2004 190 19.23 to 19.08 3,634 1.75 to 1.40 0.83 14.62 to 14.22 2003 73 16.78 to 16.70 1,229 1.75 to 1.40 0.00 25.75 to 25.31 Scudder Mid Cap Growth - B 2006 69 24.41 to 23.95 1,660 1.85 to 1.40 0.00 9.01 to 8.52 2005 61 22.39 to 22.07 1,363 1.85 to 1.40 0.00 13.06 to 2.24 2004 67 19.81 to 19.65 1,311 1.75 to 1.40 0.00 2.16 to 1.81 2003 37 19.39 to 19.30 718 1.75 to 1.40 0.00 31.58 to 31.12 Scudder Blue Chip - B 2006 194 23.59 to 23.15 4,533 1.85 to 1.40 0.47 13.59 to 13.08 2005 215 20.77 to 20.47 4,445 1.85 to 1.40 0.57 8.16 to 3.55 2004 216 19.20 to 19.05 4,122 1.75 to 1.40 0.21 13.94 to 13.55 2003 104 16.85 to 16.78 1,743 1.75 to 1.40 0.00 25.00 to 24.57 Scudder Contrarian Value - B 2006 213 22.42 to 21.18 4,743 1.85 to 1.40 1.19 13.37 to 12.86 2005 236 19.77 to 18.76 4,640 1.85 to 1.40 1.49 0.43 to (0.18) 2004 256 19.74 to 19.59 5,038 1.75 to 1.40 1.10 8.12 to 7.74 2003 86 18.26 to 18.18 1,570 1.75 to 1.40 0.00 30.35 to 29.90 Scudder Global Blue Chip - B 2006 64 30.17 to 29.60 1,908 1.85 to 1.40 0.22 27.85 to 27.28 2005 97 23.60 to 23.26 2,276 1.85 to 1.40 0.00 20.80 to 13.19 2004 73 19.54 to 19.38 1,413 1.75 to 1.40 0.56 12.74 to 12.34 2003 35 17.33 to 17.25 599 1.75 to 1.40 0.00 27.17 to 26.73
133 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------ -------------- ---------- ---------------- Scudder Government Securities - B 2006 236 $13.32 to $13.07 $3,119 1.85% to 1.40% 3.57% 2.30% to 1.85% 2005 279 13.02 to 12.83 3,610 1.85 to 1.40 3.64 0.82 to 0.29 2004 282 12.91 to 12.81 3,620 1.75 to 1.40 2.43 1.92 to 1.56 2003 199 12.67 to 12.61 2,510 1.75 to 1.40 0.00 0.41 to 0.06 Scudder High Income - B 2006 180 19.91 to 19.53 3,555 1.85 to 1.40 7.78 8.59 to 8.10 2005 205 18.33 to 18.07 3,726 1.85 to 1.40 9.85 1.98 to 0.07 2004 237 17.98 to 17.84 4,240 1.75 to 1.40 5.48 10.52 to 10.13 2003 119 16.26 to 16.19 1,924 1.75 to 1.40 0.00 22.42 to 21.99 Scudder International Select Equity - B 2006 135 27.86 to 27.34 3,734 1.85 to 1.40 1.59 23.32 to 22.77 2005 152 22.59 to 22.27 3,400 1.85 to 1.40 2.22 12.42 to 9.59 2004 123 20.10 to 19.94 2,464 1.75 to 1.40 0.53 16.20 to 15.79 2003 43 17.30 to 17.22 734 1.75 to 1.40 0.00 27.63 to 27.18 Scudder Fixed Income - B 2006 550 13.82 to 13.55 7,540 1.85 to 1.40 3.10 2.45 to 1.99 2005 567 13.48 to 13.30 7,593 1.85 to 1.40 2.96 0.44 to (0.52) 2004 573 13.43 to 13.32 7,664 1.75 to 1.40 2.24 2.65 to 2.29 2003 228 13.08 to 13.02 2,967 1.75 to 1.40 0.00 3.30 to 2.94 Scudder Money Market - B 2006 253 12.73 to 12.49 3,173 1.85 to 1.40 4.16 2.80 to 2.34 2005 305 12.39 to 12.21 3,738 1.85 to 1.40 2.49 1.01 to 0.48 2004 193 12.26 to 12.17 2,351 1.75 to 1.40 0.50 (0.88) to (1.22) 2003 326 12.37 to 12.32 4,023 1.75 to 1.40 0.18 (0.98) to (1.32) Scudder Small Cap Growth - B 2006 147 22.08 to 21.66 3,205 1.85 to 1.40 0.00 3.35 to 2.89 2005 170 21.36 to 21.05 3,615 1.85 to 1.40 0.00 5.25 to (0.25) 2004 144 20.29 to 20.14 2,903 1.75 to 1.40 0.00 9.00 to 8.62 2003 78 18.62 to 18.54 1,442 1.75 to 1.40 0.00 30.67 to 30.22 Scudder Technology Growth - B 2006 69 22.88 to 22.45 1,574 1.85 to 1.40 0.00 (0.96) to (1.40) 2005 75 23.10 to 22.76 1,724 1.85 to 1.40 0.12 3.26 to 1.48 2004 68 22.68 to 22.50 1,542 1.75 to 1.40 0.00 0.06 to (0.29) 2003 42 22.67 to 22.57 941 1.75 to 1.40 0.00 44.15 to 43.65 Scudder Total Return - B 2006 147 17.79 to 17.46 2,593 1.85 to 1.40 2.20 8.30 to 7.81 2005 172 16.43 to 16.19 2,805 1.85 to 1.40 2.30 2.46 to 0.19 2004 206 16.03 to 15.91 3,298 1.75 to 1.40 1.09 4.88 to 4.51 2003 160 15.29 to 15.22 2,446 1.75 to 1.40 0.00 15.92 to 15.52 Scudder Davis Venture Value - B 2006 314 24.02 to 23.56 7,463 1.85 to 1.40 0.29 12.76 to 12.25 2005 367 21.30 to 20.99 7,754 1.85 to 1.40 0.37 7.71 to 4.59 2004 333 19.77 to 19.62 6,549 1.75 to 1.40 0.03 9.86 to 9.48 2003 137 18.00 to 17.92 2,465 1.75 to 1.40 0.00 27.62 to 27.18 Scudder Dreman Financial Services - B 2006 -- 20.84 to 20.47 -- 1.85 to 1.40 2.90(a) 4.92 to 4.59(a) 2005 87 19.86 to 19.57 1,716 1.85 to 1.40 1.53 2.30 to (2.18) 2004 84 20.23 to 20.07 1,684 1.75 to 1.40 1.04 9.94 to 9.56 2003 41 18.40 to 18.32 759 1.75 to 1.40 0.00 25.95 to 25.51
134 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------- -------------- ---------- ------------------- Scudder Dreman High Return Equity - B 2006 524 $26.17 to $ 25.68 $13,599 1.85% to 1.40% 1.19% 16.57% to 16.05% 2005 369 22.45 to 22.12 8,238 1.85 to 1.40 1.34 6.02 to 1.89 2004 324 21.17 to 21.01 6,821 1.75 to 1.40 1.06 12.04 to 11.65 2003 162 18.90 to 18.82 3,047 1.75 to 1.40 0.00 29.66 to 29.21 Scudder Dreman Small Cap Value - B 2006 199 31.40 to 30.81 6,209 1.85 to 1.40 0.40 22.86 to 22.31 2005 233 25.56 to 25.19 5,912 1.85 to 1.40 0.36 8.26 to (0.23) 2004 216 23.61 to 23.42 5,071 1.75 to 1.40 0.36 23.77 to 23.34 2003 90 19.07 to 18.99 1,720 1.75 to 1.40 0.00 39.68 to 39.19 Scudder Salomon Aggressive Growth - B 2006 -- 26.08 to 25.60 -- 1.85 to 1.40 0.00(a) 10.62 to 10.16(a) 2005 30 23.58 to 23.24 700 1.85 to 1.40 0.00 11.66 to 4.47 2004 47 21.12 to 20.95 995 1.75 to 1.40 0.00 9.90 to 9.51 2003 13 19.21 to 19.13 253 1.75 to 1.40 0.00 33.38 to 32.91 Scudder Janus Growth & Income - B 2006 103 21.35 to 20.95 2,177 1.85 to 1.40 0.24 6.49 to 6.01 2005 126 20.05 to 19.76 2,503 1.85 to 1.40 0.00 10.16 to 5.78 2004 114 18.20 to 18.06 2,060 1.75 to 1.40 0.00 9.54 to 9.15 2003 57 16.62 to 16.55 946 1.75 to 1.40 0.00 22.22 to 21.79 Scudder Janus Growth Opportunities - B 2006 -- 20.00 to 19.62 -- 1.85 to 1.40 0.00(a) (0.83) to (1.25)(a) 2005 62 20.16 to 19.87 1,233 1.85 to 1.40 0.00 5.64 to 2.70 2004 23 19.09 to 18.94 446 1.75 to 1.40 0.00 10.65 to 10.26 2003 16 17.25 to 17.18 275 1.75 to 1.40 0.00 24.49 to 24.05 Scudder MFS Strategic Value - B 2006 -- 21.15 to 20.77 -- 1.85 to 1.40 0.64(a) 3.16 to 2.83(a) 2005 180 20.50 to 20.20 3,655 1.85 to 1.40 0.67 (1.97) to (2.84) 2004 196 20.91 to 20.75 4,088 1.75 to 1.40 0.06 15.76 to 15.36 2003 65 18.06 to 17.98 1,168 1.75 to 1.40 0.00 24.59 to 24.16 Scudder Oak Strategic Equity - B 2006 -- 21.65 to 21.25 -- 1.85 to 1.40 0.00(a) 2.46 to 2.02(a) 2005 67 21.13 to 20.83 1,416 1.85 to 1.40 0.00 (1.38) to (6.15) 2004 82 22.44 to 22.26 1,842 1.75 to 1.40 0.00 (0.53) to (0.88) 2003 34 22.56 to 22.46 771 1.75 to 1.40 0.00 47.06 to 46.55 Scudder Turner Mid Cap Growth - B 2006 99 25.59 to 25.11 2,515 1.85 to 1.40 0.00 4.74 to 4.27 2005 112 24.43 to 24.08 2,725 1.85 to 1.40 0.00 9.71 to 4.00 2004 85 22.27 to 22.10 1,892 1.75 to 1.40 0.00 9.09 to 8.71 2003 40 20.42 to 20.33 810 1.75 to 1.40 0.00 46.02 to 45.51 Scudder Real Estate - B 2006 176 29.25 to 28.78 5,127 1.85 to 1.40 0.00 35.23 to 34.62 2005 204 21.63 to 21.38 4,383 1.85 to 1.40 2.23 9.77 to (3.31) 2004 212 19.71 to 19.59 4,174 1.75 to 1.40 0.60 28.91 to 28.46 2003 108 15.29 to 15.25 1,654 1.75 to 1.40 0.00 22.30 to 22.02 Scudder Strategic Income - B 2006 172 14.64 to 14.40 2,498 1.85 to 1.40 4.40 7.24 to 6.76 2005 173 13.65 to 13.49 2,354 1.85 to 1.40 7.67 0.51 to (0.34) 2004 156 13.58 to 13.50 2,114 1.75 to 1.40 0.00 6.76 to 6.39 2003 71 12.72 to 12.69 901 1.75 to 1.40 0.00 1.76 to 1.53
135 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT TOTAL RETURN UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------ -------------- ---------- ------------------- Scudder Income Allocaton - B 2006 -- $13.59 to $ 13.46 $-- 1.85% to 1.40% 4.41%(a) 2.04% to 1.71%(a) 2005 95 13.32 to 13.24 1,261 1.85 to 1.40 0.00 2.10 to 0.43 2004 12 13.04 to 13.03 160 1.75 to 1.40 0.00 4.35 to 4.21 Scudder Moderate Allocation - B 2006 1,729 15.28 to 15.11 26,279 1.85 to 1.40 0.85 9.40 to 8.91 2005 1,630 13.96 to 13.88 22,690 1.85 to 1.40 0.00 3.60 to 1.18 2004 652 13.48 to 13.46 8,788 1.75 to 1.40 0.00 7.83 to 7.69 Scudder Conservative Allocation - B 2006 621 14.64 to 14.48 9,027 1.85 to 1.40 1.18 7.30 to 6.82 2005 475 13.64 to 13.56 6,458 1.85 to 1.40 0.00 2.93 to 0.77 2004 148 13.26 to 13.24 1,965 1.75 to 1.40 0.00 6.04 to 5.90 Scudder Growth Allocation - B 2006 2,231 15.93 to 15.76 35,350 1.85 to 1.40 0.78 11.10 to 10.60 2005 2,170 14.34 to 14.25 31,025 1.85 to 1.40 0.00 4.55 to 1.75 2004 502 13.72 to 13.70 6,878 1.75 to 1.40 0.00 9.72 to 9.58 Scudder Templeton Foreign Value 2006 -- 17.11 to 16.96 -- 1.85 to 1.40 3.73(a) 20.41 to 19.90(a) 2005 8 14.21 to 14.14 127 1.85 to 1.40 1.01 7.87 to 7.02 2004 4 13.18 to 13.17 54 1.75 to 1.40 0.00 5.41 to 5.37 Scudder Mercury Large Cap Core 2006 -- 16.05 to 15.90 -- 1.85 to 1.40 0.00(a) 11.18 to 10.71(a) 2005 6 14.44 to 14.36 84 1.85 to 1.40 0.03 11.36 to 3.81 2004 -- 12.96 to 12.96 3 1.75 to 1.40 0.00 3.72 to 3.67 Scudder Bond - B 2006 39 12.91 to 12.81 507 1.85 to 1.40 1.51(a) 2.88 to 2.42(a) 2005 12 12.55 to 12.51 154 1.85 to 1.40 0.00 0.37 to (0.35) Scudder Equity 500 Index Value - B 2006 372 22.32 to 21.90 8,245 1.85 to 1.40 0.89(a) 13.61 to 13.10(a) 2005 476 19.65 to 19.36 9,288 1.85 to 1.40 0.00 0 to 0 Alger American Balanced - B 2006 219 16.94 to 16.62 3,690 1.85 to 1.40 1.21 3.01 to 2.55 2005 239 16.44 to 16.20 3,903 1.85 to 1.40 1.51 6.65 to 2.81 2004 292 15.41 to 15.29 4,476 1.75 to 1.40 1.41 2.82 to 2.46 2003 135 14.99 to 14.93 2,014 1.75 to 1.40 0.03 17.08 to 16.67 Alger American Leveraged All Cap - B 2006 73 23.50 to 23.06 1,698 1.85 to 1.40 0.00 17.31 to 16.79 2005 59 20.03 to 19.74 1,179 1.85 to 1.40 0.00 12.57 to 7.26 2004 63 17.80 to 17.66 1,113 1.75 to 1.40 0.00 6.40 to 6.03 2003 33 16.72 to 16.65 548 1.75 to 1.40 0.00 32.37 to 31.90 Credit Suisse Emerging Markets - B 2006 53 38.19 to 37.47 2,017 1.85 to 1.40 0.52 30.68 to 30.09 2005 74 29.22 to 28.80 2,138 1.85 to 1.40 0.79 26.16 to 16.23 2004 58 23.16 to 22.98 1,344 1.75 to 1.40 0.34 23.19 to 22.76 2003 27 18.80 to 18.72 514 1.75 to 1.40 0.00 40.89 to 40.40 Credit Suisse Global Post Venture Capital - B 2006 16 29.37 to 28.82 467 1.85 to 1.40 0.00 11.63 to 11.13 2005 17 26.31 to 25.93 455 1.85 to 1.40 0.00 14.53 to 4.89 2004 16 22.97 to 22.79 358 1.75 to 1.40 0.00 16.35 to 15.94 2003 9 19.75 to 19.66 171 1.75 to 1.40 0.00 45.61 to 45.10 Dreyfus Socially Responsible Growth - B 2006 16 19.53 to 19.16 303 1.85 to 1.40 0.00 7.45 to 6.97 2005 19 18.18 to 17.92 350 1.85 to 1.40 0.00 1.92 to (0.16) 2004 27 17.84 to 17.70 484 1.75 to 1.40 0.21 4.46 to 4.10 2003 9 17.07 to 17.00 159 1.75 to 1.40 0.00 24.01 to 23.57
136 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTES TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
EXPENSE RATIO INVESTMENT UNITS UNIT FAIR VALUE ASSETS HIGHEST TO INCOME TOTAL RETURN HIGHEST SUB-ACCOUNT YEAR (000S) HIGHEST TO LOWEST (000S) LOWEST* RATIO** TO LOWEST*** - ---------------------------------------- ---- ------ ----------------- ------ -------------- ---------- -------------------- Dreyfus VIF Midcap Stock - B 2006 224 $23.07 to $22.63 $5,135 1.85% to 1.40% 0.18% 6.18% to 5.71% 2005 258 21.72 to 21.41 5,573 1.85 to 1.40 0.00 7.43 to 0.54 2004 252 20.22 to 20.06 5,071 1.75 to 1.40 0.22 12.64 to 12.24 2003 129 17.95 to 17.88 2,305 1.75 to 1.40 0.51 29.65 to 29.20 AIM VI Utilities - - B 2006 58 27.68 to 27.16 1,592 1.85 to 1.40 3.36 23.72 to 23.17 2005 64 22.37 to 22.05 1,422 1.85 to 1.40 2.49 15.22 to 1.21 2004 53 19.42 to 19.27 1,023 1.75 to 1.40 1.93 21.84 to 21.41 2003 30 15.94 to 15.87 479 1.75 to 1.40 3.57 15.84 to 15.43
137 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTED TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED) * The Investment Income Ratio represents the dividends, excluding the distributions of capital gains, received by the sub-account from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying fund in which the sub-account invests. ** The Expense Ratio represents the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of underlying funds are excluded. *** The Total Return Ratio represents the total return for the periods indicated, including changes in the value of the underlying fund, and reflects deductions for all items included in the expense ratio. This 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. a The commencement and closing of sub-account operations for 2005 and 2006 are as follows:
Sub-accounts Opened 2006 2005 - ---------------------------------------- -------- -------- Small Cap Opportunities A April 29 American Bond B Aug 1 U.S. Global Leaders Growth A April 29 Active Bond A April 29 Active Bond B April 29 CGTC Overseas Equity B April 29 Independence Investment LLC Small Cap B April 29 Marisco International Opportunities B April 29 T Rowe Price Mid Value B April 29 UBS Large Cap B April 29 U.S. High Yield B April 29 Wellington Small Cap Growth B April 29 Wellington Small Cap Value B April 29 Wells Capital Core Bond B April 29 Index Allocation B Feb 16 Large Cap Value A Dec 1 Scudder Bond B April 29 Scudder Equity 500 Index B Sept 16
138 JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A NOTED TO FINANCIAL STATEMENTS - (CONTINUED) DECEMBER 31, 2006 6. UNIT VALUES (CONTINUED)
Sub-accounts Closed 2006 2005 - ---------------------------------------- ------- -------- Diversified Bond A April 29 Diversified Bond B April 29 Overseas A April 29 Overseas B April 29 Aggressive Growth A April 29 Aggressive Growth B April 29 Small Company Blend A April 29 Small Company Blend B April 29 Strategic Growth A April 29 Strategic Growth B April 29 Great Companies America B April 29 Scudder 21st Century Growth B April 29 Scudder Growth B April 29 Scudder Eagle Focused Large Cap Growth B April 29 Scudder Focus Value & Growth B April 29 Scudder Index 500 B Sept 16 Large Cap Growth A May 1 Large Cap Growth B May 1 Strategic Value A Dec 4 Strategic Value B Dec 4 Mid Cap Core B Dec 4 Scudder Dreman Financial Services B Sept 18 Scudder Salomon Aggressive Growth B Dec 6 Scudder Janus Growth Opportunities B Dec 6 Scudder MFS Strategic Value B Sept 18 Scudder Oak Strategic Equity B Dec 6 Scudder Income Allocation B Sept 18 Scudder Templeton Foreign Value B Dec 6 Scudder Mercury Large Cap Core B Dec 6
7. DIVERSIFICATION REQUIREMENTS Under the provisions of Section 817(h) of the Internal Revenue Code, a variable annuity contract, other than a contract issued in connection with certain types of employee benefits plans, will not be treated as an annuity contract for federal tax purposes for any period for which the investments of the segregated asset account on which the contract is based are not adequately diversified. The Code provides that the "adequately diversified" requirement may be met if the underlying investments satisfy either a statutory safe harbor test or diversification requirements set forth in regulations issued by the Secretary of Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and it intends that the Account will continue to meet such requirements. 139 PART C OTHER INFORMATION Guide to Name Changes and Successions: NAME CHANGES
DATE OF CHANGE OLD NAME NEW NAME - -------------- -------- -------- October 1, 1997 FNAL Variable Account The Manufacturers Life Insurance Company of New York Separate Account A October 1, 1997 First North American Life Assurance Company The Manufacturers Life Insurance Company November 1, 1997 NAWL Holding Co., Inc. of New York Manulife-Wood Logan Holding Co., Inc. September 24, 1999 Wood Logan Associates, Inc. Manulife Wood Logan, Inc January 1, 2005 The Manufacturers Life Insurance Company John Hancock Life Insurance Company of New York of New York Separate Account A Separate Account A January 1, 2005 The Manufacturers Life Insurance Company John Hancock Life Insurance Company of New York of New York Separate Account A. January 1, 2005 Manulife Financial Securities LLC John Hancock Distributors LLC January 1, 2005 Manufacturers Securities Services LLC John Hancock Investment Management Services LLC
On September 30, 1997, Manufacturers Securities Services, LLC succeeded to the business of NASL Financial Services, Inc. The following changes became effective January 1, 2002: (a) The Manufacturers Life Insurance Company of North America ("Manulife North America") merged into The Manufacturers Life Insurance Company (U.S.A.) with the latter becoming the owner of all of Manulife North America's assets; (b) Manulife Financial Securities LLC became the successor broker-dealer to Manufacturers Securities Services, LLC. * * * * * Item 24. Financial Statements and Exhibits (a) Financial Statements (1) Financial Statements of the Registrant, John Hancock Life Insurance Company of New York Separate Account A (Part B of the registration statement). [FILED HEREWITH] (2) Financial Statements of the Depositor, John Hancock Life Insurance Company of New York (Part B of the registration statement). [FILED HEREWITH] (b) Exhibits (1) (a) Resolution of the Board of Directors of First North American Life Assurance Company establishing the FNAL Variable Account - Incorporated by reference to Exhibit (b)(1)(a) to Form N-4, file number 33-46217, filed February 25, 1998. (b) Resolution of the Board of Directors of First North American Life Assurance Company establishing the Fixed Separate Account - Incorporated by reference to Exhibit (b)(1)(b) to Form N-4, file number 33-46217, filed February 25, 1998. (c) Resolution of the Board of Directors of First North American Life Assurance Company establishing The Manufacturers Life Insurance Company of New York Separate Account D and The Manufacturers Life Insurance Company of New York Separate Account E - Incorporated by reference to Exhibit (b)(1)(c) to Form N-4, file number 33-46217, filed February 25, 1998. (2) Agreements for custody of securities and similar investments.- Not Applicable. (3) (a) Form of Underwriting and Distribution Agreement-Incorporated by reference to Exhibit 3(a) to the registration statement on Form N-4, file number 333-61283, filed on April 29, 2002 (b) Form of Selling Agreement between The Manufacturers Life Insurance Company of New York, Manufacturers Securities Services, LLC (Underwriter), and General Agents - Incorporated by reference to Exhibit 3(b) to the registration statement on Form N-4, file number 333-61283, filed on April 29, 2002. (4) (a) Form of Specimen Contract: Flexible Purchase Payment Individual Deferred Variable Annuity Contract, Non-Participating - Incorporated by reference to Exhibit (b)(4)(a) to Form N-4 on pre-effective amendment no. 2 to this registration statement, file no 333-138846, filed February 12, 2007. (5) (a) Form of Specimen Application: Flexible Purchase Payment Individual Deferred Variable Annuity Contract, Non-Participating - Incorporated by reference to Exhibit (b)(5)(a) to Form N-4 on pre-effective amendment no. 2 to this registration statement, filed February 12, 2007. (6) (a)(i) Declaration of Intention and Charter of First North American Life Assurance Company - Incorporated by reference to Exhibit (b)(6)(a)(i) to Form N-4, file number 33-46217, filed February 25, 1998. (a)(ii) Certificate of amendment of the Declaration of Intention and Charter of First North American Life Assurance Company - Incorporated by reference to Exhibit (b)(6)(a)(ii) to Form N-4, file number 33-46217, filed February 25, 1998. (a)(iii) Certificate of amendment of the Declaration of Intention and Charter of The Manufacturers Life Insurance Company of New York - Incorporated by reference to Exhibit (b)(6)(a)(iii) to Form N-4, file number 33-46217, filed February 25, 1998. (a)(iv) Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York dated as of January 1, 2005. [FILED HEREWITH] (a)(v) Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York dated as of August 10, 2006. [FILED HEREWITH] (b) By-laws of John Hancock Life Insurance Company of New York, as amended and restated as of July 31, 2006. [FILED HEREWITH]. (7) Contract of reinsurance in connection with the variable annuity contracts being offered - Not Applicable. (8) Other material contracts not made in the ordinary course of business which are to be performed in whole or in part on or after the date the registration statement is filed: (a) Administrative Agreement between The Manufacturers Life Insurance Company of New York and The Manufacturers Life Insurance Company (U.S.A.) - Incorporated by reference to Exhibit (8) to post-effective amendment no. 5 to this registration statement filed on April 29, 2002. (b) Investment Services Agreement between The Manufacturers Life Insurance Company of New York and The Manufacturers Life Insurance Company - Incorporated by reference to Exhibit 1(A)(8)(c) to Form S-6, file number 333-33351, filed March 16, 1998. (9) Opinion of Counsel and consent to its use as to the legality of the securities being registered - Incorporated by reference to Exhibit (b)(9) to Form N-4 on pre-effective amendment no. 2 to this registration statement, filed February 12, 2007. (10) Written consent of Ernst & Young LLP, independent auditors - [FILED HEREWITH]. (11) All financial statements omitted from Item 23, Financial Statements - Not Applicable. (12) Agreements in consideration for providing initial capital between or among Registrant, Depositor, Underwriter or initial contract owners - Not Applicable. (13) Schedule for computation of each performance quotation provided in the Registration Statement in response to Item 21 - Incorporated by reference to Exhibit (b)(13) to Form N-4, 33-76162 filed March 1, 1996. (14) (a) Power of Attorney -James D. Gallagher, Thomas Borshoff, Marc Costantini, Steven A. Finch, Ruth Ann Fleming, William P. Hicks III, Katherine MacMillan, Neil M. Merkl, Bradford J. Race Jr., Diana Scott, Bruce R. Speca, Robert L. Ullmann, - incorporated by reference to Exhibit (b)(14)(a) to Form N-4 on pre-effective amendment no. 2 to this registration statement, filed February 12, 2007. Item 25. Directors and Officers of the Depositor. OFFICERS AND DIRECTORS OF JOHN HANCOCK LIFE INSURANCE COMPANY NEW YORK AS OF FEBRUARY 27, 2007
NAME AND PRINCIPAL BUSINESS ADDRESS POSITION WITH DEPOSITOR - ------------------ ----------------------- James D. Gallagher* Chairman, President, Director Thomas Borshoff* Director Marc Costantini* Director Steven A. Finch* Director Ruth Ann Fleming* Director William P. Hicks III* Director Katherine MacMillan** Director, Executive Vice President, Retirement Plan Services Neil M. Merkel* Director Lynne Patterson** Director Bradford J. Race, Jr.* Director Diana Scott* Director Bruce R. Speca* Director Robert L. Ullmann* Director James R. Boyle* Executive Vice President, US Insurance Peter Copestake** Senior Vice President & Treasurer Philip Clarkson** Vice President, US Taxation Brian Collins** Vice President, US Taxation Edward Eng* Vice President, Product Development, Retirement Plan Services Robert K. Leach* Vice President, Annuity Product Management Elaine Leighton* Vice President, Compliance and Market Conduct, Retirement Plan Services Gregory Mack* Vice President, Distribution Hugh McHaffie* Executive Vice President, US Wealth Management Steven McCormick* Vice President, Operations, Retirement Plan Services Thomas Samoluk* Vice President, Government Relations Yiji Starr* Vice President and CFO Patrick Gill** Controller Alan Tonner* Director,Federal & Contract Compliance Emanuel Alves* Secretary and Chief Administrative Officer
* Principal business office is 601 Congress Street, Boston, MA 02210 ** Principal business office is 200 Bloor Street, Toronto, Canada M4W 1E5 Item 26. Persons Controlled by or Under Common Control with Depositor or Registrant. Registrant is a separate account of John Hancock Life Insurance Company (U.S.A.) (the "Company"), operated as a unit investment trust. Registrant supports certain benefits payable under the Company's variable annuity contracts by investing assets allocated to various investment options in shares of John Hancock Trust (the "Trust"), which is a "series" type of mutual fund registered under the Investment Company Act of 1940 (the "Act") as an open-end management investment company. The purchasers of variable annuity and variable life insurance contracts, in connection with which the Trust is used, will have the opportunity to instruct the Company with respect to the voting of the shares of the Series Fund held by Registrant as to certain matters. Subject to the voting instructions, the Company directly controls Registrant. On the effective date of this Amendment to the Registration Statement, the Company and its affiliates are controlled by Manulife Financial Corporation ("MFC"). A list of other persons controlled by MFC as of December 31, 2006 appears below: Principal Subsidiaries The following is a list of the directly and indirectly held major operating subsidiaries of Manulife Financial Corporation.
AS AT DECEMBER 31, 2006 OWNERSHIP EQUITY (Unaudited, Canadian $ in millions) PERCENTAGE INTEREST ADDRESS DESCRIPTION - ----------------------------------- ---------- -------- ------- ----------- MANULIFE FINANCIAL CORPORATION Toronto, Canada Publicly traded stock life insurance company THE MANUFACTURERS LIFE INSURANCE COMPANY 100 $14,440 Toronto, Canada Leading Canadian-based financial services company that offers a diverse range of financial protection products and wealth management services Manulife Holdings (Alberta) Limited 100 Calgary, Canada Holding company Manulife Holdings (Delaware) LLC 100 Delaware, U.S.A. Holding company The Manufacturers Investment Corporation 100 Michigan, U.S.A. Holding company John Hancock Life Insurance Company 100 Michigan, U.S.A. U.S. based life insurance company (U.S.A.) that provides individual life insurance, annuities, and group pension products in all states in the U.S. except New York John Hancock Life Insurance Company of 100 New York, U.S.A. Provides group pension, individual New York annuities and life insurance products in the State of New York John Hancock Investment Management 95 Massachusetts, Investment advisor Services, LLC U.S.A. Manulife Reinsurance Limited 100 Hamilton, Bermuda Provides life and financial reinsurance Manulife Holdings (Bermuda) Limited 100 Hamilton, Bermuda Holding company Manufacturers P&C Limited 100 St. Michael, Provides property and casualty and Barbados financial reinsurance Manufacturers Life Reinsurance Limited 100 St. Michael, Provides life and financial Barbados reinsurance Manulife International Holdings Limited 100 Hamilton, Bermuda Holding company Manulife (International) Limited 100 Hong Kong, China Life insurance company serving Hong Kong and Taiwan Manulife-Sinochem Life Insurance Co. Ltd. 51 Shanghai, China Chinese life insurance company Manulife Asset Management (Asia) Limited 100 St. Michael, Holding company Barbados Manulife Asset Management (Hong Kong) 100 Hong Kong, China Hong Kong investment management and Limited advisory company marketing mutual funds Manulife Bank of Canada 100 Waterloo, Canada Provides integrated banking products and service options not available from an insurance company Manulife Canada Ltd. 100 Waterloo, Canada Canadian life insurance company FNA Financial Inc. 100 Toronto, Canada Holding company Elliott & Page Limited 100 Toronto, Canada Investment counseling, portfolio and mutual fund management in Canada First North American Insurance Company 100 Toronto, Canada Canadian property and casualty insurance company NAL Resources Management Limited 100 Calgary, Canada Management company for oil and gas properties Manulife Securities International Ltd. 100 Waterloo, Canada Mutual fund dealer for Canadian operations Regional Power Inc. 83.5 Montreal, Canada Operator of hydro-electric power projects MLI Resources Inc. 100 Calgary, Canada Holding company for oil and gas assets and Japanese operations Manulife Life Insurance Company 100 Tokyo, Japan Japanese life insurance company P.T. Asuransi Jiwa Manulife Indonesia 95 Jakarta, Indonesian life insurance company Indonesia P.T. Manulife Aset Manajemen Indonesia 95.3 Jakarta, Indonesian investment management Indonesia and advisory company marketing mutual funds The Manufacturers Life Insurance Co. (Phils.), Inc. 100 Manila, Filipino life insurance company Philippines Manulife (Singapore) Pte. Ltd. 100 Singapore Singaporean life insurance company Manulife (Vietnam) Limited 100 Ho Chi Minh City, Vietnamese life insurance company Vietnam Manulife Insurance (Thailand) Public Company Limited 97.9 Bangkok, Thailand Thai life insurance company Manulife Europe Ruckversicherungs-Aktiengesellschaft 100 Cologne, Germany European property and casualty reinsurance company MFC Global Fund Management (Europe) Limited 100 London, England Holding company MFC Global Fund Investment Management (Europe) 100 London, England Investment management company for Limited Manulife Financial's international funds
AS AT DECEMBER 31, 2006 OWNERSHIP EQUITY (Unaudited, Canadian $ in millions) PERCENTAGE INTEREST ADDRESS DESCRIPTION - ----------------------------------- ---------- -------- ------- ----------- MANULIFE FINANCIAL CORPORATION Toronto, Canada Publicly traded stock life insurance company JOHN HANCOCK HOLDINGS (DELAWARE) LLC 100 $11,547 Wilmington, Holding company Delaware, U.S.A. John Hancock Financial Services, Inc. 100 Boston, Holding company Massachusetts, U.S.A. John Hancock Life Insurance Company 100 Boston, Leading U.S. based financial Massachusetts, services company that offers a U.S.A. diverse range of financial protection products and wealth management services John Hancock Variable Life Insurance Company 100 Boston, U.S. based life insurance company Massachusetts, that provides variable and U.S.A. universal life insurance policies, and annuity products in all states in the U.S. except New York P.T. Asuransi Jiwa John Hancock Indonesia 96.2 Jakarta, Indonesian life insurance company Indonesia Independence Declaration Holdings LLC 100 Boston, Holding company Massachusetts, U.S.A. Declaration Management & Research LLC 100 McLean, Virginia, Provides institutional investment U.S.A. advisory services John Hancock Subsidiaries LLC 100 Wilmington, Holding company Delaware, U.S.A. John Hancock Financial Network, Inc. 100 Boston, Financial services distribution Massachusetts, organization U.S.A The Berkeley Financial Group, LLC 100 Boston, Holding company Massachusetts, U.S.A John Hancock Funds LLC 100 Boston, Mutual fund company Massachusetts, U.S.A Hancock Natural Resource Group, Inc. 100 Boston, Manager of globally diversified Massachusetts, timberland and agricultural U.S.A portfolios for public and corporate pension plans, high net-worth individuals, foundations and endowments John Hancock International Holdings, Inc. 100 Boston, Holding company Massachusetts, U.S.A. Manulife Insurance (Malaysia) Berhad 45.8 Kuala Lumpur, Malaysian life insurance company Malaysia John Hancock International, Inc. 100 Boston, Holding company Massachusetts, U.S.A. John Hancock Tianan Life Insurance Company 50 Shanghai, China Chinese life insurance company
Item 27. Number of Contract Owners. As of MARCH 31, 2007, there were no qualified and no non-qualified contracts of the series offered hereby outstanding. Item 28. Indemnification. Article 10 of the Charter of the Company provides as follows: TENTH: No director of the Corporation shall be personally liable to the Corporation or any of its shareholders for damages for any breach of duty as a director; provided, however, the foregoing provision shall not eliminate or limit (i) the liability of a director if a judgment or other final adjudication adverse to such director established his or her such acts or omissions were in bad faith or involved intentional misconduct or were acts or omissions (a) which he or she knew or reasonably should have known violated the New York Insurance Law or (b) which violated a specific standard of care imposed on directors directly, and not by reference, by a provision of the New York Insurance Law (or any regulations promulgated thereunder) or (c) which constituted a knowing violation of any other law, or establishes that the director personally gained in fact a financial profit or other advantage to which the director was not legally entitled or (ii) the liability of a director for any act or omission prior to the adoption of this Article by the shareholders of the Corporation. Any repeal or modification of this Article by the shareholders of the Corporation shall be prospective only, and shall not adversely affect any limitation on the personal liability of a director of the Corporation existing at the time of such repeal or modification. Article VII of the By-laws of the Company provides as follows: Section VII.1. Indemnification of Directors and Officers. The Corporation may indemnify any person made, or threatened to be made, a party to an action by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he or she, his or her testator, testatrix or intestate, is or was a director or officer of the Corporation, or is or was serving at the request of the Corporation as a director or officer of any other corporation of any type or kind, domestic or foreign, of any partnership, joint venture, trust, employee benefit plan or other enterprise, against amounts paid in settlement and reasonable expenses, including attorneys' fees, actually and necessarily incurred by him or her in connection with the defense or settlement of such action, or in connection with an appeal therein, if such director or officer acted, in good faith, for a purpose which he or she reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the Corporation, except that no indemnification under this Section shall be made in respect of (1) a threatened action, or a pending action which is settled or is otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the Corporation, unless and only to the extent that the court in which the action was brought, or , if no action was brought, any court of competent jurisdiction, determines upon application that, in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such portion of the settlement amount and expenses as the court deems proper. The Corporation may indemnify any person made, or threatened to be made, a party to an action or proceeding (other than one by or in the right of the Corporation to procure a judgment in its favor), whether civil or criminal, including an action by or in the right of any other corporation of any type or kind, domestic or foreign, or any partnership, joint venture, trust, employee benefit plan or other enterprise, which any director or officer of the Corporation served in any capacity at the request of the Corporation, by reason of the fact that he or she, his or her testator, testatrix or intestate, was a director or officer of the Corporation, or served such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise in any capacity, against judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys' fees actually and necessarily incurred as a result of such action or proceeding, or any appeal therein, if such director or officer acted, in good faith, for a purpose which he or she reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the Corporation and, in criminal actions or proceedings, in addition, had no reasonable cause to believe that his or her conduct was unlawful. The termination of any such civil or criminal action or proceeding by judgment, settlement, conviction or upon a plea of nolo contendere, of its equivalent, shall not in itself create a presumption that any such director or officer did not act, in good faith, for a purpose which he or she reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interest of the Corporation or that he or she had reasonable cause to believe that his or her conduct was unlawful. Notwithstanding the foregoing, Registrant hereby makes the following undertaking pursuant to Rule 484 under the Securities Act of 1933: Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 29. Principal Underwriters. (a) Set forth below is information concerning other investment companies for which John Hancock Distributors, LLC ("JHD LLC"), the principal underwriter of the contracts, acts as investment adviser or principal underwriter.
NAME OF INVESTMENT COMPANY CAPACITY IN WHICH ACTING - -------------------------- ------------------------ John Hancock Life Insurance Company (U.S.A.) Separate Account H Principal Underwriter John Hancock Life Insurance Company (U.S.A.) Separate Account A Principal Underwriter John Hancock Life Insurance Company (U.S.A.) Separate Account N Principal Underwriter John Hancock Life Insurance Company (U.S.A.) Separate Account I Principal Underwriter John Hancock Life Insurance Company (U.S.A.) Separate Account L Principal Underwriter John Hancock Life Insurance Company (U.S.A.) Separate Account M Principal Underwriter John Hancock Life Insurance Company of New York Separate Account A Principal Underwriter John Hancock Life Insurance Company of New York Separate Account B Principal Underwriter John Hancock Life Insurance Company Variable Annuity Account H Principal Underwriter John Hancock Life Insurance Company Variable Annuity Account U Principal Underwriter John Hancock Life Insurance Company Variable Annuity Account V Principal Underwriter John Hancock Life Insurance Company Variable Life Account UV Principal Underwriter John Hancock Variable Life Insurance Company Variable Account I Principal Underwriter John Hancock Variable Life Insurance Company Variable Account JF Principal Underwriter John Hancock Variable Life Insurance Company Variable Account S Principal Underwriter John Hancock Variable Life Insurance Company Variable Account U Principal Underwriter John Hancock Variable Life Insurance Company Variable Account V Principal Underwriter
(b) John Hancock Life Insurance Company (U.S.A.) is the sole member of John Hancock Distributors LLC (JHD LLC) and the following officers of John Hancock Life Insurance Company (U.S.A.) have power to act on behalf of JHD LLC: John DesPrez III* (Chairman and President), Marc Costantini* (Executive Vice President and Chief Financial Officer) and Jonathan Chiel* (Executive Vice President and General Counsel). The board of managers of JHD LLC (consisting of Marc Costantini*, Kevin Hill*, Steve Finch***, Katherine MacMillan** and Christopher M. Walker**) may also act on behalf of JHD LLC. * Principal business office is 601 Congress Street, Boston, MA 02210 ** Principal business office is 200 Bloor Street, Toronto, Canada M4W 1E5 *** 197 Clarendon St, Boston, MA 02116 (c) None. Item 30. Location of Accounts and Records. All books and records are maintained at 100 Summit Lake Drive, Second Floor, Valhalla, New York 10595. Item 31. Management Services. The Company has entered into an Administrative Services Agreement with The Manufacturers Life Insurance Company ("Manulife"). This Agreement provides that under the general supervision of the Board of Directors of the Company, and subject to initiation, preparation and verification by the Chief Administrative Officer of the Company, Manulife shall provide accounting services related to the provision of a payroll support system, general ledger, accounts payable, tax and auditing services. Item 32. Undertakings. a. Representation of Insurer pursuant to Section 26 of the Investment Company Act of 1940. John Hancock Life Insurance Company of New York (the "Company") hereby represents that the fees and charges deducted under the Contracts issued pursuant to this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred and the risks assumed by the Company. SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant and the Depositor certify that they meet the requirements of Securities Act Rule 485(b) for effectiveness of this post-effective amendment to the Registration Statement and have caused this post-effective amendment to the Registration Statement to be signed on their behalf in the City of Boston, Massachusetts, on this first day of May 2007. JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT A (Registrant) By: JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK (Depositor) By: /s/ James D. Gallagher --------------------------------- James D. Gallagher Chairman and President JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK By: /s/ James D. Gallagher --------------------------------- James D. Gallagher Chairman and President SIGNATURES As required by the Securities Act of 1933, this amended Registration Statement has been signed by the following persons in the capacities with the Depositor on the first day of May 2007.
Signature Title - --------- ----- /s/ James D. Gallagher Chairman and President - ------------------------------------- (Principal Executive Officer) James D. Gallagher /s/ Yiji Starr Vice President and CFO - ------------------------------------- (Principal Financial Officer) Yiji Starr /s/ Patrick Gill Controller - ------------------------------------- (Principal Accounting Officer) Patrick Gill * Director - ------------------------------------- Thomas Borshoff * Director - ------------------------------------- Marc Costantini * Director - ------------------------------------- Steven A. Finch * Director - ------------------------------------- Ruth Ann Fleming * Director - ------------------------------------- William P. Hicks III * Director - ------------------------------------- Katherine MacMillan * Director - ------------------------------------- Neil M. Merkl Director - ------------------------------------- Lynne Patterson * Director - ------------------------------------- Bradford J. Race, Jr. * Director - ------------------------------------- Diana Scott * Director - ------------------------------------- Bruce R. Speca * Director - ------------------------------------- Robert L. Ullmann */s/ Arnold R. Bergman Chief Counsel - Annuities - ------------------------------------- Arnold R. Bergman Pursuant to Power of Attorney
EXHIBIT INDEX
ITEM NO. DESCRIPTION -------- ----------- 24(b)6(a)(iv) Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York dated January 1, 2005 24(b)6(a)(v) Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York dated August 10, 2006 24(b)6(b) By-laws of John Hancock Life Insurance Company of New York, as amended and restated as of July 31, 2006 24(b)10 Consent of Independent Registered Public Accounting Firm
EX-99.24(B)6(A)(IV) 2 b63297a1exv99w24xby6xayxivy.txt CERTIFICATE OF AMENDMENT OF THE DECLARATION OF INTENT EXHIBIT 24(B)6(A)(IV) manatt Jeremiah P. Sheehan manatt | phelps | phillips Manatt, Phelps &, Phillips, LLP Direct Dial: (212) 830-7205 E-mail: jsheehan@manatt.com August 17, 2006 Client-Matter: 58351-032 FEDERAL EXPRESS Mr. Emanuel Alves VP, Counsel and Corporate Secretary John Hancock Life Insurance Company Office of The Secretary Z-13-49 601 Congress Street Boston, MA 02210 RE: JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK ("JHNY") - CHARTER AMENDMENT Dear Mr. Alves: Attached for your records are copies of the following: 1. A certified copy of the amendment of JHNY's Charter to decrease the required number of New York directors from 3 to 2. 2. A date stamped copy confirming its filing with the Westchester County Clerk. If you have any questions or need additional information, please call me. Very truly yours, /s/ Jeremiah P. Sheehan ---------------------------------------- Jeremiah P. Sheehan Enclosures 80370749.1 7 Times Square, New York, New York 10036 Telephone: 212.790.4500 Fax: 212.790.4545 Albany | Los Angeles | New York | Orange County | Palo Alto | Sacramento | Washington, D.C. (LOGO) STATE OF NEW YORK INSURANCE DEPARTMENT ONE COMMERCE PLAZA ALBANY, NEW YORK 12257 George E. Pataki Howard Mills Governor Superintendent August 17, 2006 Jeremiah P. Sheehan, Esq. Manatt, Phelps & Phillips, LLP 7 Times Square New York, NY 10036 RE: John Hancock Life Insurance Company of New York Proof of Filing of Amendment to Charter Dear Mr. Sheehan: This will acknowledge receipt of the proof of filing of the certified copy of the recent amendment to the above captioned company's charter that you forwarded under cover of August 16, 2006. Very truly yours, /s/ Patrick M. Harrigan ---------------------------------------- Patrick M. Harrigan Associate Attorney Office of General Counsel Short Certificate STATE OF NEW YORK INSURANCE DEPARTMENT (SEAL) IT IS HEREBY CERTIFIED THAT the attached copy of Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York, of Valhalla, New York for the purpose of changing the number of directors who are required to be residents of New York State from three to two, as approved by this Department, July 31, 2006, HAS BEEN COMPARED WITH THE ORIGINAL OF FILE IN THIS DEPARTMENT AND THAT IT IS A CORRECT TRANSCRIPT THEREFROM AND OF THE WHOLE OF SAID ORIGINAL. (SEAL) IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of this Department at the City of Albany, this 31st day of July 2006. /s/ Salvatore Castiglione ---------------------------------------- Salvatore Castiglione Special Deputy Superintendent (STAMP) CERTIFICATE OF AMENDMENT OF THE DECLARATION OF INTENTION AND CHARTER OF JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK UNDER SECTION 805 OF THE BUSINESS CORPORATION LAW AND SECTION 1206 OF THE INSURANCE LAW The undersigned officers of John Hancock Life Insurance Company of New York (the "Corporation"), duly organized and existing under the Laws of the State of New York, do hereby certify that: 1. That the name of the Corporation is John Hancock Life Insurance Company of New York. 2. That the Declaration of Intention and Charter (the "Charter") was filed on February 10,1992 with the Superintendent of Insurance. 3. That the Charter of the Corporation is hereby amended to change the number of Directors of the Corporation who are required to be residents of the State of New York from three to two by deleting under paragraph Sixth, Section (c), the first sentence in its entirety and inserting in lieu thereof: Each Director shall be at least eighteen years of age and at all times a majority of the Directors shall be citizens and residents of the United States and not less than two shall be residents of the State of New York. 4. That the foregoing amendment has been duly authorized by the Board of Directors at their regularly scheduled meeting held November 17, 2005 and by the Sole Stockholder of the Corporation at a Special Meeting held on July 26th, 2006, in accordance with the provisions of Section 803(a) of the Business Corporation Law of the State of New York. 5. That the foregoing amendment shall be effective upon filing with the Westchester, New York, County Clerk. IN WITNESS WHEREOF, John Hancock Life Insurance Company of New York has caused this Certificate to be executed by James D. Gallagher, President and Andrew Corselli, Secretary. JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK By /s/ James D. Gallagher ------------------------------------ James D. Gallagher, President By /s/ Andrew Corselli ------------------------------------- Andrew Corselli, Secretary Commonwealth of Massachusetts ) ) County of Suffolk ) On this 26th day of July, 2006, before me personally came James D. Gallagher, President and Andrew Corselli, Secretary of John Hancock Life Insurance Company of New York, the Corporation described in the above executed instrument, and that they signed their name thereto by order of the Directors of said Corporation. (SEAL) [ILLEGIBLE] ---------------------------------------- Notary Public Commission Expires 01/28/2011 EX-99.24(B)6(A)(V) 3 b63297a1exv99w24xby6xayxvy.txt CERTIFICATE OF AMENDMENT OF THE DECLARATION OF INTENTION EXHIBIT 24(B)6(A)(V) (LOGO) STATE OF NEW YORK INSURANCE DEPARTMENT ONE COMMERCE PLAZA ALBANY, NEW YORK 12257 George E. Pataki Howard Mills Governor Superintendent August 17, 2006 Jeremiah P. Sheehan, Esq. Manatt, Phelps & Phillips, LLP 7 Times Square New York, NY 10036 RE: John Hancock Life Insurance Company of New York Proof of Filing of Amendment to Charter Dear Mr. Sheehan: This will acknowledge receipt of the proof of filing of the certified copy of the recent amendment to the above captioned company's charter that you forwarded under cover of August 16, 2006. Very truly yours, /s/ Patrick M. Harrigan ---------------------------------------- Patrick M. Harrigan Associate Attorney Office of General Counsel Short Certificate STATE OF NEW YORK INSURANCE DEPARTMENT (SEAL) IT IS HEREBY CERTIFIED THAT the attached copy of Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York, of Valhalla, New York for the purpose of changing the number of directors who are required to be residents of New York State from three to two, as approved by this Department, July 31, 2006, HAS BEEN COMPARED WITH THE ORIGINAL OF FILE IN THIS DEPARTMENT AND THAT IT IS A CORRECT TRANSCRIPT THEREFROM AND OF THE WHOLE OF SAID ORIGINAL. (SEAL) IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of this Department at the City of Albany, this 31st day of July 2006. /s/ Salvatore Castiglione ---------------------------------------- Salvatore Castiglione Special Deputy Superintendent (STAMP) CERTIFICATE OF AMENDMENT OF THE DECLARATION OF INTENTION AND CHARTER OF JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK UNDER SECTION 805 OF THE BUSINESS CORPORATION LAW AND SECTION 1206 OF THE INSURANCE LAW The undersigned officers of John Hancock Life Insurance Company of New York (the "Corporation"), duly organized and existing under the Laws of the State of New York, do hereby certify that: 1. That the name of the Corporation is John Hancock Life Insurance Company of New York. 2. That the Declaration of Intention and Charter (the "Charter") was filed on February 10,1992 with the Superintendent of Insurance. 3. That the Charter of the Corporation is hereby amended to change the number of Directors of the Corporation who are required to be residents of the State of New York from three to two by deleting under paragraph Sixth, Section (c), the first sentence in its entirety and inserting in lieu thereof: Each Director shall be at least eighteen years of age and at all times a majority of the Directors shall be citizens and residents of the United States and not less than two shall be residents of the State of New York. 4. That the foregoing amendment has been duly authorized by the Board of Directors at their regularly scheduled meeting held November 17, 2005 and by the Sole Stockholder of the Corporation at a Special Meeting held on July 26th, 2006, in accordance with the provisions of Section 803(a) of the Business Corporation Law of the State of New York. 5. That the foregoing amendment shall be effective upon filing with the Westchester, New York, County Clerk. IN WITNESS WHEREOF, John Hancock Life Insurance Company of New York has caused this Certificate to be executed by James D. Gallagher, President and Andrew Corselli, Secretary. JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK By /s/ James D. Gallagher ------------------------------------- James D. Gallagher, President By /s/ Andrew Corselli ------------------------------------- Andrew Corselli, Secretary Commonwealth of Massachusetts ) ) County of Suffolk ) On this 26th day of July, 2006, before me personally came James D. Gallagher, President and Andrew Corselli, Secretary of John Hancock Life Insurance Company of New York, the Corporation described in the above executed instrument, and that they signed their name thereto by order of the Directors of said Corporation. (SEAL) [ILLEGIBLE] ---------------------------------------- Notary Public Commission Expires 01/28/2011 EX-99.24(B)6(B) 4 b63297a1exv99w24xby6xby.txt BY-LAWS OF JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK EXHIBIT 24(B)6(B) BY-LAWS OF JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK ARTICLE I CHARTER Section I.1. Charter. The name and purpose of the Corporation shall be as set forth in the Charter. These By-Laws, the powers of the Corporation and of its directors and shareholders, and all matters concerning the conduct and regulation of the business and affairs of the Corporation shall be subject to such provisions in regard thereto, if any, as arc set forth in the Charter. All references in these By-Laws to the Charter shall mean the Charter as from time to time amended. ARTICLE II OFFICES Section II.1. Offices. The principal office of the Corporation shall be located in the County of Westchester, State of New York. The Corporation, in addition to its principal office, may also establish and maintain such other offices and places of business, within or without the State of New York, as the Board of Directors may from time to time determine. ARTICLE III SHAREHOLDERS Section III. 1. Annual Meeting. The annual meeting of the shareholders of the Corporation for the election of directors and for the transaction of such other business as may properly come before the meeting shall be held on the second Friday in March of each year, at 10:00 a,m., or on such other date or at such other time as may be fixed by the Board of Directors and stated in the notice of the meeting. The place of the meeting shall be the principal office of the Corporation, or such other place, within or without the State of New York, as may be fixed by the Board of Directors and stated in the notice of the meeting. Section III.2. Special Meetings. A special meeting of the shareholders may be called at any time by the President or the Board of Directors, and shall be called by the President upon the written request of one-third of the shareholders of record entitled to vote, such written request to state the purpose or purposes of the meeting and to be delivered to the President. All special meetings shall be held at the principal office of the Corporation, or at such other place, within or without the State of New York, as may be designated by the President, at a date and time to be fixed by the President, which date shall not be later than thirty days from the date of the receipt of such written request. Section III.3. Notice of Meetings and Waiver. Except as otherwise required by law, a written notice of each meeting of shareholders, whether annual or special, stating the place, date and hour of the meeting, shall be given not less than ten or more than fifty days before the meeting to each shareholder of record entitled to vote at such meeting. No notice of any meeting of shareholders need be given to a shareholder if a written waiver of notice, executed before, during or after the meeting by such shareholder or his attorney thereunto duly authorized, is filed with the records of the meeting, or to any shareholder who shall attend such meeting in person or by proxy otherwise than for the express purpose of objecting, prior to the conclusion of the meeting, to the transaction of any business because the meeting is not lawfully called or convened, or to any shareholder with whom communication is at the time unlawful. Section III.4. Quorum and Adjournment. Except as otherwise required by law, the Charter or these By-Laws, at all meetings of shareholders, the holders of a majority of the shares entitled to vote at such meeting, present in person or represented by proxy, shall constitute a quorum for the transaction of business. In the absence of a quorum, any officer entitled to preside over or act as secretary of such meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum be present. At any such adjourned meeting at which a quorum may be present, any business may be transacted which might have been transacted at the meeting as originally notified. If the adjournment is for more than thirty days or a new record date is fixed, notice of adjournment of a meeting of shareholders to another time or place shall be given to each shareholder of record entitled to vote at such meeting. Section III.5. Voting. Shareholders entitled to vote shall have one vote for each share of stock, and a proportionate vote for a fractional share of stock, entitled to vote held by them of record according to the records of the Corporation. The Corporation shall not, directly or indirectly, vote any share of its own stock. The vote upon any question shall be by ballot whenever requested by any person entitled to vote but, unless such a request is made, voting may be conducted in any way approved by the meeting. In the absence of a higher standard required by law, the Charter or these By-Laws, any matter properly before a meeting of shareholders shall be decided by a majority of the votes cast hereon. Section III.6. Proxies. Shareholders entitled to vote at a meeting or to express consent or dissent without a meeting may vote either in person or by proxy in writing dated not more than six months before the meeting named therein, which proxy shall he filed with the Secretary or other person responsible to record the proceedings of the meeting before being voted. Unless otherwise specifically limited by their terms, such proxies shall entitle the holders thereof to vote at any adjournment of such meeting but shall not be valid after eleven months from its date, unless the proxy provides for a longer period. The Secretary shall determine the validity of any proxy submitted for use at any meeting. Section III.7. Waiver of Irregularities. Unless otherwise provided by law, all informalities and irregularities in calls, notices of meetings and in the manner of voting, form of proxy, credentials and methods of ascertaining those present, shall be deemed waived if no objection is made thereto at the meeting. Section III.8. Action by Written Consent. So far as permitted by law, any action required or permitted to be taken at any meeting of shareholders may be taken without meeting if a written consent setting forth such action is signed by all the shareholders entitled to vote thereon and such written consent is filed with the records of the Corporation. Written consent thus given shall have the same effect as a unanimous vote of shareholders. ARTICLE IV BOARD OF DIRECTORS Section IV.l. Power of Board and Qualification of Directors. The business of the Corporation shall be managed by its Board of Directors, which may exercise all such powers of the Corporation and do all such lawful acts and things as are not by law, the Charter or these By-Laws directed or required to be exercised or done by the shareholders. Each director shall be at least eighteen years of age. Not less than two of the directors shall be residents of the State of New York, and a majority of the directors shall be citizens and residents of the United States. In addition to the requirements of Section V.3, at least one-third of the directors or four directors, whichever is greater, shall be persons who are not officers or employees of the Corporation or of any entity controlling, controlled by, or under common control with the Corporation and who are not beneficial owners of a controlling interest in the voting stock of the Corporation or any such entity. A director meeting the qualifications of the immediately preceding sentence is hereinafter referred to as a "Non-Affiliated Director." No director need be a shareholder. Section IV.2. Number, Election and Term of Office. The Board of Directors shall consist of not less than thirteen nor more than eighteen directors. The number of directors shall be fixed by majority vote of the entire Board; provided that no decrease in the number of directors shall shorten the term of any incumbent director. Subject to the provisions of Section 4.8 hereof, the directors shall be elected annually by the shareholders entitled to vote at the annual meeting of shareholders, by a majority of votes at such election. Each director, whether elected at an annual meeting or pursuant to Section 4.8 hereof, shall continue in office until the annual meeting of shareholders held next after his or her election and until his or her successor shall have been elected and qualified or until his or her earlier death, resignation or removal in the manner hereinafter provided. No election of directors shall be valid unless a notice of the election shall have been filed with the Superintendent of Insurance of the State of New York at least ten days before the election. Section IV.3. Regular Meetings. A regular meeting of the Board of Directors for the election of officers and for the transaction of such other business as may properly come before the meeting shall be held without notice at the place where the annual meeting of shareholders is held, immediately following such meeting. The Board of Directors by resolution shall provide for the holding of three additional regular meetings, with or without notice, and shall fix the times and places, within or without the State of New York, at which such meetings shall be held. One regular meeting shall be held in each calendar quarter. Section IV.4. Special Meetings, Notice and Waiver. Special meetings of the Board of Directors may be called by the President, and shall be called by the President upon receipt of a written request of not less than three directors. All special meetings shall be held at a date, time and place to be fixed by the President, and the President shall direct the Secretary to give notice of each special meeting to each director by mail at least five days before such meeting is to be held or in person or by telephone or telegraph at least two days before such meeting. Such notice shall state the date, time, place and purposes of such meeting. Notice of a meeting need not be given to any director if a written waiver of notice, executed by him or her before, during or after the meeting, is filed with the records of the meeting. Section IV.5. Quorum and Conference Call Meetings. A majority of the entire Board of Directors, at least one of whom shall be a Non-Affiliated Director, shall constitute a quorum for the transaction of business. When a quorum is present at any meeting, a majority of the directors present may take any action except as otherwise expressly required by law, the Charter or these By-Laws, in the absence of a quorum, a majority of the directors present at the time and place of any meeting, may adjourn such meeting from time to time until a quorum be present. If by reason of one or more vacancies there is less than the minimum number of directors, the Board of Directors shall have the power to function legally prior to the filling of the vacancy; provided, however, that there shall always be a quorum. Any one or more directors may participate in a regular or special meeting of the Board by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting. Notwithstanding the foregoing, with respect to at least one of the regular meetings in each calendar year, which meeting shall be designated by the Board of Directors, the quorum requirements set forth in this Section may be met only if the requisite number and category of directors are physically present at the place at which the meeting is held. Section IV.6. Chairman. The Board of Directors may elect, from among its members, a Chairman. The Chairman of the Board, if one is elected, shall preside at all meetings of the Board of Directors and shall have such other powers and duties as may be granted or assigned to him or her from time to time by the Board of Directors. If a Chairman of the Board is elected but is absent or unable to preside at meetings of the Board of Directors, or if no Chairman is elected, the President shall preside at such meetings. Section IV.7. Resignation and Removal. Any director may resign at any time by giving written notice of such resignation to cither the Board of Directors, the President or the Secretary. Unless otherwise specified therein, such resignation shall take effect upon receipt thereof by the Board of Directors or by the President or Secretary. Any director may be removed either with or without cause at any time by the affirmative vote of the shareholders of record holding a majority of the outstanding shares of the Corporation entitled to vote for the election of directors, given at a meeting of the shareholders called for that purpose, or by the holders of a majority of the outstanding shares entitled to vote for the election of directors without holding a meeting or notice but by merely presenting their majority to the Secretary of the Corporation in writing for the removal of a director or directors without cause. Any director may be removed with cause by a majority of the total number of directors constituting the entire Board of Directors at a meeting of the Board of Directors. Section IV.8. Vacancies. A vacancy in the Board of Directors arising by reason of death, resignation, removal (with or without cause), increase in the number of directors, or otherwise, which may occur between annual meetings of the shareholders of the Corporation may be filled by a majority vote of the remaining directors, though less than a quorum. Any such vacancy may also be filled by the shareholders entitled to vote for the election of directors at any meeting held during the existence of such vacancy. Section IV.9. Compensation. The Board of Directors may authorize payment of a retainer fee to one or more of the directors in instances where, in the discretion of the Board, such payment is deemed appropriate. Other than such payments, if any, directors, as such, shall not be compensated for their services but by resolution of the Board of Directors may be paid a fee for attendance at each meeting of the Board of Directors or a committee thereof; provided, however, that no director shall be paid a fee, whether by retainer, for attendance, or otherwise, if such director is also a salaried officer of the Corporation. Nothing in these by-laws contained shall prevent any director from serving the Corporation in any other capacity or receiving compensation therefore. Section IV.10. Action by Written Consent. So far as permitted by law, any action required or permitted to be taken at any meeting of the Board of Directors may be taken without a meeting if a written consent setting forth such action is signed by all the directors entitled to vote thereon and such written consent is filed with the records of the Corporation. Written consent thus given shall have the same effect as a unanimous vote of directors. ARTICLE V COMMITTEES OF DIRECTORS Section V.I. Committees. The Board of Directors, by the affirmative vote of the majority of the entire Board, shall appoint from among its members an Audit, Nominating and Evaluation Committee, which shall be comprised solely of Non-Affiliated Directors, an Executive Committee, an Investment Committee and such other committees as it may deem necessary. Each member of each such committee shall continue in office during the pleasure of the Board or until he or she shall cease to be a director. Except to the extent a greater proportion is required by the provisions of this Article V, not less than one-third of the members of each such committee shall consist of Non-Affiliated Directors, at least one of whom shall be present to constitute a quorum for the transaction of business. The presence, at any meeting of a committee, of a majority of its members then in office, at least one of whom is a Non-Affiliated Director, shall constitute a quorum for the transaction of business. A majority of such quorum may decide any questions that may come before such meeting. Any one or more members of a committee may participate in a meeting of such committee by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting. So far as permitted by law, any action required or permitted to be taken at any meeting of any committee appointed and established by the Board of Directors may be taken without a meeting if a written consent setting forth such action is signed by all of the members of such committee entitled to vote thereon and such written consent is filed with the records of the Corporation. Section V.2. Executive Committee. The Board of Directors shall appoint an Executive Committee consisting of not less than five directors, and may designate as Chairman of the Executive Committee one of the members so appointed. The Chairman of the Executive Committee shall preside at all meetings of the Executive Committee at which he is present. The Executive Committee shall keep a record of its proceedings and shall adopt its own rules of procedure. The Executive Committee shall submit a written report of its activities to the Board of Directors at the next meeting of the Board of Directors. Each director may inspect and review, at any time during normal business hours, the minutes of the meetings of the Executive Committee, and said minutes shall be retained by the Secretary of the Corporation and made available to the Board of Directors at each of its meetings. Except as otherwise provided by law, the Charter or these By-Laws, all the powers of the Board of Directors when not in session, may be vested, to the extent from time to time determined by the Board of Directors, in the Executive Committee. To the extent appropriate to carry out this provision, references in these By-Laws to the Board of Directors shall be read to mean the Executive Committee. The Executive Committee may authorize one or more officers, employees or agents of the Corporation to can out the exercise of its powers. The Executive Committee shall have the power and authority to declare dividends and to authorize the issuance of common stock. The Executive Committee shall not have and may not exercise the following powers: (1) To submit to the shareholders any action which by any applicable statute requires shareholders' approval; (2) To fill any vacancy in the Board of Directors or in any committee thereof; (3) To fix the compensation of any director for serving on the Board or any committee thereof; (4) To amend or repeal these By-Laws, or to adopt new By-Laws; (5) To amend, alter or repeal any resolution of the Board of Directors which by its terms provides that it shall not be amended or repealed. Section V.3. Audit, Nominating and Evaluation Committee. The Board of Directors shall appoint an Audit, Nominating and Evaluation Committee consisting of not less than five directors, and may designate as Chairman of the Audit, Nominating and Evaluation Committee one of the members so appointed. The Audit, Nominating and Evaluation Committee shall consist solely of Non-Affiliated Directors. The Chairman of the Audit, Nominating and Evaluation Committee shall preside at all meetings of the Audit, Nominating and Evaluation Committee at which he or she is present. The Audit, Nominating and Evaluation Committee shall keep a record of its proceedings and shall adopt its own rules of procedure. The Audit, Nominating and Evaluation Committee shall submit a report of its activities to the Board of Directors at the next meeting of the Board of Directors. The Audit, Nominating and Evaluation Committee shall have responsibility for: (1) recommending the selection of independent certified public accountants; (2) reviewing the Corporation's financial condition, the scope and results of the independent audit and any internal audit; (3) nominating candidates for director for election by shareholders; and (4) evaluating the performance of officers who, pursuant to Section 6.1 of Article VI of these By-Laws, are principal officers of the Corporation and recommending to the Board of Directors the selection and compensation of such principal officers. The Audit, Nominating and Evaluation Committee shall, to the extent empowered by the Board, have and possess all of the rights and powers of the Board of Directors, between meetings of the Board of Directors, to: (1) meet and discuss with the representative of any firm of certified public accountants, for reviewing the Corporation's financial condition, the scope and results of the independent audit and any internal audit; (2) to nominate candidates for director for election by shareholders; and (3) to evaluate the performance of officers who, pursuant to Section 6.1 of Article VI of these By-Laws, are principal officers of the Corporation and to recommend to the Board of Directors the selection and compensation of such principal officers. The Audit, Nominating and Evaluation Committee shall, to the extent empowered by the Board, have and possess all of the rights and powers of the Board of Directors, between meetings of the Board of Directors., to meet and discuss with the representatives of any firm of certified public accountants retained by the Corporation, at any time and from time to time, whether before and/or after the preparation of the year-end financial statements of the Corporation, the scope of the audit of such firm with respect to any year, and to question such representatives with respect thereto. In addition, the Audit, Nominating and Evaluation Committee shall have the authority to meet with and question officers and employees of the Corporation with respect to financial matters pertaining to the Corporation. The Audit, Nominating and Evaluation Committee shall not have and may not exercise any of the powers referred to in clauses (1) through (5), inclusive, of Section 5.2 hereof. Section V.-4. Investment Committee. The Board of Directors shall appoint an Investment Committee consisting of not less than five directors, and may designate as Chairman of the Investment Committee one of the members so appointed. The Chairman of the Investment Committee shall preside at all meetings of the Investment Committee at which he or she is present. The Investment Committee shall keep a record of its proceedings and shall adopt its own rules of procedure. The Investment Committee shall submit a report of its activities to the Board of Directors at the next meeting of the Board of Directors. The Investment Committee shall have the power to invest the funds of the Corporation in deposits with banks and insurance companies, the purchase and acquisition of stocks, bonds and other securities, in the name and in behalf of the Corporation and to withdraw any such deposits and to sell and dispose of the stocks, bonds and other securities owned by the Corporation, at such times and upon such terms as it may deem wise and advantageous to the Corporation; provided, however, that in any case where the investment of such funds in stocks, bonds or other securities involves the active participation of the Corporation in the management of the business represented by any such securities, the Investment Committee shall not have the power to make any investments or otherwise deal with such securities without the approval of the Board of Directors. All actions of the Investment Committee shall be subject to revision or alteration by the Board of Directors; provided, however, that rights or acts of third parties shall not be affected by any such revision or alteration. ARTICLE VI OFFICERS Section VI. 1. Number and Principal Officers. The officers of the Corporation shall be a President, a Secretary, a Treasurer, and such other officers as may be appointed in accordance with the provisions of Section 6.3 hereof. So far as permitted by applicable law, any two or more offices may be held by the same person, except that the President and the Secretary shall not be the same person. The President, any Vice-Presidents appointed or elected by the Board of Directors, the Secretary and the Treasurer shall be principal officers of the Corporation for purposes of Section 5.3 of Article V of these By-Laws. Section VI.2. Election, Term of Office and Qualification. The President, the Treasurer and the Secretary shall be elected annually by the directors at their first meeting following the annual meeting of shareholders, by vote of a majority of the directors present and voting, and other officers, if any, may be elected or appointed by the directors at said meeting or at any other time. The President shall be and remain a director. No other officer need be a director. Except as otherwise provided by law or by the Charter or by these By-Laws, the President, the Treasurer and the Secretary' shall hold office until the first meeting of the directors following the next annual meeting of shareholders and until their respective successors are chosen and qualified, or, in each case, until he or she sooner dies, resigns or is removed, unless a shorter period shall have been specified by the terms of his or her election or appointment. Each agent, if any, shall retain his or her authority at the pleasure of the directors. Section VI.3. Other Officers. The Board of Directors from time to time may appoint other officers or agents, including but not limited to one or more Vice-Presidents, one or more assistant treasurers and one or more assistant secretaries, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these By-Laws or as the Board of Directors from time to time may determine. The Board of Directors may delegate to any officer or committee the power to appoint any such other officers or agents and to prescribe their respective authorities and duties. Section VI.4. President. The President shall, subject to the control of the Board of Directors, have general charge of the business, affairs and property of the Corporation, and control over its several officers. The President shall do and perform such other duties and may exercise such other powers as from time to time may be assigned to him or her by these By-Laws or by the Board of Directors. Section VI.5. Treasurer. Subject to the order of the Board of Directors, the Treasurer shall have supervision over the funds, securities, receipts and disbursements of the Corporation and shall be the chief accounting officer of the Corporation. He or she shall cause all monies and other valuable effects to be deposited in the name and to the credit of the Corporation, in such banks or trust companies or with such bankers or other depositories as shall be selected by the Board of Directors or which he or she shall select pursuant to authority conferred upon him or her by the Board of Directors. He or she shall cause the funds of the Corporation to be disbursed by checks or drafts upon the authorized depositories of the Corporation and shall cause to be taken and preserved proper vouchers for all monies disbursed. He or she shall cause to be kept correct books of account of the business and transactions of the Corporation and shall render to the President, the Board of Directors or the Executive Committee, whenever requested., an account of the financial condition of the Corporation and of his or her transactions as Treasurer. He or she shall be responsible for keeping and maintaining the stock books and stock transfer books of the Corporation. He or she shall be empowered, from time to time, to require of the officers or agents of the Corporation reports or statements giving such information as he or she may desire with respect to any and all financial transactions of the Corporation, and shall have such other powers and duties as from time to time may be assigned to him or her by these By-laws or by the Board of Directors or by the President. If required by the Board of Directors, he or she shall give the Corporation a bond in such sum with such surety or sureties as shall be satisfactory to the Board for the faithful performance of his or her duties. Section VI.6. Secretary. The Secretary shall keep and record all the minutes of the meetings of shareholders and the Board of Directors in books to be maintained for that purpose, and shall perform like duties for committees of the Board of Directors when required. He or she shall give notice to the shareholders and the Board of Directors in accordance with the provisions of these By-Laws or as required by statute. Except for those records for which the Treasurer is responsible, the Secretary shall be responsible for the records of the Corporation and the Board of Directors. He or she shall keep in safe custody the seal of the Corporation and shall see that the seal is affixed to all documents the execution of which, on behalf of the Corporation under its seal, shall have been duly authorized. He or she shall see that all lists, books, reports, statements and certificates and other documents and records required by law to be kept or filed are properly kept or filed. He or she shall perform all duties and shall have all powers incident to the office of the Secretary and shall perform such other duties and have such other powers as from time to time may be assigned to him or her by these By-Laws or by the Board of Directors or the President. Section VI.7. Vice-Presidents. The Vice-Presidents, if any, in the order designated by the Board of Directors or, lacking such designation, by the President, shall in the absence or disability of the President perform the duties and exercise the powers of the President and shall perform such other duties as the Board of Directors shall prescribe. Section VI.8. Resignation and Removal. Any officer may resign at any time by giving written notice of such resignation to the Board of Directors or to the President or the Secretary. Unless otherwise specified therein, such resignation shall take effect upon receipt thereof by the Board of Directors, the President or the Secretary. Any officer may be removed, either with or without cause, by vote of a majority of the total number of directors constituting the entire Board of Directors, at a special meeting of the Board of Directors called for that purpose. Section VI.9. Vacancies. A vacancy in any office because of death, resignation, removal or any other cause shall be filled for the unexpired portion of the term in the manner prescribed by these By-laws for the regular election or appointment to such office. Section VI. 10. Salaries. Subject to the provisions of Article V of these By-Laws, the salaries or other compensation of the officers shall be fixed from time to time by the Board of Directors and no officer shall be prevented from receiving such salary or other compensation by reason of the fact that he or she is also a director of the Corporation; provided, however, that no director shall be paid a fee, whether by retainer, for attendance, or otherwise, if such director is also a salaried officer of the Corporation. ARTICLE VII INDEMNIFICATION OF DIRECTORS AND OFFICERS Section VII. 1. Indemnification of Directors and Officers. The Corporation may indemnify any person made, or threatened to be made, a party to an action by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he or she, his or her testator, testatrix or intestate, is or was a director or officer of the Corporation, or is or was serving at the request of the Corporation as a director or officer of any other corporation of any type or kind, domestic or foreign, of any partnership, joint venture, trust, employee benefit plan or other enterprise, against amounts paid in settlement and reasonable expenses, including attorneys' fees, actually and necessarily incurred by him or her in connection with the defense or settlement of such action, or in connection with an appeal therein, if such director or officer acted, in good faith, for a purpose which he or she reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the Corporation, except that no indemnification under this Section shall be made in respect of (1) a threatened action, or a pending action which is settled or is otherwise disposed of, or (2) any claim issue or matter as to which such person shall have been adjudged to be liable to the Corporation, unless and only to the extent that the court in which the action was brought, or, if no action was brought, any court of competent jurisdiction, determines upon application that, in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such portion of the settlement amount and expenses as the court deems proper. The Corporation may indemnify any person made, or threatened to be made, a party to an action or proceeding (other than one by or in the right of the Corporation to procure a judgment in its favor), whether civil or criminal, including an action by or in the right or any other corporation of any type or kind, domestic or foreign, or any partnership, joint venture, trust, employee benefit plan or other enterprise, which any director or officer of the Corporation served in any capacity at the request of the Corporation, but reason of the fact that he or she, his or her testator, testatrix or intestate, was a director or officer of the Corporation, or served such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise in any capacity, against judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys' fees actually and necessarily incurred as a result of such action or proceeding, or any appeal therein, if such director or officer acted, in good faith, for a purpose which he or she reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the Corporation and, in criminal actions or proceedings, in addition, had no reasonable cause to believe that his or her conduct was unlawful. The termination of any such civil or criminal action or proceeding by judgment, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not in itself create a presumption that any such director or officer did not act, in good faith, for a purpose which he or she reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interest of the Corporation or that he or she had reasonable cause to believe that his or her conduct was unlawful. A person who has been successful, on the merits or otherwise, in the defense of a civil or criminal action or proceeding of the character described in the first two paragraphs of this Article Vll, shall be entitled to indemnification as authorized in such paragraphs. Except as provided in the preceding sentence and unless ordered by a court, any indemnification under such paragraphs shall be made by the Corporation, only if authorized in the specific case: (1) By the Board of Directors acting by a quorum consisting of directors which are not parties to such action or proceeding upon a finding that the director, officer or employee has met the standard of conduct set forth in the first two paragraphs of this Article VII, as the case may be or (2) If such a quorum is not obtainable with due diligence or, even if obtainable, a quorum of disinterested directors so directs, (a) By the Board of Directors upon the opinion in writing of independent legal counsel that indemnification is proper in the circumstances because the applicable standard of conduct set forth in the first two paragraphs of this Article VII has been met by such director, officer or employee, or (b) By the shareholders upon a finding that the director, officer or employee has met the applicable standard of conduct set forth in such paragraphs. Expenses, including attorneys' fees, incurred in defending a civil or criminal action or a proceeding may be paid by the Corporation in advance of the final disposition of such action or proceeding, if authorized in accordance with the preceding paragraph, subject to repayment to the Corporation in case the person receiving such advancement is ultimately found, under the procedure set forth in this Article VII, not to be entitled to indemnification or, where indemnification is granted, to the extent the expenses so advanced by the Corporation exceed the indemnification to which he or she is entitled. Nothing herein shall affect the right of any person to be awarded indemnification or, during the pendency of litigation, an allowance of expenses, including attorneys' fees, by a court in accordance with law. If any expenses or other amounts are paid by way of indemnification, otherwise than by court order or action by the shareholders, the Corporation shall, not later than the next annual meeting of shareholders unless such meeting is held within three months from the date of such payment, and in any event, within fifteen months from the date of such payment, mail to its shareholders of record at the time entitled to vote for the election of directors a statement specifying the persons paid, the amounts paid, and the nature and status at the time of such payment of the litigation or threatened litigation. The Corporation shall have the power, in furtherance of the provisions of this Article VII, to apply for, purchase and maintain insurance of the type and in such amounts as is or may hereafter be permitted by Section 726 of the Business Corporation Laws. No payment of indemnification, advancement or allowance under Sections 721 or 726, inclusive, or the Business Corporation Law shall be made unless a notice has been filed with the Superintendent of Insurance of the State of New York, not less than thirty days prior to such payment, specifying the persons to be paid, the amounts to be paid, the manner in which such payment is authorized and the nature and status, at the time of such notice, of the litigation or threatened litigation. ARTICLE VIII CONFLICT OF INTEREST Section VIII. 1. Conflict of Interest. No director, officer or employee of the Corporation shall have any position with or a substantial interest in any other business enterprise operated for profit, the existence of which would conflict or might reasonably be supposed to conflict with the proper performance of his or her Corporation duties or responsibilities, or which might tend to affect his or her independence of judgment with respect to transactions between the Corporation and such other business enterprise, without full and complete disclosure thereof to the Board of Directors. Each director, officer or employee who has such a conflicting or possibly conflicting interest with respect to any transactions which he or she knows is under consideration by the Board, is required to make timely disclosure thereof so that it may be part of the directors' consideration of the transaction. The holding of any office or position in any corporation affiliated with the Corporation or any corporation owning a majority of the stock of the Corporation and carrying out the duties of any such office or position shall not be deemed to be a conflicting interest; nor shall this Article VII be construed to prevent the receipt of any salaries or other benefits from any corporation affiliated with the Corporation or from any corporation owning the majority of the stock of the Corporation. The ownership of one percent or more of the issued and outstanding stock of any corporation doing business with the Corporation or competing with the Corporation shall be considered to be a "substantial interest in any other business enterprise operated for profit"; provided, however, that ownership of the stock or other securities of any corporation affiliated with the Corporation or of any corporation owning a majority of the stock of the Corporation shall not be considered to be a conflicting interest. Section VIII.2. Gifts. None of the directors, officers and employees shall accept gifts, gratuities or favors of any kind from any person, firm or corporation doing business or seeking to do business with the Corporation under circumstances from which it could reasonably be inferred that the purpose of the gift, gratuity or favor could be to influence the said director, officer or employee in the conduct of Corporation transactions with the donor or the interest the donor is representing. Nothing in this Section 8.2 shall be construed to prohibit either the giving or the receiving of normal hospitality or a social nature or normal practice of gift exchange on a reciprocal basis between person having close personal relationships unrelated to business. ARTICLE IX EXECUTION OF INSTRUMENTS AND SEAL Section IX.1. Execution of Instruments. Except as the Board of Directors may generally or in particular cases authorize the execution thereof in some other manner, all documents, instruments or writings of any nature made, accepted or endorsed by the Corporation shall be signed, executed, verified, acknowledged and delivered by the President, any Vice-President, or the Secretary. Section IX.2. Corporation Seal. The corporate seal shall be in the form of a circle and shall bear the name of the Corporation and shall indicate its formation under the laws of the State of New York; provided, that the form of such seal shall be subject to alteration from time to time by the Board of Directors. ARTICLE X CAPITAL STOCK Section X.I. Number of Shares and Par Value. The total number of shares and the par value of all stock which the Corporation is authorized to issue shall be as stated in the Charter. Section X.2. Certificates of Shares. Each shareholder shall be entitled to a certificate, signed by the President and the Treasurer or Secretary certifying the number and class of the shares owned by him or her in the Corporation. Such signatures may be facsimiles if the certificates are countersigned by a transfer agent or registered by a registrar other than the Corporation or its employees. Certificates for shares of the stock of the Corporation shall be in such form as shall be approved by the Board of Directors, and the seal of the Corporation shall be affixed thereto. There shall be entered upon the stock books of the Corporation the number of each certificate issued, the name of the person owning the shares represented thereby, the number of shares and the date thereof. Section X.3. Lost. Stolen or Destroyed Certificates. The Board of Directors may direct a new certificate or certificates to be issued in place of any certificate or certificates therefore issued by the Corporation alleged to have been lost, stolen or destroyed, upon the making of an affidavit of the fact by the owner claiming the certificate or certificates to be lost, stolen or destroyed. When authorizing such issue of a new certificate or certificates, the Board of Directors may, in its discretion as a condition precedent to the issuance thereof, require the owner of such lost, stolen or destroyed certificate or certificates, or his or her legal representative, the advertise the same in such manner as it shall require and/or to give the Corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the Corporation with respect to the certificate or certificates alleged to have been lost, stolen or destroyed. Section X.4. Record Date. In order that the Corporation may determine the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or to express consent to a corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board of Directors may fix, in advance, a record date, which shall not be more than fifty days nor less than ten days before the date of such meeting, nor more than fifty days prior to any other action. A determination of shareholders of record entitled to notice of or to vote at a meeting of shareholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting. Absent Board of Directors action, the record date shall be ten days before the date of such meeting. Section X.5. Stock Transfers. Transfers of stock shall be made only upon the books of the Corporation, and only upon surrender to the Corporation or the transfer agent of the Corporation of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer. ARTICLE XI DIVIDENDS Section XI.1. Dividends. Dividends upon the capital stock of the Corporation may be declared by the Board of Directors at any regular or special meeting; provided, however, that the Corporation shall not distribute any dividend to its shareholders unless a notice of intention to declare such dividend has been filed with the Superintendent of Insurance of the State of New York not less than thirty days after such filing gives written notice to the Corporation of his or her disapproval of such distribution, on the ground that he or she finds that the financial condition of the Corporation does not warrant the distribution of such dividend. ARTICLE XII APPLICATIONS. POLICIES AND PREMIUMS Section XII.1. Applications. Policies and Premiums. The President, or a duly authorized Vice-president, shall prescribe and approve all forms of policies issued by the Corporation, including all riders and provisions included in or attached to such policies, and the forms of applications therefor. The President, or a duly authorized Vice-President, shall fix all rates of premiums ARTICLE XIII FISCAL YEAR Section XIII.l. Fiscal Year. The fiscal year of the Corporation shall end on the last day of December annually. ARTICLE XIV NOTICES Section XIV.1. Notices. Whenever, under the provisions of law, the Charter or these By-Laws, notice is required to be given to any director or shareholder, it shall not be construed to mean personal notice unless specifically allowed, but such notice may be given in writing, by certified or registered mail, return receipt requested, addressed to such director or shareholder, at his or her address as it appears on the records of the Corporation, with postage there prepaid, and such notice shall be deemed to be given at the time when the same shall be deposited in the United States mail. ARTICLE XV AMENDMENTS Section XV.1. Amendments. These By-Laws may be amended, changed or repealed by the Board of Directors, except that the Board may take no action which, by law or the Charter, is required to be taken by the shareholders, or which excludes or limits the right of a shareholder to vote on a matter. Any By-Law so amended, changed or repealed by the directors may be further altered or amended or reinstated by the shareholders in the manner provided below. These By-Laws may be amended, changed or repealed by a majority vote of the shareholders present at any annual meeting or at a special meeting called for that purpose, provided that the notice of any such annual or special meeting shall specify the subject matter of the proposed amendment, change or repeal shall have been submitted in writing and filed with the Secretary at Least five days prior to such meeting. EX-99.24(B)10 5 b63297a1exv99w24xby10.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EXHIBIT 24(B)10 Consent of Independent Registered Public Accounting Firm We consent to the reference to our firm under the caption "Independent Registered Public Accounting Firm" and to the use of our report dated April 20, 2007 with respect to the financial statements of John Hancock Life Insurance Company of New York and our report dated April 13, 2007 with respect to the financial statements of John Hancock Life Insurance Company of New York Separate Account A, which are contained in the Statement of Additional Information in Post-Effective Amendment No. 1 in the Registration Statement (Form N-4 No. 333-138846) and related Prospectus of John Hancock Life Insurance Company of New York Separate Account A. /s/ Ernst & Young LLP Boston, Massachusetts April 26, 2007 -----END PRIVACY-ENHANCED MESSAGE-----