EX-7.b
AMENDMENT NO. 2
TO THE
VARIABLE ANNUITY GMIB REINSURANCE AGREEMENT
Between
▇▇▇▇▇▇▇ NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
("CEDING COMPANY")
Purchase, New York
and
ACE TEMPEST LIFE REINSURANCE LTD.
("REINSURER")
Effective January 30, 2004, this Amendment is hereby attached to and becomes a
part of the above-described Reinsurance Agreement. It is mutually agreed that
the Agreement will be amended to accept sales of the 6% roll-up GMIB on annuity
policies with issue dates after April 30, 2004 subject to a higher reinsurance
premium if retail annuity premiums on such policies exceed [REDACTED], and to
update the available fund offerings.. To effect this change, the following
provisions of this Agreement are hereby amended:
o Schedule B-1, CONTRACTS SUBJECT TO THIS REINSURANCE AGREEMENT, is
hereby replaced by the attached Schedule B-1.
o Schedule B-2, SUBACCOUNTS SUBJECT TO THE REINSURANCE AGREEMENT, is
hereby replaced by the attached Schedule B-2.
o Schedule D, QUARTERLY RE PREMIUM RATE BY CONTRACT TYPE AND GMIB, is
hereby replaced by the attached Schedule D
This amendment is valid only if fully executed on or before March 31, 2004.
▇▇▇▇▇▇▇ National Life Insurance Company of New York
By /s/ ▇▇▇▇ ▇. ▇▇▇▇▇ Attest /s/ ▇▇▇ Irish
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Title SVP & Chief Actuary Title Reinsurance Manager
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Date 3/16/04 Date 3/16/04
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ACE Tempest Life Reinsurance Ltd.
By /s/ ▇▇▇ ▇▇▇▇▇▇▇ Attest /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
------------------------------- ------------------------------
Title SVP and Chief Life Officer Title VP & Life Actuary
--------------------------- -----------------------------
Date March 12, 2004 Date March 12, 2004
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SCHEDULE B-1
ANNUITY CONTRACTS Subject to this Reinsurance Agreement
Perspective II (including 9/22/2003 Re-launch)
o VA202-1 is an individual flexible Premium variable and fixed
annuity. VA250NY replaced VA202-1 effective 9/22/2003.
VA250NY 05/04 replaced VA250NY effective 5/3/2004.
o This product has two Contract options:
o Separate Account Investment Division option; and
o Fixed Account Option.
A) Separate Account Investment Division Option
o This option allows the Owner to allocate Premiums and
earnings to one or more Investment Divisions of the Separate
Account.
o JNL/NY Separate Account I is used for this Contract.
o The Separate Account invests in shares of one of the
corresponding Funds of the underlying fund of the JNL Series
Trust and JNL/NY Variable Fund I LLC (see Schedule B-2).
B) Optional Benefits
Form Number Policy Description
7340NY Death Benefit Option (Highest Anniversary Value)
7349NY Additional Free Withdrawal 20% of Premium
7349NY 04/03 Additional Free Withdrawal 20% of Premium
7343NY Shortened W/D Charge Period (5 year)
7343NY 04/03 Shortened W/D Charge Period (5 year)
7429NY Shortened W/D Charge Period (3 year)
7346NY Premium Credit (4%)
7348NY Premium Credit (2%)
7348NY 08/03 Premium Credit (2%)
7352NY Premium Credit (3%)
7352NY 08/03 Premium Credit (3%)
7344NY 03/03 Guaranteed Minimum Income Benefit (6% Roll-up)
7365NY 03/03 Guaranteed Minimum Income Benefit (6% Roll-up)
7452NY Guaranteed Minimum Income Benefit (5% Roll-up) -
Effective 5/3/2004
Perspective Focus (Available prior to 10/24/2003)
o VA260NY is an individual flexible Premium variable and fixed
annuity
o This product has two Contract options:
o Separate Account Investment Division option; and
o Fixed Account Option
A) Separate Account Investment Division Option
This option allows the Owner to allocate Premiums and earnings to one
or more Investment Divisions of the Separate Account. JNL/NY Separate
Account I is used for this Contract. The Separate Account invests in
shares of one of the corresponding Funds of the underlying fund of the
JNL Series Trust and JNL/NY Variable Fund I LLC (see Schedule B-2).
B) Optional Benefits
Form Number Policy Description
7362NY Death Benefit Option (MAV)
7364NY Premium Credit (2%)
7365NY Guaranteed Minimum Income Benefit (6% Roll-up)
SCHEDULE B-1 AMENDMENT NO. 2 - NY
SCHEDULE B-2
Subaccounts Subject to this Reinsurance Agreement
JNL SERIES TRUST and JNL VARIABLE FUND LLC
JNL/▇▇▇▇▇ Growth Fund
JNL/Alliance Capital Growth Fund
JNL/Eagle Core Equity Fund
JNL/Eagle SmallCap Equity Fund
JNL/FMR Balanced Fund, subadvisor changed from Janus on 2/18/2004
JNL/FMR Capital Growth Fund, subadvisor changed from Janus on 2/18/2004
JNL/▇▇▇▇▇▇ Equity Fund
JNL/▇▇▇▇▇▇ International Equity ▇▇▇▇
▇▇▇/▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇/▇▇▇▇▇▇ Value Equity Fund
JNL/S&P Conservative Growth Fund I
JNL/S&P Moderate Growth Fund I
JNL/S&P Aggressive Growth Fund I
JNL/S&P Very Aggressive Growth Fund I
JNL/S&P Equity Growth Fund I
JNL/S&P Equity Aggressive Growth Fund I
JNL/PPM America Balanced Fund
JNL/PPM America High Yield Bond Fund
JNL/PPM America Money Market Fund
JNL/PPM America Value Fund
JNL/Salomon Brothers Strategic Bond Fund, formerly JNL/Salomon Brothers Global
Bond Fund
JNL/Salomon Brothers U.S. Govt. & Quality Bond Fund
JNL/▇. ▇▇▇▇ Price Established Growth Fund
JNL/▇. ▇▇▇▇ Price Mid-Cap Growth Fund
JNL/▇. ▇▇▇▇ Price Value Fund
JNL/▇▇▇▇▇▇▇▇▇▇▇ Global Growth Fund
JNL/▇▇▇▇▇▇▇▇▇▇▇ Growth Fund
JNL/AIM Small Cap Growth Fund
JNL/AIM Large Cap Growth Fund
JNL/PIMCO Total Return Bond Fund
JNL/Lazard Small Cap Value Fund
JNL/Lazard Mid Cap Value Fund
For the following three funds, the subadvisor was Curian between 12/15/2003 and
2/18/2004 and Mellon Capital Management prior to 12/15/2003:
JNL/ Mellon Capital Management S&P 500 Index Fund
JNL/ Mellon Capital Management S&P 400 Mid Cap Index Fund
JNL/ Mellon Capital Management Small Cap Index Fund
JNL/Mellon Capital Management International Index Fund
JNL/Mellon Capital Management Bond Index Fund
JNL/ Mellon Capital Management Enhanced S&P 500 Stock Index Fund, subadvisor
was Curian between 12/15/2003 and 2/18/2004 and JPMorgan/ prior to
12/15/2003
JNL/JPMorgan International Value Fund
JNL/S&P Core Index 100 Fund
JNL/S&P Core Index 50 Fund
JNL/S&P Core Index 75 Fund
For the following five funds, the subadvisor was Curian between 12/15/2003 and
2/18/2004 and First Trust prior to 12/15/2003:
JNL/ Mellon Capital Management The Dow(SM) Target 10 Fund
JNL/ Mellon Capital Management S&P Target (R) 10 Fund
JNL/ Mellon Capital Management Global Target 15 Fund
JNL/ Mellon Capital Management Select Small Cap Fund, formerly Target Small Cap
Fund
JNL/ Mellon Capital Management 25 Fund
For the following six funds, the subadvisor was Curian prior to 2/18/2004:
JNL/ Mellon Capital Management Communications Sector Fund
JNL/ Mellon Capital Management Consumer Brands Sector Fund
JNL/ Mellon Capital Management Energy Sector Fund
JNL/ Mellon Capital Management Financial Sector Fund
JNL/ Mellon Capital Management Pharmaceutical/Healthcare Sector Fund
JNL/ Mellon Capital Management Technology Sector Fund
JNL/Select Large Cap Growth Fund, formerly JNL/Janus Aggressive Growth Fund
JNL/Select Global Growth Fund, formerly JNL/Janus Global Equities Fund
FIXED SUBACCOUNTS
▇▇▇▇▇▇▇ National Life Insurance Company General Account:
Perspective II
Guaranteed One Year Fixed
Guaranteed Three Year Fixed
Guaranteed Five Year Fixed
Guaranteed Seven Year Fixed
Guaranteed One Year - 12 month DCA
Guaranteed One Year - 6 Month DCA (available prior to 9/23/2003)
Perspective Focus
Guaranteed One Year Fixed
Guaranteed Three Year Fixed
Guaranteed One Year - 12 month DCA
SCHEDULE B-2 AMENDMENT NO. 2 - NY
SCHEDULE D
QUARTERLY RE PREMIUM RATE by CONTRACT TYPE and GMIB TYPE
The Premium rate for reinsurance, subject to the terms and conditions of this
Agreement, are guaranteed while the reinsurance coverage is in effect. The
premium rate varies by GMIB form number, issue date, and in some instances the
volume of RETAIL ANNUITY PREMIUMS deposited.
CONTRACT TYPES:
Perspective II, Perspective Focus
GMIB TYPES:
I. GMIB Form numbers 7344NY 03/03, 7365NY, and 7365NY 03/03, with issue dates
prior to 5/1/2004:
ISSUE AGE RATE
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All [REDACTED]
II. GMIB Form numbers 7344NY 03/03, 7365NY, and 7365NY 03/03, with issue dates
on or after 5/1/2004:
ISSUE AGE TIER 1 RATE TIER 2 RATE
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All 0.000975 [REDACTED]
The Tier 1 Rate applies as long as the RETAIL ANNUITY PREMIUMS on contracts with
GMIB Forms 7344NY, 7365NY, and 7365NY 03/03 and with issue dates on or after
5/1/2004 that are deposited by the 12th MONTHLY VALUATION DATE following each
contract's inclusion in the treaty do not exceed [REDACTED].
If such RETAIL ANNUITY PREMIUMS exceed [REDACTED], on any MONTHLY VALUATION
DATE, a blended Tier 1 and Tier 2 rate applies and is calculated as follows:
Blended Rate = a + b, where
a = [REDACTED] X Tier 1 Rate
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TOTAL RETAIL ANNUITY PREMIUM
b = (TOTAL RETAIL ANNUITY PREMIUM - [REDACTED]) X Tier 2 Rate
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TOTAL RETAIL ANNUITY PREMIUM
III. GMIB Form number 7452NY, with issues dates on or after 5/1/2004
ISSUE AGE RATE
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All [REDACTED]
SCHEDULE D AMENDMENT NO. 2 - NY