# EDGAR Filing Document

**Accession Number:** 0000826734
**File Stem:** 0001133228-26-006774
**Filing Date:** 2026-4
**Character Count:** 3254254
**Document Hash:** a3c0b6ab4e26f0283619a3fe4ef2eb76
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-006774.hdr.sgml**: 20260427

**ACCESSION NUMBER**: 0001133228-26-006774

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 51

**FILED AS OF DATE**: 20260427

**DATE AS OF CHANGE**: 20260427

**EFFECTIVENESS DATE**: 20260501

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FORTITUDE LIFE INSURANCE & ANNUITY Co VARIABLE ACCOUNT B
- **CENTRAL INDEX KEY:** 0000826734

**ORGANIZATION NAME:**
- **EIN:** 061241288
- **STATE OF INCORPORATION:** CT
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-05438
- **FILM NUMBER:** 26902215

**BUSINESS ADDRESS:**
- **STREET 1:** 10 EXCHANGE PLACE
- **STREET 2:** 22ND FLOOR
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302
- **BUSINESS PHONE:** 615-981-8801

**MAIL ADDRESS:**
- **STREET 1:** 10 EXCHANGE PLACE
- **STREET 2:** 22ND FLOOR
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP VARIABLE ACCOUNT B
- **DATE OF NAME CHANGE:** 20080102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN SKANDIA LIFE ASSUR CORP VAR ACCT B CL 1 SUB ACCTS
- **DATE OF NAME CHANGE:** 19950424

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN SKANDIA LIFE ASSURANCE CORP
- **DATE OF NAME CHANGE:** 19891121
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FORTITUDE LIFE INSURANCE & ANNUITY Co VARIABLE ACCOUNT B
- **CENTRAL INDEX KEY:** 0000826734

**ORGANIZATION NAME:**
- **EIN:** 061241288
- **STATE OF INCORPORATION:** CT
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-71834
- **FILM NUMBER:** 26902214

**BUSINESS ADDRESS:**
- **STREET 1:** 10 EXCHANGE PLACE
- **STREET 2:** 22ND FLOOR
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302
- **BUSINESS PHONE:** 615-981-8801

**MAIL ADDRESS:**
- **STREET 1:** 10 EXCHANGE PLACE
- **STREET 2:** 22ND FLOOR
- **CITY:** JERSEY CITY
- **STATE:** NJ
- **ZIP:** 07302

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP VARIABLE ACCOUNT B
- **DATE OF NAME CHANGE:** 20080102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN SKANDIA LIFE ASSUR CORP VAR ACCT B CL 1 SUB ACCTS
- **DATE OF NAME CHANGE:** 19950424

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN SKANDIA LIFE ASSURANCE CORP
- **DATE OF NAME CHANGE:** 19891121

## Series and Classes Contracts Data

### FORTITUDE LIFE INSURANCE & ANNUITY COMPANY VAR ACCT B (Series ID: S000001297)

| Class ID   | Class Name                      | Ticker Symbol   |
|:---|:---|:---|
| C000003488 | Advanced Series XTra Credit Six |  |
| C000010676 | Optimum Plus                    |  |
| C000010680 | Stagecoach XTra Credit SIX      |  |

Filed with the Securities and Exchange Commission on April 27, 2026<br>REGISTRATION NO. 333-71834; 333-290619<br>INVESTMENT COMPANY ACT NO. 811-05438

**UNITED STATES**<br>**SECURITIES AND EXCHANGE COMMISSION**<br>**WASHINGTON, D.C. 20549**

**FORM N-4**

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933<br>POST-EFFECTIVE AMENDMENT NO. 80 (333-71834)<br>and<br>REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940<br>AMENDMENT NO. 232 (811-05438)

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933<br>POST-EFFECTIVE AMENDMENT NO. 1 (333-290619)

**FORTITUDE LIFE INSURANCE & ANNUITY COMPANY VARIABLE ACCOUNT B**<br>(Exact Name of Registered Separate Account)

**FORTITUDE LIFE INSURANCE & ANNUITY COMPANY**<br>(Name of Insurance Company)

TEN EXCHANGE PLACE, SUITE 2210<br>JERSEY CITY, NEW JERSEY 07302<br>(Address of Insurance Company's principal executive offices)

(615) 981-8801<br>(Insurance Company's Telephone Number, including Area Code)

FORTITUDE LIFE INSURANCE & ANNUITY COMPANY<br>C/O CT CORPORATION<br>3800 NORTH CENTRAL AVENUE, SUITE 460<br>PHOENIX, ARIZONA 85012<br>(Name and address of agent for service)

COPIES TO:<br>RICHARD E. BUCKLEY<br>SENIOR VICE PRESIDENT & ASSISTANT GENERAL COUNSEL<br>FORTITUDE LIFE INSURANCE & ANNUITY COMPANY<br>TEN EXCHANGE PLACE, SUITE 2210<br>JERSEY CITY, NEW JERSEY 07302<br>(615) 981-8801

Approximate Date of Proposed Public Offering: Continuously on and after the effective date of this Registration Statement

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

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

⊠ on May 1, 2026 pursuant to paragraph (b) of Rule 485

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

□ on __________ pursuant to paragraph (a)(i) 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.

------

**Check each box that appropriately characterizes the Registrant:**

□ New Registrant (as applicable, a Registered Separate Account or Insurance Company that has not filed a Securities Act registration statement or amendment thereto within 3 years preceding this filing)

□ Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934 ("Exchange Act")) on May 1, 2025 pursuant to paragraph (b) of Rule 485

□ If an Emerging Growth Company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act

⊠ Insurance Company relying on Rule 12h-7 under the Exhchange Act

□ Smaller reporting company (as defined by Rule 12b-2 under the Exchange Act)

------

**FORTITUDE LIFE INSURANCE & ANNUITY COMPANY**<br>Fortitude Life Insurance & Annuity Company Variable Account B<br>A Fortitude Re Company<br>Ten Exchange Place, Suite 2210, Jersey City, NJ 07302

**ADVANCED SERIES ADVISOR PLAN III ("ASAP III")**<br>**ADVANCED SERIES APEX II ("APEX II")**<br>**ADVANCED SERIES XTRA CREDIT SIX ("ASXT6") OR ("XT6")**<br>**ADVANCED SERIES LIFEVEST II ("ASL II")**<br>

**Flexible Premium Deferred Annuity**<br>**Prospectus Dated:** **May 1, 2026**

This prospectus describes four different flexible premium deferred annuities (the "Contracts" or the "Contract"), offered by Fortitude Life Insurance & Annuity Company, formerly named Prudential Annuities Life Assurance Corporation ("we," "our," "us" or "the Company"). The Annuity provides for the potential accumulation of retirement savings through investment in the Contract's investment options during the Savings Stage and retirement income through annuitization during the Payout Period. The Contract is intended for retirement or other long-term investment purposes. This prospectus describes all material rights and obligations of Annuity Owners under the Annuity contracts. The Annuity is a complex investment that involves risks, including potential loss of principal. The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawals may reduce the level of various optional benefit guarantees and could result in taxes and tax penalties. In addition, premature withdrawals from a MVA Fixed Allocation will result in a Market Value Adjustment. **In extreme circumstances, the maximum potential loss resulting from a** **negative Market Value Adjustment is 100% of the amount invested in a MVA Fixed Allocation.**

This prospectus describes all the investment options, features, and benefits that we make available under the Annuity. **The availability of investment** **options, features and benefits described in this prospectus may vary depending on the broker-dealer through which the Contract is sold** **("financial intermediary variations").** We have identified all such financial intermediary variations that are known or reasonably available to us. Financial intermediary variations may be imposed by some broker-dealers without our knowledge. For example, your Financial Professional may not recommend a particular investment option or benefit to you because of a decision by the Financial Professional's broker-dealer not to offer that investment option or benefit to its customers. Taking into consideration the breadth of our distribution network, we are unable to obtain information about all financial intermediary variations without unreasonable effort or expense. **You should discuss with your Financial Professional any limitations,** **restrictions, or other variations related to the investment options, benefits or other features available to you through your Financial** **Professional.**

The types of investment options currently offered under the Annuity include variable investment options with underlying mutual funds ("Variable Options") and MVA Fixed Allocation Options that offer a fixed rate of interest for a set period of time called a "Guarantee Period." **See** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **for additional** **information about each investment option.**

If you are receiving this prospectus, it is because you currently own the Annuity. The Annuity is no longer offered for new sales.

The Company's obligations under the Annuity are subject to its financial strength and claims-paying ability.

In compliance with U.S. law, we deliver this prospectus to Annuity Owners that currently reside outside of the United States. In addition, we may not market or offer benefits, features, or enhancements to prospective or current Annuity Owners while outside of the United States.

Certain Annuities described in this prospectus provide a Credit which can be recaptured in certain circumstances also described in this prospectus. This Credit may be more than offset by fees and charges in these Annuities, which are also described in this prospectus. These fees and charges may be higher than other, similar products that do not offer a Credit.

These Annuities are NOT deposits or obligations of, or issued, guaranteed or endorsed by, any bank, are NOT insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency.

------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

------

Additional information about certain investment products, including variable annuities and market value adjusted annuities, has been prepared by the Securities and Exchange Commission's staff and is available at www.investor.gov.

FOR FURTHER INFORMATION CALL 1-800-879-7012 OR VISIT: <u>WWW.PRUDENTIAL.COM/ANNUITIES</u>

COREPROS

------

**Table of Contents**

------

---

| | |
|:---|:---|
| [**GLOSSARY OF TERMS**.......................................................................................](#chapter_2_930) | [**1**](#chapter_2_930) |
| [**OVERVIEW OF THE CONTRACT**................................................................................](#chapter_3_930) | [**5**](#chapter_3_930) |
| [**KEY INFORMATION**.........................................................................................](#chapter_4_930) | [**6**](#chapter_4_930) |
| [**FEE TABLE**................................................................................................](#chapter_5_930) | [**16**](#chapter_5_930) |
| [**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT**..............................................................](#chapter_6_930) | [**23**](#chapter_6_930) |
| [**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT OPTIONS**..................](#chapter_7_930) | [**25**](#chapter_7_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHO IS FORTITUDE LIFE INSURANCE & ANNUITY COMPANY?....................................................](#chapter_7-sect1_2_930) | [25](#chapter_7-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT ARE THE SEPARATE ACCOUNTS?.....................................................................](#chapter_7-sect1_3_930) | [25](#chapter_7-sect1_3_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [INVESTMENT OPTIONS...................................................................................](#chapter_7-sect1_4_930) | [26](#chapter_7-sect1_4_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT IS THE LEGAL STRUCTURE OF THE PORTFOLIOS?.......................................................](#chapter_7-sect1_5_930) | [26](#chapter_7-sect1_5_930) |
| [**CHARGES AND ADJUSTMENTS**................................................................................](#chapter_8_930) | [**29**](#chapter_8_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FIXED RATE OPTION CHARGES AND ADJUSTMENTS...........................................................](#chapter_8-sect1_2_930) | [31](#chapter_8-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ANNUITY PAYMENT OPTION CHARGES......................................................................](#chapter_8-sect1_3_930) | [31](#chapter_8-sect1_3_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES...........................................................](#chapter_8-sect1_4_930) | [31](#chapter_8-sect1_4_930) |
| [**GENERAL DESCRIPTION OF CONTRACTS**.......................................................................](#chapter_9_930) | [**32**](#chapter_9_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS.............................................](#chapter_11-sect1_25_930bc) | [32](#chapter_11-sect1_25_930bc) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO THE FIXED RATE OPTIONS WORK?..................................................................](#chapter_9-sect1_3_930) | [33](#chapter_9-sect1_3_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?...................................................](#chapter_9-sect1_4_930) | [33](#chapter_9-sect1_4_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?....................................................](#chapter_9-sect1_5_930) | [34](#chapter_9-sect1_5_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRANSFER AND REBALANCING PROGRAMS..................................................................](#chapter_9-sect1_6_930) | [34](#chapter_9-sect1_6_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ASSET ALLOCATION PROGRAMS...........................................................................](#chapter_9-sect1_7_930) | [36](#chapter_9-sect1_7_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT IS THE BALANCED INVESTMENT PROGRAM?............................................................](#chapter_9-sect1_8_930) | [36](#chapter_9-sect1_8_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS...............................................](#chapter_9-sect1_9_930) | [37](#chapter_9-sect1_9_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS...............................](#chapter_9-sect1_10_930) | [38](#chapter_9-sect1_10_930) |
| [**ANNUITY PERIOD**...........................................................................................](#chapter_10_930) | [**40**](#chapter_10_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?................................................](#chapter_10-sect1_2_930) | [41](#chapter_10-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE ANNUITY PAYMENTS CALCULATED................................................................](#chapter_10-sect1_3_930) | [41](#chapter_10-sect1_3_930) |
| [**BENEFITS AVAILABLE UNDER THE CONTRACT**...................................................................](#chapter_11_930) | [**42**](#chapter_11_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL LIVING BENEFITS..............................................................................](#chapter_11-sect1_2_930) | [45](#chapter_11-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION PLUS II (GRO Plus II)...........................................................](#chapter_11-sect1_3_930) | [47](#chapter_11-sect1_3_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY GUARANTEED RETURN OPTION II (HD GRO II)...................................................](#chapter_11-sect1_4_930) | [51](#chapter_11-sect1_4_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION PLUS (GRO Plus).............................................................](#chapter_11-sect1_5_930) | [55](#chapter_11-sect1_5_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION (GRO)......................................................................](#chapter_11-sect1_6_930) | [59](#chapter_11-sect1_6_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION Plus 2008 (GRO Plus 2008)......................................................](#chapter_11-sect1_7_930) | [63](#chapter_11-sect1_7_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL 90% CAP RULE UNDER GRO PLUS 2008............................................................](#chapter_11-sect1_8_930) | [67](#chapter_11-sect1_8_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)......................................................](#chapter_11-sect1_9_930) | [68](#chapter_11-sect1_9_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL 90% CAP RULE FOR HIGHEST DAILY GRO...........................................................](#chapter_11-sect1_10_930) | [72](#chapter_11-sect1_10_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB).......................................................](#chapter_11-sect1_11_930) | [73](#chapter_11-sect1_11_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED MINIMUM INCOME BENEFIT (GMIB).............................................................](#chapter_11-sect1_12_930) | [77](#chapter_11-sect1_12_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)..............................................................](#chapter_11-sect1_13_930) | [80](#chapter_11-sect1_13_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE).............................................](#chapter_11-sect1_14_930) | [86](#chapter_11-sect1_14_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT (HD5).........................................................](#chapter_11-sect1_15_930) | [90](#chapter_11-sect1_15_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (HD 7)......................................................](#chapter_11-sect1_16_930) | [97](#chapter_11-sect1_16_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (SHD7).............................................](#chapter_11-sect1_17_930) | [109](#chapter_11-sect1_17_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (HD 6 Plus)...................................................](#chapter_11-sect1_18_930) | [118](#chapter_11-sect1_18_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (SHD6 Plus)..........................................](#chapter_11-sect1_19_930) | [131](#chapter_11-sect1_19_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (HD 7 Plus)...................................................](#chapter_11-sect1_20_930) | [140](#chapter_11-sect1_20_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (SHD7 Plus)..........................................](#chapter_11-sect1_21_930) | [153](#chapter_11-sect1_21_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRIGGERS FOR THE PAYMENT OF THE DEATH BENEFIT........................................................](#chapter_11-sect1_22_930) | [163](#chapter_11-sect1_22_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [BASIC DEATH BENEFIT...................................................................................](#chapter_11-sect1_23_930) | [163](#chapter_11-sect1_23_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL DEATH BENEFITS..............................................................................](#chapter_11-sect1_24_930) | [164](#chapter_11-sect1_24_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PAYMENT OF DEATH BENEFITS............................................................................](#chapter_11-sect1_25_930ab) | [172](#chapter_11-sect1_25_930ab) |
| [**PURCHASES AND CONTRACT VALUE**...........................................................................](#chapter_12_930) | [**175**](#chapter_12_930) |

---

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIREMENTS FOR PURCHASING THE ANNUITY.............................................................](#chapter_12-sect1_2_930) | [175](#chapter_12-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?.......................................................](#chapter_12-sect1_3_930) | [177](#chapter_12-sect1_3_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO I RECEIVE A LOYALTY CREDIT UNDER THE ASAP III AND APEX II ANNUITIES?................................](#chapter_12-sect1_4_930) | [177](#chapter_12-sect1_4_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE LOYALTY CREDITS APPLIED TO MY ACCOUNT VALUE UNDER THE ASAP III AND APEX II ANNUITIES?............](#chapter_12-sect1_5_930) | [178](#chapter_12-sect1_5_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO I RECEIVE CREDITS UNDER THE XT6 ANNUITY?.......................................................](#chapter_12-sect1_6_930) | [178](#chapter_12-sect1_6_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE CREDITS APPLIED TO ACCOUNT VALUE UNDER THE XT6 ANNUITY?......................................](#chapter_12-sect1_7_930) | [179](#chapter_12-sect1_7_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ADDITIONAL PURCHASE PAYMENTS........................................................................](#chapter_12-sect1_8_930) | [180](#chapter_12-sect1_8_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT....................................................](#chapter_12-sect1_9_930) | [181](#chapter_12-sect1_9_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SALARY REDUCTION PROGRAMS..........................................................................](#chapter_12-sect1_10_930) | [181](#chapter_12-sect1_10_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW IS MY ACCOUNT VALUE DETERMINED?.................................................................](#chapter_12-sect1_11_930) | [181](#chapter_12-sect1_11_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SURRENDER VALUE.....................................................................................](#chapter_12-sect1_12_930) | [181](#chapter_12-sect1_12_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [VALUING THE VARIABLE OPTIONS..........................................................................](#chapter_12-sect1_13_930) | [181](#chapter_12-sect1_13_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [VALUING THE FIXED ALLOCATIONS.........................................................................](#chapter_12-sect1_14_930) | [181](#chapter_12-sect1_14_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PROCESSING AND VALUING TRANSACTIONS.................................................................](#chapter_12-sect1_15_930) | [182](#chapter_12-sect1_15_930) |
| [**SURRENDERS AND WITHDRAWALS**............................................................................](#chapter_13_930) | [**184**](#chapter_13_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TYPES OF DISTRIBUTIONS AVAILABLE TO YOU...............................................................](#chapter_13-sect1_2_930) | [184](#chapter_13-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NON QUALIFIED ANNUITIES........................................](#chapter_13-sect1_3_930) | [184](#chapter_13-sect1_3_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CAN I WITHDRAW A PORTION OF MY ANNUITY?...............................................................](#chapter_13-sect1_4_930) | [184](#chapter_13-sect1_4_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FREE WITHDRAWAL AMOUNTS............................................................................](#chapter_13-sect1_5_930) | [185](#chapter_13-sect1_5_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CAN YOU CLOSE MY ACCOUNT AND INVOLUNTARILY REDEEM MY INVESTMENT?...................................](#chapter_13-sect1_6_930) | [185](#chapter_13-sect1_6_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS..............................................................................](#chapter_13-sect1_7_930) | [185](#chapter_13-sect1_7_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t) AND 72(q) OF THE INTERNAL REVENUE CODE.....................](#chapter_13-sect1_8_930) | [186](#chapter_13-sect1_8_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIRED MINIMUM DISTRIBUTIONS.......................................................................](#chapter_13-sect1_9_930) | [186](#chapter_13-sect1_9_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SURRENDER VALUE.....................................................................................](#chapter_13-sect1_10_930) | [187](#chapter_13-sect1_10_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [MEDICALLY-RELATED SURRENDERS.......................................................................](#chapter_13-sect1_11_930) | [187](#chapter_13-sect1_11_930) |
| [**TAXES**...................................................................................................](#chapter_14_930) | [**188**](#chapter_14_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [NON-QUALIFIED ANNUITIES...............................................................................](#chapter_14-sect1_2_930) | [188](#chapter_14-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [QUALIFIED ANNUITIES...................................................................................](#chapter_14-sect1_3_930) | [192](#chapter_14-sect1_3_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ADDITIONAL CONSIDERATIONS............................................................................](#chapter_14-sect1_4_930) | [198](#chapter_14-sect1_4_930) |
| [**LEGAL PROCEEDINGS**......................................................................................](#chapter_15_930) | [**199**](#chapter_15_930) |
| [**FINANCIAL STATEMENTS**....................................................................................](#chapter_16_930) | [**200**](#chapter_16_930) |
| [**ADDITIONAL INFORMATION**...................................................................................](#chapter_17_930) | [**201**](#chapter_17_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW WILL I RECEIVE STATEMENTS AND REPORTS............................................................](#chapter_17-sect1_2_930) | [201](#chapter_17-sect1_2_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW TO CONTACT US...................................................................................](#chapter_17-sect1_3_930) | [201](#chapter_17-sect1_3_930) |
| [**APPENDIX A – INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT**......................................................](#chapter_18_930) | [**A-1**](#chapter_18_930) |
| [**APPENDIX B – PLUS40 OPTIONAL LIFE INSURANCE RIDER**.........................................................](#chapter_19_930) | [**B-1**](#chapter_19_930) |
| [**APPENDIX C – ADDITIONAL INFORMATION ON ASSET ALLOCATION PROGRAM**.........................................](#chapter_20_930) | [**C-1**](#chapter_20_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [**APPENDIX D – DESCRIPTION AND CALCULATION OF PREVIOUSLY OFFERED OPTIONAL DEATH BENEFITS (THIS APPLIES** <br>**SOLELY TO APEX II, ASL II AND XT6)**................................................................](#chapter_21_930) | [**D-1**](#chapter_21_930) |
| [**APPENDIX E – FORMULA UNDER HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT**......................................](#chapter_22_930) | [**E-1**](#chapter_22_930) |
| [**APPENDIX F – ANNUITIES APPROVED FOR SALE BY THE NEW YORK STATE INSURANCE DEPARTMENT**.....................](#chapter_23_930) | [**F-1**](#chapter_23_930) |
| [**APPENDIX G – FORMULA UNDER GRO PLUS 2008**.................................................................](#chapter_24_930) | [**G-1**](#chapter_24_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [**APPENDIX H – FORMULA UNDER HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT AND SPOUSAL HIGHEST DAILY LIFETIME** <br>**SEVEN INCOME BENEFIT**........................................................................](#chapter_25_930) | [**H-1**](#chapter_25_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [**APPENDIX I – FORMULA FOR HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT AND SPOUSAL HIGHEST DAILY LIFETIME 7** <br>**PLUS INCOME BENEFIT**..........................................................................](#chapter_26_930) | [**I-1**](#chapter_26_930) |
| [**APPENDIX J – SPECIAL CONTRACT PROVISIONS FOR ANNUITIES ISSUED IN CERTAIN STATES**............................](#chapter_27_930) | [**J-1**](#chapter_27_930) |
| [**APPENDIX K – FORMULA UNDER THE GUARANTEED RETURN OPTION PLUS BENEFIT**...................................](#chapter_28_930) | [**K-1**](#chapter_28_930) |
| [**APPENDIX L – FORMULA UNDER THE GUARANTEED RETURN OPTION BENEFIT**........................................](#chapter_29_930) | [**L-1**](#chapter_29_930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [**APPENDIX M – FORMULA FOR HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT AND SPOUSAL HIGHEST DAILY LIFETIME 6** <br>**PLUS INCOME BENEFIT**.........................................................................](#chapter_30_930) | [**M-1**](#chapter_30_930) |
| [**APPENDIX N – FORMULA FOR GRO PLUS II**......................................................................](#chapter_31_930) | [**N-1**](#chapter_31_930) |
| [**APPENDIX O – FORMULA FOR HIGHEST DAILY GRO**...............................................................](#chapter_32_930) | [**O-1**](#chapter_32_930) |
| [**APPENDIX P – FORMULA FOR HIGHEST DAILY GRO II**..............................................................](#chapter_33_930) | [**P-1**](#chapter_33_930) |

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**GLOSSARY OF TERMS**

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Many terms used within this Prospectus are described within the text where they appear. The description of those terms are not repeated in this Glossary of Terms.

**Account Value:** The value of each allocation to a Variable Option (also referred to as a "Sub-account") plus any Fixed Allocation prior to the Annuity Date, increased by any earnings, and/or less any losses, distributions and charges. The Account Value is calculated before we assess any applicable Contingent Deferred Sales Charge ("CDSC" or "surrender charge") and/or, unless the Account Value is being calculated on an annuity anniversary, any fee that is deducted from the Annuity annually in arrears. The Account Value is determined separately for each Variable Option and for each Fixed Allocation, and then totaled to determine the Account Value for your entire Annuity. The Account Value of each Market Value Adjustment Fixed Allocation on any day other than its Maturity Date may be calculated using a Market Value Adjustment. With respect to XT6, the Account Value includes any Credits we applied to your Purchase Payments that we are entitled to recapture under certain circumstances. With respect to ASAP III and APEX II, the Account Value includes any Loyalty Credit we apply. With respect to Annuities with a Highest Daily Lifetime Five Income Benefit election, Account Value includes the value of any allocation to the Benefit Fixed Rate Account.

**Accumulation Period:** The period of time from the Issue Date through the last Valuation Day immediately preceding the Annuity Date.

**Adjusted Purchase Payments:** As used in the discussion of certain optional benefits in this prospectus and elsewhere, Adjusted Purchase Payments are Purchase Payments, increased by any Credits applied to your Account Value in relation to such Purchase Payments, and decreased by any charges deducted from such Purchase Payments.

**Annual Income Amount:** This is the annual amount of income you are eligible for life under the optional benefits.

**Annuities Service Center:** The place to which all requests and payments regarding an Annuity are to be sent. We may change the address of the Annuities Service Center at any time. Please see the section of this prospectus entitled "[<u>How to Contact Us</u>](#chapter_17-sect1_3_930)" for the Annuities Service Center address.

**Annuitization:** The application of Account Value to one of the available annuity options to begin receiving periodic payments for life (or joint lives), for a guaranteed minimum number of payments or for life with a guaranteed minimum number of payments.

**Annuity Date:** The date you choose for annuity payments to commence. Unless we agree otherwise, for Annuities issued on or after November 20, 2006, the Annuity Date must be no later than the first day of the calendar month coinciding with or next following the later of: (a) the oldest Owner's or Annuitant's 95<sup>th</sup> birthday and (b) the fifth anniversary of the Issue Date, whichever occurs first. With respect to Annuities issued prior to November 20, 2006, please see the section of this prospectus entitled [<u>"Annuity Period"</u>](#chapter_10-sect1_1_930).

**Annuity Year:** A 12-month period commencing on the Issue Date of the Annuity and each successive 12-month period thereafter.

**Beneficiary Annuity:** If you are a beneficiary of an annuity that was owned by a decedent, subject to the requirements discussed in this prospectus, you may transfer the proceeds of the decedent's annuity into one of the Annuities described in this prospectus and continue receiving the distributions that are required by the tax laws. This transfer option is only available for purchase of an IRA, Roth IRA, or a non-qualified annuity.

**Benefit Fixed Rate Account:** A fixed investment option that is used only if you have elected the optional Highest Daily Lifetime Five Income Benefit. Amounts allocated to the Benefit Fixed Rate Account earn a fixed rate of interest, and are held within our general account. You may not allocate Purchase Payments to the Benefit Fixed Rate Account. Rather, Account Value is transferred to and from the Benefit Fixed Rate Account only under the pre-determined mathematical formula of the Highest Daily Lifetime Five Income Benefit.

**Free Withdrawal:** The Free Withdrawal amount is the amount that can be withdrawn from your Annuity each Annuity Year without the application of any CDSC.

**Code:** The Internal Revenue Code of 1986, as amended from time to time and the regulations promulgated thereunder.

**Combination 5% Roll-Up and HAV Death Benefit:** We offer an optional Death Benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing the greater of the Highest Anniversary Value Death Benefit and a 5% annual increase on Purchase Payments adjusted for withdrawals.

**Co-Annuitant:** The person shown on the contract data pages who becomes the Annuitant upon the death of the Annuitant before the Annuity Date. No Co-Annuitant may be designated if the Owner is a non-natural person.

**Contingent Annuitant:** The natural person named to become the Annuitant upon the death of Annuitant prior to the Annuity Date. A Contingent Annuitant may be named only in limited circumstances involving an Annuity issued to a Custodial Account or to a tax-qualified retirement plan.

**Contingent Deferred Sales Charge (CDSC):** This is a sales charge that may be deducted when you make a full or partial withdrawal under your Annuity. We refer to this as a "contingent" charge because it can be imposed only if you make a withdrawal. The charge is a percentage of each applicable Purchase Payment that is being withdrawn. The period during which a particular percentage applies is measured from the Issue Date of the Annuity. The amount and duration of the CDSC varies among ASAP III, APEX II and XT6. There is no CDSC for ASL II. See the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" section in this prospectus for details on the CDSC for each Annuity. The CDSC is also referred to as a surrender charge in this prospectus.

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**Credit:** An amount we allocate to your Annuity's Account Value each time you make a Purchase Payment. The amount of the Credit is payable from our general account. The amount of the Credit depends on the cumulative amount of Purchase Payments you have made to your Annuity, payable as a percentage of each specific Purchase Payment.

**Custodial Account:** A trust or Custodial Account that qualifies as an individual retirement account as defined in Section 408(a) of the Code, including a Roth IRA that satisfies the definitions in Sections 408(a) and 408A of the Code.

**DCA Fixed Rate Option:** An investment option that offers a fixed rate of interest for a specified period during the Accumulation Period. The DCA Fixed Rate Option is used only with our 6 or 12 Month Dollar Cost Averaging Program ("6 or 12 Month DCA Program"), under which the Purchase Payments that you have allocated to that DCA Fixed Rate Option are transferred to the designated Variable Options over a 6 month or 12 month period. Withdrawals or transfers from the DCA Fixed Rate Option are not subject to any Market Value Adjustment. We no longer offer our 6 or 12 Month DCA Program.

**Enhanced Beneficiary Protection Death Benefit:** An Optional Death Benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing amounts in addition to the basic Death Benefit that can be used to offset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. We no longer offer the Enhanced Beneficiary Protection Death Benefit.

**Excess Income:** All or a portion of a Lifetime Withdrawal that exceeds the Annual Income Amount for that benefit year is considered Excess Income ("Excess Income"). Each withdrawal of Excess Income proportionally reduces the Annual Income Amount for future benefit years.

**Fixed Allocation:** An investment option that offers a fixed rate of interest for a specified Guarantee Period during the Accumulation Period. Certain Fixed Allocations are subject to a Market Value Adjustment if you withdraw Account Value prior to the Fixed Allocation's maturity (Market Value Adjustment Fixed Allocation). We also offer DCA Fixed Rate Options that are used with our 6 or 12 Month Dollar Cost Averaging Program ("6 or 12 Month DCA Program"), and are not subject to any Market Value Adjustment. You may participate in a dollar cost averaging program outside of the 6 or 12 Month DCA Program, where the source of the funds to be transferred is a Fixed Allocation. We no longer offer our 6 or 12 Month DCA Program.

**Good Order:** An instruction received by us, utilizing such forms, signatures, and dating as we require, which is sufficiently complete and clear that we do not need to exercise any discretion to follow such instructions. In your Annuity contract, we use the term "In Writing" to refer to this general requirement.

**Guarantee Period:** A period of time during the Accumulation Period where we credit a fixed rate of interest on a Fixed Allocation.

**Guaranteed Minimum Income Benefit (GMIB):** An optional benefit that, for an additional cost, after a seven-year waiting period, guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on your total Purchase Payments and an annual increase of 5% on such Purchase Payments adjusted for withdrawals (called the "Protected Income Value"), regardless of the impact of Variable Option performance on your Account Value. We no longer offer GMIB.

**Guaranteed Minimum Withdrawal Benefit (GMWB):** An optional benefit that, for an additional cost, guarantees your ability to withdraw amounts over time equal to an initial principal value, regardless of the impact of Variable Option performance on your Account Value. We no longer offer GMWB.

**Guaranteed Return Option Plus (GRO Plus)/Guaranteed Return Option Plus 2008 (GRO Plus 2008)/Guaranteed Return Option (GRO)/Highest** **Daily Guaranteed Return Option (Highest Daily GRO)/Guaranteed Return Option Plus II (GRO Plus II)/Highest Daily Guaranteed Return Option** **II (HD GRO II):** Each of GRO Plus, GRO Plus 2008, GRO, Highest Daily GRO, GRO Plus II, and HD GRO II is a separate optional benefit that, for an additional cost, guarantees a minimum Account Value at one or more future dates and that requires your participation in a program that may transfer your Account Value according to a predetermined mathematical formula. Each benefit has different features, so please consult the pertinent benefit description in the section of the prospectus entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)". Certain of these benefits are no longer available for election.

**Highest Anniversary Value Death Benefit ("HAV"):** An optional Death Benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit and the Highest Anniversary Value, less proportional withdrawals. We no longer offer HAV.

**Highest Daily Lifetime Five Income Benefit:** An optional benefit that, for an additional cost, guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. We no longer offer Highest Daily Lifetime Five.

**Highest Daily Lifetime Seven Income Benefit:** An optional benefit for an additional charge that guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. Highest Daily Lifetime Seven is the same class of optional benefits as our Highest Daily Lifetime Five Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and how the lifetime withdrawals are calculated. We no longer offer Highest Daily Lifetime Seven.

**Highest Daily Lifetime 7 Plus Income Benefit:** An optional benefit that is available for an additional charge. The benefit guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value.

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Highest Daily Lifetime 7 Plus is the same class of optional benefits as our Highest Daily Lifetime Seven Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and how the lifetime withdrawals are calculated. We no longer offer Highest Daily Lifetime 7 Plus.

**Highest Daily Lifetime 6 Plus Income Benefit:** An optional benefit that is available for an additional charge. The benefit guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. Highest Daily Lifetime 6 Plus is the same class of optional benefit as our Highest Daily Lifetime 7 Plus Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and how the lifetime withdrawals are calculated. We no longer offer Highest Daily Lifetime 6 Plus.

**Highest Daily Value Death Benefit ("HDV"):** An optional Death Benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit and the Highest Daily Value, less proportional withdrawals. We no longer offer HDV.

**Interim Value:** The value of the Market Value Adjustment Fixed Allocations on any date other than the Maturity Date. The Interim Value is equal to the initial value allocated to the Market Value Adjustment Fixed Allocation plus all interest credited to the Market Value Adjustment Fixed Allocation as of the date calculated, less any transfers or withdrawals from the Market Value Adjustment Fixed Allocation. The Interim Value does not include the effect of any Market Value Adjustment.

**Issue Date:** The effective date of your Annuity.

**Key Life:** Under the Beneficiary Continuation Option, or the Beneficiary Annuity, the person whose life expectancy is used to determine payments.

**Lifetime Five Income Benefit:** An optional benefit that, for an additional cost, guarantees your ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. We no longer offer Lifetime Five.

**Market Value Adjustment:** A Market Value Adjustment used in the determination of Account Value of a Market Value Adjustment Fixed Allocation on any day more than 30 days prior to the Maturity Date of such Market Value Adjustment Fixed Allocation.

**MVA Fixed Allocation:** An investment option that offers a fixed rate of interest for a specified Guarantee Period during the accumulation period that is subject to a market value adjustment if you withdraw Account Value prior to the maturity of the Fixed Allocation. Your Annuity may include Fixed Allocations that are not subject to a market value adjustment, such as a benefit fixed rate account.

**Maturity Date:** The last day of the Guarantee Period.

**Owner:** With an Annuity issued as an individual annuity contract, the Owner is either an eligible entity or individual named as having ownership rights in relation to the Annuity. With an Annuity issued as a certificate under a group annuity contract, the "Owner" refers to the person or entity who has the rights and benefits designated as to the "Participant" in the certificate.

**Payout Period:** The period starting on the Annuity Date and during which annuity payments are made.

**Portfolio:** Any underlying mutual fund which may be selected as an investment option by the Owner. The terms "Fund" and "Portfolio" are used interchangeably. Some of the Portfolios use the term "Fund" and others use the term "Portfolio" in their respective prospectuses.

**Purchase Payment:** A cash consideration in currency of the United States of America given to us in exchange for the rights, privileges, and benefits of the Annuity.

**Registered Separate Account:** Fortitude Life Insurance & Annuity Co Variable Account B, which holds the assets supporting the Variable Options. Assets held in the Registered Separate Account are kept separate from all of our other assets and may not be charged with liabilities arising out of any other business we may conduct. The Registered Separate Account may be referred to as the "Separate Account" in this prospectus and the Contract.

**Spousal Highest Daily Lifetime Seven Income Benefit:** An optional benefit that, for an additional charge, guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. The benefit is the spousal version of the Highest Daily Lifetime Seven Income Benefit and is the same class of optional benefits as our Spousal Highest Daily Lifetime Five Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and to how the lifetime withdrawals are calculated. We no longer offer Spousal Highest Daily Lifetime Seven.

**Spousal Highest Daily Lifetime 7 Plus Income Benefit:** An optional benefit that, for an additional charge, guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. The benefit is the spousal version of the Highest Daily Lifetime 7 Plus Income Benefit and is the same class of optional benefits as our Spousal Highest Daily Lifetime Seven Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and to how the lifetime withdrawals are calculated. We no longer offer Spousal Highest Daily Lifetime 7 Plus.

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**Spousal Highest Daily Lifetime 6 Plus Income Benefit:** An optional benefit that, for an additional charge, guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. The benefit is the spousal version of the Highest Daily Lifetime 6 Plus Income Benefit and is the same class of optional benefit as our Spousal Highest Daily Lifetime 7 Plus Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and to how the lifetime withdrawals are calculated. We no longer offer Spousal Highest Daily Lifetime 6 Plus.

**Spousal Lifetime Five Income Benefit:** An optional benefit that, for an additional cost, guarantees until the later death of two Designated Lives (as defined in this prospectus) the ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. We no longer offer Spousal Lifetime Five.

**Surrender Value:** The value of your Annuity available upon surrender prior to the Annuity Date. It equals the Account Value as of the date we price the surrender minus any applicable CDSC, Annual Maintenance Fee, Tax Charge and the charge for any optional benefits and any additional amounts we applied to your Purchase Payments that we may be entitled to recapture under certain circumstances. The Surrender Value may be calculated using a Market Value Adjustment with respect to amounts in any Market Value Adjustment Fixed Allocation. No CDSC applies to the ASL II Annuity.

**Unit:** A measure used to calculate your Account Value in a Variable Option during the Accumulation Period.

**Unit Value:** Each Variable Option has a separate value for its Units (this is analogous to, but not the same as, the share price of a mutual fund).

**Valuation Day:** Every day the New York Stock Exchange is open for trading or any other day the Securities and Exchange Commission requires mutual funds or unit investment trusts to be valued, not including any day: (1) trading on the NYSE is restricted; (2) an emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or (3) the SEC, by order, permits the suspension or postponement for the protection of security holders.

**Variable Option:** A division of the Registered Separate Account. The Variable Option also may be referred to in this prospectus and the Annuity as a Variable Sub-account or Sub-account.

**"We", "our", "us", "FLIAC", or "the Company":** Fortitude Life Insurance & Annuity Company.

**"You" or "your":** the Owner(s) shown in the Annuity.

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**OVERVIEW OF THE CONTRACT**

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**Advanced Series Advisor Plan III ("ASAP III")**<br>**Advanced Series APEX II ("APEX II")**<br>**Advanced Series XTra Credit Six ("XT6")**<br>**Advanced Series LifeVest II ("ASL II")**

**The Annuity referenced in this prospectus and its applicable riders are no longer available for new sales.**

**Purpose of the Contract**

The Annuities described in this prospectus are long-term investments designed for long-term retirement purposes because they allow you to accumulate retirement savings and also offer annuity payment options when you are ready to begin receiving income. These Annuities are "flexible premium deferred annuity." It is called "flexible premium" because you have considerable flexibility in the timing and amount of premium payments. Generally, investors "defer" receiving annuity payments until after an Accumulation Period. These Annuities may be appropriate for investors accumulating retirement savings on a tax deferred basis and would seek guaranteed income through an annuity payment option.

**Phases of the Contract**

The Annuities feature two distinct phases - the Accumulation Period and the Payout Period. During the Accumulation Period your Account Value is allocated to one or more investment options. See "Investment Options" below. During the Payout Period (after Annuitization), you can elect to receive annuity payments (1) for life; (2) for life with a guaranteed minimum number of payments; (3) based on joint lives; or (4) for a guaranteed number of payments. We currently make annuity payments available on a fixed basis. After Annuitization, the Death Benefits and optional benefits described in this prospectus will no longer apply. We reserve the right to make available other annuity options. See the [<u>"Annuity Period"</u>](#chapter_10-sect1_1_930) section of this prospectus.

**Investment Options**

*Variable Options:* The Variable Options we make available each invest in an underlying Portfolio whose share price generally fluctuates each day. The Variable Options do not provide any level of protection against negative returns. You are at risk of losing principal and any earnings if you allocate funds to a Portfolio.

*Fixed Rate Options:* The Annuity currently offers one fixed interest rate option ("Fixed Rate Options"). The Market Value Adjustment Fixed Allocation provides a guaranteed annual interest rate for a term of 1-10 years (in most states) called the "Guarantee Period".

An investment in the Fixed Rate Options may be appropriate for investors who seek a fixed rate of return on either all or a portion of their Account Value and do not need access to their money before the end of the Guarantee Period.

If you withdraw or transfer assets from a Market Value Adjustment Fixed Allocation more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. **You could lose a significant amount of money due to** **a negative Market Value Adjustment.** The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals and Required Minimum Distributions), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.

**Additional information about the Investment Options is provided in** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **to the prospectus.**

**Contract Features**

*Credits:* Under the XT6 Annuity, we apply a "Credit" to your Annuity's Account Value each time you make a Purchase Payment during the first six Annuity Years. The amount of the Credit depends on the Annuity Year in which the Purchase Payment(s) is made. Under the ASAP III and APEX II Annuities, we apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth Annuity Year ("fifth Annuity Anniversary"). The amount of the Credit depends on the Issue Date of your Annuity. ASL II does not offer any Credits.

*Death Benefits:* The Annuities also offer a basic Death Benefit that could protect your retirement savings if you die during a period of declining markets, depending on when you die. They also offer optional Death Benefits that provide enhanced levels of protection for your beneficiary(ies) for an additional charge.

*Living Benefits:* We offer optional benefits for an additional fee that guarantee your ability to take withdrawals for life as a percentage of an initial guaranteed benefit base, even after your Account Value falls to zero (unless it does so due to a withdrawal of Excess Income). We also offer optional benefits for an additional fee that guarantee your Account Value to a certain level after a period of years. As part of these benefits, you are required to invest only in certain permitted investment options. **For more information, see "**[**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**".**

*Withdrawals:* You can withdraw a limited amount of money from your Annuity on an annual basis without any charges.

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**KEY INFORMATION**

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| **Important Information You Should Consider About ASAP III** | **Important Information You Should Consider About ASAP III** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>*Surrender Charges:* If you withdraw money from the Contract within 8 years following your Contract Issue Date, you may be assessed a surrender charge. <br>The maximum surrender charge is 7.5% of the premium payment, and a surrender charge may be assessed up to 8 years after the Issue Date of your Contract. If you make an early withdrawal, you could pay a surrender charge of up to $7,500 on a $100,000 withdrawal.<br>*Market Value Adjustments*: If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>**You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market** **Value Adjustment.** For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 1 year Guarantee Period and later withdraw the entire amount before the 1 year has ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.<br>For more information on early withdrawal charges and Market Value Adjustments, please refer to the [<u>"Charges and</u> <u>Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.**<br>In addition to Market Value Adjustments and surrender charges, charges may be applied to transfers (if more than 20 in a Contract Year), requesting additional or duplicate reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |

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|:---|:---|:---|:---|
| **Important Information You Should Consider About ASAP III** | **Important Information You Should Consider About ASAP III** | **Important Information You Should Consider About ASAP III** | **Important Information You Should Consider About ASAP III** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | **Base Contract Fees** | 0.650% in Contract<br>Years 9 and later\* | 1.277% in Contract<br>Years 1-8\* |
|  Are there Ongoing Fees and Expenses? | **Portfolio Company fees and** **expenses** | 0.58%\* | 4.77%\* |
|  Are there Ongoing Fees and Expenses? | **Optional benefits available for an** **additional charge**<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 10.50%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges and negative Market Value Adjustments that substantially increase costs. | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges and negative Market Value Adjustments that substantially increase costs. | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges and negative Market Value Adjustments that substantially increase costs. |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br> **$1,871** | **Highest Annual Cost**<br>**$8,957** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and<br>expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of<br>optional benefits and Portfolio fees<br>and expenses<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. |

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|:---|:---|
| **Important Information You Should Consider About APEX II** | **Important Information You Should Consider About APEX II** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>*Surrender Charges:* If you withdraw money from the Contract within 4 years following your Contract Issue Date, you may be assessed a surrender charge.<br>The maximum surrender charge is 8.5% of the premium payment, and a surrender charge may be assessed up to 4 years after the Issue Date of your Annuity. If you make an early withdrawal, you could pay a surrender charge of up to $8,500 on a $100,000 withdrawal.<br>*Market Value Adjustments*: If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>**You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market** **Value Adjustment.** For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 1 year Guarantee Period and later withdraw the entire amount before the 1 year has ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.<br>For more information on early withdrawal charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.**<br>In addition to surrender charges and Market Value Adjustments, charges may be applied to transfers (if more than 20 in a Contract Year), to requests for duplicate reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |

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| | | | |
|:---|:---|:---|:---|
| **Important Information You Should Consider About APEX II** | **Important Information You Should Consider About APEX II** | **Important Information You Should Consider About APEX II** | **Important Information You Should Consider About APEX II** |
| **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | Base Contract Fees | 1.650%\* | 1.677%\* |
|  Are there Ongoing Fees and Expenses? | Portfolio Company fees and expenses | 0.58%\* | 4.77%\* |
|  Are there Ongoing Fees and Expenses? | Optional benefits available for an additional charge<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 10.50%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br>**$2,280** | **Highest Annual Cost**<br>**$9,344** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of optional benefits and Portfolio fees and expenses<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. |

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|:---|:---|
| **Important Information You Should Consider About XT6** | **Important Information You Should Consider About XT6** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>*Surrender Charges:* If you withdraw money from the Contract within 10 years following your Contract Issue Date, you may be assessed a surrender charge.<br>The maximum surrender charge is 9.0% of the premium payment, and a surrender charge may be assessed up to 10 years after the Issue Date of your Contract. If you make an early withdrawal, you could pay a surrender charge of up to $9,000 on a $100,000 withdrawal. Credits may also be recaptured if you take an Early Withdrawal.<br>*Market Value Adjustments*: If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>**You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market** **Value Adjustment.** For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 1 year Guarantee Period and later withdraw the entire amount before the 1 year has ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.<br>For more information on early withdrawal charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.**<br>In addition to surrender charges and Market Value Adjustments, charges may be applied to transfers (if more than 20 in a Contract Year), to requests for duplicate reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |

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| | | | |
|:---|:---|:---|:---|
| **Important Information You Should Consider About XT6** | **Important Information You Should Consider About XT6** | **Important Information You Should Consider About XT6** | **Important Information You Should Consider About XT6** |
| **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) in this prospectus for more information. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | Base Contract Fees | 0.677% in Contract<br>Years 11 and later\* | 1.677% in Contract<br>Years 1-10\* |
|  Are there Ongoing Fees and Expenses? | Portfolio Company fees and expenses | 0.58%\* | 4.77%\* |
|  Are there Ongoing Fees and Expenses? | Optional benefits available for an additional charge<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 10.50%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Variable Option Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefits with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Variable Option Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefits with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Variable Option Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefits with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br>**$2,280** | **Highest Annual Cost**<br>**$9,309** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of optional benefits and Portfolio fees and expenses<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. |

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|:---|:---|
| **Important Information You Should Consider About ASL II** | **Important Information You Should Consider About ASL II** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>*Market Value Adjustments*: If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>**You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market** **Value Adjustment.** For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 1 year Guarantee Period and later withdraw the entire amount before the 1 year has ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.<br>For more information on early withdrawal charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.** In addition to Market Value Adjustments, charges may be applied to transfers (if more than 20 in a Contract Year), to requests for duplicate reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section of this prospectus. |

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| | | | |
|:---|:---|:---|:---|
| **Important Information You Should Consider About ASL II** | **Important Information You Should Consider About ASL II** | **Important Information You Should Consider About ASL II** | **Important Information You Should Consider About ASL II** |
| **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | Base Contract Fees | 1.650%\* | 1.679%\* |
|  Are there Ongoing Fees and Expenses? | Portfolio Company fees and expenses | 0.58%\* | 4.77%\* |
|  Are there Ongoing Fees and Expenses? | Optional benefits available for an additional charge<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 10.50%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** | \*Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_930) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus for more information.**<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup>Charge based on a percentage of the Account Value. This charge is the current charge for the Plus40 Optional Life Insurance Rider, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add** **surrender charges and negative Market Value Adjustments that substantially increase costs.** |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br>**$2,280** | **Highest Annual Cost**<br>**$9,344** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of optional benefits and Portfolio fees and expenses<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930)sections of this prospectus. |

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| | |
|:---|:---|
| **Risks** | **Risks** |
|  Is there a Risk of Loss from Poor Performance? | **Yes.**<br>You can lose money by investing in the Contract. You can also lose value from Credits if they are recaptured by us.<br>For more information on the risk of loss from poor performance, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_930)" section of this prospectus. |
|  Is this a Short-Term Investment? | **No.**<br>The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. The Contract is designed to provide benefits on a long-term basis. Because of the long-term nature of the Contract, you should consider whether the Contract is consistent with your financial situation and objectives.<br>Withdrawals may generally reduce the level of various optional benefit guarantees provided and may be subject to federal and state income taxes, as well as a 10% additional tax. If you withdraw or transfer assets from the MVA Fixed Allocation Options more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>For more information on the short-term investment risks, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_930)" section of this prospectus. |
|  What are the Risks Associated with the Investment Options? | An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options you select. Each of the investment options available under the Contract, including the Variable Options and Fixed Allocations, has its own unique risks. You should review the investment options before making an investment decision. The Fixed Allocations may be subject to a Market Value Adjustment, which can be negative, causing you to lose money.<br>For more information on the risks associated with investment options, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_930)" section of this prospectus. |
|  What are the Risks Related to the Insurance Company? | An investment in the Contract is subject to the risks related to the Company. Any obligations (including under any Fixed Allocation), guarantees, or benefits are subject to the claims-paying ability of the Company. More information about the Company, including its financial strength ratings, is available upon request. Such requests can be made toll-free at 1-800-879-7012.<br>For more information on the insurance company risks, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_930)" section of this prospectus. |
| **Restrictions** | **Restrictions** |
|  Are there Restrictions on the Investment Options? | &nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions that may limit the investment options that you may choose, and there are limitations on the transfer of Account Value among investment options.<br> You may make twenty (20) free transfers between investment options each Contract Year. After the twentieth transfer in each Contract Year, we will charge $10 for each additional transfer<br> If you select an optional benefit, your selection of investment options may be limited.<br> We reserve the right to:<br> Remove or substitute Portfolios as investment options. Or to close Variable Options to subsequent Purchase Payments on existing Annuities or Annuities purchased on or after specified dates;<br> Impose limitations on an investment professional's or investment Advisor's ability to request financial transactions on your behalf.<br> Limit the number of transfers you may make or to impose a minimum transfer amount; and<br> Limit, suspend or reject any additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities.<br> Certain Investment Options may not be available through certain financial intermediaries. See the [<u>Cover Page</u>](#chapter_1-sect1_1_930) of this prospectus for additional information.<br>**For more information on investment and transfer restrictions, please refer to the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_930) **section,** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930)**,** [**<u>"Principal Risks of Investing in the Contract"</u>**](#chapter_6-sect1_1_930)**, the** [**<u>"General Description of Contracts"</u>**](#chapter_9-sect1_1_930) **section, the** [**<u>"Restrictions</u>** **<u>on Transfers Between Investment Options"</u>**](#chapter_9-sect1_9_930) **section and the** [**<u>"Financial Professional Permission to Forward Transaction</u>** **<u>Instructions"</u>**](#chapter_9-sect1_10_930) **section of** **this prospectus.** |

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| | |
|:---|:---|
| **Restrictions** | **Restrictions** |
|  Are there any Restrictions on Contract Benefits? | &nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions and limitation relating to benefits offered under the Contract. Except as otherwise provided, Contract benefits may not be modified or terminated by the Company.<br> You may be able to obtain optional benefits, which may require additional charges. If you elect to purchase one or more optional benefits, we will deduct an additional charge on a daily, quarterly or annual basis from your Account Value allocated to the Variable Options. The charge for each optional benefit is deducted in addition to the insurance charge due to the increased insurance risk associated with the optional benefits.<br> Any withdrawals that exceed limits specified by the terms of an optional benefit may affect the availability of the benefit by reducing the benefit by an amount greater than the value withdrawn, and/or could terminate the benefit.<br> Certain Contract Benefits may not be available through certain financial intermediaries. See the [<u>Cover Page</u>](#chapter_1-sect1_1_930) of this prospectus for additional information.<br>For more information on optional benefits under the Contract, please refer to the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" section of this prospectus. |
| **Taxes** | **Taxes** |
|  What are the Contract's Tax Implications? | You should consult with a tax professional to determine the tax implications of an investment in and payments received under the Contract. There is no additional tax benefit if you purchase the Contract through a tax-qualified plan or individual retirement account (IRA). Withdrawals will be subject to ordinary income tax, and may be subject to a 10% additional tax for distributions taken prior to age 59 1/2.<br>For more information on tax implications, please refer to the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section of this prospectus. |
| **Conflicts of Interest** | **Conflicts of Interest** |
|  How are Investment Professionals Compensated? | Investment professionals may receive compensation for selling the Contract to investors and may have a financial incentive to offer or recommend the Contract over another investment. This compensation is paid in the form of commissions, based on your investment in the Contract.<br>For more information on investment professional compensation, please refer to the Statement of Additional Information. |
|  Should I Exchange my Contract? | Some investment professionals may have a financial incentive to offer you a new Contract in place of the one you already own. You should only exchange your contract if you determine after comparing the features, fees, and risks of both contracts, and any fees or penalties to terminate the existing contract, that it is preferable to purchase the new contract, rather than continue to own your existing contract. This Contract is no longer sold.<br>For more information on exchanges, please refer to the Statement of Additional Information. |

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**FEE TABLE**

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**The following tables describe the fees, expenses, and adjustments that you will pay when buying, owning, and surrendering or making** **withdrawals from an Investment Option or from the Annuity.**

**The first table describes the fees and expenses that you will pay at the time that you buy the Annuity, surrender or make withdrawals from the** **Annuity, transfer Account Value between investment options, or request duplicate reports. State premium taxes may also be deducted. These** **fees and charges are described in more detail within this prospectus in the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_930) **section.**

**For charges specific to contracts issued in New York State, please refer to** [**<u>Appendix F-Annuities Approved for Sale by the New York State</u>** **<u>Insurance Department</u>**](#chapter_23-sect1_1_930)**. For charges specific to contracts issued in Minnesota, please refer to** [**<u>Appendix J-Special Contract Provisions for</u>** **<u>Annuities Issued in Certain States</u>**](#chapter_27-sect1_1_930)**.**

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| | |
|:---|:---|
|  **Transaction Expenses** | **Maximum** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Sales Charge Imposed on Purchases** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Deferred Sales Charge:** *(as a percentage of each Purchase Payment)*<sup>*1*</sup> | &nbsp;&nbsp;&nbsp;&nbsp; **Deferred Sales Charge:** *(as a percentage of each Purchase Payment)*<sup>*1*</sup> |
| ASAP III | 7.5% |
| APEX II | 8.5% |
| XT6 | 9.0% |
| ASL II |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Transfer Fee<sup>2</sup>** | $15.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Additional Copies of Reports<sup>3</sup>** | $50 |

---

1. The
 Contingent Deferred Sales Charges, if applicable, are assessed upon surrender or withdrawal. The charge is a percentage of each applicable
 Purchase Payment deducted
 upon surrender or withdrawal. The period during which a particular percentage applies is measured from the Issue Date of the Annuity. Purchase Payments
 are withdrawn on a "first-in, first-out" basis.

2. Currently,
 we deduct the fee after the 20 <sup>th</sup> transfer each Annuity Year. We guarantee that the number of free transfers per Annuity Year will never be less than 8.

3. We
 do not currently assess this fee. However, we reserve the right to charge up to $50 for each additional report (i.e. confirmation statement
 or quarterly statement)
 you request.

**The next table describes the adjustments, in addition to any transaction expenses, that apply if all or a portion of the Account Value is** **removed from an MVA Fixed Allocation before the expiration of a specified period.**

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| | |
|:---|:---|
|  **Adjustments** | **Adjustments** |
| &nbsp;&nbsp;&nbsp;&nbsp; Market Value Adjustment Maximum Potential Loss (as a percentage of Unadjusted Account Value in the MVA Fixed Allocation)<sup>1</sup> | 100% |

---

1. The
 following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment:
 (i) partial withdrawals (including systematic
 withdrawals and Required Minimum Distributions), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled
 DCA transfers), and (v) the deduction of fees.

**The following Contingent Deferred Sales Charge percentages apply based on the year of the surrender or withdrawal:**

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Yr. 1** | **Yr. 2** | **Yr. 3** | **Yr. 4** | **Yr. 5** | **Yr. 6** | **Yr. 7** | **Yr. 8** | **Yr. 9** | **Yr. 10** | **Yr. 11+** |
|  **ASAP III** | 7.5% | 7.0% | 6.5% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% |  |  |  |
|  **APEX II** | 8.5% | 8.0% | 7.0% | 6.0% |  |  |  |  |  |  |  |
|  **XT6** **\*** | 9.0% | 9.0% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 1.0% |  |
|  **ASL II** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** |

---

\* For annuities issued before November 20, 2006, the schedule is as follows: Year 1: 9.0%; Year 2: 9.0%; Year 3: 8.5%; Year 4: 8.0%; Year 5: 7.0%; Year 6: 6.0%; Year 7: 5.0%; Year 8: 4.0%; Year 9: 3.0%; Year 10: 2.0%; Year 11+: 0.0%.

**The next table describes the maximum fees and expenses that you will pay each year during the time that you own the Annuity (not including** **Portfolio fees and expenses). Your current fees and expenses may be less than the maximum.**

**If you choose to purchase an optional benefit, you will pay additional charges, as shown below.**

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| |
|:---|
|  **Annual Annuity Expenses** |
|  **Administrative Expenses<sup>1</sup>**<br>*(assessed annually on the Annuity's anniversary date or upon surrender)*<br> Lesser of $35 or 2% of Account Value<sup>2</sup> |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Base Contract Expenses<sup>3</sup>** **,<sup>4</sup>**<br>*(based on the average daily net assets of the Variable Options) (excluding Settlement Service Charge)*<br>Annuity:<br> ASAP III<br>APEX II<br>ASL II<br>XT6 | 1.25% in Annuity Years 1-8; 0.65% in Annuity Years 9+<br>1.65%<br>1.65%<br>1.65% in Annuity Years 1-10; 0.65% in Annuity Years 11+ |
|  **Optional Benefit Fees and Charges** | **Optional Benefit Fees and Charges** |
|  **GRO PLUS II**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.60% |
|  **HIGHEST DAILY GRO II**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.60% |
|  **HIGHEST DAILY LIFETIME 6 PLUS (HD 6 PLUS)**<br>**Maximum Charge** (based on the greater of Account Value and Protected Withdrawal Value (PWV)) | 1.50% |
|  **HIGHEST DAILY LIFETIME 6 PLUS WITH LIFETIME INCOME ACCELERATOR (LIA)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 1.50% |
|  **GUARANTEED RETURN OPTION (GRO)/GRO PLUS**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.75% |
|  **GUARANTEED RETURN OPTION PLUS 2008 (GRO PLUS 2008)**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.75% |
|  **HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.60% |
|  **GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)**<br>**Maximum Charge** (based on the Variable Options net assets) | 1.00% |
|  **GUARANTEED MINIMUM INCOME BENEFIT (GMIB)**<br>**Maximum Charge** (based on the Protected Income Value (PIV)) | 1.00% |
|  **LIFETIME FIVE INCOME BENEFIT**<br>**Maximum Charge** (based on the Variable Options net assets) | 1.50% |
|  **SPOUSAL LIFETIME FIVE INCOME BENEFIT**<br>**Maximum Charge** (based on the Variable Options net assets) | 1.50% |
|  **HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT**<br>**Maximum Charge** (based on the Variable Options net assets) | 1.50% |
|  **HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT**<br>**Maximum Charge** (based on the PWV) | 1.50% |
|  **HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY INCOME OPTION (BIO)**<br>**Maximum Charge** (based on the PWV) | 2.00% |
|  **HIGHEST DAILY LIFETIME SEVEN WITH LIFETIME INCOME ACCELERATOR (LIA)**<br>**Maximum Charge** (based on the PWV) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT**<br>**Maximum Charge** (based on the PWV) | 1.50% |
|  **SPOUSAL HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY INCOME BENEFIT** **(BIO)**<br>**Maximum Charge** (based on the PWV) | 2.00% |
|  **HIGHEST DAILY LIFETIME 7 PLUS**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 1.50% |
|  **HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY INCOME OPTION (BIO)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **HIGHEST DAILY LIFETIME 7 PLUS WITH LIFETIME INCOME ACCELERATOR (LIA)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 1.50% |

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| | |
|:---|:---|
|  **Optional Benefit Fees and Charges** | **Optional Benefit Fees and Charges** |
|  **SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY INCOME OPTION (BIO)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT**<br>**Maximum Charge** (based on the Variable Options net assets)<sup>5</sup> | 0.25% |
|  **HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.40% |
|  **COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.80% |
|  **HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**<br>**Maximum Charge** (based on the Variable Options net assets) | 0.50% |
|  **GUARANTEED MINIMUM DEATH BENEFIT**<br>**Maximum Charge** (based on the current Death Benefit amount) **Please refer to** [**<u>Appendix D</u>**](#chapter_21-sect1_1_930)**for a complete description of the charges.** | 0.55% |
|  **PLUS40 OPTIONAL LIFE INSURANCE RIDER**<br>**Maximum Charge** (based on your age and your Account Value as of the Issue Date of your Annuity) **Please refer to** [**<u>Appendix B</u>**](#chapter_19-sect1_1_930) **for a complete description of charges.** | Charges range from.80% for Owners age 40 - 75 to 10.50% for Owners age 95. |

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1. The
 Administrative Expense for the Beneficiary Continuation Option is the lesser of $30 or 2% of Account Value. For beneficiaries who elect
 the Beneficiary Continuation
 Option, the fee is only applicable if Account Value is less than $25,000 at the time the fee is assessed.

2. The
 Administrative Expense is referred to as "Annual Maintenance Fee" elsewhere in this prospectus. The Administrative Expense
 is only applicable if Account Value
 is less than $100,000 for ASAP III, ASL II, and APEX II only. Fee may differ in certain States.

3. The
 Base Contract Expense does not apply if you are a beneficiary under the Beneficiary Continuation Option. The Settlement Service Charge
 only applies if your beneficiary
 elects the Beneficiary Continuation Option. Beneficiaries are assessed a Settlement Service Charge for Non-qualified annuities of 1.00%
 and for qualified
 annuities of 1.40% (based on the average daily net assets of the Variable Options). Please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_930) section in this prospectus
 for more information about the Settlement Service Charge.

4. The
 Base Contract Expense is referred to as the "insurance charge" elsewhere in this prospectus. For ASAP III and XT6, the Base
 Contract Expense includes a Distribution
 Charge of 0.60% and 1.00%, respectively. It is an annual charge assessed on a daily basis. The charge is assessed for a certain number
 of years against the
 daily net assets allocated to the Variable Options.

5. If
 the Annuity was purchased before November 18, 2002 the Enhanced Beneficiary Protection Death Benefit fee was based on the Account Value.

**The next item shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the** **time that you own the Annuity. Expenses shown may change over time and be higher or lower in the future. A complete list of Portfolios** **available under the Annuity, including their annual expenses, may be found at** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **of this prospectus.**

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| | | |
|:---|:---|:---|
|  **Annual Portfolio Expenses** | **Annual Portfolio Expenses** | **Annual Portfolio Expenses** |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | *<u>Minimum</u>* | *<u>Maximum</u>* |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.58% | 4.77% |

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**Examples**

**These Examples are intended to help you compare the cost of investing in the Variable Options, with the cost of investing in other annuity** **contracts that offer variable options. These costs include Transaction Expenses, Annual Annuity Expenses, and Annual Portfolio Expenses.**

**These Examples assume all Account Value is allocated to the Variable Options. These Examples do not reflect Market Value Adjustment. Your** **costs could differ from those shown below if you invest in the MVA Fixed Allocation.**

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**These Examples assume that you invest $100,000 in the Variable Options for the time periods indicated. These Examples also assume that** **your investment has a 5% return each year and assumes the most expensive combination of Annual Portfolio Expenses and optional benefits** **available for an additional charge. The first set of examples assumes a contract with Combo 5% Roll-Up/Highest Anniversary Value Death** **Benefit and Plus40. The second set of examples assumes a contract with Highest Daily Lifetime 7 Plus w/LIA and Combo 5% Roll-Up/Highest** **Anniversary Value Death Benefit. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASAP III WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $16002 | $31479 | $45776 | $83332 | $11824 | $19766 | $27615 | $56066 |
|  If you annuitize your Contract at the end of the applicable time period: | $8502 | $24979 | $40776 | $83332 | $4324 | $13266 | $22615 | $56066 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8502 | $24979 | $40776 | $83332 | $4324 | $13266 | $22615 | $56066 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASAP III WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $16457 | $32879 | $48177 | $81988 | $12242 | $21112 | $30095 | $52759 |
|  If you annuitize your Contract at the end of the applicable time period: | $8957 | $26379 | $43177 | $81988 | $4742 | $14612 | $25095 | $52759 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8957 | $26379 | $43177 | $81988 | $4742 | $14612 | $25095 | $52759 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **APEX II WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $17387 | $33004 | $42282 | $86106 | $13225 | $21438 | $24510 | $60606 |
|  If you annuitize your Contract at the end of the applicable time period: | $8887 | $26004 | $42282 | $86106 | $4725 | $14438 | $24510 | $60606 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8887 | $26004 | $42282 | $86106 | $4725 | $14438 | $24510 | $60606 |

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[Back to **Table of Contents**](#TOC_930)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **APEX II WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $17844 | $34408 | $44681 | $84725 | $13682 | $22891 | $27084 | $57383 |
|  If you annuitize your Contract at the end of the applicable time period: | $9344 | $27408 | $44681 | $84725 | $5182 | $15891 | $27084 | $57383 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9344 | $27408 | $44681 | $84725 | $5182 | $15891 | $27084 | $57383 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** | **ASL II I WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM)** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $8887 | $26004 | $42282 | $86106 | $4725 | $14438 | $24510 | $60606 |
|  If you annuitize your Contract at the end of the applicable time period: | $8887 | $26004 | $42282 | $86106 | $4725 | $14438 | $24510 | $60606 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8887 | $26004 | $42282 | $86106 | $4725 | $14438 | $24510 | $60606 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **ASL II I WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $9344 | $27408 | $44681 | $84725 | $5182 | $15891 | $27084 | $57383 |
|  If you annuitize your Contract at the end of the applicable time period: | $9344 | $27408 | $44681 | $84725 | $5182 | $15891 | $27084 | $57383 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9344 | $27408 | $44681 | $84725 | $5182 | $15891 | $27084 | $57383 |

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[Back to **Table of Contents**](#TOC_930)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** | **XT6 WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED ON OR AFTER NOVEMBER** **20, 2006** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $17852 | $33909 | $48137 | $86905 | $13725 | $22438 | $30510 | $61606 |
|  If you annuitize your Contract at the end of the applicable time period: | $8852 | $25909 | $42137 | $85905 | $4725 | $14438 | $24510 | $60606 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8852 | $25909 | $42137 | $85905 | $4725 | $14438 | $24510 | $60606 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** | **XT6 WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **ON OR AFTER NOVEMBER 20, 2006** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $18309 | $35311 | $50531 | $85483 | $14147 | $23789 | $32920 | $58084 |
|  If you annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** | **XT6 – WITH COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND PLUS40(TM) - CONTRACTS ISSUED BEFORE NOVEMBER** **20, 2006** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $17852 | $34409 | $49137 | $87905 | $13725 | $22938 | $31510 | $62606 |
|  If you annuitize your Contract at the end of the applicable time period: | $8852 | $25909 | $42137 | $85905 | $4725 | $14438 | $24510 | $60606 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8852 | $25909 | $42137 | $85905 | $4725 | $14438 | $24510 | $60606 |

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[Back to **Table of Contents**](#TOC_930)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** | **XT6 – WITH HIGHEST DAILY LIFETIME 7 PLUS W/LIA AND COMBO 5% ROLL-UP/HIGHEST ANNIVERSARY VALUE DEATH BENEFIT - CONTRACTS ISSUED** **BEFORE NOVEMBER 20, 2006** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $18309 | $35811 | $51531 | $86483 | $14147 | $24289 | $33920 | $59084 |
|  If you annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |

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**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT**

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The risks identified below are the principal risks of investing in the Annuity. The Annuity may be subject to additional risks other than those identified and described in this prospectus.

**Risk of Loss:** You could lose money by investing in the Annuity, including your principal investment. An investment in the Annuity is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

**Risks Associated with Variable Options:** You take all the investment risk for amounts allocated to one or more of the Variable Options, which invest in Portfolios. If the Variable Options you select increase in value, then your Account Value goes up; if they decrease in value, your Account Value goes down. How much your Account Value goes up or down depends on the performance of the Portfolios in which your Variable Options invest. We do not guarantee the investment results of any Portfolio. An investment in the Annuity is subject to the risk of poor investment performance, and the value of your investment can vary depending on the performance of the selected Portfolio(s), each of which has its own unique risks. You should review the Portfolios before making an investment decision. We reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates.

**Risks Associated with the MVA Fixed Allocation:** We determine the interest rates credited to the MVA Fixed Allocation in our sole discretion, subject to guaranteed minimums, and we may change the rates for new Guarantee Periods at any time. Any change in interest rates do not affect Guarantee Periods that began before the date of the change. There is a risk that the interest rates for new Guarantee Periods will be lower than the rates that were previously in effect. In addition, if you withdraw or transfer assets from a MVA Fixed Allocation more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. **You could lose up to 100% of your** **investment in a MVA Fixed Allocation as a result of a negative Market Value Adjustment.** Generally, if yields are higher at the time of Market Value Adjustment application than they were at the beginning of the Guarantee Period, the Market Value Adjustment will be negative.

**Early Withdrawal Risk:** The Annuity is not a short-term investment vehicle and is not an appropriate investment for an investor who needs ready access to cash. The Annuity is designed to provide benefits on a long-term basis. Because of the long-term nature of the Annuity, you should consider whether the Annuity is consistent with your financial situation and objectives. Withdrawals under the Annuity, including partial withdrawals and a full surrender, may be subject to negative Market Value Adjustments and negative tax consequences. If you have elected certain Optional Benefits, a withdrawal may reduce the amount of your Benefit on more than a dollar-for-dollar basis. While the Annuity provides a Death Benefit, the amount of that benefit is subject to investment gains and losses and is reduced for any withdrawals you take.

**Insurance Company Risk:** No company other than us has any legal responsibility to pay amounts that we owe under the Annuity, including amounts allocated to the Fixed Allocations, which are supported by our general account and are subject to our claims-paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities, such as the payment of salaries, rent and other ordinary business expenses. You should look to our financial strength for our claims-paying ability. We are also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect us and our ability to conduct business and process transactions. Although we have business continuity plans, it is possible that the plans may not operate as intended or required and that we may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

**Possible Adverse Tax Consequences:** The tax considerations associated with the Annuity vary and can be complicated. The tax considerations discussed in this prospectus are general in nature and describe only federal income tax law (not state, local, foreign or other federal tax laws). Before making a Purchase Payment or taking other action related to your Annuity, you should consult with a qualified tax advisor for complete information and advice. For example, distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. In addition, if you take a distribution prior to the taxpayer's age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain.

**Possible Fees on Access to Account Value:** We may apply fees if you access your Account Value during the Accumulation Period or surrender your Annuity. For example, in addition to possible tax consequences discussed above, you may incur fees for accessing your Account Value such as a Contingent Deferred Sales Charge, Annual Maintenance Fee, Tax Charge, and/or a charge for any optional benefits. In addition, we may recapture some or all of the Credits applied to your Annuity and assess a Market Value Adjustment for withdrawals from a Fixed Allocation.

**Credit Recapture:** In certain circumstances we may recapture any Credits applied to your Contract if you access your Account Value during the Accumulation Period or surrender your Annuity.

**Annuity Changes Risk:** We reserve the right to limit the number of transfers you may make or to impose a minimum transfer amount. We also reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates. We may limit, suspend or reject any additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with

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an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities. In addition, we may impose limitations on an investment professional's or investment advisor's ability to request financial transactions on your behalf.

**Cyber Security and Business Continuity Risks:** With the increasing use of technology and computer systems in general and, in particular, the Internet to conduct necessary business functions, the Company is susceptible to operational, information security and related risks. These risks, which are often collectively referred to as "cyber security" risks, may include deliberate or malicious attacks, as well as unintentional events and occurrences. These risks are heightened by our offering of increasingly complex products, such as those that feature automatic asset transfer or reallocation strategies, and by our employment of complex investment, trading and hedging programs. Cyber security is generally defined as the technology, operations and related protocol surrounding and protecting a user's computer hardware, network, systems and applications and the data transmitted and stored therewith. These measures ensure the reliability of a user's systems, as well as the security, availability, integrity, and confidentiality of data assets.

Deliberate cyber attacks can include, but are not limited to, gaining unauthorized access (including physical break-ins) to computer systems in order to misappropriate and/or disclose sensitive or confidential information; deleting, corrupting or modifying data; and causing operational disruptions. Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (in order to prevent access to computer networks). In addition to deliberate breaches engineered by external actors, cyber security risks can also result from the conduct of malicious, exploited or careless insiders, whose actions may result in the destruction, release or disclosure of confidential or proprietary information stored on an organization's systems.

The Company is also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect the Company and our ability to conduct business and process transactions. Although the Company has business continuity plans, it is possible that the plans may not operate as intended or required and that the Company may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

Cyber security events, disasters and similar events, whether deliberate or unintentional, that could impact the Company and Contract owners could arise not only in connection with our own administration of the Annuity, but also with entities operating the Annuity's Portfolios and with third-party service providers. Cyber security and other events affecting any of the entities involved with the offering and administration of the Annuity may cause significant disruptions in the business operations related to the Annuity. Potential impacts may include, but are not limited to, potential financial losses under the Annuity, your inability to conduct transactions under the Annuity and/or with respect to a Portfolio, an inability to calculate unit values with respect to the Annuity and/or the net asset value ("NAV") with respect to a Portfolio, and disclosures of your personal or confidential account information.

In addition to direct impacts to you, cyber security and other events described above may result in adverse impacts to the Company, including regulatory inquiries, regulatory proceedings, regulatory and/or legal and litigation costs, and reputational damage. Costs incurred by the Company may include reimbursement and other expenses, including the costs of litigation and litigation settlements and additional compliance costs. Considerable expenses also may be incurred by the Company in enhancing and upgrading computer systems and systems security following a cyber security failure or responding to a disaster or similar event. The rapid proliferation of technologies, as well as the increased sophistication and activities of organized crime, hackers, terrorists, and others continue to pose new and significant cyber security threats. In addition, the global spread of COVID-19 has caused the Company and its service providers to implement business continuity plans, including widespread use of work-from-home arrangements. Although the Company, our service providers, and the Portfolios offered under the Annuity may have established business continuity plans and risk management systems to mitigate risks, there can be no guarantee or assurance that such plans or systems will be effective, or that all risks that exist, or may develop in the future, have been completely anticipated and identified or can be protected against. Furthermore, the Company cannot control or assure the efficacy of the cyber security and business continuity plans and systems implemented by third-party service providers, the Portfolios, and the issuers in which the Portfolios invest.

The military invasion of Ukraine initiated by Russia in February 2022 and the resulting response by the United States and other countries have led to economic disruptions, as well as increased volatility and uncertainty in the financial markets. It is not possible to predict the ultimate duration and scope of the conflict, or the future impact on U.S. and global economies and financial markets.

**Artificial Intelligence Risk:** In addition to the cyber security risks described above, the development, adoption and use of AI, including generative artificial intelligence ("Generative AI"), by us and by third parties on whom we rely may increase existing operational risks or create new operational risks that we are not currently anticipating. AI technologies offer potential benefits in areas such as customer service personalization and process automation, and we expect to use AI and Generative AI to help deliver products and services and support critical functions. We also expect third parties on whom we rely to do the same. There are significant risks involved in developing and deploying AI, and there can be no assurance that its use will enhance our products or services or be beneficial to our business, including our efficiency or profitability. The risk that AI and Generative AI may be misused is increased by the relative newness of the technology, the speed at which it is being adopted, and the lack of laws, regulations or standards governing its use. Such misuse could expose the Company to legal or regulatory risk, damage customer relationships or cause reputational harm. Further, our ability to continue to develop and efficiently deploy AI technologies depends on access to specific third-party equipment and other physical infrastructure, such as processing hardware and network capacity, the availability and pricing of which is difficult to control, especially in a highly competitive environment. Our competitors may also adopt AI or Generative AI more quickly or more effectively than we do, which could cause competitive harm. Because the Generative AI technology is so new, some of the potential risks of Generative AI are currently unknowable.

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**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT** **OPTIONS**

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**WHO IS FORTITUDE LIFE INSURANCE & ANNUITY COMPANY?**

Annuities and Life Insurance are issued by Fortitude Life Insurance & Annuity Company ("FLIAC"), located at Ten Exchange Place, Suite 2210, Jersey City, NJ 07302. FLIAC is obligated to pay all amounts promised to investors under the Annuity, subject to its financial strength and claims-paying ability. Fortitude Re has retained The Prudential Insurance Company of America ("PICA") as an unaffiliated Third-Party Administrator. Variable Annuities are distributed by Prudential Annuities Distributors, Inc. ("PAD"), Shelton, CT (main office). PICA and PAD are Prudential Financial Inc. companies. Each company (FLIAC, PICA, PAD) is solely responsible for its own financial condition and contractual obligations.

Fortitude Re is the marketing name for FGH Parent, L.P. and its subsidiaries, including FLIAC. Each subsidiary is responsible for its own financial condition and contractual obligations.

Pursuant to the delivery obligations under Section 5 of the Securities Act of 1933 and Rule 159 thereunder, we deliver this prospectus to current contract owners that reside outside of the United States. In addition, we may not market or offer benefits, features or enhancements to prospective or current contract owners while outside of the United States.

**<u>Rule 12h-7</u>**

With respect to the offering of Market Value Adjusted options, the Company relies on the exemption provided by Rule 12h-7 under the Securities Exchange Act of 1934 from the requirement to file reports pursuant to Section 15(d) of that Act.

**<u>Claims of Creditors</u>**

To the extent permitted by law, no payment or value under this Annuity is subject to the claims of your creditors or those of any other Owner, any Annuitant, or any Beneficiary.

**<u>Deferral of Transactions</u>**

We may defer any annuity payment for a period not to exceed the lesser of 6 months or the period permitted by law. If we defer a distribution or transfer from any annuity payout for more than thirty days, we will pay interest as required by state law. We may defer any distribution from any Allocation Option or any transfer from Allocation Options for a period not to exceed seven calendar days from the date the transaction is affected.

**WHAT ARE THE SEPARATE ACCOUNTS?**

**Fortitude Life Insurance & Annuity Company Separate Account B**

During the Accumulation Period, the assets supporting obligations based on allocations to the Variable Options are held in Fortitude Life Insurance & Annuity Company Variable Account B (the "Registered Separate Account"). Income, gains and losses credited to, or charged against, the Registered Separate Account reflect the Registered Separate Account's own investment experience and not the investment experience of our other assets. The assets of the Registered Separate Account may not be used to pay any liabilities of ours other than those arising from the Annuity and other annuity contracts issued in connection with the Registered Separate Account.

The Registered Separate Account consists of multiple Variable Options. Each Variable Option invests only in a single Portfolio. The name of each Variable Option generally corresponds to the name of the Portfolio. Each Variable Option may have several different Unit Prices to reflect charges that are offered under annuities issued by us through the Registered Separate Account. The Registered Separate Account is registered with the SEC under the Investment Company Act of 1940 ("Investment Company Act") as a unit investment trust, which is a type of investment company. The SEC does not supervise investment policies, management or practices of the Registered Separate Account. We may offer new Variable Options, eliminate Variable Options, or combine Variable Options at our sole discretion. We may also close Variable Options to additional Purchase Payments on existing annuities or close Variable Options for annuities purchased on or after specified dates.

In addition to rights that we specifically reserve elsewhere in this prospectus, we reserve the right to perform any or all of the following:

• offer
 new Variable Options, eliminate Variable Options, substitute Variable Options or combine Variable Options;

• close
 Variable Options to subsequent Purchase Payments on existing Annuities or close Variable Options for Annuities purchased on or after
 specified dates;

• combine
 the Registered Separate Account with separate accounts;

• deregister
 the Registered Separate Account under the Investment Company Act of 1940;

• manage
 the Registered Separate Account as a management investment company under the Investment Company Act of 1940 or in any other
 form permitted by law;

• make
 changes required by any change in the federal securities laws, including, but not limited to, the Securities Act of 1933, the Securities Exchange Act of 1934,
 the Investment Company Act of 1940, or any other changes to the Securities and Exchange Commission's interpretation
 thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• establish
 a provision in the Annuity for federal income taxes if we determine, in our sole discretion, that we will incur a tax as the result of the operation of
 the Registered Separate Account;

• make
 any changes required by federal or state laws with respect to annuity contracts; and

• to
 the extent dictated by any underlying Portfolio, impose a redemption fee or restrict transfers within any Variable Option.

We will first notify you and receive any necessary SEC and/or state approval before making such a change. If an underlying Portfolio is liquidated, we will ask you to reallocate any amount in the liquidated fund. If you do not reallocate these amounts, we will reallocate such amounts only in accordance with SEC pronouncements and only after obtaining an order from the SEC, if required. If investment in the Portfolios or a particular Portfolio is no longer possible, or in our discretion becomes inappropriate for purposes of the Annuity, or for any other rationale in our sole judgment, we may substitute another Portfolio or investment Portfolios without your consent. The substituted Portfolio may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any required approval of the SEC and any applicable state insurance departments. In addition, we may close Portfolios to allocation of Purchase Payments or Account Value, or both, at any time in our sole discretion. We do not control the Portfolios, so we cannot guarantee that any of those Portfolios will always be available.

**INVESTMENT OPTIONS**

**VARIABLE OPTIONS**

Each Variable Option is a sub-account that invests exclusively in a single Portfolio. Account Value allocated to the Variable Option will vary based on the investment experience of the Portfolio in which the Variable Option invests. There is a risk of loss of the entire amount invested. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_930) **for certain information regarding each Portfolio, including (i) its name, (ii) its type (** **e.g** **., money market fund, bond fund,** **balanced fund, etc.), (iii) its investment advisor and any Sub-advisor, (iv) current expenses, and (v) performance.** There is no guarantee that any underlying Portfolio will meet its investment objective. Each Portfolio has issued a prospectus that contains more detailed information about the Portfolio. The prospectuses for the Portfolios can be found online at <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>. You can also request this information at no cost by calling 1- 800-879-7012.

**MARKET VALUE ADJUSTED FIXED ALLOCATION INVESTMENT**

We offer fixed investment options of different durations during the Accumulation Period. These "Fixed Allocations" earn a guaranteed fixed rate of interest for a specified period of time, called the "Guarantee Period." In most states, we offer Fixed Allocations with Guarantee Periods from 1 to 10 years. We may also offer special purpose Fixed Allocations for use with certain optional investment programs. We guarantee the fixed rate for the entire Guarantee Period. However, if you withdraw or transfer Account Value before the end of the Guarantee Period, we will adjust the value of your withdrawal or transfer based on a formula, called a "Market Value Adjustment". The Market Value Adjustment can either be positive or negative, depending on the rates that are currently being credited on Fixed Allocations. You may allocate Account Value to more than one Fixed Allocation at a time.

Fixed Allocations may not be available in all states. Availability of Fixed Allocations is subject to change and may differ by state and by the annuity <br>product you purchase. Please call us at 1-800-879-7012 to determine availability of Fixed Allocations in your state and for your annuity product.

Market Value Adjusted Fixed Allocation Investments are supported by our general account and are subject to our claims paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities.

The interest rate declared for a MVA Fixed Allocation will be no less than the minimum guaranteed interest rate. The minimum guaranteed interest rate that applies to you may vary depending on the state in which your Annuity was issued, but it will be shown on your Annuity specifications page and will never be less than 0% or the minimum rate required under state law or regulation; whichever is greater. We may, from time to time, declare new interest rates for new Purchase Payments that are higher than the minimum guaranteed interest rate. Any change in interest rates does not affect MVA Fixed Allocation that were in effect before the date of the change. At the time that we confirm the allocation of your Purchase Payment to an MVA Fixed Allocation, we will advise you of the interest rate in effect. To inquire as to the current rates, please contact our Annuity Service Center at 1-800-879-7012.

Each underlying Portfolio is registered as an open-end management investment company under the Investment Company Act. Shares of the underlying Portfolios are sold to separate accounts of life insurance companies offering variable annuity and variable life insurance products. The shares may also be sold directly to qualified pension and retirement plans.

**Voting Rights**

We are the legal Owner of the shares of the underlying Portfolios in which the Variable Options invest. However, under current SEC rules, you have voting rights in relation to Account Value allocated to the Variable Options. If an underlying Portfolio requests a vote of shareholders, we will vote our shares based on instructions received from Owners with Account Value allocated to that Variable Option. Owners have the right to vote an amount equal to the number of shares attributable to their Annuity. If we do not receive voting instructions in relation to certain shares, we will vote those shares in the same manner and proportion as the shares for which we have received instructions. This voting procedure is sometimes referred to as "mirror voting"

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because, as indicated in the immediately preceding sentence, we mirror the votes that are actually cast, rather than decide on our own how to vote. We will also "mirror vote" shares that are owned directly by us or an affiliate (excluding shares held in the separate account of an affiliated insurer). In addition, because all the shares of a given Portfolio held within the Registered Separate Account are legally owned by us, we intend to vote all of such shares when that underlying Portfolio seeks a vote of its shareholders. As such, all such shares will be counted towards whether there is a quorum at the underlying Portfolio's shareholder meeting and toward the ultimate outcome of the vote. Thus, under "mirror voting," it is possible that the votes of a small percentage of Owners who actually vote will determine the ultimate outcome.

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

We will furnish those Owners who have Account Value allocated to a Variable Option whose underlying Portfolio has requested a "proxy" vote with proxy materials and the necessary forms to provide us with their voting instructions. Generally, you will be asked to provide instructions for us to vote on matters such as changes in a fundamental investment strategy, adoption of a new investment advisory agreement, or matters relating to the structure of the underlying Portfolio that require a vote of shareholders. We reserve the right to change the voting procedures described above if applicable SEC rules change.

**Similar Funds**

The Portfolios are not publicly traded mutual funds. They are only available as investment options in variable annuity contracts and variable life insurance policies issued by insurance companies, or in some cases, to participants in certain qualified retirement plans. However, some of the Portfolios available as Variable Options under the Annuity are managed by the same advisor or Sub-advisor as a retail mutual fund of the same or similar name that the Portfolio may have been modeled after at its inception. Certain retail mutual funds may also have been modeled after a Portfolio. While the investment objective and policies of the retail mutual funds and the Portfolios may be substantially similar, the actual investments will differ to varying degrees. Differences in the performance of the funds can be expected, and in some cases could be substantial. You should not compare the performance of a publicly traded mutual fund with the performance of any similarly named Portfolio offered as a Variable Option.

**Material Conflicts**

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

1. changes
 in state insurance law;

2. changes
 in federal income tax law;

3. changes
 in the investment management of any Variable Options; or

4. differences
 between voting instructions given by variable life insurance policy owners and variable annuity contract Owners.

**Fees and Payments Received by Us**

As detailed below, we receive substantial payments from the underlying Portfolios and/or related entities, such as the Portfolios' advisors and subadvisors. Because these fees and payments are made to us, allocations you make to the underlying Portfolios benefit us financially. In selecting Portfolios available under the Annuity, we consider the payments that will be made to us. Prudential Annuities Distributors, Inc. receives Rule 12b-1 fees which compensate it for distribution and administrative services (including recordkeeping services and the mailing of prospectuses and reports to Owners invested in the Portfolios). These fees are paid by the underlying Portfolio out of each Portfolio's assets and are therefore borne by Owners.

We also receive administrative services payments from the Portfolios or the advisors of the underlying Portfolios or their affiliates, which are referred to as "revenue sharing" payments. The maximum combined 12b-1 fees and administrative services payments we receive with respect to a Portfolio are generally equal to an annual rate of 0.55% of the average assets allocated to the Portfolio under the Annuity (in certain cases, however, this amount may be equal to an annual rate of 0.60% of the average assets allocated to the Portfolio). We expect to make a profit on these fees and payments and consider them when selecting the Portfolios available under the Annuity.

In addition, an advisor or subadvisor of a Portfolio or a distributor of the Annuity (not the Portfolios) may also compensate us by providing reimbursement, defraying the costs of, or paying directly for, among other things, marketing and/or administrative services and/or other services they provide in connection with the Annuity. These services may include but are not limited to: sponsoring or co-sponsoring various promotional, educational or marketing meetings and seminars attended by distributors, wholesalers, and/or broker dealer firms' registered representatives, and creating marketing material discussing the Annuity, available options, and underlying Portfolios. The amounts paid depend on the nature of the meetings, the number of meetings attended by the advisor, subadvisor, or distributor, the number of participants and attendees at the meetings, the costs expected to be incurred, and the level of the advisor's, subadvisor's or distributor's participation. These payments or reimbursements may not be offered by all advisors,

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subadvisors, or distributors and the amounts of such payments may vary between and among each advisor, subadvisor, and distributor depending on their respective participation. We may also consider these payments and reimbursements when selecting the Portfolios available under the Annuity. For the annual period ended December 31, 2025, under the kind of agreements described in this paragraph, there were no payments received.

In addition to the payments that we receive from underlying Portfolios and/or their affiliates, those same Portfolios and/or their affiliates may make payments to us and/or other insurers affiliated with us related to the offering of investment options within variable annuity contracts or life insurance policies offered by our different business units.

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**CHARGES AND ADJUSTMENTS**

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The charges under each Annuity are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under each Annuity. They are also designed, in the aggregate, to compensate us for the risks of loss we assume. If, as we expect, the charges that we collect from the Annuities exceed our total costs in connection with the Annuities, we will earn a profit. Otherwise we will incur a loss. For example, we may make a profit on the insurance charge if, over time, the actual costs of providing the guaranteed insurance obligations under an Annuity are less than the amount we deduct for the insurance charge. To the extent we make a profit on the insurance charge, such profit may be used for any other corporate purpose, including payment of other expenses that we incur in promoting, distributing, issuing and administering an Annuity and, in the case of XT6, ASAP III and APEX II to offset a portion of the costs associated with offering any Credits which are funded through our general account.

The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk, nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the Annuity. A portion of the proceeds that we receive from charges that apply to the Variable Options may include amounts based on market appreciation of the Variable Option values including, for ASAP III, XT6 and APEX II, appreciation on amounts that represent any Credits.

**Contingent Deferred Sales Charge (CDSC):** We do not deduct a sales charge from Purchase Payments you make to your Annuity. However, we may deduct a CDSC if you surrender your Annuity or when you make a partial withdrawal. The CDSC reimburses us for expenses related to sales and distribution of the Annuity, including commissions, marketing materials and other promotional expenses. The CDSC is calculated as a percentage of your Purchase Payment being surrendered or withdrawn during the applicable Annuity Year. For purposes of calculating the CDSC, we consider the year following the Issue Date of your Annuity as Year 1. The amount of the CDSC decreases over time, measured from the Issue Date of the Annuity. The CDSC percentages for each Annuity are shown below. No CDSC is deducted from ASL II Annuities. If you purchase XT6 and make a withdrawal that is subject to a CDSC, we may use part of that CDSC to recoup our costs of providing the Credit. However, we do not impose any CDSC on your withdrawal of a Credit amount.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Yr. 1** | **Yr. 2** | **Yr. 3** | **Yr. 4** | **Yr. 5** | **Yr. 6** | **Yr. 7** | **Yr. 8** | **Yr. 9** | **Yr. 10** | **Yr. 11+** |
|  **ASAP III** | 7.5% | 7.0% | 6.5% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 0.0% | - | - |
|  **APEX II** | 8.5% | 8.0% | 7.0% | 6.0% | 0.0% | - | - | - | - | - | - |
|  **XT6** **\*** | 9.0% | 9.0% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 1.0% | 0.0% |
|  **ASL II** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** | **There is no CDSC for this Annuity** |

---

\* For annuities issued before November 20, 2006, the schedule is as follows: Year 1: 9.0%; Year 2: 9.0%; Year 3: 8.5%; Year 4: 8.0%; Year 5: 7.0%; Year 6: 6.0%; Year 7: 5.0%; Year 8: 4.0%; Year 9: 3.0%; Year 10: 2.0%; Year 11+: 0.0%.

Each year you may withdraw up to 10% of your Purchase Payments without the imposition of a CDSC. This Free Withdrawal feature does not apply when fully surrendering your Annuity. We may also waive the CDSC under certain circumstances, such as for medically-related circumstances or taking required minimum distributions under a qualified contract.

With respect to a partial withdrawal, we calculate the CDSC by assuming that any available Free Withdrawal amount is taken out first (see "[<u>Free</u> <u>Withdrawal Amounts</u>](#chapter_13-sect1_5_930)"). If the Free Withdrawal amount is not sufficient, we then assume that withdrawals are taken from Purchase Payments that have not been previously withdrawn, on a first-in, first-out basis, and subsequently from any other Account Value in the Annuity.

For purposes of calculating any applicable CDSC on a surrender, the Purchase Payments being withdrawn may be greater than your remaining Account Value or the amount of your withdrawal request. This is most likely to occur if you have made prior partial withdrawals or if your Account Value has declined in value due to negative Variable Option performance. In that scenario, we would determine the CDSC amount as the applicable percentage of the Purchase Payments being withdrawn, rather than as a percentage of the remaining Account Value or withdrawal request. Thus, the CDSC would be greater than if it were calculated as a percentage of remaining Account Value or withdrawal amount.

We may waive any applicable CDSC under certain circumstances including certain medically-related circumstances or when taking a Minimum Distribution from an Annuity purchased as a "qualified" investment. Free Withdrawals, Medically-Related Surrenders and Minimum Distributions are each explained more fully in the section entitled "[<u>Surrenders and Withdrawals</u>](#chapter_13-sect1_1_930)".

**Transfer Fee:** Currently, you may make 20 free transfers between investment options each Annuity Year. We currently charge $10.00 for each transfer after the 20<sup>th</sup> in each Annuity Year. The fee will never be more than $15.00 for each transfer. We do not consider transfers made as part of a Dollar Cost Averaging, Automatic Rebalancing or asset allocation program when we count the 20 free transfers. All transfers made on the same day will be treated as one (1) transfer. Renewals or transfers of Account Value from a Fixed Allocation at the end of its Guarantee Period are not subject to the transfer fee and are not counted toward the 20 free transfers. Similarly, transfers made under our 6 or 12 Month Dollar Cost Averaging Program ("6 or 12 Month DCA Program") and transfers made pursuant to a formula used with an optional benefit are not subject to the Transfer Fee and are not counted toward the 20 free transfers. We may reduce the number of free transfers allowable each Annuity Year (subject to a minimum of eight) without charging a Transfer Fee

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unless you make use of electronic means to transmit your transfer requests. We may eliminate the Transfer Fee for transfer requests transmitted electronically or through other means that reduce our processing costs. If you are enrolled in any program that does not permit transfer requests to be transmitted electronically, the Transfer Fee will not be waived.

**Annual Maintenance Fee:** During the Accumulation Period we deduct an Annual Maintenance Fee. The Annual Maintenance Fee is $35.00 or 2% of your Account Value (including any amounts in Fixed Allocations), whichever is less. This fee will be deducted annually on the anniversary of the Issue Date of your Annuity or, if you surrender your Annuity during the Annuity Year, the fee is deducted at the time of surrender. The fee is taken out only from the Variable Options. With respect to ASAP III, APEX II and ASL II, currently, the Annual Maintenance Fee is only deducted if your Account Value is less than $100,000 on the anniversary of the Issue Date or at the time of surrender. With respect to XT6, we deduct the Annual Maintenance Fee regardless of Account Value. We do not impose the Annual Maintenance Fee upon Annuitization, the payment of a Death Benefit, or a Medically-Related Surrender. We may increase the Annual Maintenance Fee. However, any increase will only apply to Annuities issued after the date of the increase. For beneficiaries that elect the Beneficiary Continuation Option, the Annual Maintenance Fee is the lesser of $30 or 2% of Account Value. For a Beneficiary Continuation Option, the fee is only applicable if the Account Value is less than $25,000 at the time the fee is assessed.

**Tax Charges:** Some states, municipalities and other jurisdictions charge premium taxes or similar taxes on annuities that we are required to pay. The amount of tax will vary from jurisdiction to jurisdiction and is subject to change. We currently deduct the Tax Charge from the Account Value upon Annuitization. The Tax Charge is designed to approximate the taxes that we are required to pay and is assessed as a percentage of the Account Value. The Tax Charge currently ranges up to 3.5%. We reserve the right to deduct the Tax Charge from Purchase Payments when received or from Surrender Value upon surrender. "Surrender Value" refers to the Account Value (which includes the effect of any Market Value Adjustment) less any applicable CDSC, any applicable Tax Charge, any charges assessable as a deduction from the Account Value for any optional living or death benefits provided by rider or endorsement, and any Annual Maintenance Fee. We may also assess a charge equal to any Company Taxes or other taxes which may be imposed against the Separate Accounts.

In calculating our corporate income tax liability, we may derive certain corporate income tax benefits associated with the investment of company assets, including Separate Account assets, which are treated as company assets under applicable income tax law. These benefits reduce our overall corporate income tax liability. Under current law, such benefits include foreign tax credits and corporate dividends received deductions. We do not pass these tax benefits through to holders of the Separate Account annuity contracts because (i) the contract Owners are not the Owners of the assets generating these benefits under applicable income tax law and (ii) we do not currently include company income taxes in the Tax Charges you pay under the Annuity. We reserve the right to change these tax practices.

**Insurance Charge:** We deduct an insurance charge daily. The charge is based on the daily assets allocated to the Variable Options and is equal to the amount indicated under the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" section of this prospectus. The insurance charge is the combination of the Mortality & Expense Risk Charge and the Administration Charge. The insurance charge is intended to compensate us for providing the insurance benefits under each Annuity, including each Annuity's basic Death Benefit that may provide guaranteed benefits to your beneficiaries even if the Variable Option declines and the risk that persons we guarantee annuity payments to will live longer than our assumptions. The charge also compensates us for administrative costs associated with providing the Annuity benefits, including preparation of the contract and prospectus, confirmation statements, annual account statements and annual reports, legal and accounting fees as well as various related expenses. Finally, the charge compensates us for the risk that our assumptions about the mortality risks and expenses under each Annuity are incorrect and that we have agreed not to increase these charges over time despite our actual costs. We may increase the portion of the total insurance charge that is deducted for administrative costs; however, any increase will only apply to Annuities issued after the date of the increase.

The insurance charge is not deducted against assets allocated to a Fixed Allocation. However, for some of the same reasons that we deduct the insurance charge against Account Value allocated to the Variable Options, we also take into consideration mortality, expense, administration, profit and other factors in determining the interest rates we credit to Fixed Allocations or the DCA Fixed Rate Option, and therefore, we credit lower interest rates due to the existence of these factors than we otherwise would.

**Distribution Charge:** For ASAP III and XT6, we deduct a Distribution Charge daily. The charge is based on the average assets allocated to the Variable Options and is equal to the amount indicated under "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" on an annual basis. The Distribution Charge is intended to compensate us for a portion of our acquisition expenses under the Annuity, including promotion and distribution of the Annuity and, with respect to XT6, the costs associated with offering Credits which are funded through our general account. The Distribution Charge is deducted against your Annuity's Account Value and any increases or decreases in your Account Value based on market fluctuations of the Variable Options will affect the charge. Please refer to the section entitled "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_15_930)" for more information about how the Units are impacted when the Distribution Charge decreases to 0.00%.

**Settlement Service Charge:** If your beneficiary takes the death benefit under a Beneficiary Continuation Option, we deduct a Settlement Service Charge, although the insurance charge no longer applies. The charge is assessed daily against the assets allocated to the Variable Option and is equal to an annual charge of 1.00% for Non-qualified Annuities and 1.40% for qualified Annuities.

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**Benefits Available Under the Annuity:** For information about the benefits available under the Annuity and their corresponding charges, please refer to the section titled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" in this prospectus.

We do not assess any charges directly against the Portfolios. However, each Portfolio pays charges, fees and expenses, which are deducted daily by each Portfolio before it provides us with the net asset value as of the close of business each day. **More detailed information about fees and charges** **can be found in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **to this prospectus and the prospectuses for the Portfolios located at** **<u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>** **.**

**Charge for Additional Reports:** We send any statements and reports required by applicable law or regulation to you at your last known address of record. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

**Market Value Adjustment:** If you transfer or withdraw Account Value from an MVA Fixed Allocation before the end of its Guarantee Period, we will adjust the value of your investment based on a formula, called a "Market Value Adjustment" or "MVA". The Market Value Adjustment may be positive or negative, meaning it may increase or decrease your initial investment into the account, if you transfer or withdraw an MVA Fixed Allocation before the end of the Guarantee Period.

Generally, if yields are lower at the time of MVA application than they were at the beginning of the Guarantee period, the MVA will be positive. Generally, if yields are higher at the time of MVA application than they were at the beginning of the Guarantee period, the MVA will be negative.

You may request a quote of the impact an early distribution would have on your Account Value by contacting our Service Center at 1-800-879-7012. Values fluctuate daily and the actual Market Value Adjustment applied at the time a transaction is processed may be more or less than the values quoted at the time of your call. **Additional information about the calculation of the Market Value Adjustment, including the Market Value Adjustment** **formula and examples, can be found in the Statement of Additional Information.**

**Fixed Rate Option Charges and Adjustments:** No specific fee or expenses are deducted when determining the rate we credit to a Fixed Allocation. However, for some of the same reasons that we deduct the insurance charge against Account Value allocated to the Variable Options, we also consider mortality, expense, administration, profit and other factors in determining the interest rates we credit to Fixed Allocations. Any CDSC or Tax Charge applies to amounts that are taken from the Variable Options or the Fixed Allocations. A Market Value Adjustment may also apply to transfers, certain withdrawals, surrender or Annuitization from a Fixed Allocation.

**Annuity Payment Option Charges:** If you select a fixed payment option upon Annuitization, the amount of each fixed payment will depend on the Account Value of your Annuity when you elected to annuitize. There is no specific charge deducted from these payments; however, the amount of each annuity payment reflects assumptions about our insurance expenses. If you select a variable payment option that we may offer, then the amount of your benefits will reflect changes in the value of your Annuity and will be subject to charges that apply under the variable immediate annuity option. Also, a tax charge may apply (see "[<u>Tax Charge</u>](#chapter_8-sect1_1_1930)"). Currently, we only offer fixed payment options.

**Exceptions/Reductions to Fees and Charges:** We may reduce or eliminate certain fees and charges or alter the manner in which the particular fee or charge is deducted. For example, we may reduce the amount of any CDSC or the length of time it applies, reduce or eliminate the amount of the Annual Maintenance Fee or reduce the portion of the total insurance charge that is deducted as an Administration Charge. We will not discriminate unfairly between Annuity purchasers if and when we reduce any fees and charges.

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**GENERAL DESCRIPTION OF CONTRACTS**

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**CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS**

In general, you may change the Owner, Annuitant and Beneficiary Designations by sending us a request in Good Order which will be effective upon receipt at our Service Center. However, if the Annuity is held as a Beneficiary Annuity, the Owner may not be changed and you may not designate another Key Life upon which distributions are based. Upon an ownership change, including an assignment, any automated investment or withdrawal programs will be canceled. The new Owner must submit the applicable program enrollment if they wish to participate in such a program. Where allowed by law, such changes will be subject to our acceptance. Some of the changes we will not accept include, but are not limited to:

• a
 new Owner subsequent to the death of the Owner or the first of any joint Owners to die, except where a spouse Beneficiary has become the
 Owner as a result of an Owner's death;

• a
 new Annuitant subsequent to the Annuity Date;

• for
 "Non-qualified" investments, a new Annuitant prior to the Annuity Date if the Annuity is owned by an entity;

• a
 change in Beneficiary if the Owner had previously made the designation irrevocable;

• a
 new Owner or Annuitant that is a certain ownership type, including but not limited to corporations, partnerships, endowments, and grantor
 trusts with multiple grantors (if allowed by state law); and

• a
 new Annuitant for a contract issued to a grantor trust where the new Annuitant is not the grantor of the trust.

There are also restrictions on designation changes when you have elected certain optional benefits. See the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" section of this prospectus for any such restrictions.

If you wish to change the Owner and/or Beneficiary under the Annuity, or to assign the Annuity, you must request it through our Annuities Service Center. Generally, any change of Owner and/or Beneficiary, or assignment of the Annuity, will take effect when accepted and recorded by us (unless an alternative rule is stipulated by applicable State law). **We will allow changes of ownership and/or assignments only if the Annuity is held** **exclusively for the benefit of the designated Annuitant. We are not responsible for any transactions processed before a change of Owner** **and/or Beneficiary, and an assignment of the Annuity, is accepted and recorded by us. We accept assignments of non-qualified Annuities** **only. We assume no responsibility for the validity or tax consequences of any change of ownership.**

**Unless prohibited by applicable State Law, we reserve the right to refuse a proposed change of Owner and/or Beneficiary, and a proposed** **assignment of the Annuity.**

We will reject a proposed change where the proposed Owner, Annuitant, Beneficiary or assignee is any of the following:

• a
 company(ies) that issues or manages viatical or structured settlements;

• an
 institutional investment company;

• an
 Owner with no insurable relationship to the Annuitant or Contingent Annuitant (a "Stranger-Owned Annuity" or "STOA");
 or

• a
 change in designation(s) that does not comply with or that we cannot administer in compliance with Federal and/or state law.

**We will implement this right on a non-discriminatory basis, and to the extent allowed by State law, and we are not obligated to process your** **request within any particular timeframe.**

For New York Annuities, a request to change the Owner, Annuitant, Contingent Annuitant, Beneficiary and contingent Beneficiary designations is effective when signed, and an assignment is effective upon our receipt. We assume no responsibility for the validity or tax consequences of any change of Owner and/or Beneficiary or any assignment of the Annuity, and may be required to make reports of ownership changes and/or assignments to the appropriate federal, state and/or local taxing authorities. You should consult with a qualified tax advisor for complete information and advice prior to any ownership change or assignment. Once an ownership change or assignment is processed, the tax reporting cannot be reversed.

**Death Benefit Suspension upon Change of Owner or Annuitant.** If there is a change of Owner or Annuitant, the change may affect the amount of the Death Benefit. See the "[<u>Payment of Death Benefits</u>](#chapter_11-sect1_25_930ab)" section of this prospectus for additional details.

**Spousal Designations**

If an Annuity is co-owned by spouses, we will assume that the sole primary Beneficiary is the surviving spouse that was named as the co-Owner. Upon the death of either spousal Owner, the surviving spouse may elect to assume ownership of the Annuity instead of taking the Death Benefit payment. The Death Benefit that would have been payable will be the new Account Value of the Annuity as of the date of due proof of death and any required proof of a spousal relationship. As of the date the assumption is effective, the surviving spouse will have all the rights and benefits that would be available under the Annuity to a new purchaser of the same attained age. For purposes of determining any future Death Benefit for the beneficiary of the surviving spouse, the new Account Value will be considered as the initial Purchase Payment. No CDSC will apply to the new Account Value. However, any additional Purchase Payments applied after the date the assumption is effective will be subject to all provisions of the Annuity, including the CDSC when applicable.

Spousal assumption is also permitted, subject to our rules and regulatory approval, if the Annuity is held by a Custodial Account established to hold retirement assets for the benefit of the natural person Annuitant pursuant to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account") and, on the date of the Annuitant's death, the spouse of the Annuitant is (1) the Contingent Annuitant under the Annuity and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(2) the beneficiary of the Custodial Account. The ability to continue the Annuity in this manner will result in the Annuity no longer qualifying for tax deferral under the Code. However, such tax deferral should result from the ownership of the Annuity by the Custodial Account. Please consult your tax or legal advisor.

Note that any division of your Annuity due to divorce will be treated as a withdrawal and the non-Owner spouse may then decide whether he or she would like to purchase a new Annuity, subject to the rules current at the time of purchase, with the withdrawn funds. Note that any division of your Annuity due to divorce will be treated as a withdrawal and CDSC may apply. If CDSC is applicable, it cannot be divided between the Owner and the non-Owner ex-spouse. The non-Owner ex-spouse may decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract Owners. Depending upon the method used for the division of the Annuity, the CDSC may be applied to the existing or new Annuity. Please consult with your tax advisor regarding your personal situation if you will be transferring or dividing your Annuity pursuant to a divorce.

The federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

**Contingent Annuitant**

Generally, if an Annuity is owned by an entity and the entity has named a Contingent Annuitant, the Contingent Annuitant will become the Annuitant upon the death of the Annuitant, and no Death Benefit is payable. Unless we agree otherwise, the Annuity is only eligible to have a Contingent Annuitant designation if the entity which owns the Annuity is (1) a plan described in Code Section 72(s)(5)(A)(i) (or any successor Code section thereto); (2) an entity described in Code Section 72(u)(1) (or any successor Code section thereto); or (3) a Custodial Account, as described in the above section.

Where the Annuity is held by a Custodial Account, the Contingent Annuitant will not automatically become the Annuitant upon the death of the Annuitant. Upon the death of the Annuitant, the Custodial Account will have the choice, subject to our rules, to either elect to receive the Death Benefit or elect to continue the Annuity. If the Custodial Account elects to receive the Death Benefit, the Account Value of the Annuity as of the date of due proof of death of the Annuitant will reflect the amount that would have been payable had a Death Benefit been paid. See the section entitled "[<u>Spousal Designations</u>](#chapter_9-sect1_2_930)" for more information about how the Annuity can be continued by a Custodial Account.

**HOW DO THE FIXED RATE OPTIONS WORK?**

The interest rate credited to a Fixed Allocation is the rate in effect when the Guarantee Period begins and does not change during the Guarantee Period. The rates are an effective annual rate of interest. We determine the interest rates for the various Guarantee Periods. At the time that we confirm your Fixed Allocation, we will advise you of the interest rate in effect and the date your Fixed Allocation matures. We may change the rates we credit new Fixed Allocations at any time. Any change in interest rate does not affect Fixed Allocations that were in effect before the date of the change. To inquire as to the current rates for Fixed Allocations, please call 1-800-879-7012.

A Guarantee Period for a Fixed Allocation begins:

• when
 all or part of a net Purchase Payment is allocated to that particular Guarantee Period;

• upon
 transfer of any of your Account Value to a Fixed Allocation for that particular Guarantee Period; or

• when
 you "renew" a Fixed Allocation by electing a new Guarantee Period.

To the extent permitted by law, we may establish different interest rates for Fixed Allocations offered to a class of Owners who choose to participate in various optional investment programs we make available. This may include, but is not limited to, Owners who elect to use Fixed Allocations under a dollar cost averaging program (see "[<u>Transfer and Rebalancing Programs - Dollar Cost Averaging</u>](#chapter_9-sect1_6_930)") or a balanced investment program (see "[<u>What is the</u> <u>Balanced Investment Program?</u>](#chapter_9-sect1_8_930)"). The interest rate credited to Fixed Allocations offered to this class of purchasers may be different than those offered to other purchasers who choose the same Guarantee Period but who do not participate in an optional investment program. Any such program is at our sole discretion.

**HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?**

We do not have a specific formula for determining the fixed interest rates for Fixed Allocations. Generally, the interest rates we offer for Fixed Allocations will reflect the investment returns available on the types of investments we make to support our fixed rate guarantees. These investment types may include cash, debt securities guaranteed by the United States government and its agencies and instrumentalities, money market instruments, corporate debt obligations of different durations, private placements, asset-backed obligations and municipal bonds. In determining rates we also consider factors such as the length of the Guarantee Period for the Fixed Allocation, regulatory and tax requirements, liquidity of the markets for the type of investments we make, commissions, administrative and investment expenses, our insurance risks in relation to the Fixed Allocations, general economic trends and competition. Some of these considerations are similar to those we consider in determining the insurance charge that we deduct from Account Value allocated to the Variable Options.

We will credit interest on a new Fixed Allocation in an existing Annuity at a rate not less than the rate we are then crediting to Fixed Allocations for the same Guarantee Period selected by new Annuity purchasers in the same class.

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**WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?**

The "Maturity Date" for a Fixed Allocation is the last day of the Guarantee Period. Before the Maturity Date, you may choose to renew the Fixed Allocation for a new Guarantee Period of the same or different length or you may transfer all or part of that Fixed Allocation's Account Value to another Fixed Allocation or to one or more Variable Options. We will notify you before the end of the Guarantee Period about the fixed interest rates that we are currently crediting to all Fixed Allocations that are being offered. The rates being credited to Fixed Allocations may change before the Maturity Date. We will not charge a Market Value Adjustment if you choose to renew a Fixed Allocation on its Maturity Date or transfer the Account Value to one or more Variable Options.

If you do not specify how you want a Fixed Allocation to be allocated on its Maturity Date, we will then transfer the Account Value in the Fixed Allocation to the AST Government Money Market Variable Option. You can then elect to allocate the Account Value to any of the Variable Options or to a new Fixed Allocation.

**TRANSFER AND REBALANCING PROGRAMS**

**Dollar Cost Averaging Programs**

As discussed below, we offer Dollar Cost Averaging programs during the Accumulation Period. In general, Dollar Cost Averaging allows you to systematically transfer an amount periodically from one investment option to one or more other investment options. You can choose to transfer earnings only, principal plus earnings or a flat dollar amount. You may elect a Dollar Cost Averaging program that transfers amounts monthly, quarterly, semi-annually, or annually from Variable Options, or a program that transfers amounts monthly from Fixed Allocations or DCA Fixed Rate Options. By investing amounts on a regular basis instead of investing the total amount at one time, Dollar Cost Averaging may decrease the effect of Variable Option fluctuation on the investment of your Purchase Payment. This may result in a lower average cost of Units over time. However, there is no guarantee that Dollar Cost Averaging will result in a profit or protect against a loss in a declining market. We do not deduct a charge for participating in a Dollar Cost Averaging program.

You can Dollar Cost Average from Variable Options, the Fixed Allocations or the DCA Fixed Rate Options. Dollar Cost Averaging from Fixed Allocations is subject to a number of rules that include, but are not limited to the following:

• You
 may only use Fixed Allocations with Guarantee Periods of 1, 2 or 3 years (except for the DCA Fixed Rate Options).

• You
 may only Dollar Cost Average earnings or principal plus earnings. If transferring principal plus earnings, the program must be designed
 to last the entire Guarantee Period for the Fixed Allocation.

• Dollar
 Cost Averaging transfers from Fixed Allocations are not subject to a Market Value Adjustment.

**NOTE: When a Dollar Cost Averaging program is established from a Fixed Allocation or a DCA Fixed Rate Option, the fixed rate of interest we** **credit to your Account Value is applied to a declining balance due to the transfers of Account Value to the Variable Options. This will reduce** **the effective rate of return on the Fixed Allocation or a DCA Fixed Rate Option over the Guarantee Period or the duration of the program,** **respectively.**

The Dollar Cost Averaging programs are not available if you have elected an automatic rebalancing program or an asset allocation program. Dollar Cost Averaging from Fixed Allocations also is not available if you elect certain optional benefits.

We originally offered specific Fixed Allocations with Guarantee Periods of 6 months or 12 months exclusively for use with a Dollar Cost Averaging program on the APEX II product. Those 6 month/12 month Fixed Allocations were designed to automatically transfer Account Value in either 6 or 12 payments under a Dollar Cost Averaging program. Dollar Cost Averaging transfers commenced on the date the Fixed Allocation was established, and then proceeded each month following until the entire principal amount plus earnings was transferred. Fixed Allocations could only be established with your initial Purchase Payment or additional Purchase Payments. You could not transfer existing Account Value to a Fixed Allocation. We discontinued offering these 6 and 12 month Fixed Allocations beginning on May 1, 2009.

Under our current Dollar Cost Averaging program used with Fixed Allocations, Account Value allocated to the Fixed Allocations will be transferred to the Variable Options you choose. If you terminate the Dollar Cost Averaging program before the entire principal amount plus earnings has been transferred to the Variable Option(s), you must transfer all remaining Account Value to any other investment option. Unless you provide alternate instructions at the time you terminate the Dollar Cost Averaging program, Account Value will be transferred to the AST Government Money Market Variable Option unless restricted due to benefit election. Transfers from Fixed Allocations as part of a Dollar Cost Averaging program are not subject to a Market Value Adjustment. However, a Market Value Adjustment will apply if you terminate the Dollar Cost Averaging program before the entire principal amount plus earnings has been transferred to the Variable Option(s). Please note that under the 6 or 12 Month DCA Program (described immediately below), no Market Value Adjustment applies.

**6 or 12 Month Dollar Cost Averaging Program (The "6 or 12 Month DCA Program")**

WE NO LONGER OFFER OUR 6 OR 12 MONTH DCA PROGRAM.

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The 6 or 12 Month DCA Program was available for contracts issued between May 1, 2009 and October 31, 2011. The program is subject to our rules at the time of election and may not be available in conjunction with other programs and benefits we make available. We may discontinue, modify or amend this program from time to time. Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus, Highest Daily Lifetime 6 Plus, and Spousal Highest Daily Lifetime 6 Plus are the only optional living benefits and the Highest Anniversary Value death benefit and the Combination 5% Roll-up + HAV death benefit are the only death benefits you may participate in if you also participate in the 6 or 12 Month DCA Program, although you do not need to select any optional benefit to participate in the program. To participate in the 6 or 12 Month DCA Program, you must allocate at least a $2000 Purchase Payment to our DCA Fixed Rate Options. These DCA Fixed Rate Options are distinct from the Fixed Allocations described immediately above. Most notably, transfers out of a DCA Fixed Rate Option are never subject to a Market Value Adjustment. Dollar cost averaging does not assure a profit, or protect against a loss.

**The key features of this Program are as follows:**

• You
 may only allocate Purchase Payments to these DCA Fixed Rate Options. You may not transfer Account Value into this program.

• As
 part of your election to participate in the 6 or 12 Month DCA Program, you specify whether the monthly transfers under the 6 or 12 Month
 DCA Program are to be made over a 6 month or 12 month period. We then set the monthly transfer amount, by dividing the Purchase
 Payment (including any associated Credit) you have allocated to the DCA Fixed Rate Options by the number of months. For example,
 if you allocated $6000, and selected a 6 month DCA Program, we would transfer $1000 each month. We will adjust the monthly transfer
 amount if, during the transfer period, the amount allocated to the DCA Fixed Rate Options is reduced (e.g., due to the deduction of
 the applicable portion of the fee for an optional benefit, withdrawals or due to a transfer of Account Value out of the DCA Fixed Rate Options initiated
 by the mathematical formula used with Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus Highest Daily Lifetime
 6 Plus, or Spousal Highest Daily Lifetime 6 Plus. In that event, we will re-calculate the amount of each remaining transfer by dividing
 the amount in the DCA Fixed Rate Option by the number of remaining transfers. If the recalculated transfer amount is below the minimum
 transfer required by the program, we will transfer the remaining amount from the DCA Fixed Rate Option on the next scheduled transfer
 and terminate the program.

• Any
 withdrawals, transfers, or fees deducted from the DCA Fixed Rate Options will reduce the DCA Fixed Rate Options on a "last-in, first-out"
 basis. If you have only one 6 or 12 Month DCA Program in operation, withdrawals, transfers, or fees may be deducted from the DCA
 Fixed Rate Options associated with that Program. You may, however, have more than one 6 or 12 Month DCA Program operating at the
 same time (so long as any such additional 6 or 12 Month DCA Program is of the same duration). For example, you may have more than
 one 6 month DCA Program running, but may not have a 6 month Program running simultaneously with a 12 month Program. If you have
 multiple 6 or 12 Month DCA Programs running, then the above reference to "last-in, first-out" means that amounts will be deducted first from the DCA
 Fixed Rate Options associated with the 6 or 12 Month DCA Program that was established most recently.

• The
 first transfer under the Program occurs on the day you allocate a Purchase Payment to the DCA Fixed Rate Options (unless modified to
 comply with State law) and on each month following until the entire principal amount plus earnings is transferred.

• We
 do not count transfers under the 6 or 12 Month DCA Program against the number of free transfers allowed under your Annuity.

• The
 minimum transfer amount is $100, although we will not impose that requirement with respect to the final amount to be transferred under
 the Program.

• If
 you are not participating in Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus Highest Daily Lifetime 6 Plus, or Spousal
 Highest Daily Lifetime 6 Plus, we will make transfers under the 6 or 12 Month DCA Program to the Variable Options that you specified
 upon your election of the Program. If you are participating in any Highest Daily Lifetime 7 Plus benefit or Highest Daily Lifetime 6 Plus
 benefit, we will allocate amounts transferred out of the DCA Fixed Rate Options in the following manner: (a) if you are participating
 in the Custom Portfolios
 Program (we may have referred to the "Custom Portfolios Program" as the "Optional Allocation and Rebalancing Program"
 in other materials), we will allocate to the Variable Options in accordance with the rules of that program (b) if you are not participating
 in the Custom Portfolios Program, we will make transfers under the Program to the Variable Options that you specified upon your
 election of the Program, provided those instructions comply with the allocation requirements for Highest Daily Lifetime 7 Plus, Highest
 Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 7 Plus or Spousal Highest Daily Lifetime 6 Plus (as applicable) and (c) whether
 or not you participate in the Custom Portfolios Program, no portion of our monthly transfer under the 6 or 12 Month DCA Program will
 be directed initially to the AST Investment Grade Bond portfolio (although the DCA Fixed Rate Option is treated as a "Permitted Variable Option"
 for purposes of transfers to the AST Investment Grade Bond Portfolio under the predetermined mathematical formula under
 the Highest Daily Lifetime 7 Plus or Highest Daily Lifetime 6 Plus benefits) (see below).

• If
 you are participating in Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus, Highest Daily Lifetime 6 Plus or Spousal Highest Daily Lifetime
 6 Plus and also are participating in the 6 or 12 Month DCA Program, and the formula under the benefit dictates a transfer
 from the Permitted Variable Options to the AST Investment Grade Bond Portfolio, then the amount to be transferred will be taken entirely
 from the Variable Options, provided there is sufficient Account Value in those Variable Options to meet the required transfer amount.
 Only if there is insufficient Account Value in those Variable Options will an amount be withdrawn from the DCA Fixed Rate Options
 associated with the 6 or 12 Month DCA Program. Amounts withdrawn from the DCA Fixed Rate Options under the formula will be taken
 on a last-in, first-out basis.

• If
 you are participating in one of our automated withdrawal programs (e.g., Systematic Withdrawals), we may include within that withdrawal
 program amounts held within the DCA Fixed Rate Options. If you have elected any Highest Daily Lifetime 7 Plus or Highest Daily
 Lifetime 6 Plus benefit, any withdrawals will be taken on a proportional basis from your Variable Options and the DCA Fixed Rate Options.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• We
 impose no fee for your participation in the 6 or 12 Month DCA Program.

• You
 may cancel the DCA Program at any time. If you do, we will transfer any remaining amount held within the DCA Fixed Rate Options according
 to your instructions. If you do not provide any such instructions, we will transfer any remaining amount held in the DCA Fixed Rate
 Options on a proportional basis to the Variable Options in which you are invested currently. If any such Variable Option is no longer available, we may
 allocate the amount that would have been applied to that Variable Option to the AST Government Money Market Portfolio.

• You
 cannot utilize "rate lock" with the 6 or 12 Month DCA Program. The interest rate we credit under the program will be the rate
 on the date the Purchase
 Payment is allocated to the 6 or 12 Month DCA Program.

• We
 credit interest to amounts held within the DCA Fixed Rate Options at the applicable declared rates. We credit such interest until the earliest of the following
 (a) the date the entire amount in the DCA Fixed Rate Option has been transferred out (b) the date the entire amount
 in the DCA Fixed Rate Option is withdrawn (c) the date as of which any death benefit payable is determined or (d) the Annuity Date.

• The
 interest rate earned in a DCA Fixed Rate Option will be no less than the minimum guaranteed interest rate. We may, from time to time,
 declare new interest rates for new Purchase Payments that are higher than the minimum guaranteed interest rate. Please note that the
 interest rate that we apply under the 6 or 12 Month DCA Program is applied to a declining balance. Therefore, the amount of interest you
 receive will decrease as amounts are systematically transferred from the DCA Fixed Rate Option to the Variable Options, and the effective
 interest rate earned will therefore be less than the declared interest rate.

• The
 6 or 12 Month DCA Program may be referred to in your Rider and/or the Application as the "Enhanced Dollar Cost Averaging Program."

**NOTE: When a 6 or 12 month DCA program is established from a DCA Fixed Rate Option, the fixed rate of interest we credit to your Account** **Value is applied to a declining balance due to the transfers of Account Value to the Variable Options (including any transfers under an** **optional benefit formula). This will reduce the effective rate of return on the DCA fixed rate option.**

**Automatic Rebalancing Programs**

During the Accumulation Period, we offer Automatic Rebalancing among the Variable Options you choose. You can choose to have your Account Value rebalanced monthly, quarterly, semi-annually, or annually. On the appropriate date, the Variable Options you chose are rebalanced to the allocation percentages you requested. With Automatic Rebalancing, we transfer the appropriate amount from the "overweighted" Variable Options to the "underweighted" Variable Options to return your allocations to the percentages you request. For example, over time the performance of the Variable Options will differ, causing your percentage allocations to shift. We also offer the Custom Portfolios Program (we may have referred to the "Custom Portfolios Program" as the "Optional Allocation and Rebalancing Program" in other materials), which is available if you have elected one of the Highest Daily Lifetime Seven, Highest Daily Lifetime 7 Plus, Highest Daily Lifetime 6 Plus, Highest Daily GRO II, or GRO Plus II benefits.

Any transfer to or from any Variable Option that is not part of your Automatic Rebalancing program, will be made; however, that Variable Option will not become part of your rebalancing program unless we receive instructions from you indicating that you would like such option to become part of the program.

There is no minimum Account Value required to enroll in Automatic Rebalancing. All rebalancing transfers as part of an Automatic Rebalancing program are not included when counting the number of transfers each year toward the maximum number of free transfers. We do not deduct a charge for participating in an Automatic Rebalancing program. Participation in the Automatic Rebalancing program may be restricted if you are enrolled in certain other optional programs. Variable Options that are part of a Systematic Withdrawal program or Dollar Cost Averaging program will be excluded from an Automatic Rebalancing program.

If you are participating in an optional living benefit (such as Highest Daily Lifetime 6 Plus) that makes transfers under a predetermined mathematical formula, and you have elected automatic rebalancing; you should be aware that: (a) the AST bond Portfolio used as part of the predetermined mathematical formula will not be included as part of automatic rebalancing and (b) the operation of the formula may result in the rebalancing not conforming to the percentage allocations that you specified originally as part of your Automatic Rebalancing Program.

**ASSET ALLOCATION PROGRAMS**

We currently do not offer any asset allocation programs for use with your Annuity. Prior to December 5, 2005, we made certain asset allocation programs available. **If you enrolled in one of the asset allocation programs prior to December 5, 2005, see the** [**<u>Appendix C</u>**](#chapter_20-sect1_1_930) **entitled, "Additional** **Information on the Asset Allocation Programs" for more information on how the programs are administered.**

**WHAT IS THE BALANCED INVESTMENT PROGRAM?**

We offer a balanced investment program where a portion of your Account Value is allocated to a Fixed Allocation and the remaining Account Value is allocated to the Variable Options that you select. When you enroll in the Balanced Investment Program, you choose the duration that you wish the program to last. This determines the duration of the Guarantee Period for the Fixed Allocation. Based on the fixed rate for the Guarantee Period chosen, we calculate the portion of your Account Value that must be allocated to the Fixed Allocation to grow to a specific "principal amount" (such as your initial Purchase Payment). We determine the amount based on the rates then in effect for the Guarantee Period you choose. If you continue the program until

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the end of the Guarantee Period and make no withdrawals or transfers, at the end of the Guarantee Period, the Fixed Allocation will have grown to equal the "principal amount". Withdrawals or transfers from the Fixed Allocation before the end of the Guarantee Period will terminate the program and may be subject to a Market Value Adjustment (which may be positive or negative). You can transfer the Account Value that is not allocated to the Fixed Allocation between any of the Variable Options available under your Annuity. Account Value you allocate to the Variable Options is subject to Variable Option fluctuations and may increase or decrease in value. We do not deduct a charge for participating in the Balanced Investment Program. This program is not available if your Annuity is held as a Beneficiary Annuity.

**Example**

Assume you invest $100,000. You choose a 10-year program and allocate a portion of your Account Value to a Fixed Allocation with a 10-year Guarantee Period. The rate for the 10-year Guarantee Period is 2.50%\*. Based on the fixed interest rate for the Guarantee Period chosen, the factor is 0.781198 for determining how much of your Account Value will be allocated to the Fixed Allocation. That means that $78,120 will be allocated to the Fixed Allocation and the remaining Account Value ($21,880) will be allocated to the Variable Options. Assuming that you do not make any withdrawals or transfers from the Fixed Allocation, it will grow to $100,000 at the end of the Guarantee Period. Of course we cannot predict the value of the remaining Account Value that was allocated to the Variable Options.

\* The rate in this example is hypothetical and may not reflect the current rate for Guarantee Periods of this duration.

**RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS**

During the Accumulation Period you may transfer Account Value between investment options subject to the restrictions outlined below. Transfers are not subject to taxation on any gain. You may not transfer Account Value to any Fixed Allocation used with a dollar cost averaging program or any DCA Fixed Rate Options. You may only allocate Purchase Payments to Fixed Allocations used with a dollar cost averaging program or the DCA Fixed Rate Options.

Currently, any transfer involving the ProFunds VP Variable Options must be received by us no later than 3:00 p.m. Eastern Time (or one hour prior to any announced closing of the applicable securities exchange) to be processed on the current Valuation Day. The "cut-off" time for such financial transactions involving a ProFunds VP Variable Option will be extended to 1/2 hour prior to any announced closing (generally, 3:30 p.m. Eastern Time) for transactions submitted electronically, including through our website (<u>www.prudential.com/annuities</u>)

Currently, we charge $10.00 for each transfer after the twentieth (20<sup>th</sup>) transfer in each Annuity Year. Transfers made as part of a Dollar Cost Averaging program (including the 6 or 12 Month Dollar Cost Averaging Program), Automatic Rebalancing or asset allocation program do not count toward the 20 free transfer limit. Renewals or transfers of Account Value from a Market Value Adjustment Fixed Allocation at the end of its Guarantee Period are not subject to the transfer charge. We may reduce the number of free transfers allowable each Annuity Year (subject to a minimum of eight) without charging a Transfer Fee. We may also increase the Transfer Fee that we charge to $15.00 for each transfer after the number of free transfers has been used up. We may eliminate the Transfer Fee for transfer requests transmitted electronically or through other means that reduce our processing costs. If enrolled in any program that does not permit transfer requests to be transmitted electronically, the Transfer Fee will not be waived.

Once you have made 20 transfers among the Variable Options during an Annuity Year, we will accept any additional transfer request during that year only if the request is submitted to us in writing with an original signature and otherwise is in Good Order. For purposes of this 20 transfer limit, we (i) do not view a facsimile transmission or other electronic transmission as a "writing", (ii) will treat multiple transfer requests submitted on the same Valuation Day as a single transfer, and (iii) do not count any transfer that solely involves Variable Options corresponding to any ProFund Portfolio and/or the AST Government Money Market Portfolio or any transfer that involves one of our systematic programs, such as asset allocation and automated withdrawals.

Frequent transfers among Variable Options in response to short-term fluctuations in markets, sometimes called "market timing," can make it very difficult for a Portfolio manager to manage a Portfolio's investments. Frequent transfers may cause the Portfolio to hold more cash than otherwise necessary, disrupt management strategies, increase transaction costs, or affect performance. Each Annuity offers Variable Options designed for Owners who wish to engage in frequent transfers (i.e., one or more of the Variable Options corresponding to the ProFund Portfolios and the AST Government Money Market Portfolio), and we encourage Owners seeking frequent transfers to utilize those Variable Options.

In light of the risks posed to Owners and other investors by frequent transfers, we reserve the right to limit the number of transfers in any Annuity Year for all existing or new Owners and to take the other actions discussed below. We also reserve the right to limit the number of transfers in any Annuity Year or to refuse any transfer request for an Owner or certain Owners if: (a) we believe that excessive transfer activity (as we define it) or a specific transfer request or group of transfer requests may have a detrimental effect on Unit Values or the share prices of the Portfolios; or (b) we are informed by a Portfolio (e.g., by the Portfolio's Portfolio manager) that the purchase or redemption of shares in the Portfolio must be restricted because the Portfolio believes the transfer activity to which such purchase and redemption relates would have a detrimental effect on the share prices of the affected Portfolio. Without limiting the above, the most likely scenario where either of the above could occur would be if the aggregate amount of a trade or trades represented a relatively large proportion of the total assets of a particular Portfolio. In furtherance of our general authority to restrict transfers as described above, and without limiting other actions we may take in the future, we have adopted the following specific restrictions:

• With
 respect to each Variable Option (other than the AST Government Money Market Variable Option, or a Variable Option corresponding to
 a ProFund Portfolio), we track amounts exceeding a certain dollar threshold that were transferred into the Variable Option. If you transfer
 such amount into a particular Variable Option, and within 30 calendar days thereafter transfer (the "Transfer Out") all or
 a portion of that
 amount into another Variable Option, then upon the Transfer Out, the former Variable Option becomes restricted (the "Restricted Variable Option").
 Specifically, we will not permit subsequent transfers into the Restricted Variable Option for 90 calendar days after the

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Transfer Out if the Restricted Variable Option invests in a non-international Portfolio, or 180 calendar days after the Transfer Out if the Restricted Variable Option invests in an international Portfolio. For purposes of this rule, we (i) do not count transfers made in connection with one of our systematic programs, such as asset allocation and automated withdrawals;(ii) do not count any transfer that solely involves Variable Options corresponding to any ProFund Portfolio and/or the AST Government Money Market Portfolio; and (iii) do not categorize as a transfer the first transfer that you make after the Issue Date, if you make that transfer within 30 calendar days after the Issue Date. Even if an amount becomes restricted under the foregoing rules, you are still free to redeem the amount from your Annuity at any time.

• We
 reserve the right to effect exchanges on a delayed basis for all contracts. That is, we may price an exchange involving the Variable Options
 on the Valuation Day subsequent to the Valuation Day on which the exchange request was received. Before implementing such a practice,
 we would issue a separate written notice to Owners that explains the practice in detail.

If we deny one or more transfer requests under the foregoing rules, we will inform you or your financial professional promptly of the circumstances concerning the denial.

Contract Owners in New York who purchased their contracts prior to March 15, 2004 are not subject to the specific restrictions outlined in bulleted paragraphs immediately above. In addition, there are contract Owners of different variable annuity contracts that are funded through the same Separate Account that are not subject to the above-referenced transfer restrictions and, therefore, might make more numerous and frequent transfers than contract Owners who are subject to such limitations. Finally, there are contract Owners of other variable annuity contracts or variable life contracts that are issued by us as well as other insurance companies that have the same underlying mutual fund Portfolios available to them. Since some contract Owners are not subject to the same transfer restrictions, unfavorable consequences associated with such frequent trading within the underlying mutual fund (e.g., greater Portfolio turnover, higher transaction costs, or performance or tax issues) may affect all contract Owners. Similarly, while contracts managed by a financial professional or third party investment advisor are subject to the restrictions on transfers between investment options that are discussed above, if the advisor manages a number of contracts in the same fashion unfavorable consequences may be associated with management activity since it may involve the movement of a substantial portion of an underlying mutual fund's assets which may affect all contract Owners invested in the affected options. Apart from jurisdiction-specific and contract differences in transfer restrictions, we will apply these rules uniformly (including contracts managed by a financial professional or third party investment advisor), and will not waive a transfer restriction for any contract Owner.

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

The Portfolios have adopted their own policies and procedures with respect to excessive trading of their respective shares, and we reserve the right to enforce any such current or future policies and procedures. The prospectuses for the Portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Under SEC rules, we are required to: (1) enter into a written agreement with each Portfolio or its principal underwriter or its transfer agent that obligates us to provide to the Portfolio promptly upon request certain information about the trading activity of individual contract Owners (including an Annuity Owner's TIN number), and (2) execute instructions from the Portfolio to restrict or prohibit further purchases or transfers by specific contract Owners who violate the excessive trading policies established by the Portfolio. In addition, you should be aware that some Portfolios may receive "omnibus" purchase and redemption orders from other insurance companies or intermediaries such as retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual Owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Portfolios in their ability to apply their excessive trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Portfolios (and thus contract Owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Portfolios.

A Portfolio also may assess a short term trading fee (redemption fee) in connection with a transfer out of the Variable Option investing in that Portfolio that occurs within a certain number of days following the date of allocation to the Variable Option. Each Portfolio determines the amount of the short term trading fee and when the fee is imposed. The fee is retained by or paid to the Portfolio and is not retained by us. The fee will be deducted from your Account Value, to the extent allowed by law. At present, no Portfolio has adopted a short-term trading fee.

**FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS**

If you have provided the necessary authorization on the application for your Annuity, the individual who signed the application for your Annuity may forward instructions regarding the allocation of your Account Value, and request financial transactions involving Investment Options. We refer to this person as your "financial professional." You may have another person providing investment advisory services to you with respect to this Annuity and who you have separately authorized on the form we require to forward instructions to us regarding the allocation of your Account Value or certain financial transactions. Please be aware that if you authorize more than one person to provide investment instructions to us, we will follow all instructions received from authorized persons in the order in which we receive them. **If your financial professional or investment advisor has this authority, we deem** **that all such transactions that are directed by your financial professional or investment advisor, as applicable, with respect to your Annuity** **have been authorized by you.** You will receive a confirmation of any financial transaction involving the purchase or sale of Units of your Annuity. You must contact us immediately if and when you revoke such authority. We will not be responsible for acting on instructions from your financial professional

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or authorized investment advisor until we receive notification of the revocation of such person's authority. We may also suspend, cancel or limit these authorizations at any time. In addition, we may restrict the Investment Options available for transfers or allocation of Purchase Payments by such financial professional or investment advisor. We will notify you and your financial professional if we implement any such restrictions or prohibitions.

**Please Note:** Annuity contracts managed by your financial professional or investment advisor also are subject to the restrictions on transfers between Investment Options that are discussed in the section titled "[<u>Restrictions on Transfers Between Investment Options</u>](#chapter_9-sect1_9_930)." We may also require that your financial professional or investment advisor transmit all financial transactions using the electronic trading functionality available through our website (<u>www.prudential.com/annuities</u>). Limitations that we may impose on your financial professional or investment advisor under the agreement (e.g., a custodial agreement) do not apply to financial transactions requested by an Owner on his or her own behalf, except as otherwise described in this prospectus.

**It is your responsibility to arrange for the payment of the advisory fee charged by your investment advisor. Similarly, it is your responsibility** **to understand the advisory services provided by your investment advisor and the advisory fees charged for the services.**

***<u>For certain Broker Dealers:</u>*** If instructed by your Broker Dealer, we may allow your financial professional to effectuate withdrawals on your behalf. In the event you do not wish that your financial professional has this authority, please contact us immediately.

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**ANNUITY PERIOD**

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We currently make available annuity options that provide fixed annuity payments. Your Annuity provides certain fixed annuity payment options. We do not guarantee to continue to make available any other option other than the fixed annuity payment options set forth in your Annuity. Fixed options provide the same amount with each payment. Please refer to the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" section for a description of annuity options that are available when you elect one of the living benefits. You must annuitize your entire Account Value; partial Annuitizations are not allowed.

You have a right to choose your annuity start date, provided that it is no later than the first day of the calendar month next following the 95<sup>th</sup> birthday of the oldest of any Owner and Annuitant whichever occurs first ("Latest Annuity Date") and no earlier than the earliest permissible Annuity Date. If you do not request an earlier Annuity Date in writing, then your Annuity Date will be the Latest Annuity Date. You may choose one of the Annuity Options described below, and the frequency of annuity payments. Certain annuity options and/or periods certain may not be available, depending on the age of the Annuitant. For qualified annuities, the period certain option may be limited to 10 years or less depending on the circumstances. You may change your choices before the Annuity Date.

Certain of these annuity options may be available as "settlement options" to Beneficiaries who choose to receive the Death Benefit proceeds as a series of payments instead of a lump sum payment.

Please note, with respect to XT6, you may not annuitize within the first three Annuity Years and with respect to ASAP III and APEX II, you may not annuitize within the first Annuity Year. With respect to the ASL II Annuity, you may annuitize immediately, if you wish.

For Beneficiary Annuities, no annuity payments are available and all references to an Annuity Date are not applicable.

**<u>Option 1</u>**

**Payments for Life:** Under this option, income is payable periodically until the death of the "Key Life". The "Key Life" (as used in this section) is the person or persons upon whose life annuity payments are based. No additional annuity payments are made after the death of the Key Life. Since no minimum number of payments is guaranteed, this option offers the largest amount of periodic payments of the life contingent annuity options. *It is possible that only one payment will be payable if the death of the Key Life occurs before the date the second payment was due, and no other payments nor death benefits would be payable.* Under this option, you cannot make a partial or full surrender of the annuity.

**<u>Option 2</u>**

**Payments Based on Joint Lives:** Under this option, income is payable periodically during the joint lifetime of two Key Lives, and thereafter during the remaining lifetime of the survivor, ceasing with the last payment prior to the survivor's death. No minimum number of payments is guaranteed under this option. *It is possible that only one payment will be payable if the death of all the Key Lives occurs before the date the second payment was due, and no other payments or death benefits would be payable. Under this option, you cannot make a partial or full surrender of the annuity.*

**<u>Option 3</u>**

**Payments for Life with a Certain Period:** Under this option, income is payable until the death of the Key Life. However, if the Key Life dies before the end of the period selected (5, 10 or 15 years), the remaining payments are paid to the Beneficiary until the end of such period. Under this option, you cannot make a partial or full surrender of the annuity. If this Annuity is issued as a Qualified Annuity contract and annuity payments begin after age 92, then this Option will be modified to permit a period certain that will end no later than the life expectancy of the annuitant defined under the IRS Required Minimum Distribution tables.

**<u>Option 4</u>**

**Fixed Payments for a Certain Period:** Under this option, income is payable periodically for a specified number of years. If the payee dies before the end of the specified number of years, the remaining payments are paid to the Beneficiary until the end of such period. Note that under this option, payments are not based on any assumptions of life expectancy. *Therefore, that portion of the insurance charge assessed to cover the risk that Key Lives outlive our expectations provides no benefit to an Owner selecting this option.* Under this option, you cannot make a partial or full surrender of the annuity.

We may make different annuity and settlement options available in the future. We do not guarantee to continue to make available any other option other than the fixed annuity payment options set forth in your contract.

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**HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?**

Unless prohibited by law, we require that you elect either a life annuity or an annuity with a certain period of at least 5 years if any CDSC would apply were you to surrender your Annuity on the Annuity Date. Certain annuity payment options may not be available if your Annuity Date occurs during the period that a CDSC would apply.

You have a right to choose your Annuity Date, provided it is no later than the maximum Annuity Date that may be required by law or under the terms of your Annuity.

For Annuities issued prior to November 20, 2006:

• if
 you do not provide us with your Annuity Date, a default date for the Annuity Date will be the first day of the calendar month following
 the later of the
 Annuitant's 85 <sup>th</sup> birthday or the fifth anniversary of our receipt of your request to purchase an Annuity; and

• unless
 you instruct us otherwise, the annuity payments, where allowed by law, will be calculated on a fixed basis under Option 3, Payments
 for Life with 10 years certain.

If you choose to defer the Annuity Date beyond the default date, the IRS may not consider your contract to be an annuity under the tax law. If that should occur, all gain in your Annuity at that time will become immediately taxable to you. Further, each subsequent year's increase in Account Value would be taxable in that year. By choosing to continue to defer after the default date, you will assume the risk that your Annuity will not be considered an annuity for federal income tax purposes.

For Annuities issued on or after November 20, 2006:

• Unless
 we agree otherwise, the Annuity Date you choose must be no later than the first day of the calendar month coinciding with or next following
 the later of the oldest Owner's or Annuitant's 95 <sup>th</sup> birthday, whichever occurs first, and the fifth anniversary of the Issue Date.

• If
 you do not provide us with your Annuity Date, the maximum date as described above will be the default date; and, unless you instruct us otherwise, we will
 pay you the annuity payments and the annuity payments, where allowed by law, will be calculated on a fixed basis under
 Option 3, Payments for Life with 10 years certain.

Please note that Annuitization essentially involves converting your Account Value to an annuity payment stream, the length of which depends on the terms of the applicable annuity option. Thus, once annuity payments begin, your death benefit is determined solely under the terms of the applicable annuity payment option, and you no longer participate in any optional living benefit (unless you have annuitized under that benefit).

**HOW ARE ANNUITY PAYMENTS CALCULATED?**

**Fixed Annuity Payments**

If you choose to receive fixed annuity payments, you will receive equal fixed-dollar payments throughout the period you select. The amount of the fixed payment will vary depending on the annuity payment option and payment frequency you select. Generally, the first annuity payment is determined by multiplying the Account Value, minus any state premium taxes that may apply, by the factor determined from our table of annuity rates. The table of annuity rates differs based on the type of annuity chosen and the frequency of payment selected. Our rates will not be less than our guaranteed minimum rates. These guaranteed minimum rates are derived from the 2000 Individual Annuity Mortality Table with an assumed interest rate of 3% per annum. Where required by law or regulation, such annuity table will have rates that do not differ according to the gender of the Key Life. Otherwise, the rates will differ according to the gender of the Key Life.

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**BENEFITS AVAILABLE UNDER THE CONTRACT**

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**The following table summarizes information about the benefits available under the Annuity. Certain Contract Benefits may not be available** **through certain financial intermediaries. See the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_930) **for additional information.**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or** **Optional** | **Maximum Charge** | **Restrictions/Limitations** |
|  GRO PLUS II | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.60%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for** **Variable Option availability.** |
|  HIGHEST DAILY GRO II | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.60%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for** **Variable Option availability.** |
|  HIGHEST DAILY LIFETIME 6 PLUS (HD 6 PLUS)<sup>1</sup> | Guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 6 PLUS WITH LIFETIME INCOME ACCELERATOR (LIA)<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime 6 Plus Income Benefit. | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  GUARANTEED RETURN OPTION (GRO)<sup>2</sup>/GROPLUS<sup>1</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.75%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for** **Variable Option availability.** |
|  GUARANTEED RETURN OPTION PLUS 2008(GRO PLUS 2008)<sup>1</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.75%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for** **Variable Option availability.** |
|  HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)<sup>1</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.60%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for** **Variable Option availability.** |
|  GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)<sup>3</sup> | Guarantees your ability to withdraw amounts over time equal to an initial principal value, regardless of the impact of Variable Option performance. | Optional | 1.00%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or** **Optional** | **Maximum Charge** | **Restrictions/Limitations** |
|  GUARANTEED MINIMUM INCOME BENEFIT(GMIB)<sup>3</sup> | Guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on your total Purchase Payments after a seven-year waiting period. | Optional | 1.00%<br>(based on the PIV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  LIFETIME FIVE INCOME BENEFIT<sup>1</sup> | Guarantees your ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. | Optional | 1.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  SPOUSAL LIFETIME FIVE INCOME BENEFIT<sup>1</sup> | Guarantees until the later death of two Designated Lives the ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. | Optional | 1.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT<sup>1</sup> | Guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value. | Optional | 1.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT<sup>1</sup> | Guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value. | Optional | 1.50%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY INCOME OPTION (BIO)<sup>1</sup> | The benefit provides an optional death benefit feature in addition to the guarantee provided under the Highest Daily Lifetime Seven Income Benefit. | Optional | 2.00%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME SEVEN WITH LIFETIME INCOME ACCELERATOR (LIA)<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. | Optional | 2.00%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime Seven Income Benefit. | Optional | 1.50%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY INCOME BENEFIT (BIO)<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime Seven with Beneficiary Income Benefit (BIO). | Optional | 2.00%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 7 PLUS<sup>1</sup> | Guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value. | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY INCOME OPTION (BIO)<sup>1</sup> | The benefit provides an optional death benefit feature in addition to the guarantee provided under the Highest Daily Lifetime Seven Plus Benefit. | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 7 PLUS WITH LIFETIME INCOME ACCELERATOR (LIA)<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime 7 Plus Income Benefit. | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY INCOME OPTION (BIO)<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime Seven Plus with Beneficiary Income Benefit (BIO). | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or** **Optional** | **Maximum Charge** | **Restrictions/Limitations** |
|  BASIC DEATH BENEFIT | Provides protection for your beneficiary(ies) by ensuring that they do not receive less than your Account Value. | Standard | None. | None. |
|  ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing amounts in addition to the basic Death Benefit that can be used to offset federal and state taxes payable on your Annuity at the time of your death. | Optional | 0.25%<br>(based on the Variable Option net assets)<sup>4</sup> | For annuities issued before November 18, 2002 this benefit was not available on the ASAP III annuity. |
|  HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit or the Highest Anniversary Value. | Optional | 0.40%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing the greater of the Highest Anniversary Value Death Benefit and a 5% annual increase on Purchase Payments adjusted for withdrawals. | Optional | 0.80<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit and the Highest Daily Value. | Optional | 0.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for Variable** **Option availability.** |
|  GUARANTEED MINIMUM DEATH BENEFIT<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing amounts in addition to the basic Death Benefit. **Please refer to** [**<u>Appendix</u>** **<u>D</u>**](#chapter_21-sect1_1_930) **for a complete description of the charges.** | Optional | 0.55%<br>(based on the current Death Benefit amount) | Not available with the ASAP III annuity. |
|  PLUS40 OPTIONAL LIFE INSURANCE RIDER<sup>3</sup> | Provides an income tax-free life insurance benefit for your Beneficiary(ies) that may be useful in offsetting federal and state taxes payable on any taxable gains in your Annuity at the time of your death. **Please refer to** [**<u>Appendix B</u>**](#chapter_19-sect1_1_930) **for a** **complete description of the charges.** | Optional | 10.50%<br>(based on your age and your Account Value as of the Issue Date of your Annuity) | None. |
|  ANNUITY REWARDS<sup>5</sup> | Provides an enhancement to the Death Benefit that captures any Variable Option gains since the Issue Date of your Annuity so that your beneficiary(ies) would not receive less than an Annuity's value as of the effective date of the benefit. | Optional | None. | Not available with the ASLII annuity. |
|  DOLLAR COST AVERAGING | Allows you to systematically transfer a percentage amount out of an investment option and into any other Variable Option(s). | Standard | None. | Minimum allocation requirements. |
|  AUTOMATIC REBALANCING | You can direct us to automatically rebalance your assets to return to your original allocation percentage or to a subsequent allocation percentage you select. | Standard | None. | None. |
|  ASSET ALLOCATION<sup>6</sup> | A method of diversification which allocates assets among classes. **Please see** [**<u>Appendix C</u>**](#chapter_20-sect1_1_930) **for** **more details on this benefit.** | Standard | None. | None. |

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1. These
 benefits are no longer available for new elections.

2. The
 Guaranteed Return Option benefit is no longer available for election. If you currently participate in this benefit, you may re-start the
 benefit on each anniversary of the Issue Date.

3. These
 benefits are no longer offered and must have been elected at the time that you purchased your Annuity.

4. If
 the Annuity was purchased before November 18, 2002, the Enhanced Beneficiary Protection Death Benefit fee was based on the Account Value. **Please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_930) **for additional** **information.** 

5. This
 benefit may be referred to as "Prudential Annuities' Annuity Rewards" in certain documents.

6. Effective
 December 5, 2005, you can no longer enroll in an asset allocation program, but you will be permitted to remain in the program if you enrolled
 prior to the date.

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**OPTIONAL LIVING BENEFITS**

We offer different optional benefits, for an additional charge, that can provide retirement income protection for Owners while they are alive. Optional benefits are not available if your Annuity is held as a Beneficiary Annuity. Notwithstanding the additional protection provided under an optional Living Benefit, the additional cost has the impact of reducing net performance of the investment options. Each optional benefit offers a distinct type of guarantee, regardless of the performance of the Variable Options, that may be appropriate for you depending on the manner in which you intend to make use of your Annuity while you are alive. We reserve the right to cease offering any of the living benefits. Depending on which optional benefit you choose, you can have flexibility to invest in the Variable Options while:

• protecting
 a principal amount from decreases in value as of specified future dates due to investment performance;

• taking
 withdrawals with a guarantee that you will be able to withdraw not less than a guaranteed benefit base over time;

• guaranteeing
 a minimum amount of growth will be applied to your principal, if it is to be used as the basis for certain types of lifetime income
 payments or lifetime withdrawals; or

• providing
 spousal continuation of certain benefits.

The "living benefits" are as follows:<br>Guaranteed Return Option Plus II (GRO Plus II)<br>Highest Daily Guaranteed Return Option II (HD GRO II)<br>Guaranteed Return Option (GRO)<sup>1</sup><br>Guaranteed Return Option Plus (GRO Plus)<sup>1</sup><br>Guaranteed Return Option Plus 2008 (GRO Plus 2008)<sup>1</sup><br>Highest Daily Guaranteed Return Option (Highest Daily GRO)<sup>1</sup><br>Guaranteed Minimum Withdrawal Benefit (GMWB)<sup>1</sup><br>Guaranteed Minimum Income Benefit (GMIB)<sup>1</sup><br>Lifetime Five Income Benefit<sup>1</sup><br>Spousal Lifetime Five Income Benefit<sup>1</sup><br>Highest Daily Lifetime Five Income Benefit<sup>1</sup><br>Highest Daily Lifetime Seven Income Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime Seven Income Benefit<sup>1</sup><br>Highest Daily Lifetime Seven with Beneficiary Income Option Income Benefit<sup>1</sup><br>Highest Daily Lifetime Seven with Lifetime Income Accelerator Income Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime Seven with Beneficiary Income Option Income Benefit<sup>1</sup><br>Highest Daily Lifetime 7 Plus Income Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime 7 Plus Income Benefit<sup>1</sup><br>Highest Daily Lifetime 7 Plus with Beneficiary Income Option Benefit<sup>1</sup><br>Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option Benefit<sup>1</sup><br>Highest Daily Lifetime 6 Plus Income Benefit<sup>1</sup><br>Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator<sup>1</sup><br>Spousal Highest Daily Lifetime 6 Plus Income Benefit<sup>1</sup>

1. No
 longer available for new elections.

Here is a general description of each kind of living benefit that exists under this Annuity:

• **Guaranteed Minimum Accumulation Benefits.** The common characteristic of these benefits is that a specified amount of your annuity value
 is guaranteed at some point in the future. For example, under our Highest Daily GRO II benefit, we make an initial guarantee that your
 annuity value on the day you start the benefit will not be any less ten years later. If your annuity value is less on that date, we use
 our own funds to
 give you the difference. Because the guarantee inherent in the guaranteed minimum accumulation benefit does not take effect
 until a specified number of years into the future, you should elect such a benefit only if your investment time horizon is of at least that duration. Please
 note that these guaranteed minimum accumulation benefits require your participation in certain predetermined mathematical
 formulas that may transfer your Account Value between certain permitted Variable Options and a bond Portfolio Variable Option
 (or Market Value Adjustment Fixed Allocations, for certain of the benefits). The Portfolio restrictions and the use of each formula may
 reduce the likelihood that we will be required to make payments to you under the living benefits.

• **Guaranteed Minimum Income Benefit or ("GMIB").** As discussed elsewhere in this prospectus, you have the right under your Annuity to
 ask us to convert your accumulated annuity value into a series of annuity payments. Generally, the smaller the amount of your annuity value, the smaller
 the amount of your annuity payments. GMIB addresses this risk, by guaranteeing a certain amount of appreciation in the
 amount used to produce annuity payments. Thus, even if your annuity value goes down in value, GMIB guarantees that the amount we
 use to determine the amount of the annuity payments will go up in value by the prescribed amount. You should select GMIB only if you are
 prepared to delay your annuity payments for the required waiting period and if you anticipate needing annuity payments. This benefit is
 no longer available for new elections.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **Guaranteed Minimum Withdrawal Benefit or ("GMWB").** This benefit is designed for someone who wants to access an annuity's value through
 withdrawals over time, rather than by annuitizing. This benefit guarantees that a specified amount will be available for withdrawal over
 time, even if the value of the annuity itself has declined. Please note that there is a maximum Annuity Date under your Annuity, by which
 date annuity payments must commence. This benefit is no longer available for new elections.

• **Lifetime Guaranteed Minimum Withdrawal Benefits.** These benefits also are designed for someone who wants to access an annuity's value
 through withdrawals over time, rather than by annuitizing. These benefits differ from GMWB, however, in that the withdrawal amounts
 are guaranteed for life (or until the second to die of spouses). The way that we establish the guaranteed amount that, in turn, determines
 the amount of the annual lifetime payments varies among these benefits. Under our Highest Daily Lifetime 6 Plus benefit, for example,
 the guaranteed amount generally is equal to your highest daily Account Value, appreciated at six percent annually. Please note that
 there is a maximum Annuity Date under your Annuity, by which date annuity payments must commence. Certain of these benefits are no
 longer available for new elections. Under any of the Guaranteed Lifetime Withdrawal Benefits (e.g., Highest Daily Lifetime 6 Plus), withdrawals
 in excess of the Annual Income Amount, called "Excess Income," will result in a permanent reduction in future guaranteed withdrawal
 amounts. If you purchased your contract in New York and wish to withdraw Excess Income but are uncertain how it will impact your
 future guaranteed withdrawal amounts, you may contact us prior to requesting the withdrawal to obtain a personalized, transaction-specific
 calculation showing the effect of taking the withdrawal.

**Finally, please note that certain of these benefits require your participation in a predetermined mathematical formula that may transfer your** **Account Value between certain permitted Variable Options and a bond Portfolio Variable Option (or the general account, for one of the** **benefits). Although not guaranteed, the optional living benefit investment requirements and the applicable formula are designed to reduce the** **difference between your Account Value and our liability under the benefit. Minimizing such difference generally benefits us by decreasing the** **risk that we will use our own assets to make benefit payments to you. Though the investment requirements and formulas are designed to** **reduce risk, they do not guarantee any appreciation of your Account Value. In fact, they could mean that you miss appreciation opportunities** **in other investment options. We are not providing you with investment advice through the use of any of the formulas. In addition, the** **formulas do not constitute an investment strategy that we are recommending to you.**

In general, with respect to our lifetime guaranteed withdrawal benefits (e.g., Highest Daily Lifetime 6 Plus), please be aware that although a given withdrawal may qualify as a Free Withdrawal for purposes of not incurring a CDSC, the amount of the withdrawal could exceed the Annual Income Amount under the benefit and thus be deemed "Excess Income" – thereby reducing your Annual Income Amount for future years.

**Please refer to the benefit descriptions that follow for a complete description of the terms, conditions and limitations of each optional benefit.** **Investment restrictions apply if you elect certain optional living benefits. See** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for a list of investment options available and** **permitted with each benefit. We reserve the right to terminate such benefit if you allocate funds into non-permitted Investment Options.** You should consult with your financial professional to determine if any of these optional benefits may be appropriate for you based on your financial needs. There are many factors to consider, but we note that among them you may want to evaluate the tax implications of these different approaches to meeting your needs, both between these benefits and in comparison to other potential solutions to your needs (e.g., comparing the tax implications of the withdrawal benefit and annuity payments and comparing annuity benefits with benefits of other products).

**Termination of Existing Benefits and Election of New Benefits**

If you currently own an Annuity with an optional living benefit that is terminable, you may terminate the benefit rider and elect one of the currently available benefits, subject to availability of the benefit at that time and our then current rules. There is currently no waiting period (you may elect a new benefit beginning on the next Valuation Day) to elect any living benefit once a living benefit is terminated provided that the benefit being elected is available for election post-issue. We reserve the right to waive, change and/or further limit availability and election frequencies in the future. Check with your financial professional regarding the availability of re-electing or electing a benefit and any waiting period. The benefit you re-elect or elect may be more expensive than the benefit you are terminating. **Note that once you terminate an existing benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active.** You should carefully consider whether terminating your existing benefit and electing a new benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

Certain living benefits involve your participation in a pre-determined mathematical formula that may transfer your Account Value between the Variable Options you have chosen and certain Bond Portfolios of AST and/or our general account. The formulas may differ among the living benefits that employ a formula. Such different formulas may result in different transfers of Account Value over time.

The federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

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***GUARANTEED RETURN OPTION PLUS II (GRO Plus II)***

You can elect this benefit on the Issue Date of your Annuity, or at any time thereafter if available. In addition, you may cancel GRO Plus II and then re-elect the benefit beginning on the next Valuation Day if available, provided that your Account Value is allocated as required by the benefit and you otherwise meet our eligibility rules. If you cancel the benefit, you lose all guarantees that you had accumulated under the benefit. The initial guarantee under the newly-elected benefit will be based on your current Account Value at the time the new benefit becomes effective on your Annuity. GRO Plus II is not available if you participate in any other optional living benefit. However, GRO Plus II may be elected together with any optional death benefit, other than the Highest Daily Value Death Benefit and the Plus40 Optional Life Insurance Rider. As detailed below under "Key Feature – Allocation of Account Value", your participation in this benefit among other things entails your participation in a program that, as dictated by a predetermined mathematical formula, may transfer your Account Value between your elected Variable Options and an AST bond portfolio Variable Option.

Under GRO Plus II, we guarantee that the Account Value on the date that the benefit is added to your Annuity (adjusted for subsequent Purchase Payments and withdrawals as detailed below) will not be any less than that original value on the seventh anniversary of benefit election and each anniversary thereafter. We refer to this initial guarantee as the "base guarantee." In addition to the base guarantee, GRO Plus II offers the possibility of an enhanced guarantee. You may "manually" lock in an enhanced guarantee once per "benefit year" (i.e., a year beginning on the date you acquired the benefit and each anniversary thereafter) if your Account Value on that Valuation Day exceeds the amount of any outstanding base guarantee or enhanced guarantee. If you elect to manually lock in an enhanced guarantee on an anniversary of the effective date of the benefit, that lock in will not count toward the one elective manual lock in you may make each benefit year. We guarantee that the Account Value locked-in by that enhanced guarantee will not be any less seven years later, and each anniversary of that date thereafter. In addition, you may elect an automatic enhanced guarantee feature under which, if your Account Value on a benefit anniversary exceeds the highest existing guarantee by 7% or more, we guarantee that such Account Value will not be any less seven benefit anniversaries later and each benefit anniversary thereafter. You may maintain only one enhanced guarantee in addition to your base guarantee. Thus, when a new enhanced guarantee is created, it cancels any existing enhanced guarantee. However, the fact that an enhanced guarantee was effected automatically on a benefit anniversary does not prevent you from "manually" locking-in an enhanced guarantee during the ensuing benefit year. Conversely, the fact that you "manually" locked-in an enhanced guarantee does not preclude the possibility of an automatic enhanced guarantee on the subsequent benefit anniversary. Please note that upon creation of a new enhanced guarantee, an immediate transfer to an AST bond Portfolio Variable Option (which is used as part of this benefit) may occur depending on the discount rate (as described below) used to determine the present value of each of your guarantees. You may elect to terminate an enhanced guarantee without also terminating the base guarantee. If you do, any amounts held in the AST bond Portfolio Variable Option with respect to that enhanced guarantee will be transferred to your other Variable Options in accordance with your most recent allocation instructions (see below "Key Feature – Allocation of Account Value"). Amounts held in an AST bond Portfolio Variable Option with respect to the base guarantee will not be transferred as a result of the termination of an enhanced guarantee. You may not lock in an enhanced guarantee, either manually or through our optional automatic program, within seven years of the date by which annuity payments must commence under the terms of your Annuity (please see "[<u>How and When Do I Choose The Annuity Payment Option?</u>](#chapter_10-sect1_2_930)" for further information on your maximum Annuity Date). The inability to lock in an enhanced guarantee referenced in the immediately preceding sentence also applies to a new Owner who has acquired the Annuity from the original Owner.

In general, we refer to a date on which the Account Value is guaranteed to be present as the "Maturity Date". If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the AST bond Portfolio Variable Option used with this benefit and described below) in accordance with your most recent allocation instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST bond Portfolio Variable Option associated with the maturing guarantee to your other Variable Options on a proportional basis, unless your Account Value is being allocated according to an asset allocation program, in such case your Account Value will be transferred according to the program. The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Account Value, and the transfer of Account Value to support our future guarantees, the benefit may provide some protection from significant Variable Option losses. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

We increase both the base guarantee and any enhanced guarantee by the amount of each Purchase Payment (including any associated purchase Credits) made subsequent to the date that the guarantee was established. For example, if the effective date of the benefit was January 1, 2010 and the Account Value was $100,000 on that date, then a $30,000 Purchase Payment made on March 30, 2011 would increase the base guarantee amount to $130,000.

If you make a withdrawal (including any CDSC), we effect a proportional reduction to each existing guarantee amount. We calculate a proportional reduction by reducing each existing guarantee amount by the percentage represented by the ratio of the withdrawal amount (including any CDSC) to your Account Value immediately prior to the withdrawal.

If you make a withdrawal, we will deduct the withdrawal amount on a proportional basis from each of your Variable Options (including the AST bond Portfolio Variable Option used with this benefit).

Any partial withdrawal for payment of any third party investment advisory service will be treated as a withdrawal, and will reduce each guarantee amount proportionally, in the manner indicated above.

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**EXAMPLE**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2010

• The
 benefit is elected on December 1, 2010

• The
 Account Value on December 1, 2010 is $200,000, which results in a base guarantee of $200,000

• An
 enhanced guarantee amount of $300,000 is locked in on December 1, 2011

• The
 Account Value immediately prior to the withdrawal is equal to $300,000

• For
 purposes of simplifying these assumptions, we assume hypothetically that no CDSC is applicable (in general, a CDSC could be inapplicable
 based on the Free Withdrawal provision, if the withdrawal was within the CDSC period)

If a withdrawal of $50,000 is taken on December 15, 2011, all guarantee amounts will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation (figures are rounded):**

---

| | |
|:---|:---|
|  Withdrawal Amount | $50000 |
|  Divided by Account Value before withdrawal | $300000 |
|  Equals ratio | 16.67% |
|  All guarantees will be reduced by the above ratio (16.67%) |  |
|  Base guarantee amount | $166667 |
|  Enhanced guarantee amount | $250000 |

---

**Key Feature – Allocation of Account Value**

We limit the Variable Options to which you may allocate Account Value if you elect GRO Plus II. For purposes of this benefit, we refer to those permitted investment options (other than the required bond Portfolio Variable Options discussed below) as the "Permitted Variable Options." GRO Plus II uses a predetermined mathematical formula to help manage your guarantees through all market cycles. Because the formula is made part of your Rider schedule supplement, the formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for newly-issued Annuities that elect or re-elect GRO Plus II and for existing Annuities that elect the benefit post-issue. This required formula helps us manage our financial exposure under GRO Plus II, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve the value of these assets, by transferring them to a more stable option (i.e., one or more specified bond Portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond Portfolios collectively as the "AST bond Portfolio Variable Options". The formula also contemplates the transfer of Account Value from an AST bond Portfolio Variable Option to the other Variable Options in certain other scenarios. **The formula is set forth in** [**<u>Appendix N</u>**](#chapter_31-sect1_1_930) **of this prospectus**. It applies to both (a) GRO Plus II and (b) elections of HD GRO II made prior to July 16, 2010. **A summary description of each AST bond Portfolio Variable Option appears** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**.** You can find a copy of the AST bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

For purposes of operating the GRO Plus II formula, we have included within this Annuity several AST bond Portfolio Variable Options. Each AST bond Portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond Portfolio whose underlying investments generally mature in 2020, an AST bond Portfolio whose underlying investments generally mature in 2021, and so forth. As discussed below, the formula determines the appropriate AST bond Portfolio Variable Option to which Account Value is transferred. We will introduce new AST bond Portfolio Variable Options in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit (and the Highest Daily GRO benefits). If you have elected GRO Plus II, you may have Account Value allocated to an AST bond Portfolio Variable Option only by operation of the predetermined mathematical formula, and thus you may not allocate Purchase Payments to or make transfers to or from such a Variable Option. Please see the prospectus for the Advanced Series Trust for more information about each AST bond Portfolio used with this benefit.

Although we employ several AST bond Portfolio Variable Options for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. On any day a transfer into or out of the AST bond Portfolio Variable Option is made the formula may dictate that a transfer out of one AST bond Portfolio Variable Option be made into another AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability", as described below. As indicated, the AST bond Portfolio Variable Options are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, in accordance with the formula applicable to you under the benefit, we determine which AST bond Portfolio Variable Option your Account Value is transferred to, and under what circumstances a transfer is made. Please note that upon creation of a new

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enhanced guarantee, an immediate transfer to the AST Bond Portfolio Variable Option associated with the "current liability" may occur, depending on the discount rate (as described in the next paragraph) used to determine the present value of each of your guarantees. As such, a low discount rate could cause a transfer of Account Value into an AST bond Portfolio Variable Option, despite the fact that your Account Value had increased.

In general, the formula works as follows. On each Valuation Day, the formula automatically performs an analysis with respect to each guarantee that is outstanding. For each outstanding guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the AST bond Portfolio Variable Option and to your Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount held within the Permitted Variable Options, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST bond Portfolio Variable Option, in the amount dictated by the formula (subject to the 90% cap discussed below). If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount within your other Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Account Value within the AST bond Portfolio Variable Option into the Permitted Variable Options in the amount dictated by the formula.

The formula will not execute a transfer to the AST bond Portfolio Variable Option that results in more than 90% of your Account Value being allocated to the AST bond Portfolio Variable Option ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST bond Portfolio Variable Option that would result in more than 90% of the Account Value being allocated to the AST bond Portfolio Variable Option, only the amount that results in exactly 90% of the Account Value being allocated to the AST bond Portfolio Variable Option will be transferred. Additionally, future transfers into the AST bond Portfolio Variable Option will not be made (regardless of the performance of the AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a transfer out of the AST bond Portfolio Variable Option. Once this transfer occurs out of the AST bond Portfolio Variable Option, future amounts may be transferred to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST bond Portfolio Variable Option that results in greater than 90% of your Account Value being allocated to the AST bond Portfolio Variable Option. However, it is possible that, due to the investment performance of your allocations in the AST bond Portfolio Variable Option and your allocations in the Permitted Variable Options you have elected, your Account Value could be more than 90% invested in the AST bond Portfolio Variable Option. If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST bond Portfolio Variable Option at least until there is first a transfer out of the AST bond Portfolio Variable Option, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST bond Portfolio Variable Option, and the formula will still not transfer any of your Account Value to the AST bond Portfolio Variable Option (at least until there is first a transfer out of the AST bond Portfolio Variable Option).

For example,

• March
 19, 2010 – a transfer is made to the AST bond Portfolio Variable Option that results in the 90% cap being met and now $90,000 is allocated to the
 AST bond Portfolio Variable Option and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2010 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST bond Portfolio Variable
 Option to the Permitted Variable Options since the cap went into effect on March 19, 2010.

• On
 March 20, 2010 (and at least until first a transfer is made out of the AST bond Portfolio Variable Option under the formula) –the $10,000 payment is
 allocated to the Permitted Variable Options and on this date you have 82% in the AST bond Portfolio Variable Option and
 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST bond Portfolio
 Variable Option).

• Once
 there is a transfer out of the AST bond Portfolio Variable Option (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into existence and be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Sub- accounts you have chosen and the AST bond Portfolio Variable Option as dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees, as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST bond Portfolio Variable Options. Therefore, at any given time, some, none, or most of your Account Value may be allocated to the AST bond Portfolio Variable Options.

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Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST bond Portfolio Variable Options pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST bond Portfolio Variable Options;

• The
 discount rate used to determine the present value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the AST bond Portfolio Variable Options will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the market recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected. The AST bond Portfolio Variable Options are available only with these benefits, and you may not allocate Purchase Payments to or transfer Account Value to or from the AST bond Portfolio Variable Options.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

GRO Plus II can be elected on the Issue Date of your Annuity, or on any Valuation Day thereafter, provided that your Account Value is allocated in a manner permitted with the benefit and that you otherwise meet our eligibility rules. You may elect GRO Plus II only if the oldest of the Owner and Annuitant is 84 or younger on the date of election (80 or younger, in New York). If you currently participate in a living benefit that may be cancelled, you may terminate that benefit at any time and elect GRO Plus II. However, you will lose all guarantees that you had accumulated under those benefits. The base guarantee under GRO Plus II will be based on your current Account Value at the time the new benefit becomes effective on your Annuity.

GRO Plus II will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, GRO Plus II will no longer provide any guarantees. The charge for the GRO Plus II benefit will no longer be deducted from your Account Value upon termination of the benefit.

If you wish, you may cancel the GRO Plus II benefit. You may also cancel an enhanced guarantee, but leave the base guarantee intact. Upon cancellation, you may elect any other currently available living benefit beginning on the next Valuation Day after you have cancelled the GRO Plus II benefit, provided that your Account Value is allocated in a manner permitted with the benefit and that you otherwise meet our eligibility rules. Upon cancellation of the GRO Plus II benefit, any Account Value allocated to the AST Bond Portfolio used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis (i.e., in direct proportion to your current allocations). Upon your re-election of GRO Plus II, Account Value may be transferred between the AST Bond Portfolios and the Permitted Variable Options according to the predetermined mathematical formula (see "Key Feature – Allocation of Account Value" above for more details). It is possible that over time the formula could transfer some, none, or most of the Account Value to the AST Bond Portfolios under GRO Plus II. **You also** **should be aware that upon cancellation of the GRO Plus II benefit, you will lose all guarantees that you had accumulated under the benefit.** **Thus, the guarantees under any newly-elected benefit will be based on your current Account Value at benefit effectiveness. The benefit you** **elect or re-elect may be more expensive than the benefit you cancel. Once the GRO Plus II benefit is canceled you are not required to re-elect** **another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation** **of the GRO Plus II benefit provided that the benefit you are looking to elect is available on a post-issue basis.**

**There is no guarantee that any benefit will be available for election at a later date.**

**Special Considerations under GRO Plus II**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options. **The Permitted Variable** **Options are those described in the "** [**<u>Appendix A - Stipulated Investment Options</u>**](#chapter_18-sect1_1_930) **" section of this prospectus.** No fixed interest rate
 allocations may be in effect as of the date that you elect to participate in the benefit.

• Transfers
 to and from your elected Variable Options and an AST bond Portfolio Variable Option will not count toward the maximum number of
 free transfers allowable under the Annuity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST bond Portfolio Variable Option.

• We
 currently limit the Variable Options to which you may allocate Account Value if you participate in this benefit. Moreover, if you are invested in prohibited
 investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options as a
 prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move Account Value to eligible investment
 options will not be counted in determining the number of free transfers during an Annuity Year.

• If
 you elect this benefit, and in connection with that election you are required to reallocate to different investment options permitted
 under this benefit,
 then on the Valuation Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted investment
 options and (ii) invest the proceeds of those sales in the permitted investment options that you have designated. During this reallocation
 process, your Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The
 protection afforded by the newly-elected benefit will not arise until the close of business on the following Valuation Day.

**Charges under the Benefit**

The maximum charge for GRO Plus II is 0.60% of the daily net assets of the Variable Options (including any AST bond Portfolio). The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on a Maturity Date is less than the amount guaranteed and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

***HIGHEST DAILY GUARANTEED RETURN OPTION II (HD GRO II)***

You can elect this benefit on the Issue Date of your Annuity, or at any time thereafter if available. In addition, you may cancel HD GRO II and then re-elect the benefit beginning on the next Valuation Day if available, provided that your Account Value is allocated as required by the benefit and that you otherwise meet our eligibility rules. If you cancel the benefit, you lose all guarantees that you had accumulated under the benefit. The initial guarantee under the newly-elected benefit will be based on your current Account Value at the time the new benefit becomes effective on your Annuity. HD GRO II is not available if you participate in any other living benefit. However, HD GRO II may be elected together with any optional death benefit, other than the Highest Daily Value Death Benefit or the Plus40 Optional Life Insurance Rider. As detailed below under "Key Feature – Allocation of Account Value", your participation in this benefit among other things entails your participation in a program that, as dictated by a predetermined mathematical formula, may transfer your Account Value between your elected Variable Options and an AST bond Portfolio Variable Option.

HD GRO II creates a series of separate guarantees, each of which is based on the highest Account Value attained on a day during the applicable time period. As each year of your participation in the benefit passes, we create a new guarantee. Each guarantee then remains in existence until the date on which it matures (unless the benefit terminates sooner). We refer to each date on which the specified Account Value is guaranteed as the "Maturity Date" for that guarantee. HD GRO II will not create a guarantee if the Maturity Date of that guarantee would extend beyond the date by which annuity payments must commence under the terms of your Annuity. This is true even with respect to a new Owner who has acquired the Annuity from the original Owner.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Account Value, and the transfer of Account Value to support our future guarantees, the benefit may provide some protection from significant Variable Option losses. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

The initial guarantee is created on the day that the HD GRO II benefit is added to your Annuity. We guarantee that your Account Value on the tenth anniversary of that day (we refer to each such anniversary as a "benefit anniversary") will not be less than your Account Value on the day that the HD GRO II benefit was added or re-added to your Annuity. Each benefit anniversary thereafter, we create a new guarantee. With respect to each such subsequent guarantee, we identify the highest Account Value that occurred between the date of that benefit anniversary and the date on which HD GRO II was added to your Annuity. We guarantee that your Account Value ten years after that benefit anniversary will be no less than the highest daily Account Value that occurred during that time period. The following example illustrates the time period over which we identify the highest daily Account Value for purposes of each subsequent guarantee under the benefit. If the date of benefit election were January 1, 2010, we would create a guarantee on January 1, 2014 based on the highest Account Value achieved between January 1, 2010 and January 1, 2014, and that guarantee would mature on January 1, 2024. As described below, we adjust each of the guarantee amounts for Purchase Payments and withdrawals.

If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the AST bond Portfolio Variable Option used with this benefit and described below) in accordance with your most recent allocations instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST bond Portfolio Variable Option associated with the maturing guarantee to your other Variable Options on a proportional basis, unless your Account Value is being allocated according to an asset allocation program, in such case your Account Value will be transferred according to the program.

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We increase the amount of each guarantee that has not yet reached its Maturity Date, as well as the highest daily Account Value that we calculate to establish a guarantee, by the amount of each Purchase Payment (including any associated purchase Credits) made prior to the applicable Maturity Date. For example, if the effective date of the benefit was January 1, 2010, and there was an initial guaranteed amount that was set at $100,000 maturing January 1, 2020, and a second guaranteed amount that was set at $120,000 maturing January 1, 2021, then a $30,000 Purchase Payment made on March 30, 2011 would increase the guaranteed amounts to $130,000 and $150,000, respectively.

If you make a withdrawal (including any CDSC), we effect a proportional reduction to each existing guarantee amount. We calculate a proportional reduction by reducing each existing guarantee amount by the percentage represented by the ratio of the withdrawal amount (including any CDSC) to your Account Value immediately prior to the withdrawal.

If you make a withdrawal, we will deduct the withdrawal amount on a proportional basis from each of your Variable Options (including the AST bond Portfolio Variable Option used with this benefit).

Any partial withdrawal for payment of any third party investment advisory service will be treated as a withdrawal, and will reduce each guarantee amount proportionally, in the manner indicated above.

**EXAMPLE**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2010

• The
 benefit is elected on December 1, 2010

• The
 Account Value on December 1, 2010 is $200,000, which results in an initial guarantee of $200,000

• An
 additional guarantee amount of $300,000 is locked in on December 1, 2011

• The
 Account Value immediately prior to the withdrawal is equal to $300,000

• For
 purposes of simplifying these assumptions, we assume hypothetically that no CDSC is applicable (in general, a CDSC could be inapplicable
 based on the Free Withdrawal provision, if the withdrawal was within the CDSC period)

If a withdrawal of $50,000 is taken on December 15, 2011, all guarantee amounts will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation (figures are rounded):**

---

| | |
|:---|:---|
|  Withdrawal Amount | $50000 |
|  Divided by Account Value before withdrawal | $300000 |
|  Equals ratio | 16.67% |
|  All guarantees will be reduced by the above ratio (16.67%) |  |
|  Initial guarantee amount | $166667 |
|  Additional guarantee amount | $250000 |

---

**Key Feature – Allocation of Account Value**

We limit the Variable Options to which you may allocate Account Value if you elect HD GRO II. For purposes of this benefit, we refer to those permitted investment options (other than the AST bond Portfolio used with this benefit) as the "Permitted Variable Options". HD GRO II uses a predetermined mathematical formula to help manage your guarantees through all market cycles. The formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for existing Annuities that elect the benefit post-issue. This required formula helps us manage our financial exposure under HD GRO II, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve Account Value, by transferring it to a more stable option (i.e., one or more specified bond Portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond Portfolios collectively as the "AST bond Portfolio Variable Options". The formula also contemplates the transfer of Account Value from an AST bond Portfolio Sub- account to the other Variable Options. **The formula is set** **forth in** [**<u>Appendix P</u>**](#chapter_33-sect1_1_930) **of this prospectus. A summary description of each AST bond Portfolio Variable Option appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**.** In addition, you can find a copy of the AST bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

For purposes of operating the HD GRO II formula, we have included within each Annuity several AST bond Portfolio Variable Options. Each AST bond Portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond Portfolio whose underlying investments generally mature in 2020, an AST bond Portfolio whose underlying investments generally mature in 2021, and so forth. As discussed below, the formula determines the appropriate AST bond Portfolio Variable Option to which Account Value is transferred. We will introduce new

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AST bond Portfolio Variable Options in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit. If you have elected HD GRO II, you may have Account Value allocated to an AST bond Portfolio Variable Option only by operation of the formula, and thus you may not allocate Purchase Payments to or make transfers to or from an AST bond Portfolio Variable Option.

Although we employ several AST bond Portfolio Variable Options for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. The formula determines the appropriate AST bond Portfolio Variable Option to which Account Value is transferred. On any day a transfer into or out of the AST bond Portfolio Variable Option is made the formula may dictate that a transfer out of one AST bond Portfolio Variable Option be made into another AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability", as described below. As indicated, the formula and AST bond Portfolio Variable Options are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, the applicable formula under the benefit determines which AST bond Portfolio Variable Option your Account Value is transferred to, and under what circumstances a transfer is made.

In general, the formula works as follows. Under the formula, Account Value transfers between the "Permitted Variable Options" and an AST bond Portfolio Variable Option when dictated. On each Valuation Day, including the effective date of the benefit, the predetermined mathematical formula is used to compare your Account Value to an amount based on the guarantees provided under the benefit. The formula determines whether a transfer occurs based, among other things, on an identification of the outstanding guarantee that has the largest present value. Based on the formula, a determination is made as to whether any portion of your Account Value is to be transferred to or from the AST bond Portfolio Sub- account. In identifying those guarantees, we consider each guarantee that already has been set (i.e., on a benefit anniversary), as well as an amount that we refer to as the "Projected Future Guarantee." The "Projected Future Guarantee" is an amount equal to the highest Account Value (adjusted for withdrawals, additional Purchase Payments, and any associated Credits as described in the section of the prospectus concerning HD GRO II) within the current benefit year that would result in a new guarantee. For the Projected Future Guarantee, the assumed Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the effective date of the benefit. As such, a Projected Future Guarantee could cause a transfer of Account Value into an AST bond Portfolio Variable Option. We only calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend beyond the latest Annuity Date applicable to the Annuity. The amount that is transferred to and from the AST bond Portfolio Variable Options pursuant to the formula depends upon the factors set forth in the seven bullet points below, some of which relate to the guarantee amount(s), including the Projected Future Guarantee.

For each outstanding guarantee and the Projected Future Guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the AST bond Portfolio Sub- account and to your Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount held within the Permitted Variable Options, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST bond Portfolio Variable Option, in the amount dictated by the formula (subject to the 90% cap rule discussed below). If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount within the Permitted Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Account Value from the AST bond Portfolio Variable Option into the Permitted Variable Options, in the amount dictated by the formula.

The formula will not execute a transfer to the AST bond Portfolio Variable Option that results in more than 90% of your Account Value being allocated to the AST bond Portfolio Variable Option ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST bond Portfolio Variable Option that would result in more than 90% of the Account Value being allocated to the AST bond Portfolio Variable Option, only the amount that results in exactly 90% of the Account Value being allocated to the AST bond Portfolio Variable Option will be transferred. Additionally, future transfers into the AST bond Portfolio Variable Option will not be made (regardless of the performance of the AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a transfer out of the AST bond Portfolio Variable Option. Once this transfer occurs out of the AST bond Portfolio Variable Option, future amounts may be transferred to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST bond Portfolio Variable Option that results in greater than 90% of your Account Value being allocated to the AST bond Portfolio Variable Option. However, it is possible that, due to the investment performance of your allocations in the AST bond Portfolio Variable Option and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the AST bond Portfolio Variable Option. If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST bond Portfolio Variable Option at least until there is first a transfer out of the AST bond Portfolio Variable Option, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST bond Portfolio Variable Option, and the formula will still not transfer any of your Account Value to the AST bond Portfolio Variable Option (at least until there is first a transfer out of the AST bond Portfolio Variable Option).

For example,

• March
 17, 2011 – a transfer is made to the AST bond Portfolio Variable Option that results in the 90% cap being met and now $90,000 is allocated to the
 AST bond Portfolio Variable Option and $10,000 is allocated to the Permitted Variable Options.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• March
 18, 2011 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST bond Portfolio Sub- account
 to the Permitted Variable Options since the cap went into effect on March 17, 2011.

• On
 March 18, 2011 (and at least until first a transfer is made out of the AST bond Portfolio Variable Option under the formula) – the $10,000 payment is
 allocated to the Permitted Variable Options and on this date you have 82% in the AST bond Portfolio Variable Option and
 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST bond Portfolio
 Variable Option).

• Once
 there is a transfer out of the AST bond Portfolio Variable Option (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST bond Portfolio Variable Option as dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST bond Portfolio Variable Options. Therefore, at any given time, some, none, or most of your Account Value may be allocated to the AST bond Portfolio Variable Options.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST bond Portfolio Sub- accounts pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST bond Portfolio Variable Options; The discount rate used to determine the present
 value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the AST bond Portfolio Variable Options will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the market recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

The AST bond Portfolio Variable Options are available only with certain optional living benefits, and you may not allocate Purchase Payments to or transfer Account Value to or from the AST bond Portfolio Variable Options.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

HD GRO II can be elected on the Issue Date of your Annuity, or on any Valuation Day thereafter, provided that your Account Value is allocated in a manner permitted with the benefit and you otherwise meet our eligibility requirements. You may elect HD GRO II only if the oldest of the Owner and Annuitant is 84 or younger on the date of election (80 or younger, in New York). If you currently participate in a living benefit that may be cancelled, you may terminate that benefit at any time and elect HD GRO II. However you will lose all guarantees that you had accumulated under the previous benefit. The initial guarantee under HD GRO II will be based on your current Account Value at the time the new benefit becomes effective on your Annuity.

HD GRO II will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, HD GRO II will no longer provide any guarantees. The charge for the HD GRO II benefit will no longer be deducted from your Account Value upon termination of the benefit.

If you wish, you may cancel the HD GRO II benefit. You may then elect any other currently available living benefit beginning on the next Valuation Day after you have cancelled the HD GRO II benefit, provided that your Account Value is allocated in the manner permitted with the benefit and you otherwise meet our eligibility requirements. Upon cancellation of the HD GRO II benefit, any Account Value allocated to the AST Bond Portfolios used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis (i.e., in direct proportion to your current allocations). Upon your re-election of HD GRO II, Account Value may be transferred between the AST Bond Portfolios and the other Variable Options according to the predetermined mathematical formula (see "[<u>Key Feature – Allocation of Account</u> <u>Value</u>](#chapter_11-sect1_2_1930)" section for more details). It is possible that over time the formula could transfer some, most, or none of the Account Value to the AST Bond Portfolios under the newly-elected benefit. **You also should be aware that upon cancellation of the HD GRO II benefit, you will lose all guarantees** **that you had accumulated under the benefit. Thus, the guarantees under your newly-elected benefit will be based on your current Account** **Value at the time the new benefit becomes effective. The benefit you elect or re-elect may be more expensive than the benefit you cancel.**

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There is no guarantee that any benefit will be available for election at a later date.

**Special Considerations under HD GRO II**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options. **The Permitted Variable** **Options are those described in the "** [**<u>Appendix A - Stipulated Investment Options</u>**](#chapter_18-sect1_1_930) **" section of the prospectus.** No fixed interest rate allocations
 may be in effect as of the date that you elect to participate in the benefit.

• Transfers
 to and from your elected Variable Options and an AST bond Portfolio Variable Option will not count toward the maximum number of
 free transfers allowable under the Annuity.

• Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST bond Portfolio Variable Option.

• We
 currently limit the Variable Options to which you may allocate Account Value if you participate in this benefit. Moreover, if you are invested in prohibited
 investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options as a
 prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move Account Value to eligible investment
 options will not be counted in determining the number of free transfers during an Annuity Year.

• If
 you elect this benefit, and in connection with that election you are required to reallocate to different investment options permitted
 under this benefit,
 then on the Valuation Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted investment
 options and (ii) invest the proceeds of those sales in the permitted investment options that you have designated. During this reallocation
 process, your Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The
 newly-elected benefit will commence at the close of business on the following Valuation Day. The protection afforded by the newly-elected
 benefit will not arise until the close of business on the following Valuation Day.

**Charges under the Benefit**

The maximum charge for HD GRO II is 0.60% of the daily net assets of the Variable Options (including any AST bond Portfolio Variable Option). The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

***GUARANTEED RETURN OPTION PLUS (GRO Plus)***

**GRO Plus is no longer available for new elections.**

GRO Plus is an optional benefit that, after a seven-year period following commencement of the benefit (we refer to the end of that period and any applicable subsequent period as the "Maturity Date") and on each anniversary of the Maturity Date thereafter while the benefit remains in effect, guarantees your Account Value will not be less than your Account Value on the effective date of your benefit (called the "Protected Principal Value"). The benefit also offers you the opportunity to elect a second, enhanced guaranteed amount at a later date if your Account Value has increased, while preserving the guaranteed amount established on the effective date of your benefit. The enhanced guaranteed amount (called the "Enhanced Protected Principal Value") guarantees that, after a separate period following election of the enhanced guarantee and on each anniversary thereafter while this enhanced guarantee amount remains in effect, your Account Value will not be less than your Account Value on the effective date of your election of the enhanced guarantee. If the Maturity Date of any guarantee under GRO Plus is not a Valuation Day, and we are required to contribute an amount to your Account Value with respect to that maturing guarantee, we would contribute such an amount on the next Valuation Day.

The benefit monitors your Account Value daily and, if necessary, systematically transfers amounts between the Variable Options you choose and Market Value Adjustment Fixed Allocations used to support the Protected Principal Value(s). The benefit may be appropriate if you wish to protect a principal amount against poor Variable Option performance as of a specific date in the future. There is an additional charge if you elected the Guaranteed Return Option Plus benefit.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s) and on each anniversary of the Maturity Date(s) thereafter.

**Key Feature – Protected Principal Value/Enhanced Protected Principal Value**

The Guaranteed Return Option Plus offers a base guarantee as well as the option of electing an enhanced guarantee at a later date.

• **Base Guarantee:** Under
 the base guarantee, we guarantee that on the Maturity Date and on each anniversary of the Maturity Date thereafter
 that the benefit remains in effect, your Account Value will be no less than the Protected Principal Value. On the Maturity Date and
 on each anniversary after the Maturity Date that the benefit remains in effect, if your Account Value is below the Protected Principal Value, we will apply
 additional amounts to your Annuity from its general account to increase your Account Value to be equal to the Protected
 Principal Value. A subsequent Purchase Payment increases the amount of the base guarantee by the amount of the Purchase

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Payment (plus any Credits), and withdrawals reduce the base guarantee (as discussed below). Any amounts applied to your Account Value by us on the Maturity Date or any anniversary of the Maturity Date will first be applied to any Market Value Adjustment Fixed Allocations then required to support guarantees due on subsequent Maturity Dates. We will allocate the remainder to the Variable Options on a proportional basis, based on the Account Value in the Variable Options at that time.

• **Enhanced Guarantee:** On
 any anniversary following commencement of the benefit, you can establish an enhanced guarantee amount based
 on your current Account Value. Under the enhanced guarantee, we guarantee that at the end of the specified period following the election
 of the enhanced guarantee (also referred to as its "Maturity Date"), and on each anniversary of the Maturity Date thereafter
 that the enhanced
 guaranteed amount remains in effect, your Account Value will be no less than the Enhanced Protected Principal Value. **You** **can elect an enhanced guarantee more than once; however, a subsequent election supersedes the prior election of an enhanced** **guarantee. Election of an enhanced guarantee does not impact the base guarantee. In addition, you may elect an "auto step-up"** **feature that will automatically create an enhanced guarantee (or increase your enhanced guarantee, if previously elected) on** **each anniversary of the benefit (and create a new maturity period for the new enhanced guarantee) if the Account Value as of** **that anniversary exceeds the Protected Principal Value or Enhanced Protected Principal Value by 7% or more. You may also** **elect to terminate an enhanced guarantee. If you elect to terminate the enhanced guarantee, any amounts held in the Market** **Value Adjustment Fixed Allocations for the enhanced guarantee will be liquidated, on the Valuation Day the request is** **processed, (which may result in a Market Value Adjustment), and such amounts will be transferred according to the rules** **described in "** [**<u>Termination of the Benefit/ Enhanced Guarantee</u>**](#chapter_11-sect1_6_9300) **". Termination of an enhanced guarantee will not result in** **termination of the base guarantee.** If you have elected the enhanced guarantee, on the guarantee's Maturity Date and on each anniversary
 of the Maturity Date thereafter that the enhanced guarantee amount remains in effect, if your Account Value is below the Enhanced
 Protected Principal Value, we will apply additional amounts to your Annuity from its general account to increase your Account Value
 to be equal to the Enhanced Protected Principal Value. Any amounts applied to your Account Value by us on the Maturity Date or any
 anniversary of the Maturity Date will first be applied to any Market Value Adjustment Fixed Allocations then required to support guarantees
 due on subsequent Maturity Dates. We will allocate the remainder to the Variable Options on a proportional basis, based on the
 Account Value in the Variable Options at that time.

If our assumptions are correct and the operations relating to the administration of the benefit work properly, we do not expect that we will need to add additional amounts to your Annuity. The Protected Principal Value is referred to as the "Base Guarantee" and the Enhanced Protected Principal Value is referred to as the "Step-Up Guarantee" in the rider we issue for this benefit.

**Withdrawals under your Annuity**

Withdrawals from your Annuity, while the benefit is in effect, will reduce the base guarantee under the benefit as well as any enhanced guarantee. Cumulative annual withdrawals up to 5% of the Protected Principal Value as of the effective date of the benefit (adjusted for any subsequent Purchase Payments and, with respect to XT6, any Credits applied to such Purchase Payments) will reduce the applicable guaranteed amount by the actual amount of the withdrawal (referred to as the "dollar-for-dollar limit"). If the amount withdrawn is greater than the dollar-for-dollar limit, the portion of the withdrawal equal to the dollar-for-dollar limit will be treated as described above, and the portion of the withdrawal in excess of the dollar-for-dollar limit will reduce the base guarantee and the enhanced guarantee proportionally, according to the formula as described in the rider for this benefit (see the examples of this calculation below). Withdrawals other than Systematic Withdrawals will be taken on a proportional basis from the Variable Options and any Market Value Adjustment Fixed Allocations. Withdrawals will be subject to all other provisions of your Annuity, including any Contingent Deferred Sales Charge and Market Value Adjustment (which may be positive or negative) that would apply.

Charges for other optional benefits under your Annuity that are deducted as an annual charge in arrears will not reduce the applicable guaranteed amount under the Guaranteed Return Option Plus benefit, however, any partial withdrawals in payment of charges for the Plus40 Optional Life Insurance Rider (not currently offered for sale) and any third party investment advisory service will be treated as withdrawals and will reduce the applicable guaranteed amount.

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GRO Plus benefit are October 13, 2004; 2.) an initial Purchase Payment of $250,000 (includes any Credits under XT6); 3.) a base guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GRO Plus or other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 29, 2004 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Dollar-for-dollar Limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

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**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 18, 2004 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 base guarantee amount is first reduced by the Remaining Limit (from $240,000 to $237,500);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the Remaining Limit ($10,000 - $2,500, or $7,500).

○ B
 is the Account Value less the Remaining Limit ($180,000 - $2,500, or $177,500).

The resulting base guarantee amount is: $237,500 × (1 - $7,500 / $177,500), or $227,464.79.

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the Dollar-for-Dollar Limit**

A $10,000 withdrawal is made on December 19, 2005 (second Annuity Year). The Remaining Limit has been reset to the dollar-for-dollar limit of $12,500. As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., reduced by $10,000, from $227,464.79 to $217,464.79).

• The
 Remaining Limit for the balance of the second Annuity Year is also reduced by the amount withdrawn (from $12,500 to $2,500).

**Key Feature – Allocation of Account Value**

GRO Plus uses a mathematical formula that we operate to help manage your guarantees through all market cycles. Each Valuation Day, the formula determines if any portion of your Account Value needs to be transferred into or out of the Market Value Adjustment Fixed Allocations, through reference to a "reallocation trigger". The formula does this by (a) first identifying each guarantee that is outstanding under GRO Plus (b) then discounting the value of each such guarantee to a present value, based on crediting rates associated with the Market Value Adjustment Fixed Allocations, then (c) identifying the largest of such present values. Then, the formula compares the largest present value to both the Account Value and the value of assets allocated to the Variable Options to determine whether a transfer into or out of the Market Value Adjustment Fixed Allocations is required. As detailed in the formula, if that largest present value exceeds the Account Value less a percentage of the Variable Option value, a transfer into the Market Value Adjustment Fixed Allocations will occur. Conversely, if the largest present value is less than the Account Value less a percentage of the Variable Option value, a transfer out of the Market Value Adjustment Fixed Allocations will occur. This required formula helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Market Value Adjustment Fixed Allocations). **The formula is set forth in** [**<u>Appendix K</u>**](#chapter_28-sect1_1_930) **of this prospectus.**

If your Account Value is greater than or equal to the reallocation trigger, then:

• your
 Account Value in the Variable Options will remain allocated according to your most recent instructions; and

• if
 a portion of your Account Value is allocated to a Market Value Adjustment Fixed Allocation to support the applicable guaranteed amount, all or a portion
 of those amounts will be transferred from the Market Value Adjustment Fixed Allocation and re-allocated to the Variable Options
 according to any asset allocation programs (including an Automatic Rebalancing program) established on your Annuity or in the absence
 of such programs, on a proportional basis, based on the Account Values in such Variable Options at that time; and

• if
 all of your Account Value is allocated to a Market Value Adjustment Fixed Allocation, then all or a portion of that amount may be transferred
 from the Market Value Adjustment Fixed Allocation and re-allocated to the Variable Options, according to the following hierarchy:
 (i) first according to any asset allocation program that you may have in effect (ii) if no such program is in effect, then in accordance
 with any automatic rebalancing program that you may have in effect and (iii) if neither such program is in effect, then to the AST
 Government Money Market Variable Option; and

• a
 Market Value Adjustment will apply when we reallocate Account Value from a Market Value Adjustment Fixed Allocation to the Variable Options,
 which may result in a decrease or increase in your Account Value.

If your Account Value is less than the reallocation trigger, a portion of your Account Value in the Variable Options will be transferred from the Sub- accounts on a proportional basis according to your allocations to a new Market Value Adjustment Fixed Allocation(s) to support the applicable guaranteed amount. The new Market Value Adjustment Fixed Allocation(s) will have a Guarantee Period equal to the time remaining until the applicable Maturity Date(s). The Account Value allocated to the new Market Value Adjustment Fixed Allocation(s) will be credited with the fixed interest rate(s) then being credited to a new Market Value Adjustment Fixed Allocation(s) maturing on the applicable Maturity Date(s) (rounded to the next highest yearly duration). The Account Value will remain invested in each applicable Market Value Adjustment Fixed Allocation until the applicable Maturity Date unless, at an earlier date, your Account Value is greater than or equal to the reallocation trigger and, therefore, amounts can be transferred to the Variable Options while maintaining the guaranteed protection under the program (as described above).

At any given time, some, none, or all of your Account Value may be allocated to the Market Value Adjustment Fixed Allocations. With respect to any amounts held within the Market Value Adjustment Fixed Allocations, we can give no assurance how long the amounts will reside there or if such amounts will transfer out of the Market Value Adjustment Fixed Allocations. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Market Value Adjustment Fixed Allocations. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula,

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which may result in immediate transfers to or from the Market Value Adjustment Fixed Allocations, if dictated by the formula. The amount of such transfers will vary, as dictated by the formula, and will depend on the factors listed below. Market value adjustment will always be applicable on withdrawals and/or surrenders when allocated to the MVA Fixed allocations.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Market Value Adjustment Fixed Allocations pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value (including any Market Value Adjustment) and your Protected Principal Value(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Variable Options;

• The
 amount invested in, and interest earned within, the Market Value Adjustment Fixed Allocations;

• The
 current crediting rates associated with Market Value Adjustment Fixed Allocations;

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the Market Value Adjustment Fixed Allocations will affect your ability to participate in a subsequent recovery within the Variable Options. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

While you are not notified when your Account Value reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Market Value Adjustment Fixed Allocations.

You may not allocate Purchase Payments to or transfer Account Value to or from the Market Value Adjustment Fixed Allocations.

Separate Fixed Allocations may be established in support of the Protected Principal Value and the Enhanced Protected Principal Value (if elected). There may also be circumstances when a Market Value Adjustment Fixed Allocation will be established only in support of the Protected Principal Value or the Enhanced Protected Principal Value. If you elect an enhanced guarantee, it is more likely that a portion of your Account Value may be allocated to Market Value Adjustment Fixed Allocations and will remain allocated for a longer period of time to support the Enhanced Protected Principal Value, even during a period of positive Variable Option performance and/or under circumstances where Market Value Adjustment Fixed Allocations would not be necessary to support the Protected Principal Value. Further, there may be circumstances where Market Value Adjustment Fixed Allocations in support of the Protected Principal Value or Enhanced Protected Principal Value are transferred to the Variable Options under the formula differently than each other because of the different guarantees they support.

You should be aware of the following potential ramifications of the formula:

• Transfers
 of your Account Value can be frequent, and under some scenarios may occur on a daily basis. As indicated, each such transfer may
 be subject to a Market Value Adjustment, which can be positive or negative. Thus, a Market Value Adjustment will directly increase or reduce your Account
 Value.

• As
 indicated, some or even all, of your Account Value may be maintained in the Market Value Adjustment Fixed Allocations. The greater the
 Account Value held in Market Value Adjustment Fixed Allocations, the larger (in dollar terms) the Market Value Adjustment upon any transfer
 of such Account Value to the Variable Options.

• Transfers
 under the formula do not impact your guarantees under GRO Plus that have already been locked-in.

**Election of the Benefit**

We no longer permit new elections of GRO Plus. If you currently participate in GRO Plus, your existing guarantees are unaffected by the fact that we no longer offer GRO Plus. **Please note that if you terminate a living benefit such as GRO Plus and elect a new living benefit, you lose the** **guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account** **Value as of the date the new benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the** **future.**

**Termination of the Benefit/Enhanced Guarantee**

You can elect to terminate the enhanced guarantee but maintain the protection provided by the base guarantee. You also can terminate the Guaranteed Return Option Plus benefit entirely, in which case you will lose any existing guarantees.

Upon termination of the benefit or of the enhanced guarantee, any amounts held in the Market Value Adjustment Fixed Allocations related to the guarantee(s) being terminated will be transferred as follows: (a) if only a portion of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options on a proportional basis, based on your Account Value in such Variable Options on the day of the transfer, unless we receive other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program (b) if your entire Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable Option

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corresponding to the AST Government Money Market Portfolio, unless we receive prior instructions from you. A Market Value Adjustment will apply (except that if the benefit has terminated automatically due to payment of a death benefit, whether a Market Value Adjustment applies depends solely on the terms of the death benefit – see the "[<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930)" section of this prospectus).

In general, you may cancel GRO Plus and then elect another living benefit that is available post issue, effective on any Valuation Day after your cancellation of GRO Plus. If you terminate GRO Plus, you will lose all guarantees under that benefit. Your election of another living benefit is subject to State and firm availability and our eligibility rules.

The benefit will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract); (b) as of the date Account Value is applied to begin annuity payments; or (c) upon full surrender of the Annuity. If you elect to terminate the benefit, the Guaranteed Return Option Plus will no longer provide any guarantees. The surviving spouse may elect the benefit at any time, subject to the limitations described above, after the death of the Annuity Owner. The surviving spouse's election will be effective on the Valuation Day that we receive the required documentation in Good Order at our home office, and the Account Value on that Valuation Day will be the Protected Principal Value.

**Special Considerations under the Guaranteed Return Option Plus**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Variable Options. No Market Value Adjustment Fixed
 Allocations may be in effect as of the date that you elect to participate in the benefit. However, the formula may transfer Account Value
 to Market Value Adjustment Fixed Allocations as of the effective date of the benefit under some circumstances.

• You
 cannot allocate any portion of Purchase Payments (including any Credits applied to such Purchase Payments under XT6) or transfer Account
 Value to or from a Market Value Adjustment Fixed Allocation while participating in the benefit; however, all or a portion of any Purchase
 Payments (including any Credits applied to such Purchase Payments under XT6) may be allocated by us to a Market Value Adjustment
 Fixed Allocation to support the amount guaranteed. You cannot participate in any dollar cost averaging program that transfers Account
 Value from a Market Value Adjustment Fixed Allocation to a Variable Option.

• Transfers
 from Market Value Adjustment Fixed Allocations made as a result of the formula under the benefit will be subject to the Market Value
 Adjustment formula under an Annuity; however, the 0.10% liquidity factor in the formula will not apply. A Market Value Adjustment may
 be either positive or negative. Transfer amounts will be taken from the most recently established Market Value Adjustment Fixed Allocation.

• Transfers
 from the Variable Options to Market Value Adjustment Fixed Allocations or from Market Value Adjustment Fixed Allocations to the
 Sub- accounts under the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• Any
 amounts applied to your Account Value by us on the Maturity Date or any anniversary of the Maturity Date will not be treated as "investment
 in the contract" for income tax purposes.

• Low
 interest rates may require allocation to Market Value Adjustment Fixed Allocations even when the current Account Value exceeds the guarantee.

• As
 the time remaining until the applicable Maturity Date gradually decreases the benefit will become increasingly sensitive to moves to Market
 Value Adjustment Fixed Allocations.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

**Charges under the Benefit**

The maximum charge for Guaranteed Return Option Plus is 0.75% annually of the daily net assets of the Variable Options. The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed; and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

If you elect the Enhanced Guarantee under the benefit, and on the date you elect to step-up, the charges under the benefit have changed for new purchases, your benefit may be subject to the new charge level. These charges will not exceed the maximum charges shown in the "[<u>Fee Table</u>](#chapter_5-sect1_1_930)" section of this prospectus.

***GUARANTEED RETURN OPTION (GRO)***

**GRO is no longer available for new elections.**

GRO is an optional benefit that, after a seven-year period following commencement of the benefit (we refer to the end of that period as the "Maturity Date") guarantees your Account Value will not be less than your Account Value on the effective date of your benefit (called the "Protected Principal Value").

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The benefit monitors your Account Value daily and, if necessary, systematically transfers amounts pursuant to a mathematical formula between the Variable Options you choose and the Market Value Adjustment Fixed Allocation used to support the Protected Principal Value. There is an additional charge if you elect the Guaranteed Return Option benefit.

The guarantee provided by the benefit exists only on the applicable Maturity Date. However, due to the ongoing monitoring of your Account Value and the transfer of Account Value between the Variable Options and the Market Value Adjustment Fixed Allocation to support our future guarantee, the benefit may provide some protection from significant Variable Option losses if you choose to surrender your Annuity or begin receiving annuity payments prior to a Maturity Date.

**Key Feature – Protected Principal Value**

Under the GRO benefit, we guarantee that on the Maturity Date, your Account Value will be no less than the Protected Principal Value. On the Maturity Date if your Account Value is below the Protected Principal Value, we will apply additional amounts to your Annuity from its general account to increase your Account Value to be equal to the Protected Principal Value. A subsequent Purchase Payment increases the amount of the Protected Principal Value by the amount of the Purchase Payment (plus any Credits), and withdrawals reduce the Protected Principal Value (as discussed below).

We will notify you of any amounts added to your Annuity under the benefit. If our assumptions are correct and the operations relating to the administration of the benefit work properly, we do not expect that we will need to add additional amounts to an Annuity. The Protected Principal Value is generally referred to as the "Guaranteed Amount" in the rider we issue for this benefit.

**Key Feature – Allocation of Account Value**

GRO uses a mathematical formula that we operate to help manage your guarantees through all market cycles. The formula weighs a number of factors, including the current Account Value, the value in the Variable Options, the value in the Market Value Adjustment Fixed Allocations, the Protected Principal Value, the expected value of the Market Value Adjustment Fixed Allocations used to support the guarantee, the time remaining until maturity, and the current crediting rates associated with the Market Value Adjustment Fixed Allocations. In essence, and as detailed in the formula, the formula will transfer Account Value into the Market Value Adjustment Fixed Allocations if needed to support an anticipated guarantee. **The formula is set forth in** [**<u>Appendix</u>** **<u>L</u>**](#chapter_29-sect1_1_930) **of this prospectus.** This required formula thus helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Market Value Adjustment Fixed Allocations).

Each Valuation Day, the formula determines if any portion of your Account Value needs to be transferred into or out of the Market Value Adjustment Fixed Allocations, through reference to a "reallocation trigger". At any given time, some, none, or all of your Account Value may be allocated to the Market Value Adjustment Fixed Allocations. If your entire Account Value is transferred to the Market Value Adjustment Fixed Allocations, the formula will not transfer amounts out of the Market Value Adjustment Fixed Allocations to the Variable Options and the entire Account Value would remain in the Market Value Adjustment Fixed Allocations. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Market Value Adjustment Fixed Allocations. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Market Value Adjustment Fixed Allocations, if dictated by the formula. The amount of any such transfers will vary, as dictated by the formula, and will depend on the factors listed below.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Market Value Adjustment Fixed Allocations pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value (including any Market Value Adjustment) and your Protected Principal Value(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Variable Options;

• The
 amount invested in, and interest earned within, the Market Value Adjustment Fixed Allocations;

• The
 current crediting rates associated with Market Value Adjustment Fixed Allocations;

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the Market Value Adjustment Fixed Allocations will affect your ability to participate in a subsequent recovery within the Variable Options. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

While you are not notified when your Account Value reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Market Value Adjustment Fixed Allocation. You may not allocate Purchase Payments to or transfer Account Value to or from the Market Value Adjustment Fixed Allocations.

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You should be aware of the following potential ramifications of the formula:

• A
 Market Value Adjustment will apply when we reallocate Account Value from the Market Value Adjustment Fixed Allocation to the Variable Options. Transfers
 of your Account Value can be frequent, and under some scenarios may occur on a daily basis. As indicated, each such transfer
 may be subject to a Market Value Adjustment, which can be positive or negative. Thus, a Market Value Adjustment will directly increase
 or reduce your Account Value.

• As
 indicated, some or even all, of your Account Value may be maintained in the Market Value Adjustment Fixed Allocations. The greater the
 Account Value held in Market Value Adjustment Fixed Allocations, the larger (in dollar terms) the Market Value Adjustment upon any transfer
 of such Account Value to the Variable Options.

• If
 your Account Value is less than the reallocation trigger, a portion of your Account Value in the Variable Options will be transferred
 from the Variable
 Options on a proportional basis according to your allocations to a new Market Value Adjustment Fixed Allocation(s) to support the
 applicable guaranteed amount. The new Market Value Adjustment Fixed Allocation(s) will have a Guarantee Period equal to the time remaining
 until the applicable Maturity Date(s). The Account Value allocated to the new Market Value Adjustment Fixed Allocation(s) will be credited
 with the fixed interest rate(s) then being credited to a new Market Value Adjustment Fixed Allocation(s) maturing on the applicable Maturity
 Date(s) (rounded to the next highest yearly duration). The Account Value will remain invested in each applicable Market Value Adjustment
 Fixed Allocation until the applicable Maturity Date unless, at an earlier date, your Account Value is greater than or equal to the reallocation
 trigger and, therefore, amounts can be transferred to the Variable Options while maintaining the guaranteed protection under the
 program (as described above).

• If
 your Account Value is greater than or equal to the reallocation trigger, and therefore a portion of the Account Value must be transferred from the Market Value
 Adjustment Fixed Allocations to the Variable Options, then those amounts will be transferred from the Market Value Adjustment
 Fixed Allocations and re-allocated to the Variable Options according to any asset allocation programs (including an Automatic Rebalancing
 program) established on your Annuity or in the absence of such programs, on a proportional basis, based on the Account Values
 in such Variable Options at that time. A Market Value Adjustment will apply upon a transfer out of the Market Value Adjustment Fixed
 Allocations, which may result in an increase or decrease in your Account Value.

• Transfers
 under the formula do not impact your guarantees under GRO that have already been locked-in.

Withdrawals from your Annuity, while the benefit is in effect, will reduce the Protected Principal Value proportionally. The proportion will be equal to the proportionate reduction in the Account Value due to the withdrawal as of that date. Withdrawals will be taken on a proportional basis from the Variable Options and any Market Value Adjustment Fixed Allocations. Systematic Withdrawals will be taken on a proportional basis from the Variable Options and the Market Value Adjustment Fixed Allocations up to growth in the Market Value Adjustment Fixed Allocations and thereafter on a proportional basis solely from the Variable Options. The growth in the Market Value Adjustment Fixed Allocations at any point in time consists of the remaining earnings since the program of systematic withdrawal began. Withdrawals will be subject to all other provisions of your Annuity, including any Contingent Deferred Sales Charge and Market Value Adjustment that would apply.

**Election of the Benefit**

We no longer permit new elections of GRO. If you currently participate in GRO, your existing guarantees are unaffected by the fact that we no longer offer GRO. **Please note that if you terminate a living benefit such as GRO and elect a new living benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

**Restart of the Benefit**

Once each Annuity Year you may request to restart the Benefit. Such a request is an election by you to terminate the existing Benefit (and all guarantees under the benefit) and start a new one. Restarts only take effect on anniversaries of the Issue Date. To make such a request for a restart, you must notify us in advance in accordance with our administrative requirements. If we accept your request, we then terminate the existing Benefit as of that valuation period, if it is an anniversary of the Issue Date, or, if not, as of the next following anniversary of the Issue Date. The new Benefit starts at that time. The initial Protected Principal Value for the new Benefit is the Account Value as of the effective date of the new Benefit. Unless you tell us otherwise, the duration of the new Benefit will be the same as that for the existing Benefit. However, if we do not then make that duration available, you must elect from those we make available at that time. For those who elect to re-start the benefit, the charge will be assessed according to the current methodology prior to re-starting the benefit. – see "Charges under the Program" below.

As part of terminating the existing Benefit, we transfer any amounts in Market Value Adjustment Fixed Allocations, subject to a Market Value Adjustment, to the Variable Options on a proportional basis. If your entire Account Value was then in Market Value Adjustment Fixed Allocations, you must first provide us instructions as to how to allocate the transferred Account Value among the Variable Options.

**Termination of the Benefit**

The Annuity Owner also can terminate the Guaranteed Return Option benefit. Upon termination, any amounts held in the Market Value Adjustment Fixed Allocations will be transferred as follows: (a) if only a portion of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options on a proportional basis based on the Account Values in such Variable Options on the day of the transfer, unless we receive at our office other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are

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providing administrative support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program (b) if your entire Account Value is in Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable Option corresponding to the AST Government Money Market Portfolio, unless we receive at our Office prior instructions from you. A Market Value Adjustment will apply (except that if the benefit has terminated automatically due to payment of a death benefit, whether a Market Value Adjustment applies depends solely on the terms of the death benefit see the "[<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930)" section of this prospectus).

In general, you may cancel GRO and then elect another living benefit available post issue, effective on any Valuation Day after your cancellation of GRO. If you terminate GRO, you will lose all guarantees under that benefit. Your election of another living benefit is subject to State and firm availability and our eligibility rules.

The benefit will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract); (b) as of the date Account Value is applied to begin annuity payments; or (c) upon full surrender of your Annuity. If you elect to terminate the benefit, the Guaranteed Return Option will no longer provide any guarantees. If the surviving spouse assumes your Annuity, he/she may re-elect the benefit on any anniversary of the Issue Date of the Annuity or, if the deceased Owner had not previously elected the benefit, may elect the benefit at any time. The surviving spouse's election will be effective on the Valuation Day that we receive the required documentation in Good Order at our home office, and the Account Value on that Valuation Day will be the Protected Principal Value.

The charge for the Guaranteed Return Option benefit will no longer be deducted from your Account Value after the benefit has been terminated, although for those Annuities for which the GRO charge is deducted annually rather than daily (see Charges Under the Benefit), we will deduct the final annual charge upon termination of the benefit.

**Special Considerations under the Guaranteed Return Option.** This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Variable Options. The Market Value Adjustment
 Fixed Allocation must not have been in effect as of the date that you elected to participate in the benefit. However, the formula may
 transfer Account Value to the Market Value Adjustment Fixed Allocation as of the effective date of the benefit under some circumstances.

• Annuity
 Owners cannot allocate any portion of Purchase Payments (including any Credits applied to such Purchase Payments under XT6)
 or transfer Account Value to or from the Market Value Adjustment Fixed Allocation while participating in the benefit; however, all or
 a portion of any
 Purchase Payments (including any Credits applied to such Purchase Payments under XT6) may be allocated by us to the Market
 Value Adjustment Fixed Allocation to support the amount guaranteed. You cannot participate in any dollar cost averaging benefit that
 transfers Account Value from a Market Value Adjustment Fixed Allocation to a Variable Option.

• Transfers
 from the Market Value Adjustment Fixed Allocation made as a result of the formula under the benefit will be subject to the Market
 Value Adjustment formula under an Annuity; however, the 0.10% liquidity factor in the formula will not apply. A Market Value Adjustment
 may be either positive or negative. Transfer amounts will be taken from the most recently established Market Value Adjustment
 Fixed Allocation.

• Transfers
 from the Variable Options to the Market Value Adjustment Fixed Allocation or from the Market Value Adjustment Fixed Allocation to
 the Variable Options under the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• Any
 amounts applied to your Account Value by us on the Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• Any
 amounts that we add to your Annuity to support our guarantee under the benefit will be applied to the Variable Options on a proportional
 basis, after first transferring any amounts held in the Market Value Adjustment Fixed Allocations as follows: (a) if only a portion
 of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options
 on a proportional basis based on the Account Values in such Variable Options on the day of the transfer, unless we receive at our office
 other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative
 support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program
 and (b) if your entire Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable
 Option corresponding to the AST Government Money Market Portfolio, unless we receive at our Office prior instructions from you.

• Low
 interest rates may require allocation to the Market Value Adjustment Fixed Allocation even when the current Account Value exceeds the
 guarantee.

• As
 the time remaining until the applicable Maturity Date gradually decreases the benefit will become increasingly sensitive to moves to the Market Value Adjustment
 Fixed Allocation.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

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**Charges under the Benefit**

The maximum charge for Guaranteed Return Option is 0.75% annually of the daily net assets of the Variable Options. The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed; and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

With respect to XT6 and APEX II, effective November 18, 2002, we changed the manner in which the annual charge for the Guaranteed Return Option is deducted to the method described above. The annual charge for the Guaranteed Return Option for Owners who elected the benefit between February 4, 2002 and November 15, 2002 for XT6 and APEX II and subsequent to November 15, 2002 in those states where the daily deduction of the charge has not been approved, is deducted annually, in arrears, according to the prospectus in effect as of the date the benefit was elected.

Owners who purchased an ASAP III Annuity between April 1, 2003 and September 30, 2003 or an ASL II Annuity between February 4, 2002 and November 15, 2002 (the "Promotional Period") will not be charged the annual fee for the Guaranteed Return Option benefit (or the fee for GRO Plus, if that benefit was elected and the Annuity was acquired during the Promotional Period) if elected at any time while their Annuity is in effect.

• We
 will not charge the annual fee for the entire period that the benefit remains in effect, including any extension of the benefit's
 Maturity Date resulting
 from the Owner's election to restart the 7-year benefit duration, regardless of when the Owner elects to participate in the Guaranteed
 Return Option benefit (or the fee for GRO Plus if that benefit was elected and the Annuity was during the Promotional Period).

• Owners
 who complete the initial 7-year benefit duration OR terminate the benefit before the benefit's Maturity Date, will not be charged the annual fee for
 participating in the benefit if they re-elect the Guaranteed Return Option benefit (or the fee for GRO Plus if that benefit was
 elected and the Annuity was acquired during the Promotional Period).

• All
 other terms and conditions of your Annuity and the Guaranteed Return Option benefit (or the fee for GRO Plus if that benefit was elected
 and the Annuity was acquired during the Promotional Period) apply to Owners who qualify for the waiver of the annual fee.

• Owners
 who purchase an Annuity after the completion of the Promotional Period do not qualify for the annual fee waiver.

***GUARANTEED RETURN OPTION PLUS 2008 (GRO Plus 2008)***

**GRO Plus 2008 is no longer available for new elections.**

Under GRO Plus 2008, we guarantee that the Account Value on the date that the benefit is added to your Annuity (adjusted for subsequent Purchase Payments and withdrawals as detailed below) will not be any less than that original value on the seventh anniversary of benefit election and each anniversary thereafter. We refer to this initial guarantee as the "base guarantee." In addition to the base guarantee, GRO Plus 2008 offers the possibility of an enhanced guarantee. You may lock in an enhanced guarantee once per "benefit year" (i.e., a year beginning on the date you acquired the benefit and each anniversary thereafter) if your Account Value on the Valuation Day exceeds the amount of any outstanding base guarantee or enhanced guarantee. We guarantee that the Account Value locked-in by that enhanced guarantee will not be any less seven years later, and each anniversary of that date thereafter. In addition, you may elect an automatic enhanced guarantee feature under which, if Account Value on a benefit anniversary exceeds the highest existing guarantee by 7% or more, we guarantee that such Account Value will not be any less seven benefit anniversaries later and each benefit anniversary thereafter. You may maintain only one enhanced guarantee in addition to your base guarantee. Thus, when a new enhanced guarantee is created, it cancels any existing enhanced guarantee. However, the fact that an enhanced guarantee was effected automatically on a benefit anniversary does not prevent you from "manually" locking-in an enhanced guarantee during the ensuing benefit year. Please note that upon creation of a new enhanced guarantee, an immediate transfer to an AST Bond portfolio (which is used as part of this benefit) may occur depending on the discount rate (as described below) used to determine the present value of each of your guarantees. You may elect to terminate an enhanced guarantee without also terminating the base guarantee. If you do, any amounts held in the AST Bond portfolio with respect to that enhanced guarantee will be transferred to your other Variable Options in accordance with your current allocation instructions. Amounts held in an AST Bond portfolio with respect to the base guarantee will not be transferred as a result of the termination of an enhanced guarantee. Please note that whenever an enhanced guarantee is created, we reserve the right to increase your charge for GRO Plus 2008 if we have increased the charge for new elections of the benefit generally. You may not lock in an enhanced guarantee, either manually or through our optional automatic program, within seven years of the date by which annuity payments must commence under the terms of your Annuity (please see "[<u>How and When Do I Choose The Annuity Payment Option?</u>](#chapter_10-sect1_2_930)" for further information on your maximum Annuity Date). The inability to lock in an enhanced guarantee referenced in the immediately preceding sentence also applies to a new Owner who has acquired the Annuity from the original Owner.

In general, we refer to a date on which the Account Value is guaranteed to be present as the "Maturity Date". If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the "Current AST Bond portfolio" described below) in accordance with your current allocations instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the Current AST Bond portfolio associated with the maturing guarantee to your other Variable Options, on a proportional basis. If the entire Account Value is invested in an AST Bond portfolio, we will allocate according to your current allocation instructions.

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We increase both the base guarantee and any enhanced guarantee by the amount of each Purchase Payment (and associated Credits) made subsequent to the date that the guarantee was established. For example, if the effective date of the benefit was January 1, 2009 and the Account Value was $100,000 on that date, then a $30,000 Purchase Payment made on March 30, 2010 would increase the base guarantee amount to $130,000. As illustrated in the examples below, additional Purchase Payments also increase an amount we refer to as the "dollar-for-dollar corridor."

The dollar-for-dollar corridor is equal to 5% of the base guarantee amount (i.e., 5% of the Account Value at benefit election). Thereafter, the dollar-for-dollar corridor is adjusted only for subsequent Purchase Payments (i.e., 5% of the Purchase Payment is added to the corridor amount) and "excess withdrawals" (as described below). Thus, the creation of any enhanced guarantee has no impact on the dollar-for-dollar corridor. Each "benefit year", withdrawals that you make that are equal to or less than the dollar-for-dollar corridor reduce both the amount of the dollar-for-dollar corridor for that benefit year plus the base guarantee amount and the amount of any enhanced guarantee by the exact amount of the withdrawal. However, if you withdraw more than the dollar-for-dollar corridor in a given benefit year, we use the portion of the withdrawal that exceeded the dollar-for-dollar corridor to effect a proportional reduction to both the dollar-for-dollar corridor itself and each guarantee amount. We calculate a proportional reduction by (i) identifying the amount of the withdrawal that exceeded the dollar-for-dollar corridor (the "excess withdrawal") (ii) subtracting the dollar-for-dollar amount from the Account Value prior to the withdrawal (iii) dividing the excess withdrawal by the amount in (ii). We then use the resulting proportion to reduce each of the guaranteed amount and the dollar-for-dollar corridor itself. See examples of this calculation below.

Any partial withdrawals in payment of any third party investment advisory service will be treated as withdrawals, and will reduce each guarantee amount and the dollar-for-dollar corridor in the manner indicated above.

**EXAMPLES**

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GRO Plus 2008 benefit are October 13, 2008; 2.) an initial Purchase Payment of $250,000 (includes any Credits); 3.) a base guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GRO Plus 2008 or other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 29, 2008 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Dollar-for-dollar Limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 18, 2008 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 base guarantee amount is first reduced by the Remaining Limit (from $240,000 to $237,500);

• The
 result is then further reduced by the ratio of A to B, where:

— A is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

— B is the Account Value less the Remaining Limit ($180,000 – $2,500, or $177,500).

The resulting base guarantee amount is: $237,500 X (1 – $7,500 / $177,500), or $227,464.79.

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year. The resulting dollar-for-dollar corridor for the next Annuity Year is calculated
 by multiplying the prior dollar-for-dollar corridor by the same ratio by which we reduce the Guarantee Amount above: $12,500
 X (1 – $7,500 / $177,500), or $11,971.83.

**Key Feature – Allocation of Account Value**

GRO Plus 2008 uses a mathematical formula to help manage your guarantees through all market cycles. Because the formula is made part of your schedule supplement, the formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for newly-issued Annuities that elect GRO Plus 2008 and for existing Annuities that elect the benefit in the future. This required formula helps us manage our financial exposure under GRO Plus 2008, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve the value of these assets, by transferring them to a more stable option (i.e., one or more specified bond Portfolios of Advanced Series Trust). We refer to these bond Portfolios collectively as the "AST bond Portfolios." The formula described in this section, **and which is set forth in** [**<u>Appendix G</u>**](#chapter_24-sect1_1_930) **to this prospectus, applies to both (a) GRO Plus 2008 and (b) elections of HD GRO (including HD** **GRO with the 90% cap rule), where such an election was made prior to July 16, 2010. The formula applicable to elections of HD GRO** **(including HD GRO with the 90% cap rule), where such an election was made after July 16, 2010, is set forth in** [**<u>Appendix O</u>**](#chapter_32-sect1_1_930) **to this prospectus.**

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The cap can be referred to as the "the 90% cap" OR "the 90% cap rule" OR "the 90% cap feature". **A summary description of each AST Bond** **Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**.** You can find a copy of the AST Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

Each AST bond Portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond Portfolio whose underlying investments generally mature in 2018, an AST bond Portfolio whose underlying investments generally mature in 2019, and so forth. We will introduce new AST bond Portfolios in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit (and the Highest Daily GRO benefit). If you have elected GRO Plus 2008, you may invest in an AST bond Portfolio only by operation of the formula, and thus you may not allocate Purchase Payments to such a Portfolio. Please see this prospectus and the prospectus for the Advanced Series Trust for more information about each AST bond Portfolio used with this benefit.

Although we employ several AST bond Portfolios for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. In the description of the formula in the next paragraph, we refer to the AST bond Portfolio Variable Option in which you are invested immediately prior to any potential asset transfer as the "Current AST bond Portfolio Variable Option." The formula may dictate that a transfer out of the Current AST Bond Portfolio Variable Option be made, or alternatively may mandate a transfer into another AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability" (we refer to that Variable Option as the "Transfer AST bond Portfolio Variable Option"). Note that if the Current AST bond Portfolio Variable Option is associated with the current liability, then that Variable Option would be the Transfer AST bond Portfolio Variable Option, and we would simply transfer additional assets into the Variable Option if such a transfer is dictated by the formula. As indicated, the AST bond Portfolios are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, in accordance with the formula applicable to you under the benefit, we determine which AST bond Portfolio your Account Value is transferred to, and under what circumstances a transfer is made. Please note that upon creation of a new enhanced guarantee, an immediate transfer to the Transfer AST Bond Portfolio Variable Option may occur, depending on the discount rate (as described in the next paragraph) used to determine the present value of each of your guarantees. As such, a low discount rate could cause a transfer of Account Value into an AST bond Portfolio Variable Option, despite the fact that your Account Value had increased.

**In general, the formula works as follows (please see** [**<u>Appendix G</u>**](#chapter_24-sect1_1_930)**).** On each Valuation Day, the formula automatically performs an analysis with respect to each guarantee amount that is outstanding. For each outstanding guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing the rate determined by that index by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the Current AST bond Portfolio Variable Option and to your Account Value held within the other Variable Options. If the current liability, reduced by the amount held within the Current AST bond Portfolio Variable Option, and divided by the amount held within your other Variable Options, exceeds an upper target value (currently, 0.85), then the formula will make a transfer into the Transfer AST bond Portfolio Variable Option, in the amount dictated by the formula. If the current liability, reduced by the amount held within the Current AST bond Portfolio Variable Option, and divided by the amount within your other Variable Options, is less than a lower target value (currently, 0.79), then the formula will transfer Account Value within the Current AST bond Portfolio Variable Option into the other Variable Options (other than the Transfer AST bond Portfolio Variable Option), in the amount dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees, as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST bond Portfolio Variable Options (the "Bond Portfolios"). Therefore, at any given time, some, none, or all of your Account Value may be allocated to the Bond Portfolios. If your entire Account Value is transferred to the Bond Portfolios, then based on the way the formula operates, the formula will not transfer amounts out of the Bond Portfolios to the Variable Options and the entire Account Value would remain in the Bond Portfolios. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Bond Portfolios. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Bond Portfolios, if dictated by the formula. The amounts of any such transfers will vary, as dictated by the formula, and will depend on the factors listed below.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond Portfolios pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Guarantee Amount(s);

• The
 amount of time until the maturity of your Guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the Bond Portfolios;

• The
 discount rate used to determine the present value of your Guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

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Any amounts invested in the Bond Portfolios will affect your ability to participate in a subsequent recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

The Bond Portfolios are available only with these benefits, and you may not allocate Purchase Payments and transfer Account Value to or from the Bond Portfolios.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

GRO Plus 2008 is no longer available for new elections. If you currently participate in GRO Plus 2008, your existing guarantees are unaffected by the fact that we no longer offer GRO Plus 2008.

You may cancel the GRO Plus 2008 benefit at any time. You also can cancel an enhanced guarantee, but leave the base guarantee intact. Upon cancellation of GRO Plus 2008, if only a portion of your Account Value is allocated to an AST Bond Portfolio Variable Option, we will transfer any Account Value that is held in such AST Bond Portfolio Variable Option to your elected Variable Options on a proportional basis based on the Account Values in such Variable Options at that time, unless you are participating in any asset allocation program or automatic rebalancing program for which we are providing administrative support or unless we receive at our Annuities Service Center other instructions from you at the time you elect to cancel this benefit. If you are participating in any asset allocation program or automatic rebalancing program, we will transfer any such Account Value in accordance with that program. If your entire Account Value is allocated to an AST Bond Portfolio Variable Option, we will transfer your Account Value in accordance with your most recent allocation instructions, or, in the absence of such instructions, we will transfer the Account Value held in the AST Bond Portfolio to the money market Portfolio.

GRO Plus 2008 will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, GRO Plus 2008 will no longer provide any guarantees. The charge for the GRO Plus 2008 benefit will no longer be deducted from your Account Value upon termination of the benefit.

If you wish, you may cancel the GRO Plus 2008 benefit. You may then elect any other currently available living benefit on any Valuation Day after you have cancelled the GRO Plus 2008 benefit, provided the request is received in Good Order (subject to state availability and in accordance with any applicable age requirements). Upon your election of another living benefit, Account Value may be transferred between the AST Bond Portfolio Variable Options or, depending on the benefits selected, the AST Investment Grade Bond Portfolio and the Permitted Variable Options according to the formula. It is possible that over time the formula could transfer some, most, or none of the Account Value to the AST Bond Portfolio Variable Options or, depending on the benefit selected, the AST Investment Grade Bond Portfolio under the newly-elected benefit. **You also should be aware that upon cancellation** **of the GRO Plus 2008 benefit, you will lose all guarantees that you had accumulated under the benefit. Thus, the guarantees under any** **newly-elected benefit will be based on your current Account Value. The benefit you elect or re-elect may be more expensive than the benefit** **you cancel. Once the GRO Plus 2008 benefit is canceled you are not required to re-elect another optional living benefit and any subsequent** **benefit election may be made on or after the first Valuation Day following the cancellation of the GRO Plus 2008 benefit provided that the** **benefit you are looking to elect is available on a post-issue basis.**

**Special Considerations under GRO Plus 2008**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the permitted Variable Options. **The permitted** **Variable Options are those described in the "** [**<u>Appendix A - Stipulated Investment Options</u>**](#chapter_18-sect1_1_930) **" section of the prospectus.** No fixed interest
 rate allocations may be in effect as of the date that you elect to participate in the benefit.

• You
 cannot participate in any dollar cost averaging benefit that transfers Account Value from a fixed interest rate option to a Variable Option.

• Transfers
 between an AST bond Portfolio Variable Option and your other Variable Options under the benefit will not count toward the maximum
 number of free transfers allowable under the Annuity.

• Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST bond Portfolio Variable Option.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Moreover, if you are invested in prohibited
 investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options as a
 prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move Account Value to eligible investment
 options will not be counted in determining the number of free transfers during an Annuity Year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you elect this benefit, and in connection with that election you are required to reallocate to different investment options permitted
 under this benefit,
 then on the Valuation Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted investment
 options and (ii) invest the proceeds of those sales in permitted investment options that you have designated. During this reallocation
 process, your Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The
 newly-elected benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not arise until the close of business on the following Valuation Day.

**Charges under the Benefit**

The maximum charge for GRO Plus 2008 is 0.75% annually of the daily net assets of the Variable Options. The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on a Maturity Date is less than the amount guaranteed and (b) administration of the benefit. We reserve the right to increase this fee for newly-issued contracts or new elections of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

**OPTIONAL 90% CAP RULE UNDER GRO PLUS 2008**

If you currently own an Annuity and have elected the GRO Plus 2008 benefit, you can elect this optional feature, at no additional cost, which utilizes a mathematical formula. The predetermined mathematical formula is described below and will replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. This election may only be made once and may not be revoked once elected. **The mathematical formula appears in** [**<u>Appendix G</u>**](#chapter_24-sect1_1_930) **in this prospectus, and is described below.** Only the election of the 90% cap rule will prevent all of your Account Value from being allocated to an AST bond Portfolio Variable Option. If all of your Account Value is currently allocated to an AST bond Portfolio Variable Option, it will not transfer back to the Permitted Variable Options unless you elect this 90% cap rule. If you make additional Purchase Payments, they may result in a transfer of Account Value.

Although we employ several AST bond Portfolio Variable Options for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. In the description of the formula in the next paragraph, we refer to the AST bond Portfolio Variable Option in which you are invested immediately prior to any potential asset transfer as the "Current AST bond Portfolio Variable Option." The formula may dictate that a transfer out of the Current AST bond Portfolio Variable Option be made, or alternatively may mandate a transfer into an AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability" (we refer to that Variable Option as the "Transfer AST bond Portfolio Variable Option"). Note that if the Current AST bond Portfolio Variable Option is associated with the current liability, then that Variable Option would be the Transfer AST bond Portfolio Variable Option, and we would simply transfer additional assets into the Variable Option if dictated by the formula.

Under the formula, the formula will not execute a transfer to the Transfer AST bond Portfolio Variable Option that results in more than 90% of your Account Value being allocated to the Transfer AST bond Portfolio Variable Option ("90% cap rule"). Thus, on any Valuation Day, if the formula would require a transfer to the Transfer AST bond Portfolio Variable Option that would result in more than 90% of the Account Value being allocated to the Transfer AST bond Portfolio Variable Option, only the amount that results in exactly 90% of the Account Value being allocated to the Transfer AST bond Portfolio Variable Option will be transferred. Additionally, future transfers into the Transfer AST bond Portfolio Variable Option will not be made (regardless of the performance of the Transfer AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a formula-initiated transfer out of the Transfer AST bond Portfolio Variable Option. Once this transfer occurs out of the Transfer AST bond Portfolio Variable Option, future amounts may be transferred to or from the Transfer AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap rule). At no time will the formula make a transfer to the Transfer AST bond Portfolio Variable Option that results in greater than 90% of your Account Value being allocated to the Transfer AST bond Portfolio Variable Option. However, it is possible that, due to the investment performance of your allocations in the Transfer AST bond Portfolio Variable Option and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Transfer AST bond Portfolio Variable Option.

If you make additional Purchase Payments to your Annuity while the transfer restriction of the 90% cap rule is in effect, the formula will not transfer any of such additional Purchase Payments to the Transfer AST bond Portfolio Variable Option at least until there is first a transfer out of the Transfer AST bond Portfolio Variable Option, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Transfer AST bond Portfolio Variable Option, and the formula will still not transfer any of your Account Value to the Transfer AST bond Portfolio Variable Option (at least until there is first a transfer out of the Transfer AST bond Portfolio Variable Option).

For example,

• March
 19, 2010 – a transfer is made that results in the 90% cap rule being met and now $90,000 is allocated to the Transfer AST bond Portfolio
 Variable Option and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2010 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Transfer AST bond Portfolio
 Variable Option to the Permitted Variable Options since the cap went into effect on March 19, 2010.

• As
 of March 20, 2010 (and at least until first a transfer is made out of the Transfer AST bond Portfolio Variable Option under the formula) the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the Transfer AST bond Portfolio Variable Option
 and 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated
 to the Transfer AST bond Portfolio Variable Option).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Once
 there is a transfer out of the Transfer AST bond Portfolio Variable Option (of any amount), the formula will operate as described above,
 meaning that the formula could transfer amounts to or from the Transfer AST bond Portfolio Variable Option if dictated by the formula
 (subject to the 90% cap rule).

If at the time you elect the 90% cap rule, more than 90% of your Account Value is allocated to an AST bond Portfolio Variable Option used with the benefit, a transfer will be made from the AST bond Portfolio Variable Option such that Account Value will be allocated 90% to the AST bond Portfolio Variable Option and 10% will be allocated to your elected Variable Options. Amounts to be transferred from the AST bond Portfolio Variable Option to your elected Variable Options will be transferred according to the following "hierarchy" (i.e., if a given item is inapplicable, we use the next instruction that is applicable): (a) the percentages dictated by any existing asset allocation program; or (b) the percentages dictated by any automatic rebalancing program; or (c) on a proportional basis according to amounts currently held in your elected Variable Options; or (d) according to the currently-effective allocation instructions used for the allocation of subsequent Purchase Payments. It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amount of such additional transfer(s) will vary. If, on the date this feature is elected, 100% of your Account Value is allocated to the Transfer AST bond Portfolio Variable Option, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options.

It is possible that an additional transfer to the Permitted Variable Options could occur on the following Valuation Day(s), and in some instances (based upon the formula) the additional transfer(s) could be large. Thereafter, your Account Value can be transferred between the Transfer AST bond Portfolio Variable Option and your Permitted Variable Options as frequently as daily, based on what the formula prescribes.

Once the transfer restriction of the 90% cap rule is triggered, future transfers into the Transfer AST bond Portfolio Variable Option will not be made (regardless of the performance of the Transfer AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a transfer out of the Transfer AST bond Portfolio Variable Option. Once this transfer occurs out of the Transfer AST bond Portfolio Variable Option, future amounts may be transferred to or from the Transfer AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap rule).

**Important Considerations When Electing this Feature:**

• At
 any given time, some, most or none of your Account Value may be allocated to the Transfer AST bond Portfolio Variable Option.

• Please
 be aware that because of the way the 90% cap rule mathematical formula operates, it is possible that more than or less than 90% of
 your Account Value may be allocated to the Transfer AST bond Portfolio Variable Option.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending on the performance of the Permitted Variable Options you select.

• Your
 election of the 90% cap rule will not result in your losing the guarantees you had accumulated under your existing GRO Plus 2008 benefit.

***HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)***

**Highest Daily GRO is no longer available for new elections.**

Highest Daily GRO creates a series of separate guarantees, each of which is based on the highest Account Value attained on a day during the applicable time period. As each year of your participation in the benefit passes, we create a new guarantee. Each guarantee then remains in existence until the date on which it matures (unless the benefit terminates sooner). We refer to each date on which the specified Account Value is guaranteed as the "Maturity Date" for that guarantee. Highest Daily GRO will not create a guarantee if the Maturity Date of that guarantee would extend beyond the date by which annuity payments must commence under the terms of your Annuity. This is true even with respect to a new Owner who has acquired the Annuity from the original Owner.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Account Value, and the transfer of Account Value to support our future guarantees, the benefit may provide some protection from significant Variable Option losses if you choose to surrender your Annuity or begin receiving annuity payments prior to a Maturity Date. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

The initial guarantee is created on the day that the Highest Daily GRO benefit is added to your Annuity. We guarantee that your Account Value on the tenth anniversary of that day (we refer to each such anniversary as a "benefit anniversary") will not be less than your Account Value on the day that the Highest Daily GRO benefit was added to your Annuity. Each benefit anniversary thereafter, we create a new guarantee. With respect to each such subsequent guarantee, we identify the highest Account Value that occurred between the date of that benefit anniversary and the date on which Highest Daily GRO was added to your Annuity. We guarantee that your Account Value ten years after that benefit anniversary will be no less than the highest daily Account Value that occurred during that time period. The following example illustrates the time period over which we identify the highest daily Account Value for purposes of each subsequent guarantee under the benefit. If the date of benefit election were January 1, 2009, we would create a guarantee on January 1, 2012 based on the highest Account Value achieved between January 1, 2009 and January 1, 2012, and that guarantee would mature on January 1, 2022. As described below, we adjust each of the guarantee amounts for Purchase Payments and withdrawals.

In general, we refer to a date on which the Account Value is guaranteed to be present as the "Maturity Date". If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each

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Variable Option (other than the "Current AST Bond portfolio" described below) in accordance with your current allocations instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST Bond portfolio associated with the maturing guarantee to your other Variable Options, on a proportional basis. If the entire Account Value is invested in the AST Bond portfolio, we will allocate according to your current allocation instructions.

We increase the amount of each guarantee that has not yet reached its Maturity Date, as well as the highest daily Account Value that we calculate to establish a guarantee, by the amount of each Purchase Payment (and associated Credits) made prior to the applicable Maturity Date. For example, if the effective date of the benefit was January 1, 2009, and there was an initial guaranteed amount that was set at $100,000 maturing January 1, 2019, and a second guaranteed amount that was set at $120,000 maturing January 1, 2020, then a $30,000 Purchase Payment made on March 30, 2010 would increase the guaranteed amounts to $130,000 and $150,000, respectively. As illustrated in the examples below, additional Purchase Payments also increase an amount we refer to as the "dollar-for-dollar corridor."

We reflect the effect of withdrawals by reference to an amount called the "dollar-for-dollar corridor." The dollar-for-dollar corridor is set initially to equal 5% of the initial guaranteed amount (i.e., 5% of the Account Value at benefit election). Each "benefit year" (i.e., a year that begins on the date of election of Highest Daily GRO and each anniversary thereafter), withdrawals that you make that are equal to or less than the dollar-for-dollar corridor reduce (i) the amount of the dollar-for-dollar corridor for that benefit year (ii) the amount of each outstanding guarantee amount, and (iii) the highest daily Account Value that we calculate to establish a guarantee, by the exact amount of the withdrawal. However, if you withdraw more than the dollar-for-dollar corridor in a given benefit year, we use the portion of the withdrawal that exceeded the dollar-for-dollar corridor to effect a proportional reduction to both the dollar-for-dollar corridor itself and each outstanding guaranteed amount, as well as the highest daily Account Value that we calculate to establish a guarantee. We calculate a proportional reduction by (i) identifying the amount of the withdrawal that exceeded the dollar-for-dollar corridor (the "excess withdrawal") (ii) subtracting the dollar-for-dollar amount from the Account Value prior to the withdrawal (iii) dividing the excess withdrawal by the amount in (ii). We then use the resulting proportion to reduce each of the guaranteed amount, the highest daily Account Value that we calculate to establish a guarantee, and the dollar-for-dollar corridor itself. See examples of this calculation below.

Any partial withdrawals in payment of any third party investment advisory service will be treated as withdrawals, and will reduce each applicable guaranteed amount and the dollar-for-dollar corridor in the manner indicated above.

**EXAMPLES**

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the Highest Daily GRO benefit are October 13, 2008; 2.) an initial Purchase Payment of $250,000 (includes any Credits); 3.) an initial guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for Highest Daily GRO or other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 29, 2008 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Dollar-for-dollar Limit:

• The
 initial guarantee amount is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 18, 2008 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 initial guarantee amount is first reduced by the Remaining Limit (from $240,000 to $237,500);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

○ B
 is the Account Value less the Remaining Limit ($180,000 – $2,500, or $177,500).

The resulting initial guarantee amount is: $237,500 × (1 – $7,500 / $177,500), or $227,464.79.

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

The resulting dollar-for-dollar corridor for the next Annuity Year is calculated by multiplying the prior dollar-for-dollar corridor by the same ratio by which we reduce the Guarantee Amount above: $12,500 × (1 – $7,500 / $177,500), or $11,971.83.

**Key Feature – Allocation of Account Value**

HD GRO uses a predetermined mathematical formula to help manage your guarantees through all market cycles. The formula applicable to you may not be altered once you elect the benefit. This required formula helps us manage our financial exposure under HD GRO, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve Account Value, by transferring it to a more stable option (i.e., one

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or more specified bond Portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond Portfolios collectively as the "AST bond Portfolio Variable Options". The formula also contemplates the transfer of Account Value from an AST bond Portfolio Variable Option to the other Variable Options. **The formula is set forth in** [**<u>Appendix O</u>**](#chapter_32-sect1_1_930) **of this prospectus.** **A summary description of each AST bond Portfolio Variable** **Options appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**.** In addition, you can find a copy of the AST bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

For purposes of operating the HD GRO formula, we have included within each Annuity several AST bond Portfolio Variable Options. Each AST bond Portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond Portfolio whose underlying investments generally mature in 2020, an AST bond Portfolio whose underlying investments generally mature in 2021, and so forth. As discussed below, the formula determines the appropriate AST bond Portfolio Variable Option to which Account Value is transferred. We will introduce new AST bond Portfolio Variable Options in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit. If you have elected HD GRO, you may have Account Value allocated to an AST bond Portfolio Variable Option only by operation of the formula, and thus you may not allocate Purchase Payments to or make transfers to or from an AST bond Portfolio Variable Option.

Although we employ several AST bond Portfolio Variable Options for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. The formula determines the appropriate AST bond Portfolio Variable Option to which Account Value is transferred. On any day a transfer into or out of the AST bond Portfolio Variable Option is made, the formula may dictate that a transfer out of one AST bond Portfolio Variable Options be made into another AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability", as described below. In the formula, we use the term "Transfer Account" to refer to the AST bond Portfolio Variable Option to which a transfer would be made. As indicated, the formula and AST bond Portfolio Variable Option are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, the formula applicable to you under the benefit determines which AST bond Portfolio Variable Option your Account Value is transferred to, and under what circumstances a transfer is made.

In general, the formula works as follows. Under the formula, Account Value will transfer between the "Permitted Variable Options" and an AST bond Portfolio Variable Option when dictated by the predetermined mathematical formula. On each Valuation Day, including the effective date of the benefit, the predetermined mathematical formula is used to compare your Account Value to an amount based on the guarantees provided under the benefit. The formula determines whether a transfer occurs based, among other things, on an identification of the outstanding guarantee that has the largest present value. Based on the formula, a determination is made as to whether any portion of your Account Value is to be transferred to or from the AST bond Portfolio Variable Option. In identifying those guarantees, we consider each guarantee that already has been set (i.e., on a benefit anniversary), as well as an amount that we refer to as the "Projected Future Guarantee." The "Projected Future Guarantee" is an amount equal to the highest Account Value (adjusted for withdrawals, additional Purchase Payments, and any associated Credits as described in the section of the prospectus concerning HD GRO) within the current benefit year that would result in a new guarantee. For the Projected Future Guarantee, the assumed Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the effective date of the benefit. As such, a Projected Future Guarantee could cause a transfer of Account Value into an AST bond Portfolio Variable Options. We only calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend beyond the latest Annuity Date applicable to the Annuity. The amount that is transferred to and from the AST bond Portfolio Variable Option pursuant to the formula depends upon the factors set forth in the bullet points below, some of which relate to the guarantee amount(s), including the Projected Future Guarantee.

For each outstanding guarantee and the Projected Future Guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the AST bond Portfolio Variable Option and to your Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the current AST bond Portfolio Variable Option, and divided by the amount held within the Permitted Variable Option, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST bond Portfolio Variable Option, in the amount dictated by the formula (subject to the 90% cap rule discussed below). If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount within the Permitted Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Account Value from the AST bond Portfolio Variable Option into the Permitted Variable Options, in the amount dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST bond Portfolio Variable Options. Where you have not elected the 90% cap rule, at any given time, some, none, or all of your Account Value may be allocated to an AST bond Portfolio Variable Option. For such elections, if your entire Account Value is transferred to an AST bond Portfolio Variable Option, then based on the way the formula operates, the formula will not transfer amounts out of the AST bond Portfolio Variable Option and the entire Account Value would remain in the AST bond Portfolio Variable Option. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money into or out of the AST bond Portfolio Variable Option. Once the Purchase Payments are allocated to your Annuity, they also will be subject to the formula, which may result in immediate transfers to or from the AST bond Portfolio Variable Options, if dictated by the formula. If you have elected the 90% cap rule discussed below, at any given time, some, none, or most of your Account Value may be allocated to the AST bond Portfolio Variable Options.

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Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST bond Portfolio Variable Options pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST bond Portfolio Variable Options;

• The
 discount rate used to determine the present value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the AST bond Portfolio Variable Options will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the market recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected. The AST bond Portfolio Variable Options are available only with certain optional living benefits, and you may not allocate Purchase Payments to or transfer Account Value to or from the AST bond Portfolio Variable Options.

**Election/Cancellation of the Benefit**

We no longer permit new elections of Highest Daily GRO. If you currently participate in Highest Daily GRO, your existing guarantees are unaffected by the fact that we no longer offer Highest Daily GRO.

If you wish, you may cancel the Highest Daily GRO benefit. You may then elect any other currently available living benefit, which is available to be added post issue on any Valuation Day after you have cancelled the Highest Daily GRO benefit, provided the request is received in Good Order (subject to state availability and in accordance with any applicable age requirements). Upon cancellation of Highest Daily GRO, if only a portion of your Account Value is allocated to an AST Bond Portfolio Variable Option, we will transfer any Account Value that is held in such AST Bond Portfolio Variable Option to your elected Variable Options on a proportional basis based on the Account Values in such Variable Options at that time, unless you are participating in any asset allocation program or automatic rebalancing program for which we are providing administrative support or unless we receive at our Annuities Service Center other instructions from you at the time you elect to cancel this benefit. If you are participating in any asset allocation program or automatic rebalancing program, we will transfer any such Account Value in accordance with that program. If your entire Account Value is allocated to an AST Bond Portfolio Variable Option, we will transfer your Account Value in accordance with your most recent allocation instructions, or, in the absence of such instructions, we will transfer the Account Value held in the AST Bond Portfolio to the AST Government Money Market Portfolio. Upon your election of another living benefit, Account Value may be transferred between the AST Bond Portfolio Variable Options or, depending on the benefits selected, the AST Investment Grade Bond Portfolio, and the Permitted Variable Options according to a predetermined mathematical formula used with that benefit. It is possible that over time the formula could transfer some, most, or none of the Account Value to the AST Bond Portfolio Variable Options or, depending on the benefits selected, the AST Investment Grade Bond Portfolio, under the newly-elected benefit. **You also should be aware that upon cancellation of** **the Highest Daily GRO benefit, you will lose all guarantees that you had accumulated under the benefit. Thus, the guarantees under your** **newly-elected benefit will be based on your current Account Value. The benefit you elect or re-elect may be more expensive than the benefit** **you cancel. Once the Highest Daily GRO benefit is canceled you are not required to re-elect another optional living benefit and any** **subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Highest Daily GRO benefit** **provided that the benefit you are looking to elect is available on a post-issue basis.**

Highest Daily GRO will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, Highest Daily GRO will no longer provide any guarantees. The charge for the Highest Daily GRO benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Special Considerations under Highest Daily GRO**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

○ Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Optionss. **The** **Permitted Variable Optionss are those described in the "** [**<u>Appendix A - Stipulated Investment Options</u>**](#chapter_18-sect1_1_930) **" section of this** **prospectus.** No fixed interest rate allocations may be in effect as of the date that you elect to participate in the benefit.

○ You
 cannot participate in any dollar cost averaging benefit that transfers Account Value from a fixed interest rate option to a Variable Options.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

○ Transfers
 from the other Variable Optionss to an AST bond Portfolio Variable Options or from an AST bond Portfolio Variable Options to
 the other Variable Optionss  under the benefit will not count toward the maximum number of free transfers allowable under the Annuity.

○ Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income tax purposes.

○ As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves
 to an AST bond Portfolio Variable Options.

○ We
 currently limit the Variable Optionss  in which you may allocate Account Value if you participate in this benefit. Moreover, if
 you are invested
 in prohibited investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options
 as a prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move
 Account Value to eligible investment options will not be counted in determining the number of free transfers during an Annuity Year.

○ If
 you elect this benefit, and in connection with that election you are required to reallocate to different investment options permitted under this benefit,
 then on the Valuation Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted
 investment options and (ii) invest the proceeds of those sales in permitted investment options that you have designated.
 During this reallocation process, your Account Value allocated to the Variable Optionss  will remain exposed to investment
 risk, as is the case generally. The newly-elected benefit will commence at the close of business on the following Valuation
 Day. Thus, the protection afforded by the newly-elected benefit will not arise until the close of business on the following Valuation
 Day.

**Charges under the Benefit**

The maximum charge for HD GRO is 0.60% annually of the daily net assets of the Variable Options (including each AST Bond Portfolio). The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed and (b) administration of the benefit. We reserve the right to increase this fee for newly-issued contracts or new elections of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

**OPTIONAL 90% CAP RULE FOR HIGHEST DAILY GRO**

If you currently own an Annuity and have elected the Highest Daily GRO benefit, you can elect this optional feature, at no additional cost, which utilizes a mathematical formula. The predetermined mathematical formula is described below and will replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. This election may only be made once and may not be revoked once elected. **The formula is set forth in** [**<u>Appendix O</u>**](#chapter_32-sect1_1_930) **of this prospectus, and is described below.** Only the election of the 90% cap rule will prevent all of your Account Value from being allocated to an AST bond Portfolio Variable Option. If all of your Account Value is currently allocated to an AST bond Portfolio Variable Option, it will not transfer back to the Permitted Variable Options unless you elect this 90% cap rule. If you make additional Purchase Payments, they may result in a transfer of Account Value.

As with the formula that does not include the 90% cap rule, the formula with the 90% cap rule determines whether a transfer occurs based, among other things, on an identification of the outstanding guarantee that has the largest present value. In identifying those guarantees, we consider each guarantee that already has been set (i.e., on a benefit anniversary), as well as the "Projected Future Guarantee" (as described above).

Although we employ several AST bond Portfolio Variable Options for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. In the description of the formula in the next paragraph, we refer to the AST bond Portfolio Variable Option in which you are invested immediately prior to any potential asset transfer as the "Current AST bond Portfolio Variable Option." The formula may dictate that a transfer out of the Current AST bond Portfolio Variable Option be made, or alternatively may mandate a transfer into an AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability" (we refer to that Variable Option as the "Transfer AST bond Portfolio Variable Option"). Note that if the Current AST bond Portfolio Variable Option is associated with the current liability, then that Variable Option would be the Transfer AST bond Portfolio Variable Option, and we would simply transfer additional assets into the Variable Option if dictated by the formula.

Under the formula, the formula will not execute a transfer to the Transfer AST bond Portfolio Variable Option that results in more than 90% of your Account Value being allocated to the Transfer AST bond Portfolio Variable Option ("90% cap rule"). Thus, on any Valuation Day, if the formula would require a transfer to the Transfer AST bond Portfolio Variable Option that would result in more than 90% of the Account Value being allocated to the Transfer AST bond Portfolio Variable Option, only the amount that results in exactly 90% of the Account Value being allocated to the Transfer AST bond Portfolio Variable Option will be transferred. Additionally, future transfers into the Transfer AST bond Portfolio Variable Option will not be made (regardless of the performance of the Transfer AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a formula-initiated transfer out of the Transfer AST bond Portfolio Variable Option. Once this transfer occurs out of the Transfer AST bond Portfolio Variable Option, future amounts may be transferred to or from the Transfer AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap rule). At no time will the formula make a transfer to the Transfer AST bond Portfolio Variable Option that results in greater than 90% of your Account Value being allocated

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to the Transfer AST bond Portfolio Variable Option. However, it is possible that, due to the investment performance of your allocations in the Transfer AST bond Portfolio Variable Option and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Transfer AST bond Portfolio Variable Option.

If you make additional Purchase Payments to your Annuity while the transfer restriction of the 90% cap rule is in effect, the formula will not transfer any of such additional Purchase Payments to the Transfer AST bond Portfolio Variable Option at least until there is first a transfer out of the Transfer AST bond Portfolio Variable Option, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Transfer AST bond Portfolio Variable Option, and the formula will still not transfer any of your Account Value to the Transfer AST bond Portfolio Variable Option (at least until there is first a transfer out of the Transfer AST bond Portfolio Variable Option).

For example,

• March
 19, 2010 – a transfer is made that results in the 90% cap rule being met and now $90,000 is allocated to the Transfer AST bond Portfolio
 Variable Option and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2010 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Transfer AST bond Portfolio
 Variable Option to the Permitted Variable Options since the cap went into effect on March 19, 2010.

• As
 of March 20, 2010 (and at least until first a transfer is made out of the Transfer AST bond Portfolio Variable Option under the formula) the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the Transfer AST bond Portfolio Variable Option
 and 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated
 to the Transfer AST bond Portfolio Variable Option).

• Once
 there is a transfer out of the Transfer AST bond Portfolio Variable Option (of any amount), the formula will operate as described above,
 meaning that the formula could transfer amounts to or from the Transfer AST bond Portfolio Variable Option if dictated by the formula
 (subject to the 90% cap rule).

If at the time you elect the 90% cap rule, more than 90% of your Account Value is allocated to an AST bond Portfolio Variable Option used with the benefit, a transfer will be made from the AST bond Portfolio Variable Option such that Account Value will be allocated 90% to the AST bond Portfolio Variable Option and 10% will be allocated to your elected Variable Options. Amounts to be transferred from the AST bond Portfolio Variable Option to your elected Variable Options will be transferred according to the following "hierarchy" (i.e., if a given item is inapplicable, we use the next instruction that is applicable): (a) the percentages dictated by any existing asset allocation program; or (b) the percentages dictated by any automatic rebalancing program; or (c) on a proportional basis according to amounts currently held in your elected Variable Options; or (d) according to the currently-effective allocation instructions used for the allocation of subsequent Purchase Payments. It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amount of such additional transfer(s) will vary. If, on the date this feature is elected, 100% of your Account Value is allocated to the Transfer AST bond Portfolio Variable Option, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options.

It is possible that an additional transfer to the Permitted Variable Options could occur the following Valuation Day(s), and in some instances (based upon the formula) the additional transfer(s) could be large. Thereafter, your Account Value can be transferred between the Transfer AST bond Portfolio Variable Option and your Permitted Variable Options as frequently as daily, based on what the formula prescribes.

Once the transfer restriction of the 90% cap rule is triggered, future transfers into the Transfer AST bond Portfolio Variable Option will not be made (regardless of the performance of the Transfer AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a transfer out of the Transfer AST bond Portfolio Variable Option. Once this transfer occurs out of the Transfer AST bond Portfolio Variable Option, future amounts may be transferred to or from the Transfer AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap rule).

Important Considerations When Electing this Feature:

• At
 any given time, some, most or none of your Account Value may be allocated to the Transfer AST bond Portfolio Variable Option.

• Please
 be aware that because of the way the 90% cap rule mathematical formula operates, it is possible that more than or less than 90% of
 your Account Value may be allocated to the Transfer AST bond Portfolio Variable Option.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending on the performance of the Permitted Variable Options you select.

Your election of the 90% cap rule will not result in your losing the guarantees you had accumulated under your existing Highest Daily GRO benefit.

***GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)***

**The Guaranteed Minimum Withdrawal Benefit is no longer available for new elections.**

The Guaranteed Minimum Withdrawal Benefit guarantees your ability to withdraw amounts equal to an initial principal value (called the "Protected Value"), regardless of the impact of Variable Option performance on your Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option

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performance will not affect your ability to protect your principal. You are not required to make withdrawals as part of the benefit – the guarantee is not lost if you withdraw less than the maximum allowable amount of principal each year under the rules of the benefit. There is an additional charge if you elected the GMWB benefit; however, the charge may be waived under certain circumstances described below.

**Key Feature – Protected Value**

The Protected Value is the total amount that we guarantee will be available to you through withdrawals from your Annuity and/or benefit payments, regardless of the impact of Variable Option performance on your Account Value. The Protected Value is reduced with each withdrawal you make until the Protected Value is reduced to zero. When the Protected Value is reduced to zero due to your withdrawals, the GMWB benefit terminates. Additionally, the Protected Value is used to determine the maximum annual amount that you can withdraw from your Annuity, called the Protected Annual Withdrawal Amount, without triggering an adjustment in the Protected Value on a proportional basis. The Protected Value is referred to as the "Benefit Base" in the rider we issue for this benefit.

The Protected Value is determined as of the date you make your first withdrawal under your Annuity following your election of the GMWB benefit. The initial Protected Value is equal to the greater of (A) the Account Value on the date you elect the GMWB benefit, plus any additional Purchase Payments (plus any Credits applied to such Purchase Payments under XT6) before the date of your first withdrawal; or (B) the Account Value as of the date of the first withdrawal from your Annuity. The Protected Value may be enhanced by increases in your Account Value due to Variable Option performance during the period between your election of the GMWB benefit and the date of your first withdrawal.

• If
 you elect the GMWB benefit at the time you purchase your Annuity, the Account Value will be your initial Purchase Payment (plus any Credits
 applied to such Purchase Payments under XT6).

• If
 we offer the GMWB benefit to existing Annuity Owners, the Account Value on the anniversary of the Issue Date of your Annuity following your election of
 the GMWB benefit will be used to determine the initial Protected Value.

• If
 you make additional Purchase Payments after your first withdrawal, the Protected Value will be increased by the amount of the additional
 Purchase Payment (plus any Credits applied to such Purchase Payments under XT6).

You may elect to step-up your Protected Value if, due to positive Variable Option performance, your Account Value is greater than the Protected Value. You are eligible to step-up the Protected Value on or after the 5<sup>th</sup> anniversary following the first withdrawal under the GMWB benefit. The Protected Value can be stepped up again on or after the 5<sup>th</sup> anniversary following the preceding step-up. If you elect to step-up the Protected Value, you may do so during the 30-day period prior to your eligibility date or on any Valuation Day thereafter. If you elect to step-up the Protected Value under the benefit, and on the date you elect to step-up, the charges under the GMWB benefit have changed for new purchasers, your benefit may be subject to the new charge going forward.

Upon election of the step-up, we reset the Protected Value to be equal to the then current Account Value. For example, assume your initial Protected Value was $100,000 and you have made cumulative withdrawals of $40,000, reducing the Protected Value to $60,000. On the date you are eligible to step-up the Protected Value, your Account Value is equal to $75,000. You could elect to step-up the Protected Value to $75,000 on the date you are eligible. Upon election of the step-up, we also reset the Protected Annual Withdrawal Amount (discussed immediately below) to be equal to the greater of (A) the Protected Annual Withdrawal Amount immediately prior to the reset; and (B) 7% of the Protected Value immediately after the reset.

**Key Feature – Protected Annual Withdrawal Amount**

The initial Protected Annual Withdrawal Amount is equal to 7% of the Protected Value. Under the GMWB benefit, if your cumulative withdrawals each Annuity Year are less than or equal to the Protected Annual Withdrawal Amount, your Protected Value will be reduced on a "dollar-for-dollar" basis (the Protected Value is reduced by the actual amount of the withdrawal, including any CDSC or Market Value Adjustment that may apply). Cumulative withdrawals in any Annuity Year that exceed the Protected Annual Withdrawal Amount trigger a proportional adjustment to both the Protected Value and the Protected Annual Withdrawal Amount, as described in the rider for this benefit (see the examples of this calculation below). The Protected Annual Withdrawal Amount is referred to as the "Maximum Annual Benefit" in the rider we issue for this benefit.

**The GMWB benefit does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed** **the Protected Annual Withdrawal Amount.** You are not required to withdraw all or any portion of the Protected Annual Withdrawal Amount each Annuity Year.

• If,
 cumulatively, you withdraw an amount less than the Protected Annual Withdrawal Amount in any Annuity Year, you cannot carry-over the
 unused portion of the Protected Annual Withdrawal Amount to subsequent Annuity Years. However, because the Protected Value is only
 reduced by the actual amount of withdrawals you make under these circumstances, any unused Protected Annual Withdrawal Amount
 may extend the period of time until the remaining Protected Value is reduced to zero.

• Additional
 Purchase Payments will increase the Protected Annual Withdrawal Amount by 7% of the applicable Purchase Payment (and any
 Credits we apply to such Purchase Payments under XT6).

• If
 the Protected Annual Withdrawal Amount after an adjustment exceeds the Protected Value, the Protected Annual Withdrawal Amount will
 be set equal to the Protected Value.

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The following examples of dollar-for-dollar and proportional reductions and the reset of the Maximum Annual Benefit assume that: 1.) the Issue Date and the effective date of the GMWB benefit are October 13, 2005; 2.) an initial Purchase Payment of $250,000 (includes any Credits in the case of XT6); 3.) a Protected Value of $250,000; and 4.) a Protected Annual Withdrawal Amount of $17,500 (7% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GMWB or any other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Protected Annual Withdrawal Amount:

• The
 Protected Value is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining Protected Annual Withdrawal Amount for the balance of the first Annuity Year is also reduced by the amount withdrawn (from
 $17,500 to $7,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 13, 2005 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $220,000. As the amount withdrawn exceeds the remaining Protected Annual Withdrawal Amount of $7,500 from Example 1:

• The
 Protected Value is first reduced by the remaining Protected Annual Withdrawal Amount (from $240,000 to $232,500);

• The
 result is then further reduced by the ratio of A to B, where:

— A is the amount withdrawn less the remaining Protected Annual Withdrawal Amount ($10,000 – $7,500, or $2,500).

— B is the Account Value less the remaining Protected Annual Withdrawal Amount ($220,000 – $7,500, or $212,500).

The resulting Protected Value is: $232,500 × (1 – $2,500 / $212,500), or $229,764.71.

• The
 Protected Annual Withdrawal Amount is also reduced by the ratio of A to B: The resulting Protected Annual Withdrawal Amount is: $17,500
 × (1 – $2,500 / $212,500), or $17,294.12.

— The remaining Protected Annual Withdrawal Amount is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the Maximum Annual Benefit**

A $10,000 withdrawal is made on October 13, 2006 (second Annuity Year). The remaining Protected Annual Withdrawal Amount has been reset to the Protected Annual Withdrawal Amount of $17,294.12 from Example 2. As the amount withdrawn is less than the remaining Protected Annual Withdrawal Amount:

• The
 Protected Value is reduced by the amount withdrawn (i.e., reduced by $10,000, from $229,764.71 to $219,764.71).

• The
 remaining Protected Annual Withdrawal Amount for the balance of the second Annuity Year is also reduced by the amount withdrawn (from
 $17,294.12 to $7,294.12).

**Benefits under GMWB**

• In
 addition to any withdrawals you make under the GMWB benefit, Variable Option performance may reduce your Account Value. If your Account
 Value is equal to zero, and you have not received all of your Protected Value in the form of withdrawals from your Annuity, we will continue
 to make payments equal to the remaining Protected Value in the form of fixed, periodic payments until the remainder of the Protected
 Value is paid, at which time the rider terminates. The fixed, periodic payments will each be equal to the Protected Annual Withdrawal
 Amount, except for the last payment which may be equal to the remaining Protected Value. We will determine the duration for which
 periodic payments will continue by dividing the Protected Value by the Protected Annual Withdrawal Amount. You will not have the right
 to make additional Purchase Payments or receive the remaining Protected Value in a lump sum. You can elect the frequency of payments,
 subject to our rules then in effect.

• If
 the death benefit under your Annuity becomes payable before you have received all of your Protected Value in the form of withdrawals from
 your Annuity, your Beneficiary has the option to elect to receive the remaining Protected Value as an alternate death benefit payout in lieu of the amount
 payable under any other death benefit provided under your Annuity. The remaining Protected Value will be payable in the
 form of fixed, periodic payments. Your beneficiary can elect the frequency of payments, subject to our rules then in effect. We will determine
 the duration for which periodic payments will continue by dividing the Protected Value by the Protected Annual Withdrawal Amount. **The Protected Value is not equal to the Account Value for purposes of the Annuity's other death benefit options. The** **GMWB benefit does not increase or decrease the amount otherwise payable under the Annuity's other death benefit options.** **Generally, the GMWB benefit would be of value to your Beneficiary only when the Protected Value at death exceeds any other** **amount available as a death benefit.** 

• If
 you elect to begin receiving annuity payments before you have received all of your Protected Value in the form of withdrawals from your Annuity, an additional
 annuity payment option will be available that makes fixed annuity payments for a certain period, determined by dividing
 the Protected Value by the Protected Annual Withdrawal Amount. If you elect to receive annuity payments calculated in this manner,
 the assumed interest rate used to calculate such payments will be 0%, which is less than the assumed interest rate on other annuity
 payment options we offer. This 0% assumed interest rate results in lower annuity payments than what would have been paid if the

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assumed interest rate was higher than 0%. **You can also elect to terminate the GMWB benefit and begin receiving annuity** **payments based on your then current Account Value (not the remaining Protected Value) under any of the available annuity** **payment options.**

**Other Important Considerations**

• Withdrawals
 under the GMWB benefit are subject to all of the terms and conditions of your Annuity, including any CDSC and Market Value Adjustment
 that may apply.

• Withdrawals
 made while the GMWB benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under your
 Annuity.

• The
 GMWB benefit does not directly affect your Annuity's Account Value or Surrender Value, but any withdrawal will decrease the Account Value by the amount
 of the withdrawal. If you surrender your Annuity, you will receive the current Surrender Value, not the Protected Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the GMWB benefit. The GMWB
 benefit provides a guarantee that if your Account Value declines due to Variable Option performance, you will be able to receive your
 Protected Value in the form of periodic benefit payments.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

• The
 Basic Death Benefit will terminate if withdrawals taken under the GMWB benefit cause your Account Value to reduce to zero. Certain optional
 Death Benefits may terminate if withdrawals taken under the GMWB benefit cause your Account Value to reduce to zero. (See " [<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930) "
  for more information.)

**Election of the Benefit**

The GMWB benefit is no longer available. If you currently participate in GMWB, your existing guarantees are unaffected by the fact that we no longer offer GMWB.

We reserve the right to restrict the maximum amount of Protected Value that may be covered under the GMWB benefit under this Annuity or any other annuities that you own that are issued by us.

**Termination of the Benefit**

The benefit terminates automatically when your Protected Value reaches zero based on your withdrawals. You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective. The benefit terminates upon your surrender of your Annuity, upon due proof of death (unless your surviving spouse elects to continue your Annuity and the GMWB benefit or your Beneficiary elects to receive the amounts payable under the GMWB benefit in lieu of the death benefit) or upon your election to begin receiving annuity payments.

The charge for the GMWB benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Please note that if you terminate a living benefit such as GMWB and elect a new living benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

**Charges under the Benefit**

• The
 maximum charge for GMWB is 1.00% annually of the daily net assets of the Variable Options. The charge is deducted daily.

• If,
 during the seven years following the effective date of the benefit, you do not make any withdrawals, and also during the five years after the effective date
 of the benefit you make no Purchase Payment, we will thereafter waive the charge for GMWB. If you make a Purchase Payment
 after we have instituted that fee waiver (whether that Purchase Payment is directed to a Variable Option or to a Fixed Allocation), we
 will resume imposing the GMWB fee (without notifying you of the resumption of the charge). Withdrawals that you take after the fee waiver
 has been instituted will not result in the re-imposition of the GMWB charge.

• If
 you elect to step-up the Protected Value under the benefit, and on the date you elect to step-up, the charges under the benefit have changed
 for new purchasers, your benefit may be subject to the new charge level for the benefit.

**Additional Tax Considerations for Qualified Contracts/Arrangements**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your Annuity beginning after the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than 5% Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the

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Owner's lifetime. The amount required under the Code may exceed the Protected Annual Withdrawal Amount, which will cause us to recalculate the Protected Value and the Protected Annual Withdrawal Amount, resulting in a lower amount payable in future Annuity Years. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more information about the applicable age and for further discussions on RMDs.

**GUARANTEED MINIMUM INCOME BENEFIT (GMIB)**

**The Guaranteed Minimum Income Benefit is no longer available for new elections.**

The Guaranteed Minimum Income Benefit is an optional benefit that, after a seven-year waiting period, guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on a guaranteed minimum value (called the "Protected Income Value") that increases after the waiting period begins, regardless of the impact of Variable Option performance on your Account Value. The benefit may be appropriate for you if you anticipate using your Annuity as a future source of periodic fixed income payments for the remainder of your life and wish to ensure that the basis upon which your income payments will be calculated will achieve at least a minimum amount despite fluctuations in Variable Option performance. There is an additional charge if you elected the GMIB benefit.

**Key Feature – Protected Income Value**

The Protected Income Value is the minimum amount that we guarantee will be available (net of any applicable Tax Charge), after a waiting period of at least seven years, as a basis to begin receiving fixed annuity payments. The Protected Income Value is initially established on the effective date of the GMIB benefit and is equal to your Account Value on such date. Currently, since the GMIB benefit may only be elected at issue, the effective date is the Issue Date of your Annuity. The Protected Income Value is increased daily based on an annual growth rate of 5%, subject to the limitations described below. The Protected Income Value is referred to as the "Protected Value" in the rider we issue for this benefit. The 5% annual growth rate is referred to as the "Roll-Up Percentage" in the rider we issue for this benefit.

The Protected Income Value is subject to a limit of 200% (2X) of the sum of the Protected Income Value established on the effective date of the GMIB benefit, or the effective date of any step-up value, plus any additional Purchase Payments (and any Credit that is applied to such Purchase Payments in the case of XT6) made after the waiting period begins ("Maximum Protected Income Value"), minus the impact of any withdrawals (as described below in "Impact of Withdrawals on the Protected Income Value") you make from your Annuity after the waiting period begins.

• Subject
 to the maximum age/durational limits described immediately below, we will no longer increase the Protected Income Value by the 5%
 annual growth rate once you reach the Maximum Protected Income Value. However, we will increase the Protected Income Value by the
 amount of any additional Purchase Payments after you reach the Maximum Protected Income Value. Further, if you make withdrawals after
 you reach the Maximum Protected Income Value, we will reduce the Protected Income Value and the Maximum Protected Income Value
 by the proportional impact of the withdrawal on your Account Value.

• Subject
 to the Maximum Protected Income Value, we will no longer increase the Protected Income Value by the 5% annual growth rate after
 the later of the anniversary date on or immediately following the Annuitant's 80 <sup>th</sup> birthday or the 7 <sup>th</sup> anniversary of the later of the effective
 date of the GMIB benefit or the effective date of the most recent step-up. However, we will increase the Protected Income Value by
 the amount of any additional Purchase Payments (and any Credit that is applied to such Purchase Payments in the case of XT6). Further,
 if you make withdrawals after the Annuitant reaches the maximum age/duration limits, we will reduce the Protected Income Value and
 the Maximum Protected Income Value by the proportional impact of the withdrawal on your Account Value.

• Subject
 to the Maximum Protected Income Value, if you make an additional Purchase Payment, we will increase the Protected Income Value
 by the amount of the Purchase Payment (and any Credit that is applied to such Purchase Payment in the case of XT6) and will apply
 the 5% annual growth rate on the new amount from the date the Purchase Payment is applied.

• As
 described below, after the waiting period begins, cumulative withdrawals each Annuity Year that are up to 5% of the Protected Income Value
 on the prior anniversary of your Annuity will reduce the Protected Income Value by the amount of the withdrawal. Cumulative withdrawals
 each Annuity Year in excess of 5% of the Protected Income Value on the prior anniversary of your Annuity will reduce the Protected
 Income Value proportionately. All withdrawals after the Maximum Protected Income Value is reached will reduce the Protected Income
 Value proportionately. The 5% annual growth rate will be applied to the reduced Protected Income Value from the date of the withdrawal.

Stepping-Up the Protected Income Value – You may elect to "step-up" or "reset" your Protected Income Value if your Account Value is greater than the current Protected Income Value. Upon exercise of the step-up provision, your initial Protected Income Value will be reset equal to your current Account Value. From the date that you elect to step-up the Protected Income Value, we will apply the 5% annual growth rate to the stepped-up Protected Income Value, as described above. You can exercise the step-up provision twice while the GMIB benefit is in effect, and only while the Annuitant is less than age 76.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• A
 new seven-year waiting period will be established upon the effective date of your election to step-up the Protected Income Value. You cannot exercise your
 right to begin receiving annuity payments under the GMIB benefit until the end of the new waiting period. In light of this
 waiting period upon resets, it is not recommended that you reset your GMIB if the required beginning date under IRS minimum distribution
 requirements would commence during the 7 year waiting period. See the " [<u>Taxes</u>](#chapter_14-sect1_1_930) "
 section in this prospectus for additional information
 on IRS requirements.

• The
 Maximum Protected Income Value will be reset as of the effective date of any step-up. The new Maximum Protected Income Value will
 be equal to 200% of the sum of the Protected Income Value as of the effective date of the step-up plus any subsequent Purchase Payments
 (and any Credit that is applied to such Purchase Payments in the case of XT6), minus the impact of any withdrawals after the date
 of the step-up.

• When
 determining the guaranteed annuity purchase rates for annuity payments under the GMIB benefit, we will apply such rates based on
 the number of years since the most recent step-up.

• If
 you elect to step-up the Protected Income Value under the benefit, and on the date you elect to step-up, the charges under the GMIB benefit
 have changed for new purchasers, your benefit may be subject to the new charge going forward.

• A
 step-up will increase the dollar-for-dollar limit on the anniversary of the Issue Date of the Annuity following such step-up.

*Impact of Withdrawals on the Protected Income Value –* Cumulative withdrawals each Annuity Year up to 5% of the Protected Income Value will reduce the Protected Income Value on a "dollar-for-dollar" basis (the Protected Income Value is reduced by the actual amount of the withdrawal). Cumulative withdrawals in any Annuity Year in excess of 5% of the Protected Income Value will reduce the Protected Income Value proportionately (see the examples of this calculation below). The 5% annual withdrawal amount is determined on each anniversary of the Issue Date (or on the Issue Date for the first Annuity Year) and applies to any withdrawals during the Annuity Year. This means that the amount available for withdrawals each Annuity Year on a "dollar-for-dollar" basis is adjusted on each Annuity anniversary to reflect changes in the Protected Income Value during the prior Annuity Year.

The Maximum Protected Income Value is reduced by the same dollar-for-dollar amount as the Protected Income Value is reduced and the same proportional percentage as the Protected Income Value is reduced.

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GMIB benefit are October 13, 2005; 2.) an initial Purchase Payment of $250,000 (includes any Credits in the case of XT6); 3.) an initial Protected Income Value of $250,000; 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000); and 5.) a Maximum Protected Income Value of $500,000 (200% of the initial Protected Income Value). The values set forth here are purely hypothetical and do not reflect the charge for GMIB or any other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year). No prior withdrawals or step-ups have been taken. Immediately prior to the withdrawal, the Protected Income Value is $251,038.10 (the initial value accumulated for 31 days at an annual effective rate of 5%). As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 Protected Income Value is reduced by the amount withdrawn (i.e., by $10,000, from $251,038.10 to $241,038.10).

• The
 Maximum Protected Income Value is reduced by the amount withdrawn (i.e., by $10,000 from $500,000.00 to $490,000.00).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 13, 2005 (still within the first Annuity Year). Immediately before the withdrawal, the Account Value is $220,000, the Protected Income Value is $242,006.64 and the Maximum Protected Income Value is $490,000.00. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 Protected Income Value is first reduced by the Remaining Limit (from $242,006.64 to $239,506.64);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

○ B
 is the Account Value less the Remaining Limit ($220,000 – $2,500, or $217,500).

The resulting Protected Income Value is: $239,506.64 X (1 – $7,500 / $217,500), or $231,247.79.

• The
 Maximum Protected Income Value is reduced first by the same dollar amount as the Protected Income Value ($490,000.00 – $2,500 or
 $487,500.00) and by the same proportion as for the Protected Income Value ($487,500.00 X 0.9655 or $470,689.66).

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

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**Example 3. Reset of the Dollar-for-Dollar Limit**

A $10,000 withdrawal is made on the first anniversary of the Issue Date, October 13, 2006 (second Annuity Year). Prior to the withdrawal, the Protected Income Value is $240,838.37 and the Maximum Protected Income Value is $470,689.66. The Remaining Limit is reset to 5% of the Protected Income Value amount, or $12,041.92. As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 Protected Income Value is reduced by the amount withdrawn (i.e., reduced by $10,000, from $240,838.37 to $230,838.37).

• The
 Maximum Protected Income Value is also reduced by the amount withdrawn (i.e., by $10,000 from $470,689.66, to $460,689.66).

• The
 Remaining Limit for the balance of the second Annuity Year is also reduced by the amount withdrawn (from $12,041.92 to $2,041.92).

**Key Feature – GMIB Annuity Payments**

You can elect to apply the Protected Income Value to one of the available GMIB Annuity Payment Options on any anniversary date following the initial waiting period, or any subsequent waiting period established upon your election to step-up the Protected Income Value. Once you have completed the waiting period, you will have a 30-day period each year, after the Annuity anniversary, during which you may elect to begin receiving annuity payments under one of the available GMIB Annuity Payment Options. You must elect one of the GMIB Annuity Payment Options by the anniversary of the Annuity's Issue Date on or immediately following the Annuitant's or your 95<sup>th</sup> birthday (whichever is sooner), except for Annuities used as a funding vehicle for an IRA, SEP IRA or 403(b), in which case you must elect one of the GMIB Annuity Payment Options by the anniversary of the Annuity's Issue Date on or immediately following the Annuitant's 92<sup>nd</sup> birthday.

Your Annuity or state law may require you to begin receiving annuity payments at an earlier date.

The amount of each GMIB Annuity Payment will be determined based on the age and, where permitted by law, sex of the Annuitant by applying the Protected Income Value (net of any applicable Tax Charge that may be due) to the GMIB Annuity Payment Option you choose. We use special annuity purchase rates to calculate the amount of each payment due under the GMIB Annuity Payment Options. These special rates for the GMIB Annuity Payment Options are calculated using an assumed interest rate factor that provides for lower growth in the value applied to produce annuity payments than if you elected an annuity payment option that is not part of the GMIB benefit. These special rates also are calculated using other factors such as "age setbacks" (use of an age lower than the Annuitant's actual age) that result in lower payments than would result if you elected an annuity payment option that is not part of the GMIB benefit. Use of an age setback entails a longer assumed life for the Annuitant which in turn results in lower annuity payments.

**On the date that you elect to begin receiving GMIB Annuity Payments, we guarantee that your payments will be calculated based on your** **Account Value and our then current annuity purchase rates if the payment amount calculated on this basis would be higher than it would be** **based on the Protected Income Value and the special GMIB annuity purchase rates.**

**GMIB Annuity Payment Option 1 – Payments for Life with a Certain Period**

Under this option, monthly annuity payments will be made until the death of the Annuitant. If the Annuitant dies before having received 120 monthly annuity payments, the remainder of the 120 monthly annuity payments will be made to the Beneficiary.

**GMIB Annuity Payment Option 2 – Payments for Joint Lives with a Certain Period**

Under this option, monthly annuity payments will be made until the death of both the Annuitant and the Joint Annuitant. If the Annuitant and the Joint Annuitant die before having received 120 monthly annuity payments, the remainder of the 120 monthly annuity payments will be made to the Beneficiary.

• If
 the Annuitant dies first, we will continue to make payments until the later of the death of the Joint Annuitant and the end of the period certain. However,
 if the Joint Annuitant is still receiving annuity payments following the end of the certain period, we will reduce the amount
 of each subsequent payment to 50% of the original payment amount.

• If
 the Joint Annuitant dies first, we will continue to make payments until the later of the death of the Annuitant and the end of the period certain.

You cannot withdraw your Account Value or the Protected Income Value under either GMIB Annuity Payment Option once annuity payments have begun. We may make other payout frequencies available, such as quarterly, semi-annually or annually.

**Other Important Considerations**

**You should note that GMIB is designed to provide a type of insurance that serves as a safety net only in the event your Account Value** **declines significantly due to negative investment performance. If your Account Value is not significantly affected by negative investment** **performance, it is unlikely that the purchase of the GMIB will result in your receiving larger annuity payments than if you had not purchased** **GMIB.** This is because the assumptions that we use in computing the GMIB, such as the annuity purchase rates, (which include assumptions as to age-setbacks and assumed interest rates), are more conservative than the assumptions that we use in computing annuity payout options outside of GMIB. Therefore, you may generate higher income payments if you were to annuitize a lower Account Value at the current annuity purchase rates, than if you were to annuitize under the GMIB with a higher Protected Value than your Account Value but, at the annuity purchase rates guaranteed under the GMIB. The GMIB benefit does not directly affect an Annuity's Account Value, Surrender Value or the amount payable under either the basic Death Benefit

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provision of the Annuity or any optional Death Benefit provision. If you surrender your Annuity, you will receive the current Surrender Value, not the Protected Income Value. The Protected Income Value is only applicable if you elect to begin receiving annuity payments under one of the GMIB annuity options after the waiting period.

• Each
 Annuity offers other annuity payment options that you can elect which do not impose an additional charge, but which do not offer to guarantee
 a minimum value on which to make annuity payments.

• Where
 allowed by law, we reserve the right to limit subsequent Purchase Payments if we determine, at our sole discretion, that based on the
 timing of your Purchase Payments and withdrawals, your Protected Income Value is increasing in ways we did not intend. In determining
 whether to limit Purchase Payments, we will look at Purchase Payments which are disproportionately larger than your initial Purchase
 Payment and other actions that may artificially increase the Protected Income Value.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. We reserve the right
 to transfer any Account
 Value in a prohibited investment option to an eligible investment option. Should we prohibit access to any investment option,
 any transfers required to move Account Value to eligible investment options will not be counted in determining the number of free transfers
 during an Annuity Year.

• If
 you change the Annuitant after the effective date of the GMIB benefit, the period of time during which we will apply the 5% annual growth
 rate may be changed based on the age of the new Annuitant. If the new Annuitant would not be eligible to elect the GMIB benefit based
 on his or her age at the time of the change, then the GMIB benefit will terminate.

• Annuity
 payments made under the GMIB benefit are subject to the same tax treatment as any other annuity payment.

• At
 the time you elect to begin receiving annuity payments under the GMIB benefit or under any other annuity payment option we make available,
 the protection provided by an Annuity's basic Death Benefit or any optional Death Benefit provision you elected will no longer apply.

**Election of the Benefit**

The GMIB benefit is no longer available. If you currently participate in GMIB, your existing guarantees are unaffected by the fact that we no longer offer GMIB.

**Termination of the Benefit**

The GMIB benefit cannot be terminated by the Owner once elected. The GMIB benefit automatically terminates as of the date your Annuity is fully surrendered, on the date the Death Benefit is payable to your Beneficiary (unless your surviving spouse elects to continue your Annuity), or on the date that your Account Value is transferred to begin making annuity payments. The GMIB benefit may also be terminated if you designate a new Annuitant who would not be eligible to elect the GMIB benefit based on his or her age at the time of the change.

Upon termination of the GMIB benefit we will deduct the charge from your Account Value for the portion of the Annuity Year since the prior anniversary of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

**Charges under the Benefit**

The maximum charge for GMIB is 1.00% per year of the average Protected Income Value for the period the charge applies. Because the charge is calculated based on the average Protected Income Value, it does not increase or decrease based on changes to the Annuity's Account Value due to Variable Option performance. The dollar amount you pay each year will increase in any year the Protected Income Value increases, and it will decrease in any year the Protected Income Value decreases due to withdrawal, irrespective of whether your Account Value increases or decreases.

The charge is deducted annually in arrears each Annuity Year on the anniversary of the Issue Date of an Annuity. We deduct the amount of the charge on a proportional basis from the Account Value allocated to the Variable Options and the Fixed Allocations. No Market Value Adjustment will apply to Account Value deducted from a Fixed Allocation. If you surrender your Annuity, begin receiving annuity payments under the GMIB benefit or any other annuity payment option we make available during an Annuity Year, or the GMIB benefit terminates, we will deduct the charge for the portion of the Annuity Year since the prior anniversary of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

No charge applies after the Annuity Date.

***LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)***

**The Lifetime Five Income Benefit is no longer available for new elections.**

Lifetime Five could have been elected only where the Annuitant and the Owner were the same person or, if the Annuity Owner is an entity, where there was only one Annuitant. The Annuitant must have been at least 45 years old when the benefit is elected. The Lifetime Five Income Benefit was not available if you elected any other optional living benefit. As long as your Lifetime Five Income Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available option(s) with this benefit.

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The benefit guarantees your ability to withdraw amounts equal to a percentage of an initial principal value (called the "Protected Withdrawal Value"), regardless of the impact of Variable Option performance on your Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. There are two options – one is designed to provide an annual withdrawal amount for life (the "Life Income Benefit") and the other is designed to provide a greater annual withdrawal amount as long as there is Protected Withdrawal Value (adjusted as described below) (the "Withdrawal Benefit"). If there is no Protected Withdrawal Value, the withdrawal benefit will be zero. You do not choose between these two options; each option will continue to be available as long as your Annuity has an Account Value and the Lifetime Five is in effect. Certain benefits under Lifetime Five may remain in effect even if the Account Value of your Annuity is zero. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to determine the amount of each annual payment under the Life Income Benefit and the Withdrawal Benefit. The initial Protected Withdrawal Value is determined as of the date you make your first withdrawal under your Annuity following your election of Lifetime Five. The initial Protected Withdrawal Value is equal to the greatest of (A) the Account Value on the date you elect Lifetime Five, plus any additional Purchase Payments, as applicable, each growing at 5% per year from the date of your election of the benefit, or application of the Purchase Payment to your Annuity until the date of your first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier (B) the Account Value on the date of the first withdrawal from your Annuity, prior to the withdrawal, and (C) the highest Account Value on each Annuity anniversary, plus subsequent Purchase Payments prior to the first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier. With respect to (A) and (C) above, after the 10<sup>th</sup> anniversary of the benefit effective date, each value is increased by the amount of any subsequent Purchase Payments. With respect to XT6, Credits are added to Purchase Payments for purposes of calculating the Protected Withdrawal Value, the Annual Income Amount and the Annual Withdrawal Amount (see below for a description of Annual Income Amount and Annual Withdrawal Amount).

• If
 you elected the Lifetime Five benefit at the time you purchased your Annuity, the Account Value would have been your initial Purchase Payment.

• If
 you make additional Purchase Payments after your first withdrawal, the Protected Withdrawal Value will be increased by the amount of each
 additional Purchase Payment.

The Protected Withdrawal Value is reduced each time a withdrawal is made on a dollar-for-dollar basis up to the Annual Withdrawal Amount, per Annuity Year, of the Protected Withdrawal Value and on the greater of a dollar-for-dollar basis or on a proportional basis for withdrawals in an Annuity Year in excess of that amount until the Protected Withdrawal Value is reduced to zero. At that point the Annual Withdrawal Amount will be zero until such time (if any) as the Annuity reflects a Protected Withdrawal Value (for example, due to a step-up or additional Purchase Payments being made into the Annuity).

**Step-Up of the Protected Withdrawal Value**

You may elect to step-up your Protected Withdrawal Value if, due to positive Variable Option performance, your Account Value is greater than the Protected Withdrawal Value.

If you elected the Lifetime Five benefit on or after March 20, 2006:

• You
 are eligible to step-up the Protected Withdrawal Value on or after the 1 <sup>st</sup> anniversary of the first withdrawal under the Lifetime Five benefit

• The
 Protected Withdrawal Value can be stepped up again on or after the 1 <sup>st</sup> anniversary of the preceding step-up.

If you elected the Lifetime Five benefit prior to March 20, 2006 and that original election remains in effect:

• You
 are eligible to step-up the Protected Withdrawal Value on or after the 5 <sup>th</sup> anniversary of the first withdrawal under the Lifetime Five benefit

• The
 Protected Withdrawal Value can be stepped up again on or after the 5 <sup>th</sup> anniversary of the preceding step-up.

In either scenario (i.e., elections before or after March 20, 2006) if you elect to step-up the Protected Withdrawal Value under the benefit, and on the date you elect to step-up, the charges under the Lifetime Five benefit have changed for new purchasers, your benefit may be subject to the new charge at the time of step-up. Upon election of the step-up, we increase the Protected Withdrawal Value to be equal to the then current Account Value. For example, assume your initial Protected Withdrawal Value was $100,000 and you have made cumulative withdrawals of $40,000, reducing the Protected Withdrawal Value to $60,000. On the date you are eligible to step-up the Protected Withdrawal Value, your Account Value is equal to $75,000. You could elect to step-up the Protected Withdrawal Value to $75,000 on the date you are eligible. If your current Annual Income Amount and Annual Withdrawal Amount are less than they would be if we did not reflect the step-up in Protected Withdrawal Value, then we will increase these amounts to reflect the step-up as described below.

An optional automatic step-up ("Auto Step-Up") feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force.

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If you elected the Lifetime Five benefit on or after March 20, 2006 and have also elected the Auto Step-Up feature:

• the
 first Auto Step-Up opportunity will occur on the 1 <sup>st</sup> Annuity Anniversary that is at least one year after the later of (1) the date of the first withdrawal
 under the Lifetime Five benefit or (2) the most recent step-up

• your
 Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by any amount

• if
 at the time of the first Auto Step-Up opportunity, 5% of the Account Value is not greater than the Annual Income Amount, an Auto Step-Up
 opportunity will occur on each successive Annuity Anniversary until a step-up occurs

• once
 a step-up occurs, the next Auto Step-Up opportunity will occur on the 1 <sup>st</sup> Annuity Anniversary that is at least one year after the most recent
 step-up

If you elected the Lifetime Five benefit prior to March 20, 2006 and have also elected the Auto Step-Up feature:

• the
 first Auto Step-Up opportunity will occur on the Annuity Anniversary that is at least 5 years after the later of (1) the date of the first withdrawal under
 the Lifetime Five Benefit or (2) the most recent step-up

• your
 Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by 5% or more

• if
 at the time of the first Auto Step-Up opportunity, 5% of the Account Value does not exceed the Annual Income Amount by 5% or more, an
 Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs

• once
 a step-up occurs, the next Auto Step-Up opportunity will occur on the Annuity Anniversary that is at least 5 years after the most recent
 step-up

In either scenario (i.e., elections before or after March 20, 2006), if on the date that we implement an Auto Step-Up to your Protected Withdrawal Value, the charge for Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Protected Withdrawal Value even if you elect the Auto Step-Up feature.

**Key Feature – Annual Income Amount under the Life Income Benefit**

The initial Annual Income Amount is equal to 5% of the initial Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active. Under the Lifetime Five benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. A withdrawal can be considered Excess Income under the Life Income Benefit even though it does not exceed the Annual Withdrawal Amount under the Withdrawal Benefit. When you elect a step-up (or an auto step-up is effected), your Annual Income Amount increases to equal 5% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity Year, if such amount is greater than your Annual Income Amount. Your Annual Income Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 5% of any additional Purchase Payments (and any associated Credit with respect to XT6). Any increase will be added to your Annual Income Amount beginning on the day that the step-up is effective or the Purchase Payment is made. A determination of whether you have exceeded your Annual Income Amount is made at the time of each withdrawal; therefore a subsequent increase in the Annual Income Amount will not offset the effect of a withdrawal that exceeded the Annual Income Amount at the time the withdrawal was made.

**Key Feature–Annual Withdrawal Amount under the Withdrawal Benefit** The initial Annual Withdrawal Amount is equal to 7% of the initial Protected Withdrawal Value. Under the Lifetime Five benefit, if your cumulative withdrawals each Annuity Year are less than or equal to the Annual Withdrawal Amount, your Protected Withdrawal Value will be reduced on a dollar-for-dollar basis. If your cumulative withdrawals are in excess of the Annual Withdrawal Amount ("Excess Withdrawal"), your Annual Withdrawal Amount will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Withdrawal to the Account Value immediately prior to such withdrawal (see the examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. When you elect a step-up (or an auto step-up is effected), your Annual Withdrawal Amount increases to equal 7% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity Year, if such amount is greater than your Annual Withdrawal Amount. Your Annual Withdrawal Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 7% of any additional Purchase Payments (and any associated Credit with respect to XT6). A determination of whether you have exceeded your Annual Withdrawal Amount is made at the time of each withdrawal; therefore, a subsequent increase in the Annual Withdrawal Amount will not offset the effect of a withdrawal that exceeded the Annual Withdrawal Amount at the time the withdrawal was made.

The Lifetime Five benefit does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed the Annual Income Amount and the Annual Withdrawal Amount. You are not required to withdraw all or any portion of the Annual Withdrawal Amount or Annual Income Amount in each Annuity Year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If,
 cumulatively, you withdraw an amount less than the Annual Withdrawal Amount under the Withdrawal Benefit in any Annuity Year, you cannot
 carry-over the unused portion of the Annual Withdrawal Amount to subsequent Annuity Years. However, because the Protected Withdrawal
 Value is only reduced by the actual amount of withdrawals you make under these circumstances, any unused Annual Withdrawal
 Amount may extend the period of time until the remaining Protected Withdrawal Value is reduced to zero.

• If,
 cumulatively, you withdraw an amount less than the Annual Income Amount under the Life Income Benefit in any Annuity Year, you cannot
 carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years. However, because the Protected Withdrawal
 Value is only reduced by the actual amount of withdrawals you make under these circumstances, any unused Annual Income Amount
 may extend the period of time until the remaining Protected Withdrawal Value is reduced to zero.

**Examples of Withdrawals**

The following examples of dollar-for-dollar and proportional reductions of the Protected Withdrawal Value, Annual Withdrawal Amount and Annual Income Amount assume: 1.) the Issue Date and the Effective Date of the Lifetime Five benefit are February 1, 2005; 2.) an initial Purchase Payment of $250,000; 3.) the Account Value on February 1, 2006 is equal to $265,000; and 4.) the first withdrawal occurs on March 1, 2006 when the Account Value is equal to $263,000. The values set forth here are purely hypothetical, and do not reflect the charge for Lifetime Five or any other fees and charges.

The initial Protected Withdrawal Value is calculated as the greatest of (a), (b) and (c):

(a) Purchase
 payment accumulated at 5% per year from February 1, 2005 until March 1, 2006 (393 days) = $250,000 X 1.05 <sup>^(393/365)</sup> = $263,484.33

(b) Account
 Value on March 1, 2006 (the date of the first withdrawal) = $263,000

(c) Account
 Value on February 1, 2006 (the first Annuity Anniversary) = $265,000

Therefore, the initial Protected Withdrawal Value is equal to $265,000. The Annual Withdrawal Amount is equal to $18,550 under the Withdrawal Benefit (7% of $265,000). The Annual Income Amount is equal to $13,250 under the Life Income Benefit (5% of $265,000).

**Example 1. Dollar-for-dollar reduction**

If $10,000 was withdrawn (less than both the Annual Income Amount and the Annual Withdrawal Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Withdrawal Amount for current Annuity Year = $18,550 – $10,000 = $8,550. Annual Withdrawal Amount for future Annuity
 Years remains at $18,550.

• Remaining
 Annual Income Amount for current Annuity Year = $13,250 – $10,000 = $3,250. Annual Income Amount for future Annuity Years remains
 at $13,250.

• Protected
 Withdrawal Value is reduced by $10,000 from $265,000 to $255,000

**Example 2. Dollar-for-dollar and proportional reductions**

1. If
 $15,000 was withdrawn (more than the Annual Income Amount but less than the Annual Withdrawal Amount) on March 1, 2006, then the following
 values would result:

○ Remaining
 Annual Withdrawal Amount for current Annuity Year = $18,550 – $15,000 = $3,550. Annual Withdrawal Amount for future Annuity
 Years remains at $18,550

○ Remaining
 Annual Income Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Income Amount ($15,000 – $13,250 = $1,750) reduces Annual Income Amount for future Annuity Years.

○ Reduction
 to Annual Income Amount = Excess Income/Account Value before Excess Income × Annual Income Amount = $1,750 / ($263,000
 – $13,250) × $13,250 = $93

Annual Income Amount for future Annuity Years = $13,250 – $93 = $13,157

○ Protected
 Withdrawal Value is reduced by $15,000 from $265,000 to $250,000

2. If
 $25,000 was withdrawn (more than both the Annual Income Amount and the Annual Withdrawal Amount) on March 1, 2006, then the following
 values would result:

○ Remaining
 Annual Withdrawal Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Withdrawal Amount ($25,000 – $18,550 = $6,450) reduces Annual Withdrawal Amount for future Annuity Years.

○ Reduction
 to Annual Withdrawal Amount = Excess Withdrawal/Account Value before Excess Withdrawal × Annual Withdrawal Amount
 = $6,450 / ($263,000  – $18,550) × $18,550 = $489

○ Annual
 Withdrawal Amount for future Annuity Years = $18,550 – $489 = $18,061

○ Remaining
 Annual Income Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Income Amount ($25,000 – $13,250 = $11,750) reduces Annual Income Amount for future Annuity Years.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

○ Reduction
 to Annual Income Amount = Excess Income/Account Value before Excess Income × Annual Income Amount = $11,750 / ($263,000
 – $13,250) × $13,250 = $623

Annual Income Amount for future Annuity Years = $13,250 – $623 = $12,627

○ Protected
 Withdrawal Value is first reduced by the Annual Withdrawal Amount ($18,550) from $265,000 to $246,450. It is further reduced
 by the greater of a dollar-for-dollar reduction or a proportional reduction. Dollar-for-dollar reduction = $25,000 – $18,550 = $6,450

○ Proportional
 reduction = Excess Withdrawal/Account Value before Excess Withdrawal × Protected Withdrawal Value = $6,450 / ($263,000
 – $18,550) × $246,450 = $6,503 Protected Withdrawal Value = $246,450 – max {$6,450, $6,503} = $239,947

**Example 3. Step-up of the Protected Withdrawal Value**

If the Annual Income Amount ($13,250) is withdrawn each year starting on March 1, 2006 for a period of 5 years, the Protected Withdrawal Value on March 1, 2011 would be reduced to $198,750 {$265,000 - ($13,250 × 5)}. If a step-up is elected on March 1, 2011, then the following values would result:

• Protected
 Withdrawal Value = Account Value on March 1, 2011 = $240,000.

• Annual
 Income Amount is equal to the greater of the current Annual Income Amount or 5% of the stepped-up Protected Withdrawal Value. Current
 Annual Income Amount is $13,250. 5% of the stepped-up Protected Withdrawal Value is 5% of $240,000, which is $12,000. Therefore,
 the Annual Income Amount remains $13,250.

• Annual
 Withdrawal Amount is equal to the greater of the current Annual Withdrawal Amount or 7% of the stepped-up Protected Withdrawal Value.
 Current Annual Withdrawal Amount is $18,550. 7% of the stepped-up Protected Withdrawal Value is 7% of $240,000, which is $16,800.
 Therefore, the Annual Withdrawal Amount remains $18,550.

**Benefits Under the Lifetime Five Benefit**

• If
 your Account Value is equal to zero, and the cumulative withdrawals in the current Annuity Year are greater than the Annual Withdrawal Amount, the Lifetime
 Five benefit will terminate. To the extent that your Account Value was reduced to zero as a result of cumulative withdrawals
 that are equal to or less than the Annual Income Amount and amounts are still payable under both the Life Income Benefit and
 the Withdrawal Benefit, you will be given the choice of receiving the payments under the Life Income Benefit or under the Withdrawal Benefit.
 Thus, in that scenario, the remaining amounts under the Life Income Benefit and the Withdrawal Benefit would be payable even though
 your Account Value was reduced to zero. Once you make this election we will make an additional payment for that Annuity Year equal
 to either the remaining Annual Income Amount or Annual Withdrawal Amount for the Annuity Year, if any, depending on the option you
 choose. In subsequent Annuity Years we make payments that equal either the Annual Income Amount or the Annual Withdrawal Amount
 as described in this prospectus. You will not be able to change the option after your election and no further Purchase Payments will
 be accepted under your Annuity. If you do not make an election, we will pay you annually under the Life Income Benefit. To the extent that cumulative withdrawals
 in the current Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount but
 less than or equal to the Annual Withdrawal Amount and amounts are still payable under the Withdrawal Benefit, you will receive the payments
 under the Withdrawal Benefit. In the year of a withdrawal that reduced your Account Value to zero, we will make an additional payment
 to equal any remaining Annual Withdrawal Amount and make payments equal to the Annual Withdrawal Amount in each subsequent
 year (until the Protected Withdrawal Value is depleted). Once your Account Value equals zero no further Purchase Payments will
 be accepted under your Annuity.

• If
 annuity payments are to begin under the terms of your Annuity or if you decide to begin receiving annuity payments and there is any Annual
 Income Amount due in subsequent Annuity Years or any remaining Protected Withdrawal Value, you can elect one of the following three
 options:

(a) apply
 your Account Value to any annuity option available; or

(b) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We make such annuity payments until the Annuitant's death; or

(c) request
 that, as of the date annuity payments are to begin, we pay out any remaining Protected Withdrawal Value as annuity payments.
 Each year such annuity payments will equal the Annual Withdrawal Amount or the remaining Protected Withdrawal Value if
 less. We make such annuity payments until the earlier of the Annuitant's death or the date the Protected Withdrawal Value is depleted.

We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a single life fixed annuity
 with five payments certain using the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity.
 The amount that will be applied to provide such annuity payments will be the greater of:

(a) the
 present value of future Annual Income Amount payments. Such present value will be calculated using the greater of the single life
 fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

(b) the
 Account Value.

• If
 no withdrawal was ever taken, we will determine a Protected Withdrawal Value and calculate an Annual Income Amount and an Annual Withdrawal
 Amount as if you made your first withdrawal on the date the annuity payments are to begin.

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**Other Important Considerations**

• Withdrawals
 under the Lifetime Five benefit are subject to all of the terms and conditions of your Annuity, including any applicable CDSC.

• Withdrawals
 made while the Lifetime Five benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under
 your Annuity. The Lifetime Five benefit does not directly affect your Annuity's Account Value or Surrender Value, but any withdrawal will decrease the
 Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity, you will receive
 the current Surrender Value, not the Protected Withdrawal Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Lifetime Five benefit. The
 Lifetime Five benefit provides a guarantee that if your Account Value declines due to Variable Option performance, you will be able to receive your Protected
 Withdrawal Value or Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the benefit. If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated
 under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted requirements. Subsequent
 to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments may be subject to the
 new investment limitations.

• You
 will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any
 lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Lifetime Five benefit cause your Account Value to reduce to zero. Certain
 optional Death Benefits may terminate if withdrawals taken under the Lifetime Five benefit cause your Account Value to reduce to zero.
 (See " [<u>Basic Death Benefit</u>](#chapter_11-sect1_23_930) "
 and " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
   for more information.)

• If
 you are taking your entire Annual Income Amount or Annual Withdrawal Amount through the Systematic Withdrawal Program, you must take
 that withdrawal as a gross withdrawal, not a net withdrawal.

**Election of the Benefit**

We no longer permit elections of Lifetime Five. If you wish, you may cancel the Lifetime Five benefit. You may then elect any other available living benefit, on the Valuation Day after you have cancelled the Lifetime Five benefit provided the request is received in Good Order (subject to state availability and in accordance with any applicable age requirements). Once the Lifetime Five benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Lifetime Five benefit provided that the benefit you are looking to elect is available on a post-issue basis. **If you cancel Lifetime Five, you lose all guarantees under** **the benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. Any** **such benefit may be more expensive.**

**Charges under the Benefit**

The maximum charge for Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. The charge is deducted daily.

**Termination of the Benefit**

The benefit terminates automatically when your Protected Withdrawal Value and Annual Income Amount equal zero. You may terminate the benefit at any time by notifying us. If you terminate the Benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective. The benefit terminates upon your surrender of your Annuity, upon the death of the Annuitant, upon a change in ownership of your Annuity that changes the tax identification number of the Owner, upon change in the Annuitant or upon your election to begin receiving annuity payments. While you may terminate your benefit at any time, we may not terminate the benefit other than in the circumstances listed above.

The charge for the Lifetime Five benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Additional Tax Considerations**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your Annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Withdrawal Amount and the Annual Income Amount, which will cause us to increase the Annual Income Amount and the Annual Withdrawal Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. Any such payments will reduce your Protected Withdrawal Value.

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As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section of this prospectus for a detailed discussion of the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here.

***SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE)***

**The Spousal Lifetime Five benefit is no longer available for new elections.**

Spousal Lifetime Five must have been elected based on two Designated Lives, as described below. Each Designated Life must have been at least 55 years old when the benefit was elected. The Spousal Lifetime Five benefit was not available if you elected any other optional living benefit or optional death benefit. As long as your Spousal Lifetime Five Income Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available option(s) with this benefit.

The benefit guarantees until the later death of two natural persons that are each other's spouses at the time of election of Spousal Lifetime Five (the "Designated Lives", each a "Designated Life") the ability to withdraw an annual amount ("Spousal Life Income Benefit") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The Spousal Life Income Benefit may remain in effect even if the Account Value of the Annuity is zero. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Life Income Benefit after the death of the first. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under the Spousal Lifetime Income Benefit when and if your Account Value is reduced to zero (unless the benefit has terminated).

**Key Feature – Initial Protected Withdrawal Value**

The Protected Withdrawal Value is used to determine the amount of each annual payment under the Spousal Life Income Benefit. The initial Protected Withdrawal Value is determined as of the date you make your first withdrawal under the Annuity following your election of Spousal Lifetime Five. The initial Protected Withdrawal Value is equal to the greatest of (A) the Account Value on the date you elect Spousal Lifetime Five, plus any additional Purchase Payments as applicable, each growing at 5% per year from the date of your election of the benefit, or application of the Purchase Payment to your Annuity, until the date of your first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier (B) the Account Value on the date of the first withdrawal from your Annuity, prior to the withdrawal, and (C) the highest Account Value on each Annuity anniversary, plus subsequent Purchase Payments prior to the first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier. With respect to (A) and (C) above, after the 10<sup>th</sup> anniversary of the benefit effective date, each value is increased by the amount of any subsequent Purchase Payments. With respect to XT6, Credits are added to Purchase Payments for purposes of calculating the Protected Withdrawal Value and the Annual Income Amount (see below for a description of Annual Income Amount).

**Key Feature – Annual Income Amount under the Spousal Lifetime Five Income Benefit**

The initial Annual Income Amount is equal to 5% of the initial Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active. Under the Spousal Lifetime Five benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount under the Spousal Life Income Benefit in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. The Spousal Lifetime Five benefit does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed the Annual Income Amount.

**Step-Up of Annual Income Amount**

You may elect to step-up your Annual Income Amount if, due to positive Variable Option performance, 5% of your Account Value is greater than the Annual Income Amount. You are eligible to step-up the Annual Income Amount on or after the 1<sup>st</sup> anniversary of the first withdrawal under the Spousal Lifetime Five benefit. The Annual Income Amount can be stepped up again on or after the 1<sup>st</sup> anniversary of the preceding step-up. If you elect to step-up the Annual Income Amount under the benefit, and on the date you elect to step-up, the charges under the Spousal Lifetime Five benefit have changed for new purchasers, your benefit may be subject to the new charge at the time of such step-up. When you elect a step-up, your Annual Income Amount increases to equal 5% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity Year. Your Annual Income Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 5% of any additional Purchase Payments (plus any Credit with respect to XT6). Any increase will be added to your Annual Income Amount beginning on the day that the step-up is effective or the Purchase

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Payment is made. A determination of whether you have exceeded your Annual Income Amount is made at the time of each withdrawal; therefore a subsequent increase in the Annual Income Amount will not offset the effect of a withdrawal that exceeded the Annual Income Amount at the time the withdrawal was made.

An optional automatic step-up ("Auto Step-Up") feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force. If you elect this feature, the first Auto Step-Up opportunity will occur on the 1<sup>st</sup> Annuity Anniversary that is at least one year after the later of (1) the date of the first withdrawal under the Spousal Lifetime Five benefit or (2) the most recent step-up. At this time, your Annual Income Amount will be stepped-up if 5% of your Account Value is greater than the Annual Income Amount by any amount. If 5% of the Account Value does not exceed the Annual Income Amount, then an Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs. Once a step-up occurs, the next Auto Step-Up opportunity will occur on the 1<sup>st</sup> Annuity Anniversary that is at least 1 year after the most recent step-up. If, on the date that we implement an Auto Step-Up to your Annual Income Amount, the charge for Spousal Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Annual Income Amount even if you elect the Auto Step-Up feature.

**Examples of Withdrawals and Step-Up**

The following examples of dollar-for-dollar and proportional reductions and the step-up of the Annual Income Amount assume:

1.) the Issue Date and the Effective Date of the Spousal Lifetime Five benefit are February 1, 2005; 2.) an initial Purchase Payment of $250,000; 3.) the Account Value on February 1, 2006 is equal to $265,000; 4.) the first withdrawal occurs on March 1, 2006 when the Account Value is equal to $263,000; and 5.) the Account Value on February 1, 2010 is equal to $280,000. The values set forth here are purely hypothetical, and do not reflect the charge for the Spousal Lifetime Five or any other fees and charges.

The initial Protected Withdrawal Value is calculated as the greatest of (a), (b) and (c):

(a) Purchase
 payment accumulated at 5% per year from February 1, 2005 until March 1, 2006 (393 days) = $250,000 × 1.05 <sup>^(393/365)</sup> = $263,484.33

(b) Account
 Value on March 1, 2006 (the date of the first withdrawal) = $263,000

(c) Account
 Value on February 1, 2006 (the first Annuity Anniversary) = $265,000

Therefore, the initial Protected Withdrawal Value is equal to $265,000. The Annual Income Amount is equal to $13,250 under the Spousal Life Income Benefit (5% of $265,000).

**Example 1. Dollar-for-dollar reduction**

If $10,000 was withdrawn (less than the Annual Income Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Income Amount for current Annuity Year = $13,250 – $10,000 = $3,250.

• Annual
 Income Amount for future Annuity Years remains at $13,250.

**Example 2. Dollar-for-dollar and proportional reductions**

If $15,000 was withdrawn (more than the Annual Income Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Income Amount for current Annuity Year = $0

• Excess
 of withdrawal over the Annual Income Amount ($15,000 – $13,250 = $1,750) reduces Annual Income Amount for future Annuity Years.

• Reduction
 to Annual Income Amount = Excess Income/Account Value before Excess Income ×  Annual Income Amount = $1,750/($263,000
 – $13,250) × $13,250 = $93. Annual Income Amount for future Annuity Years = $13,250 – $93 = $13,157

**Example 3. Step-Up of the Annual Income Amount**

If a step-up of the Annual Income Amount is requested on February 1, 2010 or the Auto Step-Up feature was elected, the step-up would occur because 5% of the Account Value, which is $14,000 (5% of $280,000), is greater than the Annual Income Amount of $13,250. The new Annual Income Amount will be equal to $14,000.

**BENEFITS UNDER THE SPOUSAL LIFETIME FIVE BENEFIT**

To the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Annual Income Amount and amounts are still payable under the Spousal Life Income Benefit, we will make an additional payment for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year, if any. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this Prospectus. No further Purchase Payments will be accepted under your Annuity. We will make payments until the first of the Designated Lives to die, and

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will continue to make payments until the death of the second Designated Life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount, the Spousal Life Income Benefit terminates and no additional payments will be made.

• If
 annuity payments are to begin under the terms of your Annuity or if you decide to begin receiving annuity payments and there is any Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(a) apply
 your Account Value to any annuity option available; or

(b) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life.

We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with five payments certain using the same basis that is used to calculate the greater of the annuity rates
 then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such annuity
 payments will be the greater of:

(a) the
 present value of future Annual Income Amount payments. Such present value will be calculated using the same basis that is used
 to calculate the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity;
 and

(b) the
 Account Value.

• If
 no withdrawal was ever taken, we will determine an initial Protected Withdrawal Value and calculate an Annual Income Amount as if you made your first withdrawal
 on the date the annuity payments are to begin.

**Other Important Considerations**

• Withdrawals
 under the Spousal Lifetime Five benefit are subject to all of the terms and conditions of the Annuity, including any CDSC.

• Withdrawals
 made while the Spousal Lifetime Five benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals
 under the Annuity. The Spousal Lifetime Five benefit does not directly affect the Annuity's Account Value or Surrender Value, but
 any withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity,
 you will receive the current Surrender Value, not the Protected Withdrawal Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Lifetime Five benefit.
 The Spousal Lifetime Five benefit provides a guarantee that if your Account Value declines due to Variable Option performance, you
 will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the benefit. If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated
 under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted requirements. Subsequent
 to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments may be subject to the
 new investment limitations.

• There
 may be circumstances where you will continue to be charged the full amount for the Spousal Lifetime Five benefit even when the benefit
 is only providing a guarantee of income based on one life with no survivorship.

• In
 order for the Surviving Designated Life to continue the Spousal Lifetime Five benefit upon the death of an Owner, the Designated Life must elect to assume
 ownership of the Annuity under the spousal continuation option. When the Annuity is owned by a Custodial Account, in
 order for Spousal Lifetime Five to be continued after the death of the first Designated Life (the Annuitant), the Custodial Account must elect to continue
 the Annuity and the second Designated Life (the Contingent Annuitant) will be named as the new Annuitant. See " [<u>Spousal Designations</u>](#chapter_9-sect1_2_930) "
 in the " [<u>Change of Owner, Annuitant, and Beneficiary Designations</u>](#chapter_11-sect1_25_930bc) "
 section, and " [<u>Spousal Continuation of Annuity</u>](#chapter_11-sect1_25_930) " in the " [<u>Payment of Death Benefits</u>](#chapter_11-sect1_25_930ab) "
 section of this prospectus.

• You
 will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any
 lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Spousal Lifetime Five benefit cause your Account Value to reduce to zero. Certain optional
 Death Benefits may terminate if withdrawals taken under the Spousal Lifetime Five benefit cause your Account Value
 to reduce to zero. (See " [<u>Basic Death Benefit</u>](#chapter_11-sect1_23_930) "
 and " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

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**Election of and Designations Under the Benefit**

We no longer permit elections of Spousal Lifetime Five – whether for those who currently participate in Spousal Lifetime Five or for those who are buying an Annuity for the first time. If you wish, you may cancel the Spousal Lifetime Five benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Spousal Lifetime Five benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Once the Spousal Lifetime Five benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Spousal Lifetime Five benefit provided that the benefit you are looking to elect is available on a post-issue basis. If you cancel the benefit, you lose all guarantees under the benefit, and your guarantee under any new benefit you elect will be based on your Account Value at that time. Any such new benefit may be more expensive.

Spousal Lifetime Five could only be elected based on two Designated Lives. Designated Lives must be natural persons who are each other's spouses at the time of election of the benefit. Spousal Lifetime Five only could be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The Owner/Annuitant
 and the beneficiary each must be at least 55 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must each be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Both the Annuitant and the Contingent Annuitant each must
 be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows:

(a) if
 one Owner dies and the surviving spousal Owner assumes the Annuity or

(b) if
 the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary
 designations under this benefit. If the Designated Lives divorce, however, the Spousal Lifetime Five benefit may not be divided
 as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new
 Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from
 the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds to purchase
 a new Annuity, subject to the rules that are current at the time of purchase.

**Charges under the Benefit**

The maximum charge for Spousal Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. The charge is deducted daily.

**Termination of the Benefit**

The benefit terminates automatically when your Annual Income Amount equals zero. The benefit also terminates upon your surrender of the Annuity, upon the first Designated Life to die if the Annuity is not continued, upon the second Designated Life to die or upon your election to begin receiving annuity payments. You may terminate the benefit at any time by notifying us. **Please note that if you terminate a living benefit such as Spousal** **Lifetime Five and elect a new living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base** **any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. We reserve the right to waive,** **change and/or further limit the election frequency in the future.**

The charge for the Spousal Lifetime Five benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Additional Tax Considerations**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or an employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your Annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than 5 percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. Any such payments will reduce your Protected Withdrawal Value.

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here.

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***HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT (HD5)***

**The Highest Daily Lifetime Five benefit is no longer available for new elections.**

**Except for Annuities issued in the state of Florida, effective September 14, 2012, we no longer accept additional Purchase Payments for** **Annuities with the Highest Daily Lifetime Five benefit. For Annuities issued in Florida, this restriction does not apply and you may continue to** **make additional Purchase Payments at this time.**

The income benefit under Highest Daily Lifetime Five is based on a single "designated life" who is at least 55 years old on the date that the benefit was acquired. The Highest Daily Lifetime Five Benefit was not available if you elected any other optional living benefit, although you may elect any optional death benefit (other than the Highest Daily Value Death Benefit). Any DCA program that transfers Account Value from a Fixed Allocation is also not available as Fixed Allocations are not permitted with the benefit. As long as your Highest Daily Lifetime Five Benefit is in effect, you must allocate your Account Value in accordance with the then-permitted and available investment option(s) with this benefit.

The benefit guarantees that until the death of the single designated life the ability to withdraw an annual amount (the "Total Annual Income Amount") equal to a percentage of an initial principal value (the "Total Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. **As discussed below, we require that you participate in our predetermined mathematical formula in order to** **participate in Highest Daily Lifetime Five. In** [**<u>Appendix E</u>**](#chapter_22-sect1_1_930) **to this prospectus, we set forth the formula under which we make the asset transfers.** Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

As discussed below, a key component of Highest Daily Lifetime Five is the Total Protected Withdrawal Value, which is an amount that is distinct from Account Value. Because each of the Total Protected Withdrawal Value and Total Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for Account Value to fall to zero, even though the Total Annual Income Amount remains. You are guaranteed to be able to withdraw the Total Annual Income Amount for the rest of your life, provided that you have not made "excess withdrawals." Excess withdrawals, as discussed below, will reduce your Total Annual Income Amount. Thus, you could experience a scenario in which your Account Value was zero, and, due to your excess withdrawals, your Total Annual Income Amount also was reduced to zero. In that scenario, no further amount would be payable under Highest Daily Lifetime Five.

**Key Feature – Total Protected Withdrawal Value**

The Total Protected Withdrawal Value is used to determine the amount of the annual payments under Highest Daily Lifetime Five. The Total Protected Withdrawal Value is equal to the greater of the Protected Withdrawal Value and any Enhanced Protected Withdrawal Value that may exist. We describe how we determine Enhanced Protected Withdrawal Value, and when we begin to calculate it, below. If you do not meet the conditions described below for obtaining Enhanced Protected Withdrawal Value then Total Protected Withdrawal Value is simply equal to Protected Withdrawal Value.

The Protected Withdrawal Value initially is equal to the Account Value on the date that you elect Highest Daily Lifetime Five. On each Valuation Day thereafter, until the earlier of the first withdrawal or ten years after the date of your election of the benefit, we recalculate the Protected Withdrawal Value. Specifically, on each such Valuation Day (the "Current Valuation Day"), the Protected Withdrawal Value is equal to the greater of:

• the
 Protected Withdrawal Value for the immediately preceding Valuation Day (the "Prior Valuation Day"), appreciated at the daily equivalent of 5%
 annually during the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive
 Valuation Days, but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount
 of any Purchase Payment (including any associated Credit) made on the Current Valuation Day; and

• the
 Account Value.

If you have not made a withdrawal prior to the tenth anniversary of the date you elected Highest Daily Lifetime Five (which we refer to as the "Tenth Anniversary"), we will continue to calculate a Protected Withdrawal Value. On or after the Tenth Anniversary and up until the date of the first withdrawal, your Protected Withdrawal Value is equal to the greater of the Protected Withdrawal Value on the Tenth Anniversary or your Account Value.

The Enhanced Protected Withdrawal Value is only calculated if you do not take a withdrawal prior to the Tenth Anniversary. Thus, if you do take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive Enhanced Protected Withdrawal Value. If so, then on or after the Tenth Anniversary up until the date of the first withdrawal, the Enhanced Protected Withdrawal Value is equal to the sum of:

a. 200%
 of the Account Value on the date you elected Highest Daily Lifetime Five;

b. 200%
 of all Purchase Payments (and any associated Credits) made during the one-year period after the date you elected Highest
 Daily Lifetime Five; and

c. 100%
 of all Purchase Payments (and any associated Credits) made more than one year after the date you elected Highest Daily
 Lifetime Five, but prior to the date of your first withdrawal.

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We cease these daily calculations of the Protected Withdrawal Value and Enhanced Protected Withdrawal Value (and therefore, the Total Protected Withdrawal Value) when you make your first withdrawal. However, as discussed below, subsequent Purchase Payments (and any associated Credits) will increase the Total Annual Income Amount, while "excess" withdrawals (as described below) may decrease the Total Annual Income Amount.

**Key Feature – Total Annual Income Amount under the Highest Daily Lifetime Five Benefit**

The initial Total Annual Income Amount is equal to 5% of the Total Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active and does not reduce in subsequent Annuity Years, as described below. For purposes of the mathematical formula described below, we also calculate a Highest Daily Annual Income Amount, which is initially equal to 5% of the Protected Withdrawal Value.

Under the Highest Daily Lifetime Five benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Total Annual Income Amount, they will not reduce your Total Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Total Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Total Annual Income Amount ("Excess Income"), your Total Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply.

Any Purchase Payment that you make will increase the then-existing Total Annual Income Amount and Highest Daily Annual Income Amount by an amount equal to 5% of the Purchase Payment (including the amount of any associated Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Except for Annuities issued in the state of Florida, effective September 14, 2012, we no longer accept additional Purchase Payments to Annuities with the Highest Daily Lifetime Five benefit. For Annuities issued in Florida, this restriction does not apply and you may continue to make additional Purchase Payments at this time.

An automatic step-up feature ("Highest Quarterly Auto Step-Up") is included as part of this benefit. As detailed in this paragraph, the Highest Quarterly Auto Step-Up feature can result in a larger Total Annual Income Amount if your Account Value increases subsequent to your first withdrawal. We begin examining the Account Value for purposes of this feature starting with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on the Valuation Days corresponding to the end of each quarter that (i) is based on your Annuity Year, rather than a calendar year; (ii) is subsequent to the first withdrawal; and (iii) falls within the immediately preceding Annuity Year. If the end of any such quarter falls on a holiday or a weekend, we use the next Valuation Day. We multiply each of those quarterly Account Values by 5%, adjust each such quarterly value for subsequent withdrawals and Purchase Payments, and then select the highest of those values. If the highest of those values exceeds the existing Total Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Total Annual Income Amount intact. In later years, (i.e., after the first Annuity Anniversary after the first withdrawal) we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values on the end of the four immediately preceding quarters. If, on the date that we implement a Highest Quarterly Auto Step-Up to your Total Annual Income Amount, the charge for Highest Daily Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Five upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

The Highest Daily Lifetime Five benefit does not affect your ability to make withdrawals under your annuity, or limit your ability to request withdrawals that exceed the Total Annual Income Amount. Under Highest Daily Lifetime Five, if your cumulative withdrawals in an Annuity Year are less than or equal to the Total Annual Income Amount, they will not reduce your Total Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Total Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Total Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Total Annual Income Amount to subsequent Annuity Years.

Examples of dollar-for-dollar and proportional reductions, and the Highest Quarterly Auto Step-Up are set forth below. The values depicted here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Five benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2006.

• The
 Highest Daily Lifetime Five benefit is elected on March 5, 2007.

**Dollar-for-dollar reductions**

On May 2, 2007, the Total Protected Withdrawal Value is $120,000, resulting in a Total Annual Income Amount of $6,000 (5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Total Annual Income Amount for that Annuity Year (up to and including December 1, 2007) is $3,500. This is the result of a dollar-for-dollar reduction of the Total Annual Income Amount – $6,000 less $2,500 = $3,500.

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**Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on August 6, 2007 and the Account Value at the time of this withdrawal is $110,000. The first $3,500 of this withdrawal reduces the Total Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount – $1,500 – reduces the Total Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Total Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before withdrawal | $110000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $106500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $106500.00 |
|  Ratio | 1.41% |
|  Total Annual Income Amount | $6000.00 |
|  Less ratio of 1.41% | $84.51 |
|  Total Annual Income Amount for future Annuity Years | $5915.49 |

---

**Highest Quarterly Auto Step-Up**

On each Contract Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Contract Anniversary) of the highest quarterly value since your first Lifetime Withdrawal (or last Contract Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest quarterly Unadjusted Account Value of $238, 0000, the highest quarterly Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous quarterly Unadjusted Account Value of $239, 0000, the highest quarterly Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

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**Benefits Under the Highest Daily Lifetime Five Benefit**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Total Annual Income Amount
 and amounts are still payable under Highest Daily Lifetime Five, we will make an additional payment, if any, for that
 Annuity Year equal to the remaining Total Annual Income Amount for the Annuity Year. Thus, in that scenario, the remaining Total Annual
 Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments
 that equal the Total Annual Income Amount as described in this section. We will make payments until the death of the single designated
 life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value to zero are more than
 the Total Annual Income Amount, the Highest Daily Lifetime Five benefit terminates, and no additional payments will be made.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is a Total Annual Income Amount
 due in subsequent Annuity Years, you can elect one of the following two options:

(a) apply
 your Account Value to any Annuity option available; or

(b) request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Total Annual Income Amount.
 We will make payments until the death of the single designated life.

We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single
 life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your
 Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

(a) the
 present value of the future Total Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

(b) the
 Account Value.

• If
 no withdrawal was ever taken, we will calculate the Total Annual Income Amount as if you made your first withdrawal on the date the annuity
 payments are to begin.

• Please
 note that if your Annuity has a maximum Annuity Date requirement, payments that we make under this benefit as of that date will be
 treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime Five benefit are subject to all of the terms and conditions of the Annuity, including any CDSC.

• Withdrawals
 made while the Highest Daily Lifetime Five Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals
 under the Annuity. The Highest Daily Lifetime Five Benefit does not directly affect the Account Value or Surrender Value, but any
 withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity
 you will receive the current Surrender Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime Five
 benefit. The Highest Daily Lifetime Five benefit provides a guarantee that if your Account Value declines due to Variable Option performance,
 you will be able to receive your Total Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Options.
 However, the mathematical formula component of the benefit as described below may transfer Account Value to the Benefit Fixed
 Rate Account as of the effective date of the benefit in some circumstances.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from a Fixed Allocation if you elect this benefit.

• Transfers
 to and from the Variable Options and the Benefit Fixed Rate Account triggered by the formula component of the benefit will not count
 toward the maximum number of free transfers allowable under an Annuity.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the Highest Daily Lifetime Five benefit. If, subsequent to your election of the benefit, we change our requirements for how
 Account Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted
 requirements. Subsequent to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments
 may be subject to the new investment limitations.

• The
 maximum charge for Highest Daily Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. This charge is in addition
 to any other fees under the annuity. You will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin
 taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any

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withdrawals and/or if you never receive any lifetime income payments. Also, the cost to us of providing the benefit is a factor, among many, that we consider when determining the interest rate credited under the Benefit Fixed Rate Account, and therefore, we credit lower interest rates due to this factor than we otherwise would.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Highest Daily Lifetime Five benefit cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under the Highest Daily Lifetime Five benefit cause your
 Account Value to reduce to zero. (See " [<u>Basic Death Benefit</u>](#chapter_11-sect1_23_930) "
 and " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

**Election of and Designations Under the Benefit**

Highest Daily Lifetime Five is no longer available for new elections. For Highest Daily Lifetime Five, there must have been either a single Owner who is the same as the Annuitant, or if the Annuity is entity-owned, there must have been a single natural person Annuitant. In either case, the Annuitant must have been at least 55 years old.

Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Five. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Five, except if (a) the new Owner has the same taxpayer identification number as the previous Owner (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

We no longer permit elections of Highest Daily Lifetime Five. If you wish, you may cancel the Highest Daily Lifetime Five benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Highest Daily Lifetime Five benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Upon cancellation of the Highest Daily Lifetime Five benefit, any Account Value allocated to the Benefit Fixed Rate Account used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis. **Once the Highest Daily Lifetime Five benefit is canceled** **you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation** **Day following the cancellation of the Highest Daily Lifetime Five benefit provided that the benefit you are looking to elect is available on a** **post-issue basis. If you cancel the benefit, you lose all guarantees under the benefit, and your guarantee under any new benefit you elect will** **be based on your Account Value at that time. Any such new benefit may be more expensive.**

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election will apply as described above. The benefit terminates: (i) upon your termination of the benefit (ii) upon your surrender of the Annuity (iii) upon your election to begin receiving annuity payments (iv) upon the death of the Annuitant (v) if both the Account Value and Total Annual Income Amount equal zero or (vi) if you fail to meet our requirements for issuing the benefit. If you terminate the benefit, you will lose the Protected Withdrawal Value, Annual Income Amount, as well as any Enhanced Protected Withdrawal Value and Return of Principal Guarantees.

Upon termination of Highest Daily Lifetime Five, we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the Benefit Fixed Rate Account (as defined below) to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). Upon termination, we may limit or prohibit investment in the Fixed Allocations.

**Return of Principal Guarantee**

If you have not made a withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

• your
 Account Value on the day that you elected Highest Daily Lifetime Five; and

• the
 sum of each Purchase Payment you made (including any Credits with respect to XT6) during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options and the Benefit Fixed Rate Account (described below), in the same proportion that each such investment option bears to your total Account Value, immediately prior to the application of the amount.

Any such amount will not be considered a Purchase Payment when calculating your Total Protected Withdrawal Value, your death benefit, or the amount of any other or optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. This potential addition to Account Value is available only if you have elected Highest Daily Lifetime Five and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee.

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**Mathematical Formula Component of Highest Daily Lifetime Five**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you have elected Highest Daily Lifetime Five. For purposes of this benefit, we refer to those permitted Variable Options as the "Permitted Variable Options". As a requirement of participating in Highest Daily Lifetime Five, we require that you participate in our mathematical formula under which we may transfer Account Value between the Permitted Variable Options and a fixed interest rate account that is part of our general account (the "Benefit Fixed Rate Account"). This required formula helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Benefit Fixed Rate Account). We determine whether to make a transfer, and the amount of any transfer, under a non-discretionary formula, discussed below. The Benefit Fixed Rate Account is available only with this benefit, and thus you may not allocate Purchase Payments to or transfer Account Value to or from the Benefit Fixed Rate Account. The interest rate that we pay with respect to the Benefit Fixed Rate Account is reduced by an amount that corresponds generally to the charge that we assess against your variable Variable Options for Highest Daily Lifetime Five. The Benefit Fixed Rate Account is not subject to the Investment Company Act of 1940 or the Securities Act of 1933.

Under the formula component of Highest Daily Lifetime Five, we monitor your Account Value daily and, if necessary, systematically transfer amounts between the Permitted Variable Options you have chosen and the Benefit Fixed Rate Account. **Any transfer would be made in accordance with the** **formula, which is set forth in the schedule supplement to the endorsement for this benefit (and also appears in** [**<u>Appendix E</u>**](#chapter_22-sect1_1_930) **to this** **prospectus)**. Speaking generally, the formula, which we apply each Valuation Day, operates as follows. The formula starts by identifying your Protected Withdrawal Value for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) Highest Daily Annual Income Amount. Then, using our actuarial tables, we produce an estimate of the total amount we would target in our allocation model, based on the projected Highest Daily Annual Income Amount each year for the rest of your life. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected Annual Income Amount (and thus your Target Value) would take into account any automatic step-up that was scheduled to occur according to the step-up formula described above. Next, the formula subtracts from the Target Value the amount held within the Benefit Fixed Rate Account on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the Benefit Fixed Rate Account, is called the "Target Ratio" or "r". If the Target Ratio exceeds a certain percentage (currently 83%) it means essentially that too much Target Value is not offset by assets within the Benefit Fixed Rate Account, and therefore we will transfer an amount from your Permitted Variable Options to the Benefit Fixed Rate Account. Conversely, if the Target Ratio falls below a certain percentage (currently 77%), then a transfer from the Benefit Fixed Rate Account to the Permitted Variable Options would occur. Note that the formula is calculated with reference to the Highest Daily Annual Income Amount, rather than with reference to the Annual Income Amount. If you select the mathematical formula, see the discussion regarding the 90% cap.

As you can glean from the formula, poor investment performance of your Account Value may result in a transfer of a portion of your variable Account Value to the Benefit Fixed Rate Account, because such poor investment performance will tend to increase the Target Ratio. Moreover, "flat" investment returns of your Account Value over a period of time also could result in the transfer of your Account Value to the Benefit Fixed Rate Account. Because the amount allocated to the Benefit Fixed Rate Account and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the Benefit Fixed Rate Account so that the Target Ratio meets a target, which currently is equal to 80%. Once elected, the ratios we use will be fixed.

While you are not notified when the formula dictates a transfer, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Benefit Fixed Rate Account. The formula is designed primarily to mitigate the financial risks that we incur in providing the guarantee under Highest Daily Lifetime Five.

Depending on the results of the formula calculation we may, on any day:

• Not
 make any transfer between the Permitted Variable Options and the Benefit Fixed Rate Account; or

• If
 a portion of your Account Value was previously allocated to the Benefit Fixed Rate Account, transfer all or a portion of those amounts
 to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional
 basis (i.e., in the same proportion as the current balances in your Variable Options). Amounts taken out of the Benefit Fixed Rate
 Account will be withdrawn for this purpose on a last-in, first-out basis (an amount renewed into a new Guarantee Period under the Benefit
 Fixed Rate Account will be deemed a new investment for purposes of this last-in, first-out rule); or

• Transfer
 all or a portion of your Account Value in the Permitted Variable Options on a proportional basis to the Benefit Fixed Rate Account. The
 interest that you earn on such transferred amount will be equal to the annual rate that we have set for that day, and we will credit the daily equivalent
 of that annual interest until the earlier of one year from the date of the transfer or the date that such amount in the Benefit Fixed
 Rate Account is transferred back to the Permitted Variable Options.

Therefore, at any given time, some, none, or all of your Account Value may be allocated to the Benefit Fixed Rate Account. If your entire Account Value is transferred to the Benefit Fixed Rate Account, then based on the way the formula operates, the formula will not transfer amounts out of the Benefit Fixed Rate Account to the Permitted Variable Options and the entire Account Value would remain in the Benefit Rate Fixed Account. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Benefit Fixed Rate Account. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Benefit Fixed Rate Account, if dictated by the formula. The amounts of any such transfer will vary, as dictated by the formula, and will depend on the factors listed below.

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Prior to the first withdrawal, the primary driver of transfers to the Benefit Fixed Rate Account is the difference between your Account Value and your Total Protected Withdrawal Value. If none of your Account Value is allocated to the Benefit Fixed Rate Account, then over time the formula permits an increasing difference between the Account Value and the Total Protected Withdrawal Value before a transfer to the Benefit Fixed Rate Account occurs. Therefore, as time goes on, while none of your Account Value is allocated to the Benefit Fixed Rate Account, the smaller the difference between the Total Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the Benefit Fixed Rate Account.

Each market cycle is unique, therefore the performance of your Variable Options and the Benefit Fixed Rate Account, and their impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Benefit Fixed Rate Account pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Total Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime Five has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Benefit Fixed Rate Account;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the Benefit Fixed Rate Account and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the Benefit Fixed Rate Account or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the Benefit Fixed Rate Account. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the Benefit Fixed Rate Account and it has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the Benefit Fixed Rate Account and it has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Benefit Fixed Rate Account even if the performance of your Permitted Variable Options is positive.

Any Account Value in the Benefit Fixed Rate Account will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the Benefit Fixed Rate Account.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than 5 percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Total Annual Income Amount, which will cause us to increase the Total Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity that are greater than such amounts **Please note** **that any withdrawal you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you** **to lose the ability to receive Enhanced Protected Withdrawal Value and an amount under the Return of Principal Guarantee.**

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here. However, we do note that if you participate in Highest Daily Lifetime Five through a Non-qualified annuity, and your annuity has received Enhanced Protected Withdrawal Value and/or an additional amount under the Return of Principal Guarantee, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

**Optional 90% Cap Rule for the Formula under Highest Daily Lifetime Five**

If you currently own an Annuity and have elected the Highest Daily Lifetime Five Income Benefit, you can elect this feature which utilizes a mathematical formula. The formula is described below and will (if you elect it) replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. There is no cost to adding this feature to your Annuity. This election may only be made once and may not be revoked once elected. This feature is available subject to state approval. **The formula is found in** [**<u>Appendix E</u>**](#chapter_22-sect1_1_930)**.** Only the election of the 90% cap will prevent all of your Account Value from being allocated to the Benefit Fixed Rate Account. If all of your Account Value is currently allocated to the Benefit Fixed Rate Account, it will not transfer back to the Permitted Variable Options unless you elect the 90% cap rule. If you make additional Purchase Payments, they may or may not result in a transfer to or from the Benefit Fixed Rate Account.

Under the formula, the formula will not execute a transfer to the Benefit Fixed Rate Account that results in more than 90% of your Account Value being allocated to the Benefit Fixed Rate Account ("90% cap" or "90% cap rule"). Thus, on any Valuation Day, if the formula would require a transfer into the Benefit Fixed Rate Account that would result in more than 90% of the Account Value being allocated to the Benefit Fixed Rate Account, only the amount that results in exactly 90% of the Account Value being allocated to the Benefit Fixed Rate Account will be transferred. Additionally, future transfers into the

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Benefit Fixed Rate Account will not be made (regardless of the performance of the Benefit Fixed Rate Account and the Permitted Variable Options) at least until there is first a transfer out of the Benefit Fixed Rate Account. Once this transfer occurs out of the Benefit Fixed Rate Account, future amounts may be transferred to or from the Benefit Fixed Rate Account if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the Benefit Fixed Rate Account that results in greater than 90% of your Account Value being allocated to the Benefit Fixed Rate Account. **However, it is possible that, due to the investment performance of your allocations in the Benefit Fixed Rate Account and your allocations in** **the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Benefit Fixed Rate Account.**

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the Benefit Fixed Rate Account at least until there is first a transfer out of the Benefit Fixed Rate Account, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Benefit Fixed Rate Account, and the formula will still not transfer any of your Account Value to the Benefit Fixed Rate Account (at least until there is first a transfer out of the Benefit Fixed Rate Account). For example:

• March
 19, 2009 – a transfer is made to the Benefit Fixed Rate Account that results in the 90% cap being met and now $90,000 is allocated
 to the Benefit Fixed Rate Account and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Benefit Fixed Rate Account
 to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• As
 of March 20, 2009 (and at least until first a transfer is made out of the Benefit Fixed Rate Account under the formula) – the $10,000 payment is allocated
 to the Permitted Variable Options and now you have 82% in the Benefit Fixed Rate Account and 18% in the Permitted
 Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the Benefit Fixed Rate
 Account).

• Once
 there is a transfer out of the Benefit Fixed Rate Account (of any amount), the formula will operate as described above, meaning that the
 formula could transfer amounts to or from the Benefit Fixed Rate Account if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into existence and may be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the Benefit Fixed Rate Account as dictated by the formula. Once you elect this feature, the transfer formula described above will be the formula for your Annuity.

In the event that more than ninety percent (90%) of your Account Value is allocated to the Benefit Fixed Rate Account and you have elected this feature, up to ten percent (10%) of your Account Value currently allocated to the Benefit Fixed Rate Account will be transferred to your Permitted Variable Options, such that after the transfer, 90% of your Account Value on the date of the transfer is in the Benefit Fixed Rate Account. The transfer to the Permitted Variable Options will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e., in the same proportion as the current balances in your Variable Options). Amounts taken out of the Benefit Fixed Rate Account will be withdrawn for this purpose on a last-in, first-out basis (an amount renewed into a new Guarantee Period under the Benefit Fixed Rate Account will be deemed a new investment for purposes of this last-in, first-out rule).

Once the 90% cap rule is met, future transfers into the Benefit Fixed Rate Account will not be made (regardless of the performance of the Benefit Fixed Rate Account and the Permitted Variable Options) at least until there is a first transfer out of the Benefit Fixed Rate Account. Once this transfer occurs out of the Benefit Fixed Rate Account, future amounts may be transferred to or from the Benefit Fixed Rate Account if dictated by the formula.

**Please be aware that after the initial transfer out of the Benefit Fixed Rate Account upon election of the 90% cap, there is no assurance that** **future transfers out will occur, or the amount of such future transfers, as a result of the election of the 90% cap. These transfers will be** **determined by the mathematical formula and depend on a number of factors unique to your annuity.**

**Important Considerations When Electing the Formula:**

• At
 any given time, some, most or none of your Account Value may be allocated to the Benefit Fixed Rate Account.

• Please
 be aware that because of the way the 90% cap formula operates, it is possible that more than or less than 90% of your Account Value
 may be allocated to the Benefit Fixed Rate Account.

• Because
 the charge for Highest Daily Lifetime Five is based on the daily net assets of the Variable Options, that charge will be deducted from
 all assets transferred into the Permitted Variable Options.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending of the performance of the Permitted Variable Options you select.

***HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (HD7)***

**Effective September 14, 2012, Highest Daily Lifetime Seven is no longer available for new elections and we no longer accept additional** **Purchase Payments for Annuities with the Highest Daily Lifetime Seven benefit.**

The income benefit under Highest Daily Lifetime Seven currently is based on a single "designated life" who is at least 55 years old on the date that the benefit is acquired. The Highest Daily Lifetime Seven Benefit was not available if you elected any other optional living benefit, although you may have elected any optional death benefit other than the Highest Daily Value death benefit or the Plus40 Life Insurance Rider. As long as your Highest Daily

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Lifetime Seven Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed description of the permitted investment options, see "**[**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**".** We no longer permit new elections of Highest Daily Lifetime Seven.

Highest Daily Lifetime Seven guarantees until the death of the single designated life the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our pre-determined mathematical formula in order to participate in Highest Daily Lifetime Seven. **In** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **to this prospectus, we set forth the formula under which we make the asset transfers.** Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

As discussed below, a key component of Highest Daily Lifetime Seven is the Protected Withdrawal Value. Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life, provided that you have not made "excess withdrawals." Excess withdrawals, as discussed below, will reduce your Annual Income Amount. Thus, you could experience a scenario in which your Account Value was zero, and, due to your excess withdrawals, your Annual Income Amount also was reduced to zero. In that scenario, no further amount would be payable under Highest Daily Lifetime Seven.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter, until the earlier of the tenth anniversary of benefit election (the "Tenth Anniversary Date") or the date of the first withdrawal, the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter, until the earlier of the first withdrawal or the Tenth Anniversary Date, we recalculate the Periodic Value. We stop determining the Periodic Value upon the earlier of your first withdrawal after the effective date of the benefit or the Tenth Anniversary Date. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any adjusted
 Purchase Payment made on the Current Valuation Day; and

2. the
 Account Value.

If you make a withdrawal prior to the Tenth Anniversary Date, the Protected Withdrawal Value on the date of the withdrawal is equal to the greatest of:

(a) the
 Account Value; or

(b) the
 Periodic Value on the date of the withdrawal.

If you have not made a withdrawal on or before the Tenth Anniversary Date, your Protected Withdrawal Value subsequent to the Tenth Anniversary Date is equal to the greatest of:

1. the
 Account Value;

2. or
 the Periodic Value on the Tenth Anniversary Date, increased for subsequent Adjusted Purchase Payments; or

3. the
 sum of:

(a) 200%
 of the Account Value on the effective date of the benefit;

(b) 200%
 of all Adjusted Purchase Payments made within one year after the effective date of the benefit; and

(c) all
 Adjusted Purchase Payments made after one year following the effective date of the benefit up to the date of the first withdrawal.

On and after the date of your first withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first withdrawal (as described below), and is increased if you qualify for a step-up (as described below). Irrespective of these calculations, your Protected Withdrawal Value will always be at least equal to your Account Value.

**Key Feature – Annual Income Amount under the Highest Daily Lifetime Seven Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active and does not reduce in subsequent Annuity Years, as described below. The percentage depends on the age of the Annuitant on the date of the first withdrawal after election of the benefit. The percentages are: 5% for ages 74 and younger, 6% for ages 75-79, 7% for ages 80- 84, and 8% for ages 85 and older.

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Under the Highest Daily Lifetime Seven benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Any Purchase Payment that you make will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credits) based on the age of the Annuitant at the time of the first withdrawal (the percentages are: 5% for ages 74 and younger, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime Seven benefit.

An automatic step-up feature ("Highest Quarterly Auto Step-Up") is included as part of this benefit. As detailed in this paragraph, the Highest Quarterly Auto Step-Up feature can result in a larger Annual Income Amount if your Account Value increases subsequent to your first withdrawal. We begin examining the Account Value for purposes of the Highest Quarterly Step-Up starting with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on the Valuation Days corresponding to the end of each quarter that (i) is based on your Annuity Year, rather than a calendar year; (ii) is subsequent to the first withdrawal; and (iii) falls within the immediately preceding Annuity Year. If the end of any such quarter falls on a holiday or a weekend, we use the next Valuation Day. Having identified each of those quarter-end Account Values, we then multiply each such value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are 5% for ages 74 and younger, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older. Thus, we multiply each quarterly value by the applicable percentage, adjust each such quarterly value for subsequent withdrawals and Purchase Payments, and then select the highest of those values. If the highest of those values exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. In later years, (i.e., after the first Annuity Anniversary after the first withdrawal) we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values on the end of the four immediately preceding quarters. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest quarterly value upon which your step-up was based. If, on the date that we implement a Highest Quarterly Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime Seven has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Seven upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

The Highest Daily Lifetime Seven benefit does not affect your ability to make withdrawals under your Annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime Seven, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Examples of dollar-for-dollar and proportional reductions, and the Highest Quarterly Auto Step-Up are set forth below. The values depicted here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Seven benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2007

• The
 Highest Daily Lifetime Seven benefit is elected on March 5, 2008

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime Seven benefit.

**Dollar-for-dollar reductions**

On May 2, 2008, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the Annuitant is younger than 75 at the time of the 1<sup>st</sup> withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2008) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount – $6,000 less $2,500 = $3,500.

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**Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on August 6, 2008 and the Account Value at the time of this withdrawal is $110,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount – $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before withdrawal | $110000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $106500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $106500.00 |
|  Ratio | 1.41% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.41% | $84.51 |
|  Annual Income Amount for future Annuity Years | $5915.49 |

---

**Highest Quarterly Auto Step-Up**

On each Contract Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Contract Anniversary) of the highest quarterly value since your first Lifetime Withdrawal (or last Contract Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest quarterly Unadjusted Account Value of $238, 0000, the highest quarterly Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous quarterly Unadjusted Account Value of $239, 0000, the highest quarterly Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

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**Benefits Under the Highest Daily Lifetime Seven Benefit**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Annual Income Amount or
 as a result of the fee that we assess for Highest Daily Lifetime Seven, and amounts are still payable under Highest Daily
 Lifetime Seven, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the
 Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Account Value was reduced
 to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will
 make payments until the death of the single designated life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account
 Value to zero are more than the Annual Income Amount, the Highest Daily Lifetime Seven benefit terminates, and no
 additional payments will be made. However, if a withdrawal in the latter scenario was taken to meet required minimum distribution requirements
 under the Annuity, then the benefit will not terminate, and we will continue to pay the Annual Income Amount in the form of a fixed
 annuity.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is a Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(a) apply
 your Account Value to any Annuity option available; or

(b) request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.
 We will make payments until the death of the single designated life.

We must receive your request in a form acceptable to us at our office.

In the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

(a) the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

(b) the
 Account Value.

• If
 no withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first withdrawal on the date the annuity payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime Seven benefit are subject to all of the terms and conditions of the Annuity, including any CDSC
 that may apply. Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Free Withdrawal
 amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.
 However, we may impose a CDSC on the portion of a withdrawal that is deemed Excess Income.

• Withdrawals
 made while the Highest Daily Lifetime Seven Benefit is in effect will be treated, for tax purposes, in the same way as any other
 withdrawals under the Annuity. The Highest Daily Lifetime Seven Benefit does not directly affect the Account Value or Surrender Value,
 but any withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your
 Annuity you will receive the current Surrender Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime Seven
 benefit. The Highest Daily Lifetime Seven benefit provides a guarantee that if your Account Value declines due to Variable Option performance,
 you will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond Portfolio Variable Option (see
 description below) if you elect this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **.** You can find a copy of the AST Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

• Transfers
 to and from the elected Variable Options and an AST Investment Grade Bond Portfolio Variable Option triggered by the mathematical
 formula component of the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Highest Daily Lifetime Seven benefit. If, subsequent to your election of the benefit, we change our requirements for how Account
 Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly adopted
 requirements. Subject to any change in requirements, transfer of Account Value and allocation of additional Purchase Payments may
 be subject to new investment limitations.

• The
 maximum charge for Highest Daily Lifetime Seven is 1.50% annually of the Protected Withdrawal Value. We deduct this fee at the end
 of each quarter, where each such quarter is part of a year that begins on the effective date of the benefit or an anniversary thereafter. Thus, on each such
 quarter-end (or the next Valuation Day, if the quarter-end is not a Valuation Day), we deduct 0.375% of the Protected Withdrawal
 Value at the end of the quarter. We deduct the fee on a proportional basis from each of your Variable Options including the AST
 Investment Grade Bond Portfolio Variable Option. Since this fee is based on the Protected Withdrawal Value the fee for Highest Daily Lifetime
 Seven may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the
 current Account Value, we will reduce the Account Value to zero, and continue the benefit as described above. You will begin paying the
 charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund
 the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Highest Daily Lifetime Seven benefit cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under the Highest Daily Lifetime Seven benefit cause your
 Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

**Election of and Designations Under the Benefit**

We no longer permit new elections of Highest Daily Lifetime Seven. For Highest Daily Lifetime Seven, there must have been either a single Owner who was the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must have been at least 55 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Seven. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Seven, except if (a) the new Owner has the same taxpayer identification number as the previous Owner (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

If you wish, you may cancel any Highest Daily Lifetime Seven benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Highest Daily Lifetime Seven benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Upon cancellation of any Highest Daily Lifetime Seven benefit, any Account Value allocated to the AST Investment Grade Bond portfolio used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis. You should be aware that upon termination of Highest Daily Lifetime Seven, you will lose the Protected Withdrawal Value (including the Tenth Anniversary Date Guarantee), Annual Income Amount, and the Return of Principal Guarantee that you had accumulated under the benefit. Thus, the initial guarantees under any newly-elected benefit will be based on your current Account Value at the time you elect a new benefit. **Once the Highest Daily Lifetime Seven benefit is canceled you are not required to re-elect another optional living benefit** **and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Highest Daily Lifetime** **Seven benefit provided that the benefit you are looking to elect is available on a post-issue basis. If you cancel the benefit, you lose all** **guarantees under the benefit, and your guarantee under any new benefit you elect will be based on your Account Value at that time. Any such** **new benefit may be more expensive.**

**Return of Principal Guarantee**

If you have not made a withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

(a) your
 Account Value on the day that you elected Highest Daily Lifetime Seven; and

(b) the
 sum of each Purchase Payment you made (including any Credits) during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the Bond Portfolio used with this benefit), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. This potential addition to Account Value is available only if you have elected Highest Daily Lifetime Seven and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee.

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**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election will apply as described above. The benefit terminates: (i) upon your termination of the benefit (ii) upon your surrender of the Annuity (iii) upon your election to begin receiving annuity payments (although if you have elected to the Annual Income Amount in the form of Annuity payments, we will continue to pay the Annual Income Amount) (iv) upon the death of the Annuitant (v) if both the Account Value and Annual Income Amount equal zero or (vi) if you cease to meet our requirements for issuing the benefit (see "Election of and Designations under the Benefit").

Upon termination of Highest Daily Lifetime Seven other than upon the death of the Annuitant, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

**Mathematical Formula Component of Highest Daily Lifetime Seven**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you have elected Highest Daily Lifetime Seven. For purposes of the benefit, we refer to those permitted Variable Options as the "Permitted Variable Options". As a requirement of participating in Highest Daily Lifetime Seven, we require that you participate in our specialized program, under which we may transfer Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the "AST Investment Grade Bond portfolio"). We determine whether to make a transfer, and the amount of any transfer, under a non-discretionary formula, discussed below. The AST Investment Grade Bond portfolio is available only with this benefit, and thus you may not allocate Purchase Payments to the AST Investment Grade Bond portfolio. Under the formula component of Highest Daily Lifetime Seven, we monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio. **Any transfer would be made in accordance** **with a formula, which is set forth in** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **to this prospectus.**

Speaking generally, the formula, which we apply each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. Note that we use 5% in the formula, irrespective of the Annuitant's attained age. Then we produce an estimate of the total amount we would target in our allocation model, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments, and any excess withdrawals. Next, the formula subtracts from the Target Value the amount held within the AST Investment Grade Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the AST Investment Grade Bond portfolio, is called the "Target Ratio" or "r". If the Target Ratio exceeds a certain percentage (currently 83%), it means essentially that too much Target Value is not offset by assets within the AST Investment Grade Bond portfolio, and therefore we will transfer an amount from your Permitted Variable Options to the AST Investment Grade Bond portfolio. Conversely, if the Target Ratio falls below a certain percentage (currently 77%), then a transfer from the AST Investment Grade Bond portfolio to the Permitted Variable Options would occur.

If you elect the formula (90% Cap Rule), see discussion regarding that feature.

As you can glean from the formula, poor investment performance of your Account Value may result in a transfer of a portion of your variable Account Value to the AST Investment Grade Bond portfolio because such poor investment performance will tend to increase the Target Ratio. Moreover, "flat" investment returns of your Account Value over a period of time also could result in the transfer of your Account Value from the Permitted Variable Options to the AST Investment Grade Bond portfolio. Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the AST Investment Grade Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. Once you elect Highest Daily Lifetime Seven, the ratios we use will be fixed. For newly-issued Annuities that elect Highest Daily Lifetime Seven and existing Annuities that elect Highest Daily Lifetime Seven, however, we reserve the right, subject to any required regulatory approval, to change the ratios.

While you are not notified when your Annuity reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the AST Investment Grade Bond portfolio. The formula by which the reallocation triggers operate is designed primarily to mitigate the financial risks that we incur in providing the guarantee under Highest Daily Lifetime Seven.

Depending on the results of the calculation relative to the reallocation triggers, we may, on any day:

• Not
 make any transfer between the Permitted Variable Options and the AST Investment Grade Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the AST Investment Grade Bond portfolio, transfer all or a portion of those amounts to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on
 a proportional basis (i.e., in the same proportion as the current balances in your Variable Options); or

• Transfer
 all or a portion of your Account Value in the Permitted Variable Options on a proportional basis to the AST Investment Grade Bond
 portfolio.

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Therefore, at any given time, some, none, or all of your Account Value may be allocated to the AST Investment Grade Bond portfolio. If your entire Account Value is transferred to the AST Investment Grade Bond portfolio, then based on the way the formula operates, the formula will not transfer amounts out of the AST Investment Grade Bond portfolio to the Permitted Variable Options and the entire Account Value would remain in the AST Investment Grade Bond portfolio.

If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the AST Investment Grade Bond portfolio. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the AST Investment Grade Bond portfolios, if dictated by the formula. The amounts of any such transfers will vary as dictated by the formula, and will depend on the factors listed below.

Prior to the first withdrawal, the primary driver of transfers to the AST Investment Grade Bond portfolio is difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the AST Investment Grade Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the AST Investment Grade Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the AST Investment Grade Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the AST Investment Grade Bond portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Investment Grade Bond portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime Seven has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the AST Investment Grade Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the AST Investment Grade Bond portfolio or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the AST Investment Grade Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the AST Investment Grade Bond portfolio even if the performance of your Permitted Variable Options is positive. If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the AST Investment Grade Bond portfolio, if dictated by the formula.

Any Account Value in the AST Investment Grade Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the AST Investment Grade Bond portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. **Please note** **that any withdrawal you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you** **to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above under "Key Feature – Protected** **Withdrawal Value".**

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here.

However, we do note that if you participate in Highest Daily Lifetime Seven through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

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**Highest Daily Lifetime Seven with Beneficiary Income Option**

**Effective September 14, 2012, Highest Daily Lifetime Seven with Beneficiary Income Option is no longer available for new elections and we no** **longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime Seven with Beneficiary Income Option.**

There is an optional death benefit feature under this benefit, the amount of which is linked to your Annual Income Amount. We refer to this optional death benefit as the Beneficiary Income Option or ("BIO"). Highest Daily Lifetime Seven was available without also selecting the Beneficiary Income Option death benefit. We no longer permit elections of the Highest Daily Lifetime Seven with Beneficiary Income Option benefit. If you terminate your Highest Daily Lifetime Seven with BIO benefit to elect any other available living benefit, you will lose the guarantees that you had accumulated under your Highest Daily Lifetime Seven with BIO benefit and will begin new guarantees under the newly elected benefit.

If you have elected this death benefit, you may not elect any other optional benefit. You may have elected the Beneficiary Income Option death benefit so long as the Annuitant is no older than age 75 at the time of election. For purposes of this optional death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Highest Daily Lifetime Seven itself. If you choose the Highest Daily Lifetime Seven with BIO, the maximum charge is 2.00% of the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the Protected Withdrawal Value at the end of the quarter. We deduct the fee pro rata from each of the Variable Options including the AST Investment Grade Bond Portfolio and from the DCA Fixed Rate Option (if applicable). Because the fee for this benefit is based on the Protected Withdrawal Value, the fee for Highest Daily Lifetime Seven with the Beneficiary Income Option may be greater than it would have been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

Upon a death that triggers payment of a death benefit under the Annuity, we identify the following amounts: (a) the amount of the basic death benefit under the Annuity (b) the Protected Withdrawal Value and (c) the Annual Income Amount. If there were no withdrawals prior to the date of death, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death, and we calculate the Annual Income Amount as if there were a withdrawal on the date of death. If there were withdrawals prior to the date of death, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

If there is one beneficiary, he/she must choose to receive either the basic death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of periodic payments of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Thus, each beneficiary can choose to take his/her portion of either (a) the basic death benefit or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified Annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option death benefit, each beneficiary's share of the death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year Payout
 Period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal
 Value).

The pro-rated portion of the Annual Income Amount, equal to $3,750 annually (i.e., the first beneficiary's 75% share multiplied by $5000), is then paid each year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e., the first beneficiary's 75% share of the $100,000 Protected Withdrawal Value).

The second beneficiary would receive 25% of the basic death benefit amount (or $12,500).

If you elect to terminate Highest Daily Lifetime Seven with Beneficiary Income Option, both Highest Daily Lifetime Seven and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Highest Daily Lifetime Seven with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election of and Designations under the Benefit" section.

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**Highest Daily Lifetime Seven with Lifetime Income Accelerator**

**Effective September 14, 2012, Highest Daily Lifetime Seven with Lifetime Income Accelerator is no longer available for new elections and we** **no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime Seven with Lifetime Income Accelerator.**

There is another version of Highest Daily Lifetime Seven that we call Highest Daily Lifetime Seven with Lifetime Income Accelerator ("Highest Daily Lifetime Seven with LIA"). We no longer permit new elections of Highest Daily Lifetime Seven with LIA. If you have elected this benefit, you may not elect any other optional benefit. The income benefit under Highest Daily Lifetime Seven with LIA was based on a single "designated life" who was between the ages of 55 and 75 on the date that the benefit was elected.

If you terminate your Highest Daily Lifetime Seven Benefit with LIA to elect any other available living benefit, you will lose the guarantees that you had accumulated under your Highest Daily Lifetime Seven Benefit with LIA and will begin the new guarantees under the newly elected benefit based on the Account Value as of the date the new benefit becomes active.

Highest Daily Lifetime Seven with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care. You should seek professional advice to determine your financial needs for long-term care.

Highest Daily Lifetime Seven with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. The maximum charge for Highest Daily Lifetime Seven with LIA is 2.00% annually of the Protected Withdrawal Value. Thus, on each such quarter-end (or the next Valuation Day, if the quarter-end is not a Valuation Day), we deduct 0.50% of the Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of your Variable Options including the AST Investment Grade Bond Portfolio Variable Option. Since this fee is based on the protected withdrawal value, the fee for Highest Daily Lifetime Seven with LIA may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

If this benefit was elected within an Annuity held as a 403 (b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403 (b) plan itself.

You could have chosen Highest Daily Lifetime Seven without also electing LIA, however you may not have elected LIA without Highest Daily Lifetime Seven. All terms and conditions of Highest Daily Lifetime Seven apply to this version of the benefit, except as described herein.

**Eligibility Requirements for LIA Amount** Both a waiting period of 36 months, from the benefit effective date, and an elimination period of 120 days, from the date of notification that one or both of the requirements described immediately below have been met, apply before you can become eligible for the LIA Amount. Assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, either or both of the following requirements ("LIA conditions") must be met. It is not necessary to meet both conditions:

1. The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to law or any
 state licensed facility
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical limitations
 which prohibit daily living in a non-institutional setting.

2. The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

(a) Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

(b) Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

(c) Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

(d) Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

(e) Transferring:
 Moving into or out of a bed, chair or wheelchair.

(f) Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described in this prospectus under the Highest Daily Lifetime Seven Benefit.

Additionally, we will reassess your eligibility on an annual basis although your LIA benefit for the year that immediately precedes our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your

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LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuities Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under the Highest Daily Lifetime Seven Benefit" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

You should also keep in mind that, at the time you are experiencing the LIA conditions that would qualify you for the LIA Amount, you may also be experiencing other disabilities that could impede your ability to conduct your affairs. You may wish to consult with a legal advisor to determine whether you should authorize a fiduciary who could notify us if you meet the LIA conditions and apply for the benefit.

**LIA Amount at the First Withdrawal.** If your first withdrawal subsequent to election of Highest Daily Lifetime Seven with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA Amount after the First Withdrawal.** If you become eligible for the LIA Amount after you have taken your first withdrawal, the available LIA amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount, however the available LIA amount in the current Annuity Year is reduced by any withdrawals that have been taken in the current Annuity Year. Cumulative withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year.

**Withdrawals in Excess of the LIA Amount.** If your cumulative withdrawals in an Annuity Year are in excess of the LIA Amount when you are eligible ("Excess Withdrawal"), your LIA Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Withdrawal. Reductions include the actual amount of the withdrawal, including any CDSC that may apply. Withdrawals of any amount up to and including the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Excess Withdrawals will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA amount (when eligible) but in excess of the Free Withdrawal amount available under this Annuity will not incur a CDSC.

Withdrawals are not required. However, subsequent to the first withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, we will increase your LIA Amount by double the amount we add to your Annual Income Amount.

**Step Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments.** If your Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount, or as a result of the fee that we assess for Highest Daily Lifetime Seven with LIA, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. Thus, in that scenario, the remaining LIA Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section for more information. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". To the extent that cumulative withdrawals in the current Annuity Year that reduce your Account Value to zero are more than the LIA Amount (except in the case of required minimum distributions), Highest Daily Lifetime Seven with LIA terminates, and no additional payments are permitted.

**Annuity Options.** In addition to the Highest Daily Lifetime Seven Annuity Options described above, after the 10<sup>th</sup> benefit anniversary you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make payments equal to the LIA Amount. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section for more information. If you would receive a greater payment by applying your Account Value to receive payments for life under your Annuity, we will pay the greater amount. Prior to the 10<sup>th</sup> benefit anniversary this option is not available.

We will continue to make payments until the death of the Designated Life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun.

If you elected Highest Daily Lifetime Seven with LIA, and never meet the eligibility requirements, you will not receive any additional payments based on the LIA Amount.

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**Optional 90% Cap Rule for Formula for Highest Daily Lifetime Seven**

If you currently own an Annuity and have elected the Highest Daily Lifetime Seven Income Benefit (including Highest Daily Lifetime Seven with Beneficiary Income Option and Highest Daily Lifetime Seven with Lifetime Income Accelerator) or Spousal Highest Daily Lifetime Seven Income Benefit (including Spousal Highest Daily Lifetime Seven with Beneficiary Income Option), you can elect this feature (subject to state approval) which utilizes a mathematical formula. The formula is described below and will replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. There is no cost to adding this feature to your Annuity. This election may only be made once and may not be revoked once elected. **The mathematical formula is found in** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **of this prospectus.** Only the election of the 90% Cap will prevent all of your Account Value from being allocated to the AST Investment Grade Bond Portfolio Variable Option. If all of your Account Value is currently allocated to the AST Investment Grade Bond Portfolio Variable Option, it will not transfer back to the Permitted Variable Options unless you elect the 90% Cap rule. If you make additional Purchase Payments, they may or may not result in a transfer to or from the AST Investment Grade Bond Portfolio Variable Option.

Under the formula, the formula will not execute a transfer to the AST Investment Grade Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio ("90% cap" or "90% Cap Rule"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Investment Grade Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio will be transferred. Additionally, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Investment Grade Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio. **However, it is possible** **that, due to the investment performance of your allocations in the AST Investment Grade Bond portfolio and your allocations in the Permitted** **Variable Options you have selected, your Account Value could be more than 90% invested in the AST Investment Grade Bond portfolio.**

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Investment Grade Bond portfolio at least until there is first a transfer out of the AST Investment Grade Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Investment Grade Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Investment Grade Bond portfolio (at least until there is first a transfer out of the AST Investment Grade Bond portfolio). For example,

• March
 19, 2009 – a transfer is made that results in the 90%

• cap
 being met and now $90,000 is allocated to the AST Investment Grade Bond portfolio and $10,000 is allocated to the Permitted Variable
 Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Investment Grade Bond
 portfolio to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• As
 of March 20, 2009 (and at least until first a transfer is made out of the AST Investment Grade Bond portfolio under the formula) –
 the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the AST Investment Grade Bond portfolio and 18%
 in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the AST
 Investment Grade Bond portfolio).

• Once
 there is a transfer out of the AST Investment Grade Bond portfolio (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into existence and may be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio as dictated by the formula. **Once you elect this feature, the transfer formula** **described above and set forth in** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **will be the formula for your Annuity.**

In the event that more than ninety percent (90%) of your Account Value is allocated to the AST Investment Grade Bond portfolio and you have elected this feature, up to ten percent (10%) of your Account Value currently allocated to the AST Investment Grade Bond portfolio will be transferred to your Permitted Variable Options, such that after the transfer, 90% of your Account Value on the date of the transfer is in the AST Investment Grade Bond portfolio. The transfer to the Permitted Variable Options will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e., in the same proportion as the current balances in your Variable Options). It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amounts of such additional transfer(s) will vary. If on the date this feature is elected 100% of your Account Value is allocated to the AST Investment Grade Bond portfolio, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options. **While there are no assurances that future transfers will occur, it is possible that an additional** **transfer(s) to the Permitted Variable Options could occur following the Valuation Day(s), and in some instances (based on the formula) the** **additional transfer(s) could be large.**

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Once the 90% cap rule is met, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap).

**Important Consideration When Electing the Formula**

• At
 any given time, some, most or none of your Account Value may be allocated to the AST Investment Grade Bond portfolio.

• Please
 be aware that because of the way the 90% cap formula operates, it is possible that more than or less than 90% of your Account Value
 may be allocated to the AST Investment Grade Bond portfolio.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending of the performance of the Permitted Variable Options you select.

***SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (SHD7)***

**Effective September 14, 2012, Spousal Highest Daily Lifetime Seven is no longer available for new elections and we no longer accept** **additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime Seven benefit.**

Spousal Highest Daily Lifetime Seven is the spousal version of Highest Daily Lifetime Seven. We no longer permit new elections of Spousal Highest Daily Lifetime Seven. Spousal Highest Daily Lifetime Seven must have been elected based on two Designated Lives, as described below. Each Designated Life must have been at least 59½ years old when the benefit was elected. Spousal Highest Daily Lifetime Seven was not available if you elected any other optional living benefit or optional death benefit. As long as your Spousal Highest Daily Lifetime Seven Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed description** **of permitted investment options, see the "**[**<u>Appendix A - Stipulated Investment Options</u>**](#chapter_18-sect1_1_930)**" section of this prospectus.**

The benefit that guarantees until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "Designated Lives", and each, a "Designated Life") the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Highest Daily Lifetime Seven benefit after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. **As discussed** **below, we require that you participate in our predetermined mathematical formula in order to participate in Spousal Highest Daily Lifetime** **Seven. In** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **to this prospectus, we set forth the formula under which we make the asset transfers.** Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

As discussed below, a key component of Spousal Highest Daily Lifetime Seven is the Protected Withdrawal Value. Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains. You are guaranteed to be able to withdraw the Annual Income Amount until the death of the second Designated Life, provided that there have not been "excess withdrawals." Excess withdrawals, as discussed below, will reduce your Annual Income Amount. Thus, you could experience a scenario in which your Account Value was zero, and, due to your excess withdrawals, your Annual Income Amount also was reduced to zero. In that scenario, no further amount would be payable under Spousal Highest Daily Lifetime Seven.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter, until the earlier of the tenth anniversary of benefit election (the "Tenth Anniversary Date") or the date of the first withdrawal, the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter, until the earlier of the first withdrawal or the Tenth Anniversary Date, we recalculate the Periodic Value. We stop determining the Periodic Value upon the earlier of your first withdrawal after the effective date of the benefit or the Tenth Anniversary Date. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any adjusted
 Purchase Payment made on the Current Valuation Day; and

2. the
 Account Value.

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If you make a withdrawal prior to the Tenth Anniversary Date, the Protected Withdrawal Value on the date of the withdrawal is equal to the greatest of:

(a) the
 Account Value; or

(b) the
 Periodic Value on the date of the withdrawal.

If you have not made a withdrawal on or before the Tenth Anniversary Date, your Protected Withdrawal Value subsequent to the Tenth Anniversary Date is equal to the greatest of:

1. the
 Account Value; or

2. the
 Periodic Value on the Tenth Anniversary Date, increased for subsequent adjusted Purchase Payments; or

3. the
 sum of:

(a) 200%
 of the Account Value on the effective date of the benefit.

(b) 200%
 of all adjusted Purchase Payments made within one year after the effective date of the benefit; and

(c) all
 adjusted Purchase Payments made after one year following the effective date of the benefit up to the date of the first withdrawal.

On and after the date of your first withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first withdrawal (as described below), and is increased if you qualify for a step-up (as described below). Irrespective of these calculations, your Protected Withdrawal Value will always be at least equal to your Account Value.

**Key Feature – Annual Income Amount under the Spousal Highest Daily Lifetime Seven Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active and does not reduce in subsequent Annuity Years, as described below. The percentage depends on the age of the youngest Designated Life on the date of the first withdrawal after election of the benefit. The percentages are: 5% for ages 79 and younger, 6% for ages 80 to 84, 7% for ages 85 to 89, and 8% for ages 90 and older. We use the age of the youngest Designated Life even if that Designated Life is no longer a participant under the Annuity due to death or divorce.

Under the Spousal Highest Daily Lifetime Seven benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Any Purchase Payment that you make will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credits) based on the age of the Annuitant at the time of the first withdrawal (the percentages are: 5% for ages 79 and younger, 6% for ages 80-84, 7% for ages 85-89, and 8% for ages 90 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime Seven benefit.

An automatic step-up feature ("Highest Quarterly Auto Step-Up") is included as part of this benefit. As detailed in this paragraph, the Highest Quarterly Auto Step-Up feature can result in a larger Annual Income Amount if your Account Value increases subsequent to your first withdrawal. We begin examining the Account Value for purposes of the Highest Quarterly Step-Up starting with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on the Valuation Days corresponding to the end of each quarter that (i) is based on your Annuity Year, rather than a calendar year; (ii) is subsequent to the first withdrawal; and (iii) falls within the immediately preceding Annuity Year. If the end of any such quarter falls on a holiday or a weekend, we use the next Valuation Day. Having identified each of those quarter-end Account Values, we then multiply each such value by a percentage that varies based on the age of the youngest Designated Life on the Annuity Anniversary as of which the step-up would occur. The percentages are 5% for ages 79 and younger, 6% for ages 80-84, 7% for ages 85-89, and 8% for ages 90 and older. Thus, we multiply each quarterly value by the applicable percentage, adjust each such quarterly value for subsequent withdrawals and Purchase Payments, and then select the highest of those values. If the highest of those values exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. In later years, (i.e., after the first Annuity Anniversary after the first withdrawal) we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values on the end of the four immediately preceding quarters. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest quarterly value upon which your step-up was based. If, on the date that we implement a Highest Quarterly Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime Seven has changed for new purchasers, you may be subject to the new charge at the time of such step-up.

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Prior to increasing your charge for Spousal Highest Daily Lifetime Seven upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

The Spousal Highest Daily Lifetime Seven benefit does not affect your ability to make withdrawals under your annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime Seven, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Examples of dollar-for-dollar and proportional reductions, and the Highest Quarterly Auto Step-Up are set forth below. The values depicted here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime Seven benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2007

• The
 Spousal Highest Daily Lifetime Seven benefit is elected on March 5, 2008.

• The
 youngest Designated Life was 70 years old when he/she elected the Spousal Highest Daily Lifetime Seven benefit.

**Dollar-for-dollar reductions**

On May 2, 2008, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the youngest Designated Life is younger than 80 at the time of the 1<sup>st</sup> withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2008) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount – $6,000 less $2,500 = $3,500.

**Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on August 6, 2008 and the Account Value at the time of this withdrawal is $110,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount – $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before withdrawal | $110000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $106500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $106500.00 |
|  Ratio | 1.41% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.41% | $84.51 |
|  Annual Income Amount for future Annuity Years | $5915.49 |

---

**Highest Quarterly Auto Step-Up**

On each Contract Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Contract Anniversary) of the highest quarterly value since your first Lifetime Withdrawal (or last Contract Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest quarterly Unadjusted Account Value of $238, 0000, the highest quarterly Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous quarterly Unadjusted Account Value of $239, 0000, the highest quarterly Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Benefits Under The Spousal Highest Daily Lifetime Seven Benefit**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Annual Income Amount or
 as a result of the fee that we assess for Spousal Highest Daily Lifetime Seven, and amounts are still payable under Spousal
 Highest Daily Lifetime Seven, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income
 Amount for the Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Account
 Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in
 this section. We will make payments until the death of the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value
 to zero are more than the Annual Income Amount, the Spousal Highest Daily Lifetime Seven benefit terminates, and no additional payments
 will be made. However, if a withdrawal in the latter scenario was taken to meet required minimum distribution requirements under
 the Annuity, then the benefit will not terminate, and we will continue to pay the Annual Income Amount in the form of a fixed annuity.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is a Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(a) apply
 your Account Value to any Annuity option available; or

(b) request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life. If, due to death of a Designated Life or divorce prior to Annuitization, only a single Designated Life remains,
 then Annuity payments will be made as a life annuity for the lifetime of the Designated Life.

We must receive your request in a form acceptable to us at our office.

In the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor or single (as applicable) life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

(a) the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the joint and
 survivor or single (as applicable) life fixed annuity rates then currently available or the joint and survivor or single (as applicable) life fixed annuity
 rates guaranteed in your Annuity; and

(b) the
 Account Value.

• If
 no withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first withdrawal on the date the annuity payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the older of the Owner
 or Annuitant's 95 <sup>th</sup> birthday, will be treated as annuity payments.

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**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime Seven benefit are subject to all of the terms and conditions of the Annuity, including any
 CDSC that may apply. Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Free Withdrawal
 amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.
 However, we may impose a CDSC on the portion of a withdrawal that is deemed Excess Income.

• Withdrawals
 made while the Spousal Highest Daily Lifetime Seven Benefit is in effect will be treated, for tax purposes, in the same way as any
 other withdrawals under the Annuity. The Spousal Highest Daily Lifetime Seven Benefit does not directly affect the Account Value or Surrender
 Value, but any withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender
 your Annuity you will receive the current Surrender Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Highest Daily Lifetime
 Seven benefit. The Spousal Highest Daily Lifetime Seven benefit provides a guarantee that if your Account Value declines due to Variable
 Option performance, you will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond Portfolio Variable Option (as
 described below) if you elect this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **.** You can find a copy of the AST Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

• Transfers
 to and from the elected Variable Options and the AST Investment Grade Bond Portfolio Variable Option triggered by the mathematical
 formula component of the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Spousal Highest Daily Lifetime Seven benefit. If, subsequent to your election of the benefit, we change our requirements for how
 Account Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly
 adopted requirements. Subject to any change in requirements, transfer of Account Value and allocation of Additional Purchase Payments
 may be subject to new investment limitations. The maximum charge for Spousal Highest Daily Lifetime Seven is 1.50% of the Protected
 Withdrawal Value. We deduct this fee at the end of each quarter, where each such quarter is part of a year that begins on the effective
 date of the benefit or an anniversary thereafter. Thus, on each such quarter-end (or the next Valuation Day, if the quarter-end is not
 a Valuation Day), we deduct 0.375% of the Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis
 from each of your Variable Options including the AST Investment Grade Bond portfolio. Since this fee is based on the Protected Withdrawal
 Value, the fee for Spousal Highest Daily Lifetime Seven may be greater than it would have been, had it been based on the Account
 Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the
 benefit as described above. You will begin paying the charge for this benefit as of the effective date of the benefit, even if you do
 not begin taking
 withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals
 and/or if you never receive any lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Spousal Highest Daily Lifetime Seven benefit cause your Account Value
 to reduce to zero. Certain optional Death Benefits may terminate if withdrawals taken under the Spousal Highest Daily Lifetime Seven
 benefit cause your Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

**Election of and Designations Under the Benefit**

We no longer permit new elections of Spousal Highest Daily Lifetime Seven. Elections of Spousal Highest Daily Lifetime Seven must have been based on two Designated Lives. Designated Lives must be natural persons who are each other's spouses at the time of election of the benefit. Spousal Highest Daily Lifetime Seven could only be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The Owner/Annuitant
 and the beneficiary each must be at least 59½ years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must each be at least 59½ years old at the time of election;
 or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Both the Annuitant and the Contingent Annuitant each must
 be at least 59½ years old at the time of election.

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We do not permit a change of Owner under this benefit, except as follows:

(a) if
 one Owner dies and the surviving spousal Owner assumes the Annuity or

(b) if
 the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary
 designations under this benefit. If the Designated Lives divorce, however, the Spousal Highest Daily Lifetime Seven benefit
 may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity
 appoint a new Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as
 a withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds
 to purchase a new Annuity, subject to the rules that are current at the time of purchase.

If you wish, you may cancel any Spousal Highest Daily Lifetime Seven benefit. You may then elect any other available living benefit on any Valuation Day after you have cancelled the Spousal Highest Daily Lifetime Seven benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Upon cancellation of any Spousal Highest Daily Lifetime Seven benefit, any Account Value allocated to the AST Investment Grade Bond portfolio used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instruction or in absence of such instruction, on a proportional basis. You should be aware that upon termination of Spousal Highest Daily Lifetime Seven, you will lose the Protected Withdrawal Value (including the Tenth Anniversary Date Guarantee), Annual Income Amount, and the Return of Principal Guarantee that you had accumulated under the benefit. Thus, the initial guarantees under any newly-elected benefit will be based on your current Account Value. **Once the Spousal Highest Daily Lifetime Seven benefit is cancelled you are not required to re-elect another optional** **living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Spousal** **Highest Daily Lifetime Seven benefit provided that the benefit you are looking to elect is available on a post-issue basis. Any such new benefit** **may be more expensive.**

**Return of Principal Guarantee**

If you have not made a withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

(a) your
 Account Value on the day that you elected Spousal Highest Daily Lifetime Seven; and

(b) the
 sum of each Purchase Payment you made (including any Credits) during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the Bond Portfolio used with this benefit), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. This potential addition to Account Value is available only if you have elected Spousal Highest Daily Lifetime Seven and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election will apply as described above. The benefit terminates: (i) if upon the death of the first Designated Life, the surviving Designated Life opts to take the death benefit under the Annuity (thus, the benefit does not terminate solely because of the death of the first Designated Life) (ii) upon the death of the second Designated Life, (iii) upon your termination of the benefit (although if you have elected to take annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount) (iv) upon your surrender of the Annuity (v) upon your election to begin receiving annuity payments (vi) if both the Account Value and Annual Income Amount equal zero or (vii) if you cease to meet our requirements for issuing the benefit (see Election of and Designations under the Benefit).

Upon termination of Spousal Highest Daily Lifetime Seven other than upon death of a Designated Life, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond portfolio (as defined below) to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

**Mathematical Formula Component of Spousal Highest Daily Lifetime Seven**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you have elected Spousal Highest Daily Lifetime Seven. For purposes of the benefit, we refer to those permitted Variable Options as the "Permitted Variable Options". As a requirement of participating in Spousal Highest Daily Lifetime Seven, we require that you participate in our specialized program, under which we may transfer Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the "AST Investment Grade Bond portfolio"). We determine whether to make a transfer, and the amount of any transfer, under a non-discretionary formula, discussed below. The AST Investment Grade Bond

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portfolio is available only with this benefit, and thus you may not allocate Purchase Payments to the AST Investment Grade Bond portfolio. Under the formula component of Spousal Highest Daily Lifetime Seven, we monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio. **Any transfer would be made in** **accordance with a formula, which is set forth in** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **to this prospectus.**

Speaking generally, the formula, which we apply each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. Note that we use 5% in the formula, irrespective of the Annuitant's attained age. Then we produce an estimate of the total amount we would target in our allocation model, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments, and any excess withdrawals. Next, the formula subtracts from the Target Value the amount held within the AST Investment Grade Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the AST Investment Grade Bond portfolio, is called the "Target Ratio" or "r". If the Target Ratio exceeds a certain percentage (currently 83%), it means essentially that too much Target Value is not offset by assets within the AST Investment Grade Bond portfolio, and therefore we will transfer an amount from your Permitted Variable Options to the AST Investment Grade Bond portfolio. Conversely, if the Target Ratio falls below a certain percentage (currently 77%), then a transfer from the AST Investment Grade Bond portfolio to the Permitted Variable Options would occur.

If you elect the formula (90% Cap Rule), see discussion regarding that feature.

As you can glean from the formula, poor investment performance of your Account Value may result in a transfer of a portion of your variable Account Value to the AST Investment Grade Bond portfolio because such poor investment performance will tend to increase the Target Ratio. Moreover, "flat" investment returns of your Account Value over a period of time also could result in the transfer of your Account Value from the Permitted Variable Options to the AST Investment Grade Bond portfolio. Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the AST Investment Grade Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. Once you elect Spousal Highest Daily Lifetime Seven, the ratios we use will be fixed. For newly-issued Annuities that elect Spousal Highest Daily Lifetime Seven and existing Annuities that elect Spousal Highest Daily Lifetime Seven, however, we reserve the right, subject to any required regulatory approval, to change the ratios.

While you are not notified when your Annuity reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the AST Investment Grade Bond portfolio. The formula by which the reallocation triggers operate is designed primarily to mitigate the financial risks that we incur in providing the guarantee under Spousal Highest Daily Lifetime Seven.

Depending on the results of the calculation relative to the reallocation triggers, we may, on any day:

• Not
 make any transfer between the Permitted Variable Options and the AST Investment Grade Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the AST Investment Grade Bond portfolio, transfer all or a portion of those amounts to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on
 a proportional basis (i.e., in the same proportion as the current balances in your Variable Options); or

• Transfer
 all or a portion of your Account Value in the Permitted Variable Options on a proportional basis to the AST Investment Grade Bond
 portfolio.

Therefore, at any given time, some, none, or all of your Account Value may be allocated to the AST Investment Grade Bond portfolio. If your entire Account Value is transferred to the AST Investment Grade Bond portfolio, then based on the way the formula operates, the formula will not transfer amounts out of the AST Investment Grade Bond portfolio to the Permitted Variable Options and the entire Account Value would remain in the AST Investment Grade Bond portfolio. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the AST Investment Grade Bond portfolio. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the AST Investment Grade Bond portfolios, if dictated by the formula. The amounts of any such transfers will vary as dictated by the formula, and will depend on the factors listed below.

Prior to the first withdrawal, the primary driver of transfers to the AST Investment Grade Bond portfolio is difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the AST Investment Grade Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the AST Investment Grade Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the AST Investment Grade Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the AST Investment Grade Bond portfolio.

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Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Investment Grade Bond portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Spousal Highest Daily Lifetime Seven has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the AST Investment Grade Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the AST Investment Grade Bond portfolio or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the AST Investment Grade Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the AST Investment Grade Bond portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the AST Investment Grade Bond portfolio, if dictated by the formula.

Any Account Value in the AST Investment Grade Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the AST Investment Grade Bond portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. **Please note** **that any withdrawal you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you** **to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above under "Key Feature – Protected** **Withdrawal Value".**

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Spousal Highest Daily Lifetime Seven through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

**Spousal Highest Daily Lifetime Seven with Beneficiary Income Option**

**Effective September 14, 2012, Spousal Highest Daily Lifetime Seven with Beneficiary Income Option is no longer available for new elections** **and we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime Seven with Beneficiary Income** **Option.**

There was an optional death benefit feature under this benefit, the amount of which is linked to your Annual Income Amount. You may have chosen Spousal Highest Daily Lifetime Seven without also selecting the Beneficiary Income Option death benefit ("BIO"). We no longer permit elections of Spousal Highest Daily Lifetime Seven with BIO. If you terminate your Spousal Highest Daily Lifetime Seven benefit with BIO to elect any other available living benefit, you will lose all guarantees under the Spousal Highest Daily Lifetime Seven benefit with BIO, and will begin new guarantees under the newly elected benefit based on the Account Value as of the date the new benefit becomes active.

If you elected the Beneficiary Income Option death benefit, you may not elect any other optional benefit. You could elect the Beneficiary Income Option death benefit so long as each Designated Life was no older than age 75 at the time of election. This death benefit is not transferable in the event of a divorce, nor may the benefit be split in accordance with any divorce proceedings or similar instrument of separation. If you choose the Spousal Highest Daily Lifetime Seven with BIO, the maximum charge is 2.00% of the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the Protected Withdrawal Value at the end of the quarter. We deduct the fee pro rata from each of the Variable

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Options including the AST Investment Grade Bond portfolio and from the DCA Fixed Rate Option (if applicable). Since this fee is based on the Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime Seven with BIO may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

For purposes of the Beneficiary Income Option death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Spousal Highest Daily Lifetime Seven itself. Upon the first death of a Designated Life, no amount is payable under the Beneficiary Income Option death benefit. Upon the second death of a Designated Life, we identify the following amounts: (a) the amount of the base death benefit under the Annuity (b) the Protected Withdrawal Value and (c) the Annual Income Amount. If there were no withdrawals prior to the date of death, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death, and we calculate the Annual Income Amount as if there were a withdrawal on the date of death. If there were withdrawals prior to the date of death, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

If there is one beneficiary, he/she must choose to receive either the base death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of annual payment of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Thus, each beneficiary can choose to take his/her portion of either (a) the basic death benefit or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified Annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option death benefit, each beneficiary's share of the death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year Payout
 Period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal
 Value).

The pro-rated portion of the Annual Income Amount equal to $3,750 (i.e., the first beneficiary's 75% share multiplied by $5,000) is then paid each year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e., the first beneficiary's 75% share of the $100,000 Protected Withdrawal Value).

The second beneficiary would receive 25% of the basic death benefit amount (or $12,500).

If you elect to terminate Spousal Highest Daily Lifetime Seven with Beneficiary Income Option, both Spousal Highest Daily Lifetime Seven and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Spousal Highest Daily Lifetime Seven with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election of and Designations under the Benefit" section, above.

**Optional 90% Cap Rule for Spousal Highest Daily Lifetime Seven**

If you currently own an Annuity and have elected Spousal Highest Daily Lifetime Seven Income Benefit (including Spousal Highest Daily Lifetime Seven with Beneficiary Income Option), you can elect this feature which utilizes a mathematical formula. The formula is described below and will replace the "Transfer Calculation" portion of the formula currently used in connection with your benefit on a prospective basis. There is no cost to adding this feature to your Annuity. This election may only be made once and may not be revoked once elected. **The formula is found in** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **of this prospectus.** Only the election of the 90% cap will prevent all of your Account Value from being allocated to the AST Investment Grade Bond Portfolio Variable Option. If all of your Account Value is currently allocated to the AST Investment Grade Bond Portfolio Variable Option, it will not transfer back to the Permitted Variable Options unless you elect the 90% Cap rule. If you make additional Purchase Payments, they may or may not result in a transfer to or from the AST Investment Grade Bond Portfolio Variable Option.

Under the formula, the formula will not execute a transfer to the AST Investment Grade Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio ("90% cap" or "90% Cap Rule"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Investment Grade Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio will be transferred. Additionally, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment

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Grade Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Investment Grade Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio. **However, it is possible** **that, due to the investment performance of your allocations in the AST Investment Grade Bond portfolio and your allocations in the Permitted** **Variable Options you have selected, your Account Value could be more than 90% invested in the AST Investment Grade Bond portfolio.**

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Investment Grade Bond portfolio at least until there is first a transfer out of the AST Investment Grade Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Investment Grade Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Investment Grade Bond portfolio (at least until there is first a transfer out of the AST Investment Grade Bond portfolio). For example,

• March
 19, 2009 – a transfer is made that results in the 90% cap being met and now $90,000 is allocated to the AST Investment Grade Bond
 portfolio and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Investment Grade Bond
 portfolio to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• As
 of March 20, 2009 (and at least until first a transfer is made out of the AST Investment Grade Bond portfolio under the formula) –
 the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the AST Investment Grade Bond portfolio and 18%
 in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the AST
 Investment Grade Bond portfolio).

• Once
 there is a transfer out of the AST Investment Grade Bond portfolio (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into existence and may be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio as dictated by the formula. **Once you elect this feature, the transfer formula** **described above and set forth in** [**<u>Appendix H</u>**](#chapter_25-sect1_1_930) **will be the formula for your Annuity.**

In the event that more than ninety percent (90%) of your Account Value is allocated to the AST Investment Grade Bond portfolio and you have elected this feature, up to ten percent (10%) of your Account Value currently allocated to the AST Investment Grade Bond portfolio will be transferred to your Permitted Variable Options, such that after the transfer, 90% of your Account Value on the date of the transfer is in the AST Investment Grade Bond portfolio. The transfer to the Permitted Variable Options will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e., in the same proportion as the current balances in your Variable Options). It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amounts of such additional transfer(s) will vary. If on the date this feature is elected 100% of your Account Value is allocated to the AST Investment Grade Bond portfolio, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options. **While there are no assurances that future transfers will occur, it is possible that an additional** **transfer(s) to the Permitted Variable Options could occur following the Valuation Day(s), and in some instances (based on the formula) the** **additional transfer(s) could be large.**

Once the 90% cap rule is met, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap).

**Important Considerations When Electing the Formula:**

• At
 any given time, some, most or none of your Account Value may be allocated to the AST Investment Grade Bond portfolio.

• Please
 be aware that because of the way the 90% cap formula operates, it is possible that more than or less than 90% of your Account Value
 may be allocated to the AST Investment Grade Bond portfolio.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending of the performance of the Permitted Variable Options you select.

***HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (HD 6 Plus)***

**Effective September 14, 2012, Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept additional** **Purchase Payments for Annuities with the Highest Daily Lifetime 6 Plus benefit.**

We offered a benefit that guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life ("Lifetime Withdrawals"), provided that you have not made withdrawals of Excess Income that have resulted in your Account Value being reduced to zero. We also permit you to make a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime

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Withdrawals under the benefit. Highest Daily Lifetime 6 Plus may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime 6 Plus is the mathematical formula we employ that may periodically transfer your Account Value to and from the AST Investment Grade Bond portfolio. See the section below entitled "How Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond portfolio." Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

The income benefit under Highest Daily Lifetime 6 Plus currently is based on a single "designated life" who is at least 45 years old on the date that the benefit is acquired. The Highest Daily Lifetime 6 Plus Benefit is not available if you elect any other optional living benefit or the Plus40 life insurance rider or the Highest Daily Value death benefit. As long as your Highest Daily Lifetime 6 Plus Benefit is in effect, you must allocate your Account Value in accordance with the permitted Variable Options and other investment option(s) available with this benefit. **For a more detailed description of the** **permitted investment options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**.**

Highest Daily Lifetime 6 Plus also provides for a Death Benefit generally equal to three times your Annual Income Amount. The Death Benefit is not payable if your Account Value is reduced to zero as a result of withdrawals or if annuity payments are being made at the time of the decedent's death. See Death Benefit Component of Highest Daily Lifetime 6 Plus, below.

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take** **withdrawals of Excess Income that bring your Account Value to zero, your Annual Income Amount would also fall to zero, and the benefit** **would terminate. In that scenario, no further amount, including the Death Benefit described below, would be payable under the Highest Daily** **Lifetime 6 Plus benefit.**

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Highest Daily Lifetime 6 Plus for Annuities issued on or after May 1, 2009, subject to the 6 or 12 Month DCA Program's rules, and subject to State approvals. The 6 or 12 Month DCA Program is not available in certain states.

Currently, if you elect Highest Daily Lifetime 6 Plus and subsequently terminate the benefit, you may elect another living benefit, subject to our current rules. See "Election of and Designations under the Benefit" below and "Termination of Existing Benefits and Election of New Benefits" for details. Please note that if you terminate Highest Daily Lifetime 6 Plus and elect another living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 6% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated purchase Credits) made on the Current Valuation Day (the Periodic Value is proportionally reduced
 for any Non-Lifetime Withdrawal); and

2. the
 Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) below (proportionally reduced for any Non-Lifetime Withdrawals):

(a) 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of the Account Value on the effective date of the benefit including any
 Purchase Payments (including any associated purchase Credits) made on that day;

(b) 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of all Purchase Payments (including any associated purchase Credits)
 made within one year following the effective date of the benefit; and

(c) all
 Purchase Payments (including any associated purchase Credits) made after one year following the effective date of the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals (see below).

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**Key Feature – Annual Income Amount under the Highest Daily Lifetime 6 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½-79, and 6% for ages 80 or older. Under the Highest Daily Lifetime 6 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). If you take withdrawals of Excess Income, only the portion of the Lifetime Withdrawal that exceeds the remaining Annual Income Amount will proportionally reduce your Protected Withdrawal Value and Annual Income Amount in future years. Reductions are based on the actual amount of the withdrawal, including any Contingent Deferred Sales Charge (CDSC) that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime 6 Plus and subsequent to the first Lifetime Withdrawal will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated purchase Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½-79 and 6% for ages 80 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 6 Plus benefit.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime 6 Plus. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½-79, and 6% for ages 80 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime 6 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime 6 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

If you are engaged in a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

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The Highest Daily Lifetime 6 Plus benefit does not affect your ability to take withdrawals under your Annuity, or limit your ability to take withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime 6 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime 6 Plus benefit or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 6 Plus benefit.

**Example of dollar-for-dollar reductions**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 59½ and 79 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime 6 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_12-sect1_12_930)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Highest Daily Lifetime 6 Plus benefit. You must tell us if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Highest Daily Lifetime 6 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce: the Protected Withdrawal Value; the Periodic Value guarantees on the tenth and twentieth anniversaries of the benefit effective date (described above); and the Death Benefit (described below). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 6 Plus benefit

• No
 previous withdrawals have been taken under the Highest Daily Lifetime 6 Plus benefit

On October 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, and the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Highest Daily Lifetime 6 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

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**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |

---

**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amounts will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution amount is greater than the Annual Income Amount. Unless designated as a Non-Lifetime Withdrawal, required minimum distributions are considered Lifetime Withdrawals. If you take a withdrawal in an Annuity Year in which your required minimum distribution for that year is not greater than the Annual Income Amount, and the amount of the withdrawal exceeds the Annual Income Amount for that year, we will treat the withdrawal as a withdrawal of Excess Income. Such a withdrawal of Excess Income will reduce the Annual Income Amount available in future years. If the required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered a withdrawal of Excess Income. In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar by dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as a withdrawal of Excess Income.

In any year in which the requirement to take required minimum distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a required minimum distribution if not for the suspension as eligible for treatment as described herein.

**Example – Required Minimum Distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000: ($3,000 + ($6,000 – $5,000) = $4,000).

If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all of the guarantees associated with the Highest Daily Lifetime 6 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you stop taking withdrawals in the current Annuity Year and choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000), without being treated as a withdrawal of Excess Income is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

**Death Benefit Component of Highest Daily Lifetime 6 Plus**

If you elect Highest Daily Lifetime 6 Plus, we include a death benefit (Death Benefit), at no additional cost that is linked to the Annual Income Amount under the benefit. If a death benefit is triggered and you currently own Highest Daily Lifetime 6 Plus, then your Death Benefit will be equal to the greatest of:

• the
 basic death benefit under the Annuity; and

• the
 amount of any optional death benefit you may have elected and remains in effect; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• (a)
 if no Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount that would have been determined on the date
 of death if a Lifetime Withdrawal had occurred on that date, or (b) if a Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount
 as of our receipt of due proof of death. Under this component of the Death Benefit, we will not recapture the amount
 of any purchase Credit applied to an Annuity granted within 12 months prior to death.

**Please note that the Death Benefit under Highest Daily Lifetime 6 Plus is not payable if your Account Value is reduced to zero as a result of** **withdrawals or if annuity payments are being made at the time of the decedent's death. This Death Benefit may not be available in all States.**

**Benefits Under Highest Daily Lifetime 6 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are less than or equal to
 the Annual Income Amount, and amounts are still payable under Highest Daily Lifetime 6 Plus, we will make an additional payment,
 if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario, the remaining
 Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we
 make payments that equal the Annual Income Amount as described in this section. We will make payments until the death of the single
 designated life. If this occurs, you will not be permitted to make additional Purchase Payments to your Annuity. To the extent that cumulative
 withdrawals in the Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount, the Highest
 Daily Lifetime 6 Plus benefit terminates, and no additional payments will be made. However, if a withdrawal in the latter scenario was
 taken to satisfy a required minimum distribution (as described above) under the Annuity, then the benefit will not terminate, and we will
 continue to pay the Annual Income Amount in subsequent Annuity Years until the death of the designated life. Please note if your Account
 Value is reduced to zero as result of withdrawals, the Death Benefit (described above under "Death Benefit Component of Highest
 Daily Lifetime 6 Plus") will also be reduced to zero and the Death Benefit will not be payable.

• Please
 note that if your Account Value is reduced to zero, all subsequent payments will be treated as annuity payments. Further, payments
 that we make under this benefit after the first day of the calendar month coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be
 treated as annuity payments.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

○ apply
 your Account Value to any annuity option available; or

○ request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single designated life. We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single
 life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your
 Annuity. The amount that will be applied to provide such annuity payments will be the greater of:

○ the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

○ the
 Account Value. If no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime
 Withdrawal on the date the annuity payments are to begin.

**Please note that a Death Benefit (as described above) is not payable if annuity payments are being made at the time of the decedent's death.**

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime 6 Plus benefit are subject to all of the terms and conditions of the Annuity, including any applicable
 CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount. If you have an active Systematic
 Withdrawal program running at the time you elect this benefit, the first Systematic Withdrawal that processes after your election
 of the benefit will be deemed a Lifetime Withdrawal.

• Withdrawals
 made while the Highest Daily Lifetime 6 Plus Benefit is in effect will be treated, for tax purposes, in the same way as any other
 withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable Options
 (including the AST Investment Grade Bond portfolio) and the DCA Fixed Rate Options (if you are participating in the 6 or 12 Month
 DCA Program). Withdrawals from the DCA Fixed Rate Options will be taken on a last-in, first-out basis.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime 6
 Plus benefit. The Highest Daily Lifetime 6 Plus benefit provides a guarantee that if your Account Value is reduced to zero (subject to
 our rules regarding
 time and amount of withdrawals), you will be able to receive your Annual Income Amount in the form of withdrawals.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio. **A summary** **description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **.** You can find a copy of the AST Investment Grade Bond
 Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

• Transfers
 to and from the Variable Options, the DCA Fixed Rate Options, and the AST Investment Grade Bond portfolio triggered by the Highest
 Daily Lifetime 6 Plus mathematical formula will not count toward the maximum number of free transfers allowable under an Annuity.

• Upon
 inception of the benefit and to maintain the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options (or
 any DCA Fixed Rate Options if you elect the 6 or 12 Month DCA Program). If, subsequent to your election of the benefit, we change our
 requirements for how Account Value must be allocated under the benefit, the new requirements will apply only to new elections of the benefit,
 and we will not compel you to reallocate your Account Value in accordance with our newly adopted requirements. However, you may
 be required to reallocate due to the merger of a Portfolio or the closing of a Portfolio. At the time of any change in requirements, and as applicable only
 to new elections of the benefit, transfer of Account Value and allocation of additional Purchase Payments may be subject
 to new investment limitations.

• If
 you elect this benefit and in connection with that election, you are required to reallocate to different Variable Options, then on the Valuation Day we
 receive your request in Good Order, we will (i) sell Units of the non-permitted investment options and (ii) invest the proceeds
 of those sales in the Variable Options that you have designated. During this reallocation process, your Account Value allocated to
 the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected benefit will commence at the close of business
 on the following Valuation Day. Thus, the protection afforded by the newly-elected benefit will not arise until the close of business
 on the following Valuation Day.

• The
 Basic Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime 6 Plus cause your Account Value to reduce to zero.
 Certain optional Death Benefits may terminate if withdrawals taken under Highest Daily Lifetime 6 Plus cause your Account Value to reduce
 to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

• The
 maximum charge for Highest Daily Lifetime 6 Plus is 1.50% annually of the greater of the Account Value and Protected Withdrawal Value.
 We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis 0.375% of the greater
 of the prior Valuation Day's Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on
 a proportional basis
 from each of your Variable Options, including the AST Investment Grade Bond portfolio, and the DCA Fixed Rate Options
 (if applicable). Since this fee is based on the greater of the Account Value and Protected Withdrawal Value, the fee for Highest Daily
 Lifetime 6 Plus may be greater than it would have been, had it been based on the Account Value alone. You will begin paying the charge
 for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges
 you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.
 The following example is hypothetical and is for illustrative purposes only.

Assume a benefit effective date of September 1, 2009 (which means that quarterly benefit anniversaries are: December 1, March 1, June 1, and September 1). Assume the Protected Withdrawal Value as of November 30, 2009 (prior Valuation Day's Protected Withdrawal Value) = $200,000.00 and the Account Value as of November 30, 2009 (prior Valuation Day's Account Value) = $195,000.00. The first benefit charge date would be December 1, 2009 and the benefit charge amount would be $750.00 ($200,000 X.375%).

If the deduction of the charge would result in the Account Value falling below the lesser of $500 or 5% of the sum of the Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Account Value to fall below the Account Value Floor. If the entire Account Value is less than the Account Value Floor when we would deduct a charge for the benefit, then no charge will be assessed for that benefit quarter. If a charge for the Highest Daily Lifetime 6 Plus benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Account Value to zero, withdrawals may reduce the Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit and the Death Benefit (described above) will not be payable.

**Election of and Designations Under the Benefit**

For Highest Daily Lifetime 6 Plus, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must be at least 45 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime 6 Plus. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime 6 Plus, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

Highest Daily Lifetime 6 Plus can be elected at the time that you purchase your Annuity or after the Issue Date, subject to availability, and our eligibility rules and restrictions. If you elect Highest Daily Lifetime 6 Plus and terminate it, you can re-elect it or elect any other living benefit, subject to our current rules and availability. Additionally, if you currently own an Annuity with a living benefit that is terminable, you may terminate your existing benefit rider and elect any available benefits subject to our current rules. See "[<u>Optional Living Benefits - Termination of Existing Benefits and Election of New Benefits</u>](#chapter_11-sect1_2_930)" in the prospectus for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and** **elect a new living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees** 

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**under the new benefit on your Account Value as of the date the new benefit becomes active.** You and your financial professional should carefully consider whether terminating your existing benefit and electing a new benefit is appropriate for you. We reserve the right to waive, change and/or further limit the election frequency in the future.

**Termination of the Benefit**

You may terminate Highest Daily Lifetime 6 Plus at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates:

(i) upon your termination of the benefit, (ii) upon your surrender of the Annuity, (iii) upon your election to begin receiving annuity payments (although if you have elected to receive the Annual Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount), (iv) upon our receipt of due proof of the death of the Annuitant (except insofar as paying the Death Benefit associated with this benefit), (v) if both the Account Value and Annual Income Amount equal zero, or (vi) if you cease to meet our requirements as described in "Election of and Designations under the Benefit" above.

Upon termination of Highest Daily Lifetime 6 Plus other than upon the death of the Annuitant or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Account Value falling below the Account Value Floor. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options (including any amounts in the DCA Fixed Rate Options), and (ii) unless you are participating in an asset allocation program (i.e., Custom Portfolios Program (we may have referred to the "Custom Portfolios Program" as the "Optional Allocation and Rebalancing Program" in other materials), Automatic Rebalancing Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Account Value in the Variable Options is zero, we will transfer such amounts according to your most recent allocation instructions.

If a surviving spouse elects to continue the Annuity, the Highest Daily Lifetime 6 Plus benefit terminates. The spouse may elect the benefit subject to the restrictions discussed above.

**How Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond** **Portfolio**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you elect Highest Daily Lifetime 6 Plus. For purposes of this benefit, we refer to those permitted investment options as the "Permitted Variable Options". Because these restrictions and the use of the predetermined mathematical formula lessen the risk that your Account Value will be reduced to zero while you are still alive, they also reduce the likelihood that we will make any lifetime income payments under this benefit. They may also limit your upside potential for growth. If your Annuity was issued on or after May 1, 2009 (subject to regulatory approval), you may also choose to allocate Purchase Payments while this program is in effect to DCA Fixed Rate Options utilized with our 6 or 12 Month Dollar Cost Averaging Program ("6 or 12 Month DCA Program"). If you are participating in Highest Daily Lifetime 6 Plus and also are participating in the 6 or 12 Month DCA Program, and the formula under the benefit dictates a transfer from the Permitted Variable Options to the AST Investment Grade Bond portfolio (the "Bond portfolio"), then the amount to be transferred will be taken entirely from the Variable Options, provided there is sufficient Account Value in those Variable Options to meet the required transfer amount. Only if there is insufficient Account Value in those Variable Options will an amount be withdrawn from the DCA Fixed Rate Options. Amounts withdrawn from the DCA Fixed Rate Options under the formula will be taken on a last-in, first-out basis. For purposes of the discussion below concerning transfers from the Permitted Variable Options to the Bond portfolio, amounts held within the DCA Fixed Rate Options are included within the term "Permitted Variable Options". Thus, amounts may be transferred from the DCA Fixed Rate Options in the circumstances described above and in the section of the prospectus entitled "[<u>Transfer and</u> <u>Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging Program</u>](#chapter_9-sect1_6_930)". Any transfer dictated by the formula out of the Bond portfolio will only be transferred to the Permitted Variable Options, not the DCA Fixed Rate Options.

An integral part of Highest Daily Lifetime 6 Plus (including Highest Daily Lifetime 6 Plus with LIA and Spousal Highest Daily Lifetime 6 Plus) is the predetermined mathematical formula used to transfer Account Value between the Permitted Variable Options and the Bond portfolio. This predetermined mathematical formula ("formula") runs each Valuation Day that the benefit is in effect on your Annuity and, as a result, transfers of Account Value between the Permitted Variable Options and the Bond portfolio can occur on any Valuation Day subject to the conditions described below. Only the predetermined mathematical formula can transfer Account Value to and from the Bond portfolio, and thus you may not allocate Purchase Payments to or make transfers to or from the Bond portfolio. We are not providing you with investment advice through the use of the formula. The formula by which the transfer operates is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under Highest Daily Lifetime 6 Plus. The formula is not forward looking and contains no predictive or projective component with respect to the markets, the Account Value or the Protected Withdrawal Value. **The formula is set forth in** [**<u>Appendix M</u>**](#chapter_30-sect1_1_930) **of this prospectus.**

Generally, the formula, which is applied each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. This amount may be different than the actual Annual Income Amount currently guaranteed under your benefit. Then it produces an estimate of the total amount targeted in the formula, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a Lifetime Withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase

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Payments (including any associated Purchase Credits), and any withdrawals of Excess Income. Next, the formula subtracts from the Target Value the amount held within the Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options including any amounts allocated to DCA Fixed Rate Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the Bond portfolio, is called the "Target Ratio" or "r". If, on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on such third Valuation Day, make a transfer from the Permitted Variable Options in which you are invested (subject to the 90% cap discussed below) to the Bond portfolio. As discussed above, if all or a portion of your Account Value is allocated to one or more DCA Fixed Rate Options at the time a transfer to the Bond portfolio is required under the formula, we will first look to process the transfer from the Permitted Variable Options, other than the DCA Fixed Rate Options. If the amount allocated to the Permitted Variable Options is insufficient to satisfy the transfer, then any remaining amounts will be transferred from the DCA Fixed Rate Options on a "last-in, first-out" basis. Once a transfer is made, the Target Ratio must again be greater than 83% but less than or equal to 84.5% for three consecutive Valuation Days before a subsequent transfer to the Bond portfolio will occur. If, however, on any Valuation Day, the Target Ratio is above 84.5%, the formula will make a transfer from the Permitted Variable Options (subject to the 90% cap) to the Bond portfolio (as described above). If the Target Ratio falls below 78% on any Valuation Day, then a transfer from the Bond portfolio to the Permitted Variable Options (excluding the DCA Fixed Rate Options) will occur.

The formula will not execute a transfer to the Bond portfolio that results in more than 90% of your Account Value being allocated to the Bond portfolio ("90% cap") on that Valuation Day. Thus, on any Valuation Day, if the formula would require a transfer to the Bond portfolio that would result in more than 90% of the Account Value being allocated to the Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the Bond portfolio will be transferred. Additionally, future transfers into the Bond portfolio will not be made (regardless of the performance of the Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Bond portfolio. Once this transfer occurs out of the Bond portfolio, future amounts may be transferred to or from the Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the Bond portfolio that results in greater than 90% of your Account Value being allocated to the Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the Bond portfolio and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Bond portfolio.

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the Bond portfolio at least until there is first a transfer out of the Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Bond portfolio, and the formula will still not transfer any of your Account Value to the Bond portfolio (at least until there is first a transfer out of the Bond portfolio). For example,

• September
 4, 2012 – a transfer is made to the Bond portfolio that results in the 90% cap being met and now $90,000 is allocated to the Bond
 portfolio and $10,000 is allocated to the Permitted Variable Options.

• September
 5, 2012 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Bond portfolio to the Permitted
 Variable Options since the cap went into effect on September 4, 2012.

• On
 September 5, 2012 – (and at least until first a transfer is made out of the Bond portfolio under the formula) – the $10,000
 payment is allocated
 to the Permitted Variable Options and on this date you have 82% in the Bond portfolio and 18% in the Permitted Variable Options
 (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the Bond portfolio).

• Once
 there is a transfer out of the Bond portfolio (of any amount), the formula will operate as described above, meaning that the formula could
 transfer amounts to or from the Bond portfolio if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the Bond portfolio as dictated by the formula.

Under the formula, investment performance of your Account Value that is negative, flat, or even moderately positive may result in a transfer of a portion of your Account Value in the Permitted Variable Options to the Bond portfolio because such investment performance will tend to increase the Target Ratio. In deciding how much to transfer, we use another formula, which essentially seeks to reallocate amounts held in the Permitted Variable Options and the Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. The further the Target Ratio is from 80% when a transfer is occurring under the formula, the greater the transfer amount will be. Once you elect Highest Daily Lifetime 6 Plus, the values we use to compare to the Target Ratio will be fixed. For newly-issued Annuities that elect Highest Daily Lifetime 6 Plus and existing Annuities that elect Highest Daily Lifetime 6 Plus in the future, however, we reserve the right to change such values.

Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, if there is money allocated to the Bond portfolio, we will perform an additional monthly calculation to determine whether or not a transfer will be made from the Bond portfolio to the Permitted Variable Options. This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after the transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

The amount of the transfer will be equal to the lesser of:

1. The
 total value of all your Account Value in the Bond portfolio, or

2. An
 amount equal to 5% of your total Account Value.

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While you are not notified when your Annuity reaches a transfer trigger under the formula, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Bond portfolio. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

• Not
 make any transfer between the Permitted Variable Options and the Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the Bond portfolio, transfer all or a portion of those amounts to the Permitted Variable Options
 (as described above); or

• Transfer
 a portion of your Account Value in the Permitted Variable Options and the DCA Fixed Rate Options to the Bond portfolio.

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the Bond portfolio is the difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the Bond portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime 6 Plus has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

At any given time, some, most or none of your Account Value will be allocated to the Bond portfolio, as dictated by the formula.

Because the amount allocated to the Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the Bond portfolio or to the Permitted Variable Options, the greater the impact performance of that Variable Option has on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Bond portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the Bond portfolio, if dictated by the formula and subject to the 90% cap rule described above.

Any Account Value in the Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the Bond portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts.

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime 6 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note all Non-Lifetime Withdrawal provisions will apply.

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***HIGHEST DAILY LIFETIME 6 PLUS WITH LIFETIME INCOME ACCELERATOR***

**Effective September 14, 2012, Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is no longer available for new elections and we** **no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator.**

We offer another version of Highest Daily Lifetime 6 Plus that we call Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator ("Highest Daily Lifetime 6 Plus with LIA"). Highest Daily Lifetime 6 Plus with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. This version is only being offered in those jurisdictions where we have received regulatory approval. Highest Daily Lifetime 6 Plus with LIA is not available in New York and certain other states/jurisdictions. You may choose Highest Daily Lifetime 6 Plus with or without also electing LIA, however you may not elect LIA without Highest Daily Lifetime 6 Plus and you must elect the LIA benefit at the time you elect Highest Daily Lifetime 6 Plus. If you elect Highest Daily Lifetime 6 Plus without LIA and would like to add the feature later, you must terminate the Highest Daily Lifetime 6 Plus benefit and elect the Highest Daily Lifetime 6 Plus with LIA (subject to availability and benefit re-election provisions). Please note that if you terminate Highest Daily Lifetime 6 Plus and elect the Highest Daily Lifetime 6 Plus with LIA you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. Highest Daily Lifetime 6 Plus with LIA is offered as an alternative to other lifetime withdrawal options. If you elect this benefit, it may not be combined with any other optional living benefit or the Plus40 life insurance rider or the Highest Daily Value death benefit. As long as your Highest Daily Lifetime 6 Plus with LIA benefit is in effect, you must allocate your Account Value in accordance with the permitted and available investment option(s) with this benefit. The income benefit under Highest Daily Lifetime 6 Plus with LIA currently is based on a single "designated life" who is between the ages of 45 and 75 on the date that the benefit is elected and received in Good Order. All terms and conditions of Highest Daily Lifetime 6 Plus apply to this version of the benefit, except as described herein.

Highest Daily Lifetime 6 Plus with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care. You should seek professional advice to determine your financial needs for long-term care.

If you elect the Highest Daily Lifetime 6 Plus with LIA, the maximum charge is 2.00% annually of the greater of the Account Value and Protected Withdrawal Value. We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond portfolio, and the DCA Fixed Rate Options (if applicable). Since this fee is based on the greater of the Account Value and Protected Withdrawal Value, the fee for Highest Daily Lifetime 6 Plus with LIA may be greater than it would have been, had it been based on the Account Value alone. The following example is hypothetical and is for illustrative purposes only.

Assume a benefit effective date of September 1, 2009 (which means that quarterly benefit anniversaries are: December 1, March 1, June 1, and September 1). Assume the Protected Withdrawal Value as of November 30, 2009 (prior Valuation Day's Protected Withdrawal Value) = $200,000.00 and the Account Value as of November 30, 2009 (prior Valuation Day's Account Value) = $195,000.00. The first benefit charge date would be December 1, 2009 and the benefit charge amount would be $1,000.00 ($200,000 X.50%)

If the deduction of the charge would result in the Account Value falling below the lesser of $500 or 5% of the sum of the Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Account Value to fall below the Account Value Floor. If the entire Account Value is less than the Account Value Floor when we would deduct a charge for the benefit, then no charge will be assessed for that benefit quarter. If a charge for the Highest Daily Lifetime 6 Plus with LIA benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Account Value to zero, withdrawals may reduce the Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit and the Death Benefit (described below) will not be payable.

If this benefit is being elected on an Annuity held as a 403(b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403(b) plan itself.

**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months from the benefit effective date, and an elimination period of 120 days from the date of notification that one or both of the requirements described immediately below have been met, apply before you can become eligible for the LIA Amount. The 120 day elimination period begins on the date that we receive notification from you of your eligibility for the LIA Amount. Thus, assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, at least one of the following requirements ("LIA conditions") must be met.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1. The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to law or any
 state licensed facility
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical limitations
 which prohibit daily living in a non-institutional setting.

2. The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

(a) Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

(b) Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

(c) Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

(d) Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

(e) Transferring:
 Moving into or out of a bed, chair or wheelchair.

(f) Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us in writing when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. The designated life must be available for any assessment or reassessment pursuant to our administrative process requirements. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described above under the Highest Daily Lifetime 6 Plus benefit.

Additionally, once eligibility is determined, we will reassess your eligibility on an annual basis although your LIA benefit for the year that immediately precedes our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuities Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under the Highest Daily Lifetime 6 Plus Benefit" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

**LIA Amount at the First Lifetime Withdrawal.** If your first Lifetime Withdrawal subsequent to election of Highest Daily Lifetime 6 Plus with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA Amount after the First Lifetime Withdrawal.** If you become eligible for the LIA Amount after you have taken your first Lifetime Withdrawal, the available LIA amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount, however the available LIA amount in the current Annuity Year is reduced by any Lifetime Withdrawals that have been taken in the current Annuity Year. Cumulative Lifetime Withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year. If you have an active Systematic Withdrawal program running at the time you elect this benefit, the first Systematic Withdrawal that processes after your election of the LIA benefit will be deemed a Lifetime Withdrawal.

**Withdrawals in Excess of the LIA Amount.** If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the LIA Amount when you are eligible ("Excess Withdrawal"), your LIA Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Withdrawal. Reductions include the actual amount of the withdrawal, including any CDSC that may apply. Withdrawals of any amount (excluding the Non-Lifetime Withdrawal) up to and including the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Excess Withdrawals will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA Amount (when eligible) but in excess of the Free Withdrawal amount available under this Annuity will not incur a CDSC.

**Withdrawals are not required.** However, subsequent to the first Lifetime Withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, the Annual Income Amount is increased by an amount obtained by applying the applicable percentage (4% for ages 45 – less than 59½; 5% for ages 59½-79; and 6% for ages 80 and older) to the Purchase Payment (including any associated purchase Credits). The applicable

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percentage is based on the attained age of the designated life on the date of the first Lifetime Withdrawal after the benefit effective date. The LIA Amount is increased by double the Annual Income Amount, if eligibility for LIA has been met. The Protected Withdrawal Value is increased by the amount of each Purchase Payment (including any associated purchase Credits).

If the Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount (or, if eligible for LIA, the LIA Amount) is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount (or, if eligible for LIA, the LIA Amount) in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Step-Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments**. If your Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount when you are eligible, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in that scenario, the remaining LIA Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section for more information. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount".**To the extent that cumulative withdrawals in the current Annuity Year that reduce your Account Value to zero are more than the LIA** **amount (except in the case of required minimum distributions), Highest Daily Lifetime 6 Plus with LIA terminates, and no additional payments** **are permitted. A Death Benefit under Highest Daily Lifetime 6 Plus with LIA is not payable if guarantee payments are being made at the time of** **the decedent's death.**

**Annuity Options.** In addition to the Highest Daily Lifetime 6 Plus annuity options described above, after the tenth anniversary of the benefit effective date ("Tenth Anniversary"), you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make payments equal to the LIA Amount. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section for more information. If you would receive a greater payment by applying your Account Value to receive payments for life under your Annuity, we will pay the greater amount. Annuitization prior to the Tenth Anniversary will forfeit any present or future LIA amounts. We will continue to make payments until the death of the designated life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun. A Death Benefit is not payable if annuity payments are being made at the time of the decedent's death.

If you elect Highest Daily Lifetime 6 Plus with LIA, and never meet the eligibility requirements you will not receive any additional payments based on the LIA Amount.

**Death Benefit Component of Highest Daily Lifetime 6 Plus with LIA.** The provisions of the Death Benefit Component of Highest Daily Lifetime 6 Plus (see above for information about the Death Benefit) also apply to Highest Daily Lifetime Plus with LIA. Please note that with respect to Highest Daily Lifetime 6 Plus with LIA, we use the Annual Income Amount for purposes of the Death Benefit Calculations, not the LIA Amount.

***SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (SHD6 Plus)***

**Effective September 14, 2012, Spousal Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept** **additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 6 Plus benefit.**

Spousal Highest Daily Lifetime 6 Plus is the spousal version of Highest Daily Lifetime 6 Plus. Spousal Highest Daily Lifetime 6 Plus must have been elected based on two designated lives, as described below. The youngest designated life must be at least 50 years old and the oldest designated life must be at least 55 years old when the benefit is elected. Spousal Highest Daily Lifetime 6 Plus is not available if you elect any other optional benefit. As long as your Spousal Highest Daily Lifetime 6 Plus Benefit is in effect, you must allocate your Account Value in accordance with the permitted Variable Options and other investment option(s) available with this benefit. **For a more detailed description of permitted investment options, see** [**<u>Appendix</u>** **<u>A</u>**](#chapter_18-sect1_1_930)**.**

We offer a benefit that guarantees until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "designated lives", and each, a "designated life") the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives ("Lifetime Withdrawals") provided you have not made withdrawals of Excess Income that have resulted in your Account Value being reduced to zero. We also permit a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime Withdrawals under the benefit. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Highest Daily Lifetime 6 Plus benefit after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum

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allowable amount each year under the rules of the benefit. An integral component of Spousal Highest Daily Lifetime 6 Plus is the mathematical formula we employ that may periodically transfer your Account Value to and from the AST Investment Grade Bond Portfolio. See the section entitled "[<u>How</u> <u>Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio</u>](#chapter_11-sect1_6_9030)." Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

Spousal Highest Daily Lifetime 6 Plus also provides for a Death Benefit generally equal to three times your Annual Income Amount. The Death Benefit, however, is not payable if your Account Value is reduced to zero as a result of withdrawals or if annuity payments are being made at the time of the decedent's death. See Death Benefit Component of Spousal Highest Daily Lifetime 6 Plus, below.

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take** **withdrawals of Excess Income that bring your Account Value to zero, your Annual Income Amount would also fall to zero, and the benefit** **would terminate. In that scenario, no further amount, including the Death Benefit described below, would be payable under Spousal Highest** **Daily Lifetime 6 Plus.**

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Spousal Highest Daily Lifetime 6 Plus for Annuities issued on or after May 1, 2009, subject to the 6 or 12 Month DCA Program's rules, and subject to State approvals. The 6 or 12 Month DCA Program is not available in certain states.

Currently, if you elect Spousal Highest Daily Lifetime 6 Plus and subsequently terminate the benefit, you may elect another living benefit, subject to our current rules. See "Election of and Designations under the Benefit" below and "[<u>Optional Living Benefits - Termination of Existing Benefits and Election of</u> <u>New Benefits</u>](#chapter_11-sect1_2_930)" for details. Please note that if you terminate Spousal Highest Daily Lifetime 6 Plus and elect another benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 6% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated purchase Credits) made on the Current Valuation Day (the Periodic Value is proportionally reduced
 for any Non-Lifetime Withdrawal); and

2. the
 Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) (proportionally reduced for any Non-Lifetime Withdrawal):

(a) 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of the Account Value on the effective date of the benefit including any
 Purchase Payments (including any associated purchase Credits) made on that day;

(b) 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of all Purchase Payments (including any associated purchase Credits)
 made within one year following the effective date of the benefit; and

(c) all
 Purchase Payments (including any associated purchase Credits) made after one year following the effective date of the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals (see below).

**Key Feature – Annual Income Amount under the Spousal Highest Daily Lifetime 6 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the youngest designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older. We use the age of the youngest designated life even if that designated life is no longer a participant under the Annuity due to death or divorce. Under the Spousal

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Highest Daily Lifetime 6 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). If you take withdrawals of Excess Income, only the portion of the Lifetime Withdrawal that exceeds the remaining Annual Income Amount will proportionally reduce your Protected Withdrawal Value and Annual Income Amount in future years. Reductions are based on the actual amount of the withdrawal, including any CDSC that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime 6 Plus and subsequent to the first Lifetime Withdrawal will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated purchase Credits) based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older, and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, Spousal Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 6 Plus benefit.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the youngest designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime 6 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime 6 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

If you are engaged in a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

The Spousal Highest Daily Lifetime 6 Plus benefit does not affect your ability to take withdrawals under your Annuity, or limit your ability to take withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime 6 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

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Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime 6 Plus benefit or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 younger designated life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 6 Plus benefit

**Example of dollar-for-dollar reductions**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the youngest designated life is between the ages of 65 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

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On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime 6 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_12-sect1_12_930)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit. You must tell us if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Spousal Highest Daily Lifetime 6 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value; the Periodic Value guarantees on the tenth and twentieth anniversaries of the benefit effective date (described above); and the Death Benefit (described below). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the time of the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 Account Value at benefit election was $105,000

• The
 younger designated life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 6 Plus benefit

• No
 previous withdrawals have been taken under the Spousal Highest Daily Lifetime 6 Plus benefit

On October 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000 and the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

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**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |

---

**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amounts will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution amount is greater than the Annual Income Amount. Unless designated as a Non-Lifetime Withdrawal, required minimum distributions are considered Lifetime Withdrawals. If you take a withdrawal in an Annuity Year in which your required minimum distribution for that year is not greater than the Annual Income Amount, and the amount of the withdrawal exceeds the Annual Income Amount for that year, we will treat the withdrawal as a withdrawal of Excess Income. Such a withdrawal of Excess Income will reduce the Annual Income Amount available in future years. If the required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered a withdrawal of Excess Income. In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar-for-dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as a withdrawal of Excess Income.

In any year in which the requirement to take required minimum distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a required minimum distribution if not for the suspension as eligible for treatment as described herein.

**Example – Required Minimum Distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000. ($3,000 + ($6,000 – $5,000) = $4,000).

If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you stop taking withdrawals in the current Annuity Year and choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000) without being treated as a withdrawal of Excess Income is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

**Death Benefit Component of Spousal Highest Daily Lifetime 6 Plus**

If you elect Spousal Highest Daily Lifetime 6 Plus, we include a death benefit (Death Benefit), at no additional cost, that is linked to the Annual Income Amount under the benefit. If a death benefit is triggered and you currently own Spousal Highest Daily Lifetime 6 Plus benefit, then your Death Benefit will be equal to the greatest of:

• the
 basic death benefit under the Annuity; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• the
 amount of any optional death benefit you may have elected and remains in effect; and

• a)
 if no Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount that would have been determined on the date
 of death if a Lifetime Withdrawal had occurred on that date or (b) if a Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount
 as of our receipt of due proof of death. Under this component of the Death Benefit, we will not recapture the amount
 of any purchase Credit applied to an XT6 Annuity granted within 12 months prior to death. <br> Upon
 the death of the first of the spousal designated lives, if a Death Benefit, as described above, would otherwise be payable, and the surviving
 designated life chooses to continue the Annuity, the Account Value will be adjusted, as of the date we receive due proof of death, to
 equal the amount of that Death Benefit if paid out in a lump sum, and the Spousal Highest Daily Lifetime 6 Plus benefit remains in force.
 Upon the death of the second Spousal designated life, the Death Benefit described above will be payable and the Spousal Highest Daily
 Lifetime 6 Plus rider will terminate as of the date we receive due proof of death.

**Please note that the Death Benefit under Spousal Highest Daily Lifetime 6 Plus is not payable if your Account Value is reduced to zero as a** **result of withdrawals or if annuity payments are being made at the time of the decedent's death. This Death Benefit may not be available in all** **States.**

**Benefits under Spousal Highest Daily Lifetime 6 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are less than or equal to
 the Annual Income Amount, and amounts are still payable under Spousal Highest Daily Lifetime 6 Plus, we will make an additional
 payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario, the
 remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years
 we make payments that equal the Annual Income Amount as described in this section. We will make payments until the death of the first
 of the designated lives to die, and will continue to make payments until the death of the second designated life. If this were to occur, you are not permitted
 to make additional Purchase Payments to your Annuity. To the extent that cumulative withdrawals in the Annuity Year
 that reduced your Account Value to zero are more than the Annual Income Amount, the Spousal Highest Daily Lifetime 6 Plus benefit terminates,
 and no additional payments will be made. However, if a withdrawal in the latter scenario was taken to satisfy a required minimum
 distribution (as described above) under the Annuity then the benefit will not terminate, and we will continue to pay the Annual Income
 Amount in subsequent Annuity Years until the death of the second designated life. Please note that if your Account Value is reduced
 to zero as a result of withdrawals, the Death Benefit (described above) will also be reduced to zero and the Death Benefit will not be
 payable.

• Please
 note that if your Account Value is reduced to zero, all subsequent payments will be treated as annuity payments. Further, payments
 that we make under this benefit after the first day of the calendar month coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be
 treated as annuity payments.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(a) apply
 your Account Value to any annuity option available; or

(b) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the designated lives to die, and will continue to make payments until the death of the
 second designated life. If, due to death of a designated life or divorce prior to Annuitization, only a single designated life remains, then annuity payments
 will be made as a life annuity for the lifetime of the designated life. We must receive your request in a form acceptable
 to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available
 or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such annuity payments will be the greater
 of:

(a) the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the joint and
 survivor or single (as applicable) life fixed annuity rates then currently available or the joint and survivor or single (as applicable) life fixed annuity
 rates guaranteed in your Annuity; and

(b) the
 Account Value.

If no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin.

**Please note that the Death Benefit (described above) is not payable if annuity payments are being made at the time of the decedent's death.**

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**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime 6 Plus benefit are subject to all of the terms and conditions of the Annuity, including any
 applicable CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount. If you have an active
 Systematic Withdrawal program running at the time you elect this benefit, the first Systematic Withdrawal that processes after your election
 of the benefit will be deemed a Lifetime Withdrawal.

• Withdrawals
 made while the Spousal Highest Daily Lifetime 6 Plus benefit is in effect will be treated, for tax purposes, in the same way as any
 other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable Options
 (including the AST Investment Grade Bond portfolio) and the DCA Fixed Rate Options (if you are participating in the 6 or 12 Month
 DCA Program). Withdrawals from the DCA Fixed Rate Options will be taken on a last-in, first-out basis. As discussed in the prospectus,
 you may participate in the 6 or 12 Month Dollar Cost Averaging Program only if your Annuity was issued on or after May 1, 2009.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Highest Daily Lifetime
 6 Plus benefit. The Spousal Highest Daily Lifetime 6 Plus benefit provides a guarantee that if your Account Value is reduced to zero
 (subject to program rules regarding the timing and amount of withdrawals), you will be able to receive your Annual Income Amount in the
 form of withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio. **A summary** **description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **.** You can find a copy of the AST Investment Grade Bond
 Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

• Transfers
 to and from the elected Variable Options, the DCA Fixed Rate Options, and the AST Investment Grade Bond portfolio triggered by
 the Spousal Highest Daily Lifetime 6 Plus mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 inception of the benefit and to maintain the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options (or
 any DCA Fixed Rate Options if you elect the 6 or 12 Month DCA Program). If, subsequent to your election of the benefit, we change our
 requirements for how Account Value must be allocated under the benefit, the new requirement will apply only to new elections of the benefit,
 and we will not compel you to reallocate your Account Value in accordance with our newly adopted requirements. However, you may
 be required to reallocate due to the merger of a Portfolio or the closing of a Portfolio. At the time of any change in requirements, and as applicable only
 to new elections of the benefit, transfers of Account Value and allocation of additional Purchase Payments may be subject
 to new investment limitations.

• If
 you elect this benefit and in connection with that election, you are required to reallocate to different Variable Options, then on the Valuation Day we
 receive your request in Good Order, we will (i) sell Units of the non-permitted investment options and (ii) invest the proceeds
 of those sales in the Variable Options that you have designated. During this reallocation process, your Account Value allocated to
 the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected benefit will commence at the close of business
 on the following Valuation Day. Thus, the protection afforded by the newly-elected benefit will not arise until the close of business
 on the following Valuation Day.

• The
 Basic Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime 6 Plus cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under Spousal Highest Daily Lifetime 6 Plus cause your
 Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

• The
 maximum charge for Spousal Highest Daily Lifetime 6 Plus is 1.50% annually of the greater of the Account Value and Protected Withdrawal
 Value. We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis, 0.375%
 of the greater of the prior Valuation Day's Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct
 the fee on a proportional
 basis from each of your Variable Options, including the AST Investment Grade Bond portfolio, and the DCA Fixed Rate
 Options (if applicable). Since this fee is based on the greater of the Account Value and Protected Withdrawal Value, the fee for Spousal
 Highest Daily Lifetime 6 Plus may be greater than it would have been, had it been based on the Account Value alone. You will begin
 paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever. We will
 not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income
 payments. The following example is hypothetical and is for illustrative purposes only.

Assume a benefit effective date of September 1, 2009 (which means that quarterly benefit anniversaries are: December 1, March 1, June 1, and September 1). Assume the Protected Withdrawal Value as of November 30, 2009 (prior Valuation Day's Protected Withdrawal Value) = $200,000.00 and the Account Value as of November 30, 2009 (prior Valuation Day's Account Value) = $195,000.00. The first benefit charge date would be December 1, 2009 and the benefit charge amount would be $750.00 ($200,000 X.375%)

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If the deduction of the charge would result in the Account Value falling below the lesser of $500 or 5% of the sum of the Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Account Value to fall below the Account Value Floor. If the entire Account Value is less than the Account Value Floor when we would deduct a charge for the benefit, then no charge will be assessed for that benefit quarter. If a charge for the Spousal Highest Daily Lifetime 6 Plus benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Account Value to zero, withdrawals may reduce the Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit and the Death Benefit (described above) will not be payable.

**Election of and Designations Under the Benefit**

Spousal Highest Daily Lifetime 6 Plus can only be elected based on two designated lives. Designated lives must be natural persons who are each other's spouses at the time of election of the benefit. Currently, Spousal Highest Daily Lifetime 6 Plus only may be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The youngest Owner/Annuitant
 and the beneficiary must be at least 50 years old and the oldest must be at least 55 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. The youngest Owner must be at least 50 years old and the oldest Owner
 must be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. The youngest of the Annuitant and the Contingent Annuitant
 must be at least 50 years old and the oldest must be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows:

(a) if
 one Owner dies and the surviving spousal Owner assumes the Annuity, or

(b) if
 the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary
 designations under this benefit. If the Designated Lives divorce, however, the Spousal Highest Daily Lifetime 6 Plus benefit
 may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity
 appoint a new Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as
 a withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds
 to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime 6 Plus can be elected at the time that you purchase your Annuity or after the Issue Date, subject to availability, and our eligibility rules and restrictions. If you elect Spousal Highest Daily Lifetime 6 Plus and terminate it, you can re-elect it, subject to our current rules and availability. Additionally, if you currently own an Annuity with a living benefit that is terminable, you may terminate your existing benefit rider and elect any available benefits subject to our current rules. See "[<u>Optional Living Benefits - Termination of Existing Benefits and Election of New Benefits</u>](#chapter_11-sect1_2_930)" in the prospectus for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect a** **new living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the** **new benefit on your Account Value as of the date the new benefit becomes active.** You and your financial professional should carefully consider whether terminating your existing benefit and electing a new benefit is appropriate for you. We reserve the right to waive, change and/or further limit the election frequency in the future.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates: (i) if upon the death of the first designated life, the surviving designated life opts to take the death benefit under the Annuity (thus, the benefit does not terminate solely because of the death of the first designated life), (ii) upon the death of the second designated life (except as may be needed to pay the Death Benefit associated with this benefit), (iii) upon your termination of the benefit, (iv) upon your surrender of the Annuity, (v) upon your election to begin receiving annuity payments (although if you have elected to take annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount), (vi) if both the Account Value and Annual Income Amount equal zero, or (vii) if you cease to meet our requirements as described in "Election of and Designations under the Benefit".

Upon termination of Spousal Highest Daily Lifetime 6 Plus other than upon death of a designated life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Account Value falling below the Account Value Floor. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options (including any amounts in the DCA Fixed Rate Options), and (ii) unless you are participating in an asset allocation program (i.e., Custom Portfolios Program (we may have referred to the "Custom Portfolios Program" as the "Optional Allocation and Rebalancing Program" in other materials), Automatic Rebalancing Program, or 6 or 12 Month DCA Program) for

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which we are providing administrative support, transfer all amounts held in the AST Investment Grade Bond Portfolio Variable Option to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If prior to the transfer from the AST Investment Grade Bond portfolio the Account Value in the Variable Options is zero, we will transfer such amounts according to your most recent allocation instructions.

**How Spousal Highest Daily Lifetime 6 Plus Transfers Account Value between Your Permitted Variable Options And The AST Investment Grade** **Bond portfolio.** See "[<u>How Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment</u> <u>Grade Bond portfolio</u>](#chapter_11-sect1_6_9030)" above for information regarding this component of the benefit.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts.

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Spousal Highest Daily Lifetime 6 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note all Non-Lifetime Withdrawal provisions will apply.

***HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (HD7 Plus)***

**Effective September 14, 2012, Highest Daily Lifetime 7 Plus is no longer available for new elections and we no longer accept additional** **Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus benefit.**

Highest Daily Lifetime 7 Plus is no longer offered for new elections. If you elected Highest Daily Lifetime 7 Plus and subsequently terminate the benefit, you may elect any available living benefit, subject to our current rules. See "Election of and Designations under the Benefit" and "Termination of Existing Benefits and Election of New Benefits" below for details. Please note that if you terminate Highest Daily Lifetime 7 Plus and elect another available living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. The income benefit under Highest Daily Lifetime 7 Plus is based on a single "designated life" who is at least 45 years old on the date that the benefit was elected. The Highest Daily Lifetime 7 Plus Benefit was not available if you elected any other optional living benefit, although you may elect any optional death benefit other than the Plus40 life insurance rider and Highest Daily Value death benefit. As long as your Highest Daily Lifetime 7 Plus Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed description of the permitted investment options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**.**

Highest Daily Lifetime 7 Plus guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life ("Lifetime Withdrawals"), provided that you have not made "excess withdrawals" that have resulted in your Account Value being reduced to zero. We also permit you to make a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime Withdrawals under the benefit. Highest Daily Lifetime 7 Plus may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our pre-determined mathematical formula in order to participate in Highest Daily Lifetime 7 Plus. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take an excess withdrawal that brings your Account Value to zero, it is possible that your Annual Income Amount could also fall to zero. In that scenario, no further amount would be payable under the Highest Daily Lifetime 7 Plus benefit.

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**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any adjusted
 Purchase Payment made on the Current Valuation Day (the Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal);
 and

2. the
 Account Value.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) below (proportionally reduced for any Non-Lifetime Withdrawals):

(a) 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of the Account Value on the effective
 date of the benefit;

(b) 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of all Adjusted Purchase Payments
 made within one year following the effective date of the benefit; and

(c) all
 Adjusted Purchase Payments made after one year following the effective date of the benefit.

If you elected Highest Daily Lifetime 7 Plus with Beneficiary Income Option ("BIO") (see below), we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the 10<sup>th</sup> Anniversary of the effective date of the benefit ("10<sup>th</sup> Anniversary"). This means that under the Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date.

On and after the date of your first Lifetime Withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first Lifetime Withdrawal (as described below), and may be increased if you qualify for a step-up (as described below).

**Return of Principal Guarantee**

If you have not made a Lifetime Withdrawal before the 10<sup>th</sup> Anniversary, we will increase your Account Value on that 10<sup>th</sup> Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the 10<sup>th</sup> Anniversary, we add:

(a) your
 Account Value on the day that you elected Highest Daily Lifetime 7 Plus proportionally reduced for any Non-Lifetime Withdrawal;
 and

(b) the
 sum of each Purchase Payment proportionally reduced for any subsequent Non-Lifetime Withdrawal (including the amount of any
 associated Credits) you made during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the 10<sup>th</sup> Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the 10<sup>th</sup> Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the AST Investment Grade Bond Portfolio), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. Because the amount is added to Account Value, it will also be subject to each charge under your Annuity based on Account Value. This potential addition to Account Value is available only if you have elected Highest Daily Lifetime 7 Plus and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal (other than a Non-Lifetime Withdrawal) prior to the 10<sup>th</sup> Anniversary, you are not eligible to receive the Return of Principal Guarantee. The Return of Principal Guarantee is referred to as the Guaranteed Minimum Account Value Credit in the benefit rider.

**Key Feature – Annual Income Amount under the Highest Daily Lifetime 7 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 45 – less than 59½, 5% for ages 59½-74, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older.

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Under the Highest Daily Lifetime 7 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions are based on the actual amount of the withdrawal, including any CDSC that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime 7 Plus will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 45 – less than 59½, 5% for ages 59½-74, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus benefit.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime 7 Plus. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 4% for ages 45 – less than 59½, 5% for ages 59½-74, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values that occurred on Valuation Days during the year. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime 7 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime 7 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

If you establish a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

The Highest Daily Lifetime 7 Plus benefit does not affect your ability to make withdrawals under your Annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime 7 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

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Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime 7 Plus benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 7 Plus benefit.

**Example of dollar-for-dollar reductions**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the Annuitant is between the ages of 59½ and 74 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

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Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime 7 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_12-sect1_12_930)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Highest Daily Lifetime 7 Plus benefit. You must tell us if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Highest Daily Lifetime 7 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value and the Return of Principal guarantee. It will also proportionally reduce the Periodic Value guarantees on the tenth, twentieth and twenty-fifth anniversaries of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 7 Plus benefit.

• No
 previous withdrawals have been taken under the Highest Daily Lifetime 7 Plus benefit.

On May 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, the 10<sup>th</sup> benefit year Return of Principal guarantee is $105,000, the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, the 25<sup>th</sup> benefit year minimum Periodic Value guarantee is $630,000 and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on May 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Highest Daily Lifetime 7 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

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**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal Amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Return of Principal | $91875 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |
|  25<sup>th</sup> benefit year Minimum Periodic Value | $551250 |

---

**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amount will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution is greater than the Annual Income Amount. Any withdrawal you take that exceeds the Annual Income Amount in Annuity Years that your required minimum distribution amount is not greater than the Annual Income Amount will be treated as an Excess Withdrawal under the benefit. If your required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered an excess withdrawal.

In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar-for-dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as an excess withdrawal.

**Example – Required Minimum Distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000. ($3,000 + ($6,000 – $5,000) = $4,000).

If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all of the guarantees associated with the Highest Daily Lifetime 7 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000), without being treated as an Excess Withdrawal is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

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**Benefits Under Highest Daily Lifetime 7 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are less than or equal to
 the Annual Income Amount or as a result of the fee that we assess for Highest Daily Lifetime 7 Plus, and amounts are still payable
 under Highest Daily Lifetime 7 Plus, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual
 Income Amount for the Annuity Year. If you have not begun taking Lifetime Withdrawals and your Account Value is reduced to zero as
 a result of the fee we assess for Highest Daily Lifetime 7 Plus, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal
 on the date the Account Value was reduced to zero and Lifetime Withdrawals will begin on the next Annuity anniversary.
 If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in these scenarios, the
 remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years
 we make payments that equal the Annual Income Amount as described in this section. We will make payments until the death of the single
 designated life. To the extent that cumulative withdrawals in the Annuity Year that reduced your Account Value to zero are more than
 the Annual Income Amount, the Highest Daily Lifetime 7 Plus benefit terminates, and no additional payments will be made. However, if
 a withdrawal in the latter scenario was taken to satisfy a required minimum distribution under the Annuity, then the benefit will not terminate, and we
 will continue to pay the Annual Income Amount in subsequent Annuity Years until the death of the Designated Life.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(a) apply
 your Account Value to any Annuity option available; or

(b) request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single Designated Life. We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single
 life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your
 Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

(a) the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

(b) the
 Account Value.

• If
 no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity
 payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime 7 Plus benefit are subject to all of the terms and conditions of the Annuity, including any applicable
 CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount.

• Withdrawals
 made while the Highest Daily Lifetime 7 Plus Benefit is in effect will be treated, for tax purposes, in the same way as any other
 withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable Options
 (including the AST Investment Grade Bond portfolio) and the DCA Fixed Rate Options (if you are participating in the 6 or 12 Month
 DCA Program). Withdrawals from the DCA Fixed Rate Options will be taken on a last-in, first-out basis.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime 7
 Plus benefit. The Highest Daily Lifetime 7 Plus benefit provides a guarantee that if your Account Value is reduced to zero (subject to
 our rules regarding
 time and amount of withdrawals), you will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond Portfolio Variable Option (see
 description below) if you elect this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) . You
 can find a copy of the AST Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>.

• Transfers
 to and from the elected Variable Options and the AST Investment Grade Bond Portfolio Variable Option triggered by the Highest Daily
 Lifetime 7 Plus mathematical formula will not count toward the maximum number of free transfers allowable under an Annuity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Highest Daily Lifetime 7 Plus benefit. If, subsequent to your election of the benefit, we change our requirements for how Account
 Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly adopted
 requirements. Subject to any change in requirements, transfer of Account Value and allocation of additional Purchase Payments may
 be subject to new investment limitations.

• The
 maximum charge for Highest Daily Lifetime 7 Plus is 1.50% annually of the greater of Account Value and the Protected Withdrawal Value
 (PWV). We deduct this fee on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the
 next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.375% of the greater of the prior day's Account Value or the prior
 day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Variable
 Options including the AST Investment Grade Bond Portfolio Variable Option and from the DCA Fixed Rate Option (if applicable). Since
 this fee is based on the greater of the Account Value or the Protected Withdrawal Value, the fee for Highest Daily Lifetime 7 Plus may
 be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the Account Value
 at the benefit quarter, we will charge the remainder of the Account Value for the benefit and continue the benefit as described above.
 You will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or
 ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive
 any lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime 7 Plus cause your Account Value to reduce to zero.
 Certain optional Death Benefits may terminate if withdrawals taken under Highest Daily Lifetime 7 Plus cause your Account Value to reduce
 to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

**Election of and Designations Under the Benefit**

We no longer permit new elections of Highest Daily Lifetime 7 Plus. For Highest Daily Lifetime 7 Plus, there must have been either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must have been a single natural person Annuitant. In either case, the Annuitant must have been at least 45 years old.

Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime 7 Plus. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime 7 Plus, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

**Please note that if you terminate a living benefit such as Highest Daily Lifetime 7 Plus and elect a new living benefit, you lose the guarantees** **that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the** **date the new benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

**Termination of the Benefit**

You may terminate Highest Daily Lifetime 7 Plus at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates: (i) upon your termination of the benefit, (ii) upon your surrender of the Annuity, (iii) upon your election to begin receiving annuity payments (although if you have elected to receive the Annual Income Amount in the form of Annuity payments, we will continue to pay the Annual Income Amount), (iv) upon our receipt of due proof of the death of the Annuitant, (v) if both the Account Value and Annual Income Amount equal zero, or (vi) if you cease to meet our requirements as described in "Election of and Designations under the Benefit".

Upon termination of Highest Daily Lifetime 7 Plus other than upon the death of the Annuitant, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

If a surviving spouse elects to continue the Annuity, the Highest Daily Lifetime 7 Plus benefit terminates. The spouse may elect the benefit subject to the restrictions discussed above.

**How Highest Daily Lifetime 7 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond** **Portfolio**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you elect Highest Daily Lifetime 7 Plus. For purposes of this benefit, we refer to those permitted investment options as the "Permitted Variable Options". If your annuity was issued on or after May 1, 2009 (subject to regulatory approval), you may also choose to allocate Purchase Payments while this program is in effect to DCA Fixed Rate Options utilized with our 6 or 12 Month Dollar Cost Averaging Program ("6 or 12 Month DCA Program"). If you are participating in Highest Daily Lifetime 7 Plus and also are participating in the 6 or 12 Month DCA Program, and the formula under the benefit dictates a transfer from the Permitted Variable Options to the AST Investment Grade Bond portfolio, then the amount to be transferred will be taken entirely from the Variable Options, provided there is sufficient Account

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Value in those Variable Options to meet the required transfer amount. Only if there is insufficient Account Value in those Variable Options will an amount be withdrawn from the DCA Fixed Rate Options. Amounts withdrawn from the DCA Fixed Rate Options under the formula will be taken on a last-in, first-out basis. For purposes of the discussion below concerning transfers from the Permitted Variable Options to the AST Investment Grade Bond portfolio, amounts held within the DCA Fixed Rate Options are included within the term "Permitted Variable Options". Thus, amounts may be transferred from the DCA Fixed Rate Options in the circumstances described above and in the section of this prospectus entitled "[<u>Transfer and Rebalancing</u> <u>Programs - 6 or 12 Month Dollar Cost Averaging Program</u>](#chapter_9-sect1_6_930)". Any transfer dictated by the formula out of the AST Investment Grade Bond portfolio will be transferred to the Permitted Variable Options, not including the DCA Fixed Rate Options.

An integral part of Highest Daily Lifetime 7 Plus is the predetermined mathematical formula used to transfer Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the "AST Investment Grade Bond portfolio"). The AST Investment Grade Bond portfolio is available only with this benefit, and thus you may not allocate Purchase Payments to or make transfers to or from the AST Investment Grade Bond portfolio. The formula monitors your Account Value daily and, if dictated by the formula, systematically transfers amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio. **The formula is set forth in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_930) **of this prospectus.**

Speaking generally, the formula, which is applied each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. Note that 5% is used in the formula, irrespective of the Annuitant's attained age. Then it produces an estimate of the total amount targeted in our allocation model, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments (and associated purchase Credits), and any excess withdrawals. Next, the formula subtracts from the Target Value the amount held within the AST Investment Grade Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options including any amounts allocated to DCA Fixed Rate Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the AST Investment Grade Bond portfolio, is called the "Target Ratio" or "r". If, on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on such third Valuation Day, make a transfer from the Permitted Variable Options in which you are invested (subject to the 90% cap rule) to the AST Investment Grade Bond portfolio. As discussed above, if all or a portion of your Account Value is allocated to one or more DCA Fixed Rate Options at the time a transfer to the AST Investment Grade Bond portfolio is required under the formula, we will first look to process the transfer from the Permitted Variable Options. If the amount allocated to the Permitted Variable Options is insufficient to satisfy the transfer, then any remaining amounts will be transferred from the DCA Fixed Rate Options on a "last-in, first-out" basis. Once a transfer is made, the three consecutive Valuation Days begin again. If, however, on any Valuation Day, the Target Ratio is above 84.5%, it will make a transfer from the Permitted Variable Options (subject to the 90% cap) to the AST Investment Grade Bond portfolio (as described above). If the Target Ratio falls below 78% on any Valuation Day, then a transfer from the AST Investment Grade Bond portfolio to the Permitted Variable Options will occur.

The formula will not execute a transfer to the AST Investment Grade Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Investment Grade Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio will be transferred. Additionally, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Investment Grade Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the AST Investment Grade Bond portfolio and your allocations in the permitted Variable Options you have selected, your Account Value could be more than 90% invested in the AST Investment Grade Bond portfolio.

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Investment Grade Bond portfolio at least until there is first a transfer out of the AST Investment Grade Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Investment Grade Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Investment Grade Bond portfolio (at least until there is first a transfer out of the AST Investment Grade Bond portfolio). For example,

• March
 19, 2009 – a transfer is made to the AST Investment Grade Bond portfolio that results in the 90% cap being met and now $90,000 is
 allocated to the AST Investment Grade Bond portfolio and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Investment Grade Bond
 portfolio to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• On
 March 20, 2009 (and at least until first a transfer is made out of the AST Investment Grade Bond portfolio under the formula) –
 the $10,000 payment
 is allocated to the Permitted Variable Options and on this date you have 82% in the AST Investment Grade Bond portfolio
 and 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST
 Investment Grade Bond portfolio).

• Once
 there is a transfer out of the AST Investment Grade Bond portfolio (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the
 90% cap).

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Under the operation of the formula, the 90% cap may come into existence and be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio as dictated by the formula.

As you can glean from the formula, poor or flat investment performance of your Account Value may result in a transfer of a portion of your Account Value in the Permitted Variable Options to the AST Investment Grade Bond portfolio because such poor investment performance will tend to increase the Target Ratio. Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the AST Investment Grade Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. Once you elect Highest Daily Lifetime 7 Plus, the values we use to compare to the Target Ratio will be fixed.

Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, a transfer may be made from the AST Investment Grade Bond portfolio to the Permitted Variable Options. Any such transfer will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after the transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

The amount of the transfer will be equal to the lesser of:

1. The
 total value of all your Account Value in the AST Investment Grade Bond portfolio, or

2. An
 amount equal to 5% of your total Account Value.

While you are not notified when your Annuity reaches a transfer trigger under the formula, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the AST Investment Grade Bond portfolio. The formula by which the transfer operates is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under Highest Daily Lifetime 7 Plus. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

• Not
 make any transfer between the Permitted Variable Options and the AST Investment Grade Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the AST Investment Grade Bond portfolio, transfer all or a portion of those amounts to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on
 a proportional basis (i.e., in the same proportion as the current balances in your Variable Options); or

• Transfer
 a portion of your Account Value in the Permitted Variable Options on a proportional basis to the AST Investment Grade Bond portfolio.

At any given time, some, most or none of your Account Value will be allocated to the AST Investment Grade Bond portfolio, as dictated by the formula.

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the AST Investment Grade Bond portfolio is difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the AST Investment Grade Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the AST Investment Grade Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the AST Investment Grade Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the AST Investment Grade Bond portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Investment Grade Bond portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime 7 Plus has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the AST Investment Grade Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect) and;

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the AST Investment Grade Bond portfolio or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the AST Investment Grade Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the AST Investment Grade Bond portfolio even if the performance of your Permitted Variable Options is positive.

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If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the AST Investment Grade Bond portfolio, if dictated by the formula and subject to the 90% cap rule.

Any Account Value in the AST Investment Grade Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the AST Investment Grade Bond portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts. **Please note that** **any withdrawal (except the Non-Lifetime Withdrawal) you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum** **distribution rules, will cause you to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above** **under "Key Feature – Protected Withdrawal Value".**

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime 7 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note all Non-Lifetime Withdrawal provisions will apply.

**Highest Daily Lifetime 7 Plus with Beneficiary Income Option**

**Effective September 14, 2012, Highest Daily Lifetime 7 Plus with Beneficiary Income Option is no longer available for new elections and we no** **longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus with Beneficiary Income Option.**

We previously offered an optional death benefit feature under Highest Daily Lifetime 7 Plus, the amount of which is linked to your Annual Income Amount. We refer to this optional death benefit as the Beneficiary Income Option or BIO. Highest Daily Lifetime 7 Plus with BIO is no longer available for new elections. Please note that if you terminate Highest Daily Lifetime 7 Plus with BIO and elect any other available living benefit you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. As long as your Highest Daily Lifetime 7 Plus with Beneficiary Income Option is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. This benefit could be elected, provided that all Owners and beneficiaries are natural persons or an agent acting for a natural person.

If you elected this death benefit, you could not elect any other optional benefit. You could have elected the Beneficiary Income Option death benefit so long as the Annuitant was no older than age 75 at the time of election and met the Highest Daily Lifetime 7 Plus age requirements. For purposes of this optional death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Highest Daily Lifetime 7 Plus itself. However, we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the Tenth Anniversary Date. This means that under the Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date. If you choose the Highest Daily Lifetime 7 Plus with BIO, the maximum charge is 2.00% of the greater of Account Value and the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the greater of the prior day's Account Value or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Variable Options including the AST Investment Grade Bond portfolio and from the DCA Fixed Rate Option (if applicable). Because the fee for this benefit is based on the greater of the Account Value or the Protected Withdrawal Value, the fee for Highest Daily Lifetime 7 Plus with the Beneficiary Income Option may be greater than it would have been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero and, continue the benefit as described below.

Upon a death that triggers payment of a death benefit under the Annuity, we identify the following amounts: (a) the amount of the basic death benefit under the Annuity, (b) the Protected Withdrawal Value, and (c) the Annual Income Amount. If there were no Lifetime Withdrawals prior to the date of death, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death, and we calculate the Annual Income Amount as if there were a withdrawal on the date of death. If there were Lifetime Withdrawals prior to the date of death, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

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If there is one beneficiary, he/she must choose to receive either the basic death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of periodic payments of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Each beneficiary can choose to take his/her portion of either (a) the basic death benefit, or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option death benefit, each beneficiary's share of the death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year payout
 period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal
 Value). The pro-rated portion of the Annual Income Amount, equal to $3,750 annually (i.e., the first beneficiary's 75% share multiplied
 by $5,000), is then paid each year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e.,
 the first beneficiary's 75% share of the $100,000 Protected Withdrawal Value). The second beneficiary would receive 25% of the basic
 death benefit amount (or $12,500).

If you elect to terminate Highest Daily Lifetime 7 Plus with Beneficiary Income Option, both Highest Daily Lifetime 7 Plus and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Highest Daily Lifetime 7 Plus with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election of and Designations under the Benefit" section above.

**Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator<sup>SM</sup>**

**Effective September 14, 2012, Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator is no longer available for new elections and we** **no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator.**

In the past, we offered a version of Highest Daily Lifetime 7 Plus called Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator ("Highest Daily Lifetime 7 Plus with LIA"). You could choose Highest Daily Lifetime 7 Plus with or without also electing LIA, however you could not elect LIA without Highest Daily Lifetime 7 Plus and you could elect the LIA benefit at the time you elect Highest Daily Lifetime 7 Plus. Please note that if you terminate Highest Daily Lifetime 7 Plus with LIA and elect any other available living benefit you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. If you elected this benefit, you may not have elected any other optional benefit. As long as your Highest Daily Lifetime 7 Plus with LIA benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. The income benefit under Highest Daily Lifetime 7 Plus with LIA was based on a single "designated life" who was between the ages of 45 and 75 on the date that the benefit is elected. All terms and conditions of Highest Daily Lifetime 7 Plus apply to this version of the benefit, except as described herein.

Highest Daily Lifetime 7 Plus with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care. You should seek professional advice to determine your financial needs for long-term care.

Highest Daily Lifetime 7 Plus with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. If you choose the Highest Daily Lifetime 7 Plus with LIA, the maximum charge is 2.00% of the greater of Account Value and the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the greater of the prior day's Account Value, or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Variable Options including the AST Investment Grade Bond portfolio and the DCA Fixed Rate Option (if applicable). Since this fee is based on the greater of Account Value or the Protected Withdrawal Value, the fee for Highest Daily Lifetime 7 Plus with LIA may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

If this benefit is being elected on an Annuity held as a 403(b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403(b) plan itself.

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**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months from the benefit effective date, and an elimination period of 120 days from the date of notification that one or both of the requirements described immediately below have been met, apply before you can become eligible for the LIA Amount. Assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, at least one of the following requirements ("LIA conditions") must be met.

1. The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to law or any
 state licensed facility
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical limitations
 which prohibit daily living in a non-institutional setting.

2. The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

(a) Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

(b) Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

(c) Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

(d) Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

(e) Transferring:
 Moving into or out of a bed, chair or wheelchair.

(f) Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described above under the Highest Daily Lifetime 7 Plus benefit.

Additionally, once eligibility is determined, we will reassess your eligibility on an annual basis although your LIA benefit for the year that immediately precedes our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuities Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under the Highest Daily Lifetime 7 Plus Benefit" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

**LIA Amount at the First Lifetime Withdrawal.**

If your first Lifetime Withdrawal subsequent to election of Highest Daily Lifetime 7 Plus with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA Amount After the First Lifetime Withdrawal.**

If you become eligible for the LIA Amount after you have taken your first Lifetime Withdrawal, the available LIA amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount, however the available LIA amount in the current Annuity Year is reduced by any Lifetime Withdrawals that have been taken in the current Annuity Year. Cumulative Lifetime Withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year.

**Withdrawals in Excess of the LIA Amount.**

If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the LIA Amount when you are eligible ("Excess Withdrawal"), your LIA Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Withdrawal. Reductions include the actual amount of the withdrawal, including any CDSC that may apply. Withdrawals of any amount (excluding the Non-Lifetime Withdrawal) up to and including the LIA Amount will reduce the Protected

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Withdrawal Value by the amount of the withdrawal. Excess Withdrawals will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA amount (when eligible) but in excess of the Free Withdrawal amount available under this Annuity will not incur a CDSC.

Withdrawals are not required. However, subsequent to the first Lifetime Withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, we will increase your LIA Amount by double the amount we add to your Annual Income Amount.

**Step Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments.** If your Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount when you are eligible, or as a result of the fee that we assess for Highest Daily Lifetime 7 Plus with LIA, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. If you have not begun taking Lifetime Withdrawals and your Account Value is reduced to zero as a result of the fee we assess for Highest Daily Lifetime 7 Plus with LIA, we will calculate the Annual Income Amount and any LIA amount if you are eligible, as if you made your first Lifetime Withdrawal on the date the Account Value was reduced to zero and Lifetime Withdrawals will begin on the next Annuity Anniversary. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in these scenarios, the remaining LIA Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section for more information. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". To the extent that cumulative withdrawals in the current Annuity Year that reduce your Account Value to zero are more than the LIA Amount (except in the case of required minimum distributions), Highest Daily Lifetime 7 Plus with LIA terminates, and no additional payments are permitted.

**Annuity Options.** In addition to the Highest Daily Lifetime 7 Plus Annuity Options described above, after the 10<sup>th</sup> Anniversary you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make payments equal to the LIA Amount. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section for more information. If you would receive a greater payment by applying your Account Value to receive payments for life under your Annuity, we will pay the greater amount. Annuitization prior to the Tenth Anniversary will forfeit any present or future LIA amounts. We will continue to make payments until the death of the Designated Life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun.

If you elected Highest Daily Lifetime 7 Plus with LIA, and never meet the eligibility requirements you will not receive any additional payments based on the LIA Amount.

**SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (SHD7 Plus)**

**Effective September 14, 2012, Spousal Highest Daily Lifetime 7 Plus is no longer available for new elections and we no longer accept** **additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 7 Plus benefit.**

Spousal Highest Daily Lifetime 7 Plus is the spousal version of Highest Daily Lifetime 7 Plus. If you elected Spousal Highest Daily Lifetime 7 Plus and subsequently terminate the benefit, you may elect another available living benefit, subject to our current rules. See "[<u>Termination of Existing Benefits and</u> <u>Election New Benefits</u>](#chapter_11-sect1_60_930)". Please note that if you terminate Spousal Highest Daily Lifetime 7 Plus and elect another benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. Spousal Highest Daily Lifetime 7 Plus could have been elected based on two Designated Lives, as described below. The youngest Designated Life must have been at least 50 years old and the oldest Designated Life must have been at least 55 years old when the benefit was elected. Spousal Highest Daily Lifetime 7 Plus is not available if you elected any other optional benefit. As long as your Spousal Highest Daily Lifetime 7 Plus Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed description of permitted investment options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930)**.**

We previously offered a benefit that guarantees until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "Designated Lives", and each, a "Designated Life") the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the Designated Lives ("Lifetime Withdrawals") provided you have not made "excess withdrawals" that have resulted in your Account Value being reduced to zero. We also permit a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime Withdrawals under the benefit. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Highest Daily Lifetime 7 Plus benefit after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our predetermined mathematical

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formula in order to participate in Spousal Highest Daily Lifetime 7 Plus. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated). Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take an excess withdrawal that brings your Account Value to zero, it is possible that your Annual Income Amount could also fall to zero. In that scenario, no further amount would be payable under Spousal Highest Daily Lifetime 7 Plus.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Adjusted
 Purchase Payment made on the Current Valuation Day (the Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal);
 and

2. the
 Account Value.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) (proportionally reduced for any Non-Lifetime Withdrawal):

a. 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of the Account Value on the effective
 date of the benefit;

b. 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of all Adjusted Purchase Payments
 made within one year following the effective date of the benefit; and

c. All
 Adjusted Purchase Payments made after one year following the effective date of the benefit.

If you elect Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option ("BIO") (see below), we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the Tenth Anniversary of the effective date of the benefit ("Tenth Anniversary"). This means that under the Spousal Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date.

On and after the date of your first Lifetime Withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first Lifetime Withdrawal (as described below), and may be increased if you qualify for a step-up (as described below).

**Return of Principal Guarantee**

If you have not made a Lifetime Withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

(a) your
 Account Value on the day that you elected Spousal Highest Daily Lifetime 7 Plus proportionally reduced for any Non-Lifetime Withdrawal;
 and

(b) the
 sum of each Purchase Payment proportionally reduced for any subsequent Non-Lifetime Withdrawal (including the amount of any
 associated Credits) you made during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the AST Investment Grade Bond Portfolio used with this benefit), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. Because the amount is added to your Account Value, it will also be subject to each charge under your Annuity based on Account Value. This potential addition to Account Value is available only if you have elected Spousal Highest Daily Lifetime 7 Plus and

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if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal, including a required minimum distribution, (other than a Non-Lifetime Withdrawal) prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee. The Return of Principal Guarantee is referred to as the Guaranteed Minimum Account Value Credit in the benefit rider.

**Key Feature – Annual Income Amount under the Spousal Highest Daily Lifetime 7 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the youngest Designated Life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 50 – less than 59½, 5% for ages 59½-79, 6% for ages 80 to 84, 7% for ages 85 to 89, and 8% for ages 90 and older. We use the age of the youngest Designated Life even if that Designated Life is no longer a participant under the Annuity due to death or divorce.

Under the Spousal Highest Daily Lifetime 7 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions are based on the actual amount of the withdrawal, including any CDSC that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime 7 Plus will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credit) based on the age of the younger Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 50 – less than 59½, 5% for ages 59½-79, 6% for ages 80-84, 7% for ages 85-89, and 8% for ages 90 and older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credit).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 7 Plus benefit.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the youngest Designated Life on the Annuity Anniversary as of which the step-up would occur. The percentages are 4% for ages 50 – less than 59½, 5% for ages 59½ – 79, 6% for ages 80 – 84, 7% for ages 85 – 89, and 8% for ages 90 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Account Values that occurred on Valuation Days during the year. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime 7 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime 7 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

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If you establish a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

The Spousal Highest Daily Lifetime 7 Plus benefit does not affect your ability to make withdrawals under your Annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime 7 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime 7 Plus benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 younger Designated Life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 7 Plus benefit.

**Example of dollar-for-dollar reductions**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the youngest designated life is between the ages of 59½ and 79 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime 7 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_12-sect1_12_930)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Spousal Highest Daily Lifetime 7 Plus benefit. You must tell us if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Spousal Highest Daily Lifetime 7 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value and the Return of Principal guarantee. It will also proportionally reduce the Periodic Value guarantees on the tenth, twentieth and twenty-fifth anniversaries of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the time of the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

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**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 Account Value at benefit election was $105,000

• The
 younger Designated Life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 7 Plus benefit

• No
 previous withdrawals have been taken under the Spousal Highest Daily Lifetime 7 Plus benefit

On May 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, the 10<sup>th</sup> benefit year Return of Principal guarantee is $105,000, the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, the 25<sup>th</sup> benefit year minimum Periodic Value guarantee is $630,000 and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on May 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Spousal Highest Daily Lifetime 7 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal Amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Return of Principal | $91875 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |
|  25<sup>th</sup> benefit year Minimum Periodic Value | $551250 |

---

**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amounts will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution amount is greater than the Annual Income Amount. Any withdrawal you take that exceeds the Annual Income Amount in Annuity Years that your required minimum distribution amount is not greater than the Annual Income Amount will be treated as an Excess Withdrawal under the benefit. If the required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered an excess withdrawal.

In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar-for-dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as an excess withdrawal.

**Example – Required Minimum Distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000. ($3,000 + ($6,000 – $5,000) = $4,000).

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If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all guarantees associated with the Spousal Highest Daily Lifetime 7 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000) without being treated as an Excess Withdrawal is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

**Benefits Under Spousal Highest Daily Lifetime 7 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are equal to or less than the
 Annual Income Amount or as a result of the fee that we assess for Spousal Highest Daily Lifetime 7 Plus, and amounts are
 still payable under Spousal Highest Daily Lifetime 7 Plus, we will make an additional payment, if any, for that Annuity Year equal to
 the remaining Annual
 Income Amount for the Annuity Year. If you have not begun taking Lifetime Withdrawals and your Account Value is reduced
 to zero as a result of the fee we assess for Spousal Highest Daily Lifetime 7 Plus, we will calculate the Annual Income Amount as if
 you made your first Lifetime Withdrawal on the date the Account Value was reduced to zero and Lifetime Withdrawals will begin on the next
 Annuity Anniversary. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in these
 scenarios, the remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent
 Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments until
 the death of the first of the Designated Lives to die, and will continue to make payments until the death of the second Designated Life.
 To the extent that cumulative withdrawals in the Annuity Year that reduced your Account Value to zero are more than the Annual Income
 Amount, the Spousal Highest Daily Lifetime 7 Plus benefit terminates, and no additional payments will be made. However, if a withdrawal
 in the latter scenario was taken to satisfy a required minimum distribution under the Annuity the benefit will not terminate, and we
 will continue to pay the Annual Income Amount in subsequent Annuity Years until the death of the second Designated Life.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

○ apply
 your Account Value to any Annuity option available; or

○ request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life. If, due to death of a Designated Life or divorce prior to Annuitization, only a single Designated Life remains,
 then Annuity payments will be made as a life annuity for the lifetime of the Designated Life. We must receive your request in
 a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available
 or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such Annuity payments will be the greater
 of:

○ the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the joint and
 survivor or single (as applicable) life fixed annuity rates then currently available or the joint and survivor or single (as applicable) life fixed annuity
 rates guaranteed in your Annuity; and

○ the
 Account Value.

• If
 no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity
 payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the older of the Owner
 or Annuitant's 95 <sup>th</sup> birthday will be treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime 7 Plus benefit are subject to all of the terms and conditions of the Annuity, including any
 applicable CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount.

• Withdrawals
 made while the Spousal Highest Daily Lifetime 7 Plus benefit is in effect will be treated, for tax purposes, in the same way as any
 other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable Options
 (including the AST Investment Grade Bond portfolio) and the DCA Fixed Rate Options (if you are participating in the 6 or 12 Month
 DCA Program). Withdrawals from the DCA Fixed Rate Options will be taken on a last-in, first-out basis.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Highest Daily Lifetime
 7 Plus benefit. The Spousal Highest Daily Lifetime 7 Plus benefit provides a guarantee that if your Account Value is reduced to zero
 (subject to program rules regarding the timing and amount of withdrawals), you will be able to receive your Annual Income Amount in the
 form of periodic benefit payments.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond Portfolio Variable Option (as
 described below) if you elected this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **.** You can find a copy of the AST Investment Grade Bond Portfolio prospectus by going to www.prudential.com/regdocs/FLIAC-CORE-USP.

• Transfers
 to and from the elected Variable Options and the AST Investment Grade Bond Portfolio Variable Option triggered by the Spousal Highest
 Daily Lifetime 7 Plus predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Spousal Highest Daily Lifetime 7 Plus benefit. If, subsequent to your election of the benefit, we change our requirements for how
 Account Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly
 adopted requirements. Subject to any change in requirements, transfer of Account Value and allocation of Additional Purchase Payments
 may be subject to new investment limitations.

• The
 maximum fee for Spousal Highest Daily Lifetime 7 Plus is 1.50% annually of the greater of Account Value and the Protected Withdrawal
 Value. We deduct this fee on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary
 (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.375% of the greater of the prior day's
 Account Value, or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the
 Variable Options including the AST Investment Grade Bond portfolio and from the DCA Fixed Rate Option (if applicable). Since
 this fee is based on the greater of the Account Value and the Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime 7
 Plus may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the Account
 Value, we will reduce the Account Value to zero, and continue the benefit as described above. You will begin paying the charge for
 this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges
 you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime 7 Plus cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under Spousal Highest Daily Lifetime 7 Plus cause your
 Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_24_930) "
 for more information.)

**Election of and Designations Under the Benefit**

We no longer permit new elections of Spousal Highest Daily Lifetime 7 Plus. Spousal Highest Daily Lifetime 7 Plus could only be elected based on two Designated Lives. Designated Lives must be natural persons who are each other's spouses at the time of election of the benefit. Spousal Highest Daily Lifetime 7 Plus only could be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The youngest Owner/Annuitant
 and the beneficiary must be at least 50 years old and the oldest must be at least 55 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. The youngest Owner must be at least 50 years old and the oldest Owner
 must be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. The youngest of the Annuitant and the Contingent Annuitant
 must be at least 50 years old and the oldest must be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary designations under this benefit. If the Designated Lives divorce, however, the Spousal Highest Daily Lifetime 7 Plus benefit may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

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Spousal Highest Daily Lifetime 7 Plus could have been elected at the time that you purchased your Annuity or after the Issue Date, subject to our eligibility rules and restrictions. See "[<u>Optional Living Benefits - Termination of Existing Benefits and Election of New Benefits</u>](#chapter_11-sect1_2_930)" below for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect a new living benefit, you** **lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your** **Account Value as of the date the new benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency** **in the future.**

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates: (i) if upon the death of the first Designated Life, the surviving Designated Life opts to take the death benefit under the Annuity (thus, the benefit does not terminate solely because of the death of the first Designated Life), (ii) upon the death of the second Designated Life, (iii) upon your termination of the benefit, (iv) upon your surrender of the Annuity, (v) upon your election to begin receiving annuity payments (although if you have elected to take annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount), (vi) if both the Account Value and Annual Income Amount equal zero, or (vii) if you cease to meet our requirements as described in "Election of and Designations under the Benefit".

Upon termination of Spousal Highest Daily Lifetime 7 Plus other than upon death of a Designated Life, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond Portfolio (as defined below) to your Variable Options based on your existing allocation instructions or (in the absence of such instruction) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

**How Spousal Highest Daily Lifetime 7 Plus Transfers Account Value between Your Permitted Variable Options and the AST Investment Grade** **Bond Portfolio**

See "[<u>How Highest Daily Lifetime 7 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond</u> <u>Portfolio</u>](#chapter_110-sect1_6_930)" in this Prospectus for information regarding this component of the benefit.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts. **Please note that** **any withdrawal (except the Non-Lifetime Withdrawal) you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum** **distribution rules, will cause you to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above** **under "Key Feature – Protected Withdrawal Value".**

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Spousal Highest Daily Lifetime 7 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note all Non-Lifetime Withdrawal provisions will apply.

**Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option**

**Effective September 14, 2012, Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option is no longer available for new elections** **and we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income** **Option.**

We previously offered an optional death benefit feature under Spousal Highest Daily Lifetime 7 Plus, the amount of which is linked to your Annual Income Amount. We refer to this optional death benefit as the Beneficiary Income Option or BIO. Spousal Highest Daily Lifetime 7 Plus with BIO is no longer available for new elections. You could choose Spousal Highest Daily Lifetime 7 Plus with or without also selecting the Beneficiary Income Option death benefit. However, you could not elect the Beneficiary Income Option without Spousal Highest Daily Lifetime 7 Plus and you could elect the Beneficiary Income Option death benefit at the time you elect Spousal Highest Daily Lifetime 7 Plus. Please note that if you terminate Spousal Highest Daily Lifetime 7 Plus with BIO and elect any available living benefit you lose the guarantees that you had accumulated under your existing benefit and we will base any

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guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. As long as your Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit.

If you elected the Beneficiary Income Option death benefit, you could not elect any other optional benefit. You could elect the Beneficiary Income Option death benefit so long as each Designated Life is no older than age 75 at the time of election and the Spousal Highest Daily Lifetime 7 Plus age requirements are met. This death benefit is not transferable in the event of a divorce, nor may the benefit be split in accordance with any divorce proceedings or similar instrument of separation. If you choose the Spousal Highest Daily Lifetime 7 Plus with BIO, the maximum charge is 2.00% of the greater of Account Value and the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the greater of the prior day's Account Value or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Variable Options, including the AST Investment Grade Bond portfolio and from the DCA Fixed Rate Option (if applicable). Because the fee for this benefit is based on the greater of the Account Value or the Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime 7 Plus with the Beneficiary Income Option may be greater than it would have been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

For purposes of this optional death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Spousal Highest Daily Lifetime 7 Plus itself. However, we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the Tenth Anniversary Date. This means that under the Spousal Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date. Upon the first death of a Designated Life, no amount is payable under the Beneficiary Income Option death benefit. Upon the second death of a Designated Life, we identify the following amounts: (a) the amount of the basic death benefit under the Annuity, (b) the Protected Withdrawal Value (less any Credits associated with Purchase Payments applied within 12 months prior to the date of death), and (c) the Annual Income Amount. If there were no Lifetime Withdrawals prior to the date of death of the second Designated Life, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death of the second Designated Life, and we calculate the Annual Income Amount as if there were a Lifetime Withdrawal on the date of death of the second Designated Life. If there were Lifetime Withdrawals prior to the date of death of the second Designated Life, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

If there is one beneficiary, he/she must choose to receive either the basic death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of annual payments of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Thus, each beneficiary can choose to take his/her portion of either (a) the basic Death Benefit, or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option Death Benefit, each beneficiary's share of the death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year payout
 period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal
 Value). The pro-rated portion of the Annual Income Amount equal to $3,750 (i.e., the first beneficiary's 75% share multiplied by $5,000) is then paid
 each year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e., the first beneficiary's
 75% share of the $100,000 Protected Withdrawal Value). The second beneficiary would receive 25% of the basic death benefit
 amount (or $12,500).

If you elect to terminate Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option, both Spousal Highest Daily Lifetime 7 Plus and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election of and Designations under the Benefit" section.

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**TRIGGERS FOR PAYMENT OF THE DEATH BENEFIT**

Each Annuity provides a Death Benefit during its Accumulation Period. **If an Annuity is owned by one or more natural persons, the Death Benefit is** **payable upon the first death of an Owner. If an Annuity is owned by an entity, the Death Benefit is payable upon the Annuitant's death, if there** **is no Contingent Annuitant.** Please note that if your Annuity is held as a Beneficiary Annuity and owned by one of the permissible entities, no death benefit will be payable since the Annuity will continue distributing the required distributions over the life expectancy of the Key Life until either the Account Value is depleted or the Annuity is fully surrendered. Generally, if a Contingent Annuitant was designated before the Annuitant's death and the Annuitant dies, then the Contingent Annuitant becomes the Annuitant and a Death Benefit will not be paid at that time. The person upon whose death the Death Benefit is paid is referred to below as the "decedent."

**BASIC DEATH BENEFIT**

Each Annuity provides a basic Death Benefit at no additional charge. The insurance charge we deduct daily from your Account Value allocated to the Variable Options is used, in part, to pay us for the risk we assume in providing the basic Death Benefit guarantee under an Annuity. **In addition, with** **respect to XT6, under certain circumstances, your Death Benefit may be reduced by the amount of any Credits we applied to your Purchase** **Payments. (See "**[**<u>How are Credits Applied to My Account Value</u>**](#chapter_12-sect1_7_930)**".)** Also, no basic Death Benefit will be paid if your Annuity terminates because your Account Value reaches zero (which can happen if, for example, you are taking withdrawals under an optional living benefit).

**Considerations for Contingent Annuitants:** We may allow the naming of a Contingent Annuitant when a Non-qualified Annuity contract is held by a pension plan or a tax favored retirement plan or held by a Custodial Account (as defined in this prospectus). In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity contract continues after the death of the Annuitant. In some of our Annuities held by these same types of entities we allow for the naming of a Co-Annuitant, which also is used to mean the successor annuitant (and not another life used for measuring the duration of an annuity payment option). Like in the case of a Contingent Annuitant, the Annuity may no longer qualify for tax deferral where the contract continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a Contingent Annuitant when a Non-qualified Annuity contract is held by an entity which is not eligible for tax deferral benefits under Section 72(u) of the Code. This does not supersede any benefit language which may restrict the use of the Contingent Annuitant.

For ASAP III, APEX II and XT6 Annuities, the existing basic Death Benefit (for all decedent ages) is the greater of:

• The
 sum of all Purchase Payments (not including any Credits) less the sum of all proportional withdrawals and

• The
 sum of your Account Value in the Variable Options, your Interim Value in the Market Value Adjustment Fixed Allocations, and any Account
 Value in the Benefit Fixed Rate Account or the DCA Fixed Rate Options (less the amount of any Credits applied within 12-months prior
 to the date of death, with respect to XT6, if allowed by applicable State law). Please note that your Account Value includes any applicable
 Market Value Adjustment.

For ASL II Annuities issued before July 21, 2008, where death occurs before the decedent's age 85, the basic Death Benefit is the greater of:

• The
 sum of all Purchase Payments less the sum of all proportional withdrawals and

• The
 sum of your Account Value in the Variable Options, your Interim Value in the Market Value Adjustment Fixed Allocations, and any Account
 Value in the Benefit Fixed Rate Account or the DCA Fixed Rate Options.

For ASL II Annuities issued before July 21, 2008 where death occurs after the decedent's age 85, the Death Benefit is (a) your Account Value (for Annuities other than those issued in New York) or (b) your Account Value in the Variable Options plus your Interim Value in the Market Value Adjustment Fixed Allocations, and any Account Value in the Benefit Fixed Rate Account or the DCA Fixed Rate Options (for Annuities issued in New York only).

For ASL II Annuities issued on or after July 21, 2008 the basic Death Benefit is the greater of:

• The
 sum of all Purchase Payments less the sum of all proportional withdrawals and

• The
 sum of your Account Value in the Variable Options, your Interim Value in the Market Value Adjustment Fixed Allocations, and any Account
 Value in the Benefit Fixed Rate Account or the DCA Fixed Rate Options.

**<u>"Proportional withdrawals"</u>** are determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn. For example, a withdrawal of 50% of Account Value would be considered as a 50% reduction in Purchase Payments for purposes of calculating the basic Death Benefit.

**<u>Here is an example of how the basic death benefit is calculated (not applicable to ASL II Annuities issued before July 21, 2008 when the</u>** **<u>decedent's age 85 or older):</u>**

The contract was issued with Purchase Payments totaling $100,000 but, due to negative Variable Option performance, the Account Value had decreased to $80,000. If the Owner died, the death benefit would still be $100,000. This amount, however, is reduced proportionally when you make a withdrawal from the contract. If the contract Owner had withdrawn 50% of the remaining $80,000, the death benefit would also be reduced by 50%. Since the death benefit had been $100,000, it would now be $50,000.

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<br>**<u>Here is an example of how the basic death benefit is calculated for ASL II Annuities issued before July 21, 2008 when the decedent's age 85 or</u>** **<u>older:</u>**

The contract was issued with Purchase Payments totaling $100,000 but, due to negative Variable Option performance, the Account Value had decreased to $80,000. If the Owner died, the death benefit would be $80,000.

**OPTIONAL DEATH BENEFITS**

Optional Death Benefits are offered for purchase with your Annuity to provide an enhanced level of protection for your beneficiaries. No optional Death Benefit is available if your Annuity is held as a Beneficiary Annuity. We reserve the right to cease offering any optional death benefit.

**Currently, these benefits are only offered in those jurisdictions where we have received regulatory approval and must be elected at the time** **that you purchase your Annuity. We may, at a later date, allow existing Annuity Owners to purchase an optional Death Benefit subject to our** **rules and any changes or restrictions in the benefits. The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit may only** **be elected individually, and cannot be elected in combination with any other optional Death Benefit. If you elect Spousal Lifetime Five,** **Spousal Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime 7 Plus, or the BIO feature of Highest Daily Lifetime Seven or the Highest** **Daily Lifetime 7 Plus suite of benefits, you are not permitted to elect an optional Death Benefit. With respect to XT6, under certain** **circumstances, each optional Death Benefit that you elect may be reduced by the amount of Credits applied to your Purchase Payments.**

**Investment restrictions may apply if you elect certain optional death benefits. See the chart in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_930) **for a list of investment options** **available and permitted with each benefit.**

**If you purchased APEX II, ASL II and/or XT6 before November 18, 2002 and were not a resident of the State of New York, please refer to** [**<u>Appendix D</u>**](#chapter_21-sect1_1_930) **for descriptions and calculations of previously offered optional death benefits.**

**ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT**

**The Enhanced Beneficiary Protection Optional Death Benefit is no longer available for new elections. It provides additional amounts to your** **Beneficiary that may be used to offset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. Whether** **this benefit is appropriate for you may depend on your particular circumstances, including other financial resources that may be available to** **your Beneficiary to pay taxes on your Annuity should you die during the Accumulation Period. No benefit is payable if death occurs on or** **after the Annuity Date.**

**The Enhanced Beneficiary Protection Optional Death Benefit provided a benefit payable in addition to the basic Death Benefit and certain** **other optional death benefits you may elect in conjunction with this benefit. If the Annuity has one Owner, the Owner had to be age 75 or less** **at the time the benefit was purchased. If an Annuity has joint Owners, the oldest Owner had to be age 75 or less. If an Annuity is owned by an** **entity, the Annuitant had to be age 75 or less.**

**Calculation of Enhanced Beneficiary Protection Optional Death Benefit**

If you purchased the Enhanced Beneficiary Protection Optional Death Benefit, the Death Benefit is calculated as follows:

(1) the **basic Death Benefit** described above;

**PLUS**

(1) 40%
 of your **"Growth"** under an Annuity, as defined below.

**<u>"Growth"</u>** means the sum of your Account Value in the Variable Options and your Interim Value in the Market Value Adjustment Fixed Allocations, minus the total of all Purchase Payments (less the amount of any Credits applied within 12-months prior to the date of death, with respect to XT6) reduced by the sum of all proportional withdrawals.

**<u>"Proportional withdrawals"</u>** are determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn. For example, a withdrawal of 50% of Account Value would be considered as a 50% reduction in Purchase Payments.

**The Enhanced Beneficiary Protection Optional Death Benefit is subject to a maximum of 100% of all Purchase Payments applied to an** **Annuity at least 12 months prior to the death of the decedent that triggers the payment of the Death Benefit.**

**The Enhanced Beneficiary Protection Optional Death Benefit was offered in those jurisdictions where we received regulatory approval.** **Certain terms and conditions may differ between jurisdictions. With respect to XT6, APEX II and ASL II, please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_930) **for a** **description of the Enhanced Beneficiary Protection Optional Death Benefit offered before November 18, 2002 in those jurisdictions where we** **received regulatory approval. Please refer to the section entitled "**[**<u>Taxes</u>**](#chapter_14-sect1_1_930)**" for a discussion of special tax considerations for purchasers of this** **benefit. The Enhanced Beneficiary Protection Death Benefit was not available if you elected the "Combination 5% Roll-up and Highest** **Anniversary Value" Death Benefit, the Spousal Lifetime Five Income Benefit, Highest Daily Lifetime Seven with BIO, Highest Daily Lifetime** 

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**Seven with LIA, Spousal Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven with BIO, Highest Daily Lifetime 7 Plus with BIO,** **Highest Daily Lifetime 7 Plus with LIA, Spousal Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus with BIO, Highest Daily** **Lifetime 6 Plus with LIA and Spousal Highest Daily Lifetime 6 Plus.**

**Examples of Enhanced Beneficiary Protection Optional Death Benefit Calculation**

The following are examples of how the Enhanced Beneficiary Protection Optional Death Benefit is calculated. Each example assumes that a $50,000 initial Purchase Payment is made. Each example assumes that there is one Owner who is age 50 on the Issue Date and that all Account Value is maintained in the Variable Options. The formula for determining the Enhanced Beneficiary Protection Optional Death Benefit is as follows:

Growth = Account Value of Variable Options plus Interim Value of Fixed Allocations minus Purchase Payments - proportional withdrawals

**<u>Example with Variable Option increase</u>**

Assume that the Owner has made no withdrawals and that the Account Value has been increasing due to positive Variable Option performance. On the date we receive due proof of death, the Account Value is $75,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, which ever is greater. Therefore, the basic Death Benefit is equal to $75,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($75,000) PLUS 40% of the "Growth" under the Annuity.

---

| | | |
|:---|:---|:---|
| Growth | = | $75,000 - [$50,000 - $0] |
|  | = | $25000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth |
|  | = | $25,000 × 0.40 |
|  | = | $10000 |
| Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $85000 |

---

**<u>Examples with Variable Option decline</u>**

Assume that the Owner has made no withdrawals and that the Account Value has been decreasing due to declines in Variable Option performance. On the date we receive due proof of death, the Account Value is $45,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, which ever is greater. Therefore, the basic Death Benefit is equal to $50,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($50,000) **PLUS** the "Growth" under the Annuity.

---

| | | |
|:---|:---|:---|
|  Growth | = | $45,000 – [$50,000 – $0] |
|  | = | -$5000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth<br> NO BENEFIT IS PAYABLE | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth<br> NO BENEFIT IS PAYABLE | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth<br> NO BENEFIT IS PAYABLE |
|  Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $50000 |

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**In this example you would receive no additional benefit from purchasing the Enhanced Beneficiary Protection Optional Death Benefit.**

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**<u>Example with Variable Option increase and withdrawals</u>**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 5 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $90,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, whichever is greater. Therefore, the basic Death Benefit is equal to $90,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($90,000) **PLUS** 40% of the "Growth" under the Annuity.

---

| | | |
|:---|:---|:---|
| Growth | = | $90,000 – [$50,000 – ($50,000 × $15,000/$75,000)] |
|  | = | $90,000 – [$50,000 – $10,000] |
|  | = | $90000 – $40000 |
|  | = | $50000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth |
|  | = | $50,000 × 0.40 |
|  | = | $20000 |
| Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $110000 |

---

**HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**

**If an Annuity has one Owner, the Owner must be age 79 or less at the time the Highest Anniversary Value Optional Death Benefit is** **purchased. If an Annuity has joint Owners, the oldest Owner must be age 79 or less. If an Annuity is owned by an entity, the annuitant must be** **age 79 or less.**

**Certain of the Portfolios offered as Variable Options under the Annuity are not available if you elect the Highest Anniversary Value Death** **Benefit. In addition, we reserve the right to require you to use certain asset allocation model(s) if you elect this death benefit.**

**Calculation of Highest Anniversary Value Death Benefit**

The HAV Death Benefit depends on whether death occurs before or after the Death Benefit Target Date.

*If the Owner dies before the Death Benefit Target Date, the Death Benefit equals the greater of:*

(1) the
 basic Death Benefit described above; and

(2) the
 Highest Anniversary Value as of the Owner's date of death.

*If the Owner dies on or after the Death Benefit Target Date, the Death Benefit equals the greater of*:

(1) the
 basic Death Benefit described above; and

(2) the
 Highest Anniversary Value on the Death Benefit Target Date plus the sum of all Purchase Payments (including any Credits applied to such
 Purchase Payments more than twelve (12) months prior to date of death in the case of XT6 or as otherwise provided for under applicable
 State law) less the sum of all proportional withdrawals since the Death Benefit Target Date.

**The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and** **decreased by any proportional withdrawals since such date.**

**The Highest Anniversary Value Death Benefit described above is currently being offered in those jurisdictions where we have received** **regulatory approval. The Highest Anniversary Value Death Benefit is not available if you have elected the "Combination 5% Roll-up and** **Highest Anniversary Value" or the "Highest Daily Value" Death Benefit. It is also not available with Spousal Lifetime Five, Spousal** **Highest Daily Lifetime Seven, or the Spousal Highest Daily Lifetime 7 Plus Benefit. With respect to XT6, APEX II and ASL II, please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_930) **for a description of the Guaranteed Minimum Death Benefit offered before November 18, 2002 in those jurisdictions where** **we received regulatory approval**.

Please refer to the definition of Death Benefit Target Date below. This death benefit may not be an appropriate feature where the Owner's age is near the age specified in the Death Benefit Target Date. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer contract anniversaries before the death benefit target date is reached. The death benefit target date under this death benefit is earlier than the death benefit target date under the Combination 5% Roll-up and Highest Anniversary Value Death Benefit for Owners who are age 76 or older when an Annuity is issued, which may result in a lower value on the death benefit, since there will be fewer contract anniversaries before the death benefit target date is reached.

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**Examples of Highest Anniversary Value Death Benefit Calculation**

The following are examples of how the Highest Anniversary Value Death Benefit is calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date and that all Account Value is maintained in the Variable Options.

**<u>Example with Variable Option increase and death before Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the date we receive due proof of death, the Account Value is $75,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Anniversary Value or the basic Death Benefit. The Death Benefit would be of the Highest Anniversary Value or the basic Death Benefit. The Death Benefit would be the Highest Anniversary Value ($90,000) because it is the Highest Anniversary Value ($90,000) because it is greater than the amount that would have been payable under the basic Death Benefit ($75,000).

**<u>Example with withdrawals</u>**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $80,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Anniversary Value or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Anniversary Value | = | $90,000 – [$90,000 × $15,000/$75,000] |
|  | = | $90000 – $18000 |
|  | = | $72000 |
| Basic Death Benefit | = | max [$80,000, $50,000 – ($50,000 × $15,000/$75,000)] |
|  | = | max [$80,000, $40,000] |
|  | = | $80000 |
| The Death Benefit therefore is $80,000 | The Death Benefit therefore is $80,000 | The Death Benefit therefore is $80,000 |

---

**<u>Example with death after Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals had been made prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Highest Anniversary Value on the Death Benefit Target Date was $80,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greater of the Highest Anniversary Value plus Purchase Payments minus proportional withdrawals after the Death Benefit Target Date or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Anniversary Value | = | $80,000 + $15,000 - [($80,000 + $15,000) × $5,000/$70,000] |
|  | = | $80,000 + $15,000 – $6,786 |
|  | = | $88214 |
| Basic Death Benefit | = | max [$75,000, ($50,000 + $15,000) – {($50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. |

---

**COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT**

If an Annuity has one Owner, the Owner must be age 79 or less at the time the Combination 5% Roll-up and HAV Optional Death Benefit is purchased. If an Annuity has joint Owners, the oldest Owner must be age 79 or less. If the Annuity is owned by an entity, the Annuitant must be age 79 or less.

**Certain Portfolios offered as Variable Options under an Annuity are not available if you elect the Combination 5% Roll-up and HAV Death** **Benefit. If you elect this benefit, you must allocate your Account Value in accordance with the then permitted and available option(s). In** **addition, we reserve the right to require you to use certain asset allocation model(s) if you elect this Death Benefit.**

**Calculation of the Combination 5% Roll-up and Highest Anniversary Value Death Benefit**

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*The Combination 5% Roll-up And HAV Death Benefit equals the greatest of:*

(1) the
 basic Death Benefit described above; and

(2) the
 Highest Anniversary Value Death Benefit described above; and

(3) 5%
 Roll-up described below.

The calculation of the 5% Roll-up depends on whether death occurs before or after the Death Benefit Target Date.

*If the Owner dies before the Death Benefit Target Date the 5% roll up is equal to:*

• all
 Purchase Payments (including any Credits applied to such Purchase Payments more than twelve (12) months prior to date of death in the
 case of XT6 or as otherwise provided for under applicable State law) increasing at an annual effective interest rate of 5% starting on the date that each
 Purchase Payment is made and ending on the Owner's date of death;

**MINUS**

• the
 sum of all withdrawals, dollar-for-dollar up to 5% of the Roll-up value as of the prior contract anniversary (or Issue Date if the withdrawal
 is in the first contract year). Any withdrawals in excess of the 5% dollar-for-dollar limit are proportional.

If the Owner dies on or after the Death Benefit Target Date the 5% Roll-up is equal to:

• the
 5% Roll-up value as of the Death Benefit Target Date increased by total Purchase Payments (including any Credits applied to such Purchase
 Payments more than twelve (12) months prior to date of death in the case of XT6) made after the Death Benefit Target Date;

**MINUS**

• the
 sum of all withdrawals which reduce the 5% Roll-up proportionally.

**In the case of XT6, as indicated, the amounts calculated in Items 1, 2 and 3 above (before, on or after the Death Benefit Target Date) may be** **reduced by any Credits under certain circumstances, if allowed under applicable State law. Please refer to the definitions of Death Benefit** **Target Date below. This Death Benefit may not be an appropriate feature where the Owner's age is near the age specified in the Death Benefit** **Target Date. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer annuity** **anniversaries before the Death Benefit Target Date is reached.**

**The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit described above is currently being offered in those jurisdictions** **where we have received regulatory approval. The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit is not available if** **you elect any other optional Death Benefit or elect Spousal Lifetime Five, Spousal Highest Daily Lifetime Seven or the BIO feature of the** **Highest Daily Lifetime Seven or the Highest Daily Lifetime 7 Plus suite of benefits. In the case OF XT6, APEX II AND ASL II, please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_930) **for a description of the Guaranteed Minimum Death Benefit offered before November 18, 2002 in those jurisdictions where we** **received regulatory approval.**

**Key Terms Used with the Highest Anniversary Value Death Benefit and the Combination 5% Roll-up and Highest Anniversary Value Death** **Benefit:**

• The
 Death Benefit Target Date for the Highest Anniversary Value Death Benefit is the contract anniversary on or after the 80 <sup>th</sup> birthday of the current
 Owner, the oldest of either joint Owner or the Annuitant, if entity owned.

• The
 Death Benefit Target Date for the Combination 5% Roll-up and HAV Death Benefit is the later of the contract anniversary on or after the
 80 <sup>th</sup> birthday of the current Owner, the oldest of either joint Owner or the Annuitant, if entity owned, or five years after the Issue Date of an Annuity.

• The
 Highest Anniversary Value equals the highest of all previous "Anniversary Values" less proportional withdrawals since such anniversary and plus
 any Purchase Payments (including any Credits applied to such Purchase Payments more than twelve (12) months prior
 to the date of death in the case of XT6 or as otherwise provided for under applicable State law) since such anniversary.

• The
 Anniversary Value is the Account Value in the Variable Options plus the Interim Value in any Market Value Adjustment Fixed Allocations
 as of each anniversary of the Issue Date of an Annuity. The Anniversary Value on the Issue Date is equal to your Purchase Payment.
 (including any Credits applied to such Purchase Payments more than twelve (12) months prior to the date of death in the case of
 XT6 or as otherwise provided for under applicable State law)

• Proportional
 Withdrawals are determined by calculating the percentage of your Account Value that each prior withdrawal represented when
 withdrawn. Proportional withdrawals result in a reduction to the Highest Anniversary Value or 5% Roll-up value by reducing such value
 in the same proportion as the Account Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your
 Highest Anniversary Value or 5% Roll-up value is $125,000 and you subsequently withdraw $10,000 at a time when your Account Value
 is equal to $100,000 (a 10% reduction), when calculating the optional Death Benefit we will reduce your Highest Anniversary Value ($125,000) by 10% or $12,500.

**Examples of Combination 5% Roll-Up and Highest Anniversary Value Death Benefit Calculation**

The following are examples of how the Combination 5% Roll-Up and Highest Anniversary Value Death Benefit are calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date and that all Account Value is maintained in the Variable Options.

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Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the 7<sup>th</sup> anniversary of the Issue Date we receive due proof of death, at which time the Account Value is $75,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Roll Up Value is equal to initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The Death Benefit is equal to the greatest of the Roll Up Value, Highest Anniversary Value or the basic Death Benefit. The Death Benefit would be the Highest Anniversary Value ($90,000) because it is greater than both the Roll Up Value ($67,005) and the amount that would have been payable under the basic Death Benefit ($75,000).

Assume that the Owner made a withdrawal of $5,000 on the 6<sup>th</sup> anniversary of the Issue Date when the Account Value was $45,000. The Roll-Up Value on the 6<sup>th</sup> anniversary of the Issue Date is equal to initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The 5% Dollar-for-Dollar Withdrawal Limit for the 7<sup>th</sup> Annuity Year is equal to 5% of the Roll-Up Value as of the 6<sup>th</sup> anniversary of the Issue Date, or $3,350. Therefore, the remaining $1,650 of the withdrawal results in a proportional reduction to the Roll-Up Value. On the 7<sup>th</sup> anniversary of the Issue Date we receive due proof of death, at which time the Account Value is $43,000; however, the Anniversary Value on the 2<sup>nd</sup> anniversary of the Issue Date was $70,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Roll-Up Value | = | {(67,005 – $3,350) – [($67,005 – $3,350) × $1,650/($45,000 – $3,350)]} × 1.05 |
|  | = | ($63,655 – $2,522) × 1.05 |
|  | = | $64190 |
| Highest Anniversary Value | = | $70,000 – [$70,000 × $5,000/$45,000] |
|  | = | $70000 – $7778 |
|  | = | $62222 |
| Basic Death Benefit | = | max [$43,000, $50,000 – ($50,000 × $5,000/$45,000)] |
|  | = | max [$43,000, $44,444] |
|  | = | $44444 |
| The Death Benefit therefore is $64,190. | The Death Benefit therefore is $64,190. | The Death Benefit therefore is $64,190. |

---

Assume that the Owner has not made any withdrawals prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Roll-Up Value on the Death Benefit Target Date (the contract anniversary on or following the Owner's 80<sup>th</sup> birthday) is equal to initial Purchase Payment accumulated at 5% for 10 years, or $81,445. The Highest Anniversary Value on the Death Benefit Target Date was $85,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit as of the Death Benefit Target Date; each increased by subsequent Purchase Payments and reduced proportionally for subsequent withdrawals.

---

| | | |
|:---|:---|:---|
| Roll-Up Value | = | $81,445 + $15,000 – [($81,445 + 15,000) × $5,000/$70,000] |
|  | = | $81,445 + $15,000 – $6,889 |
|  | = | $89556 |
| Highest Anniversary Value | = | $85,000 + $15,000 – [($85,000 + 15,000) × $5,000/$70,000] |
|  | = | $85,000 + $15,000 – $7,143 |
|  | = | $92857 |
| Basic Death Benefit | = | max [$75,000, $50,000 + $15,000 – {(50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $92,857. | The Death Benefit therefore is $92,857. | The Death Benefit therefore is $92,857. |

---

**HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**

The Highest Daily Value Death Benefit is no longer available for new elections. If an Annuity has one Owner, the Owner must have been age 79 or less at the time the Highest Daily Value Death Benefit was elected. If an Annuity has joint Owners, the older Owner must have been age 79 or less. If there are joint Owners, death of the Owner refers to the first to die of the joint Owners. If an Annuity is owned by an entity, the Annuitant must have been age 79 or less at the time of election and death of the Owner refers to the death of the Annuitant.

**If you elected this benefit, you must allocate your Account Value in accordance with the permitted and available option(s) with this benefit.**

The HDV Death Benefit depends on whether death occurs before or after the Death Benefit Target Date (see the definitions below).

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*If the Owner dies before the Death Benefit Target Date, the Death Benefit equals the greater of:*

(1) the
 basic Death Benefit described above (including any Credits applied to such Purchase Payments more than twelve (12) months prior to the
 date of death in the case of XT6 or as otherwise provided for under applicable State law); and

(2) the
 HDV as of the Owner's date of death.

*If the Owner dies on or after the Death Benefit Target Date, the Death Benefit equals the greater of:*

(1) the
 basic Death Benefit described above; and

(2) the
 HDV on the Death Benefit Target Date plus the sum of all Purchase Payments (including any Credits applied to such Purchase Payments
 more than twelve (12) months prior to the date of death in the case of XT6 or as otherwise provided for under applicable State law)
 less the sum of all proportional withdrawals since the Death Benefit Target Date.

The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and decreased by any proportional withdrawals since such date.

The Highest Daily Value Death Benefit described above was offered in those jurisdictions where we received regulatory approval. The Highest Daily Value Death Benefit was not available if you elected the Guaranteed Return Option, Guaranteed Return Option Plus, Guaranteed Return Option Plus 2008, Highest Daily GRO, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, the Highest Daily Lifetime 7 Plus benefits, the "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit, or the Highest Anniversary Value Death Benefit.

**Key Terms Used with the Highest Daily Value Death Benefit:**

• The *Death Benefit Target Date* for
 the Highest Daily Value Death Benefit is the later of an Annuity anniversary on or after the 80 <sup>th</sup> birthday of the current
 Owner, or the older of either the joint Owner or the Annuitant, if entity owned, or five years after the Issue Date of an Annuity.

• The *Highest Daily Value* equals
 the highest of all previous "Daily Values" less proportional withdrawals since such date and plus any Purchase
 Payments (plus associated Credits in the case of XT6 applied more than twelve (12) months prior to the date of death or as otherwise
 provided for under applicable State law) since such date.

• The *Daily Value* is the Account Value as of the end of each Valuation Day. The Daily Value on the Issue Date is equal to your Purchase Payment
 (plus associated Credits applied more than twelve (12) months prior to the date of death in the case of XT6 or as otherwise provided
 for under applicable State law).

• *Proportional Withdrawals* are
 determined by calculating the percentage of your Account Value that each prior withdrawal represented when
 withdrawn. Proportional withdrawals result in a reduction to the Highest Daily Value by reducing such value in the same proportion as
 the Account Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your Highest Daily Value is $125,000
 and you subsequently withdraw $10,000 at a time when your Account Value is equal to $100,000 (a 10% reduction), when calculating
 the optional Death Benefit we will reduce your Highest Daily Value ($125,000) by 10% or $12,500.

**Examples of Highest Daily Value Death Benefit Calculation**

The following are examples of how the HDV Death Benefit is calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date.

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the date we receive due proof of death, the Account Value is $75,000; however, the Highest Daily Value was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Daily Value or the basic Death Benefit. The Death Benefit would be the HDV ($90,000) because it is greater than the amount that would have been payable under the basic Death Benefit ($75,000).

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $80,000; however, the Highest Daily Value ($90,000) was attained during the fifth Annuity Year. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Daily Value (proportionally reduced by the subsequent withdrawal) or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Daily Value | = | $90,000 – [$90,000 × $15,000/$75,000] |
|  | = | $90000 – $18000 |
|  | = | $72000 |
| Basic Death Benefit | = | max [$80,000, $50,000 – ($50,000 × $15,000/$75,000)] |
|  | = | max [$80,000, $40,000] |
|  | = | $80000 |
| The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. |

---

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Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals had been made prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Highest Daily Value on the Death Benefit Target Date was $80,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greater of the Highest Daily Value on the Death Benefit Target Date plus Purchase Payments minus proportional withdrawals after the Death Benefit Target Date or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Daily Value | = | $80,000 + $15,000 - [($80,000 + $15,000) × $5,000/$70,000] |
|  | = | $80,000 + $15,000 - $6,786 |
|  | = | $88214 |
| Basic Death Benefit | = | max [$75,000, ($50,000 + $15,000) - {($50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. |

---

**Annuities with Joint Owners**

For Annuities with Joint Owners, the Death Benefits are calculated as shown above except that the age of the oldest of the joint Owners is used to determine the Death Benefit Target Date. NOTE: If you and your spouse own your Annuity jointly, we will pay the Death Benefit to the Beneficiary. If the sole primary Beneficiary is the surviving spouse, then the surviving spouse can elect to assume ownership of your Annuity and continue the Annuity instead of receiving the Death Benefit (unless the Annuity is held as a Beneficiary Annuity).

**Annuities Owned by Entities**

For Annuities owned by an entity, the Death Benefits are calculated as shown above except that the age of the Annuitant is used to determine the Death Benefit Target Date. Payment of the Death Benefit is based on the death of the Annuitant (or Contingent Annuitant, if applicable). Where a contract is structured so that it is owned by a grantor trust but the annuitant is not the grantor, then the contract is required to terminate upon the death of the grantor if the grantor pre-deceases the annuitant under Section 72(s) of the Code. Under this circumstance, the contract value will be paid out to the beneficiary and it is not eligible for the death benefit provided under the contract.

**Can I Terminate the Optional Death Benefits? Do the Optional Death Benefits Terminate Under Other Circumstances?**

You can terminate the Enhanced Beneficiary Protection Death Benefit and the Highest Anniversary Value Death Benefit at any time. The "Combination 5% Roll-up and HAV Death Benefit" and the HDV Death Benefit may not be terminated once elected. The optional Death Benefits will terminate automatically on the Annuity Date. Also, if you elected one of either the Highest Anniversary Value or the Combination 5% Roll-up and HAV Death Benefits and, in addition, are taking withdrawals under a guaranteed minimum withdrawal or a lifetime Guaranteed Minimum Withdrawal Benefit, these optional Death Benefits will terminate if such withdrawals cause your Account Value to reduce to zero. We may also terminate any optional Death Benefit if necessary to comply with our interpretation of the Code and applicable regulations. For jointly owned Annuities, the optional death benefits are payable upon the first death of either Owner and therefore terminate and do not continue if a surviving spouse continues the Annuity. Where an Annuity is structured so that it is owned by a grantor trust but the annuitant is not the grantor, then the Annuity is required to terminate upon the death of the grantor if the grantor pre-deceases the annuitant under Section 72(s) of the Code. Under this circumstance, the Surrender Value will be paid out to the beneficiary and it is not eligible for the death benefit provided under the Annuity.

**What are the charges for the optional Death Benefits?**

The maximum charge for Highest Anniversary Value Death Benefit, Combination 5% Roll-Up and HAV Death Benefit, Enhanced Beneficiary Protection Death Benefit, and HDV Death Benefit respectively is 0.40%, 0.80%, 0.25% and 0.50%. We deduct the charge for each of these benefits to compensate us for providing increased insurance protection under the optional Death Benefits. The additional annual charge is deducted daily against your Account Value allocated to the Variable Options.

Please refer to the section entitled "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for additional considerations in relation to the optional Death Benefit.

**PLUS40 OPTIONAL LIFE INSURANCE RIDER**<br>**No longer available for election**

------

The life insurance coverage provided under the Plus40 Optional Life Insurance Rider ("Plus40 rider" or the "Rider") is supported by our general account and is not subject to, or registered as a security under, either the Securities Act of 1933 or the Investment Company Act of 1940. Information about the Plus40 rider is included in this Prospectus to help you understand the Rider and the relationship between the Rider and the value of your Annuity. It is

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also included because you can elect to pay for the Rider with taxable withdrawals from your Annuity. The staff of the Securities and Exchange Commission has not reviewed this information. However, the information may be subject to certain generally applicable provisions of the Federal securities laws regarding accuracy and completeness.

------

The Plus40 rider provides an income tax-free life insurance benefit to your Beneficiary(ies) equal to 40% of the Account Value of your Annuity as of the date we receive due proof of death, subject to certain adjustments, restrictions and limitations. The Rider may be especially useful in offsetting federal and state taxes payable on any taxable gains in your Annuity at the time of your death. The Rider is available in addition to the death benefit payable under the Annuity. Whether the Rider is appropriate for you may depend on your particular circumstances, including other financial resources that may be available to your Beneficiary(ies) to pay taxes on the gain in your Annuity should you die during the accumulation period. No amounts are payable under the Rider if you die on or after the date your Account Value is applied to begin receiving annuity payments or after you surrender the Annuity. The Rider has no cash value.

**Please refer to** [**<u>Appendix B</u>**](#chapter_19-sect1_1_930) **for a more complete description of the Plus40 rider.**

**ANNUITY REWARDS**

**What is the Annuity Rewards Benefit in ASAP III, APEX II and XT6?**

Annuity Rewards is a death benefit enhancement that Owners can elect when the original CDSC period is over. To be eligible to elect Annuity Rewards, the Account Value on the date that the Annuity Rewards benefit is effective must be greater than the amount that would be payable to the Beneficiary under the Death Benefit (including any amounts payable under any Optional Death Benefit then in effect). In addition, the effective date must occur before annuity payments begin. There can only be one effective date for the Annuity Rewards Death Benefit enhancement. There is no additional charge for electing the Annuity Rewards Death Benefit enhancement.

Annuity Rewards offers Owners the ability to lock in an amount equal to the Account Value in the Variable Options plus the Market Value Adjustment Fixed Allocations (without the effect of any Market Value Adjustment) as an enhancement to their current basic Death Benefit, so their beneficiaries will not receive less than an Annuity's value as of the effective date of the benefit. Under the Annuity Rewards Benefit, we guarantee that the Death Benefit will not be less than:

• your
 Account Value in the Variable Options plus the Interim Value in any Market Value Adjustment Fixed Allocations as of the effective date of the benefit

• MINUS
 any proportional withdrawals following the effective date of the benefit

• PLUS
 any additional Purchase Payments applied to your Annuity following the effective date of the benefit.

The Annuity Rewards Death Benefit enhancement does not affect the calculation of the basic Death Benefit or any Optional Death Benefits available under an Annuity. If the Death Benefit amount payable under your Annuity's basic Death Benefit or any Optional Death Benefits you purchase is greater than the enhanced Death Benefit under the Annuity Rewards Benefit on the date the Death Benefit is calculated, your beneficiary will receive the greater amount. Annuity Rewards is not available under ASL II or if your Annuity is held as a Beneficiary Annuity.

**PAYMENT OF DEATH BENEFITS**

**Payment of Death Benefit to Beneficiary from a Non-qualified Annuity**

Except in the case of a Spousal Continuation, upon your death, certain distributions must be made under the Non-qualified Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. In the event of the Decedent's death before the Annuity Date, the Death Benefit must be distributed:

1. within
 five (5) years of the date of death (the "five-year deadline"); or

2. as
 a series of payments not extending beyond the life expectancy of the Beneficiary or over the life of the Beneficiary. Payments under this
 option must begin within one year of the date of death. If the Beneficiary does not begin installments by such time, then no partial withdrawals
 will be permitted thereafter and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline.
 If we do not receive instructions on where to send the payment within five-years of the date of death, the funds will be escheated.

3. If
 the Beneficiary is the surviving spouse of the Owner, the spouse may elect to continue the Annuity.

Unless you have made an election prior to death benefit proceeds becoming due, a Beneficiary can elect to receive the Death Benefit proceeds as a series of fixed annuity payments. See the section entitled "[<u>Annuity Period</u>](#chapter_10-sect1_1_930)".

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**Spousal Beneficiary - Assumption of Annuity**

You may name your spouse as your Beneficiary. If you and your spouse own the Annuity jointly, we assume that the sole primary Beneficiary will be the surviving spouse unless you elect an alternative Beneficiary designation. Unless you elect an alternative Beneficiary designation, the spouse Beneficiary may elect to assume ownership of the Annuity instead of taking the Death Benefit payment. Any Death Benefit (including any optional Death Benefits) that would have been payable to the Beneficiary will become the new Account Value as of the date we receive due proof of death and any required proof of a spousal relationship. As of the date the assumption is effective, the surviving spouse will have all the rights and benefits that would be available under the Annuity to a new purchaser of the same attained age. For purposes of determining any future Death Benefit for the surviving spouse, the new Account Value will be considered as the initial Purchase Payment. No CDSC will apply to the new Account Value. However, any additional Purchase Payments applied after the date the assumption is effective will be subject to all provisions of the Annuity, including any CDSC that may apply to the additional Purchase Payments.

See the section entitled "[<u>Change of Owner, Annuitant and Beneficiary Designations - Contingent Annuitant</u>](#chapter_11-sect1_25_930bc)" for a discussion of the treatment of a spousal Contingent Annuitant in the case of the death of the Annuitant in an entity owned Annuity.

**Alternative Death Benefit Payment Options – Annuities Held by Tax-Favored Plans**

Upon your death under an IRA or Roth IRA, any remaining interest must be distributed in accordance with federal income tax requirements. The post-death distribution requirements were amended, applicable generally with respect to deaths occurring after 2019, by the Further Consolidated Appropriations Act of 2020 (which includes the "Setting Every Community Up for Retirement Enhancement" Act (SECURE Act)), and further clarified by the associated final and proposed regulations. We reserve our rights to implement any additional regulations addressing these requirements in the future. The post-death distribution requirements under prior law continue to apply in certain circumstances. The following rules generally apply to deaths after 2019:

• 10-year
 rule: If you have a designated Beneficiary, any remaining interest must be distributed within 10 years after your death, unless the designated
 Beneficiary is an "eligible designated Beneficiary" ("EDB") or some other exception applies.

• Eligible
 designated beneficiaries: A designated Beneficiary is any individual designated as a Beneficiary by the IRA owner. An EDB is any designated
 Beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically ill, or (5) an individual not more than
 10 years younger than you. An individual's status as an EDB is generally determined on the date of your death.

• Other
 applicable rules: This 10-year post-death distribution period applies regardless of whether you die before your required beginning date,
 or you die on or after that date (including after distributions have commenced in the form of an annuity). However, if you die on or after
 the required beginning date, then annual distributions will be required from the Annuity during the 10-year period. If the Beneficiary
 is an EDB and the
 EDB dies before the entire interest is distributed under this 10-year rule, the remaining interest must be distributed within 10
 years after the EDB's death (i.e., a new 10-year distribution period begins).

Instead of taking distributions under the 10-year rule, an EDB can stretch distributions over life, or over a period not extending beyond life expectancy, provided that such distributions commence within one year of your death, subject to certain special rules. In addition, if your minor child is an EDB, the child will cease to be an EDB on the date the child reaches the age of 21, and any remaining interest must be distributed within 10 years after that date (regardless of whether the remaining distribution period under the stretch rule was more or less than 10 years).

It is important to note that under prior law, annuity payments that commenced under a method that satisfied the distribution requirements while the IRA Owner was alive could continue to be made under that method after the death of the IRA owner. However, under the current law, if you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled to be made beyond the applicable distribution period imposed under the current law might need to be commuted at the end of that period (or otherwise modified after your death if permitted under federal tax law and by Fortitude) in order to comply with the post-death distribution requirements.

The post-death distribution requirements do not apply if annuity payments that comply with prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election before that date as to the method and amount of the annuity.

If your Beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed under prior law in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

In addition, the post-death distribution requirements generally do not apply if the IRA Owner died prior to January 1, 2020. However, if the designated Beneficiary of the deceased IRA Owner dies after January 1, 2020, any remaining interest must be distributed within 10 years of the designated Beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated Beneficiary of an IRA Owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated Beneficiary of an IRA Owner who died prior to 2020.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Spousal
 continuation. Under the current law, as under prior law, if your Beneficiary is your spouse, such surviving spouse can delay the application
 of the post-death distribution requirements until after their death by transferring the remaining interest tax-free to their own IRA,
 or by treating your IRA as their own IRA subject to specific limits under the regulations. The post-death distribution requirements are complex in numerous
 respects. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances.
 You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For more information, see "[<u>Taxes</u>](#chapter_14-sect1_1_930)." You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

A Beneficiary has the flexibility to take out more each year than mandated under the Required Minimum Distribution rules. Until withdrawn, amounts in an IRA, 403(b) or other "qualified investment" continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the Required Minimum Distribution rules, are subject to tax. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For a Roth IRA, if death occurs before the entire interest is distributed, the Death Benefit must be distributed under the same rules applied to IRAs where death occurs before the required beginning date.

If we do not receive instructions on where to send the payment within 5 years of the date of death, the funds will be escheated.

The tax consequences to the Beneficiary may vary among the different Death Benefit payment options. See the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section of this prospectus, and consult your tax advisor.

Designated Beneficiaries may be eligible for the IRA Beneficiary Continuation Option; however, distribution periods may be limited by applicable tax law as stated above. Beneficiaries should consult a professional tax advisor about the federal income tax consequences of distribution options.

Upon election of this IRA Beneficiary Continuation option:

• the
 Annuity contract will be continued in the Owner's name, for the benefit of the Beneficiary.

• the
 Account Value will be equal to any Death Benefit (including any optional Death Benefit) that would have been payable to the Beneficiary
 if they had taken a lump sum distribution.

• the
 Beneficiary may request transfers among Variable Options, subject to the same limitations and restrictions that applied to the Owner. NOTE: The Variable
 Options offered under  the IRA Beneficiary Continuation option may be limited.

• no
 additional Purchase Payments can be applied to the Annuity.

• the
 basic Death Benefit and any optional Death Benefits elected by the Owner will no longer apply to the Beneficiary.

• the
 Beneficiary can request a withdrawal of all or a portion of the Account Value at any time without application of a CDSC.

• upon
 the death of the Beneficiary, any remaining Account Value will be paid in a lump sum to the person(s) named by the Beneficiary.

• all
 amounts in the Annuity must be paid out to the Beneficiary according to the Minimum Distribution rules described in the " [<u>Taxes</u>](#chapter_14-sect1_1_930) " section.

Payment under this option may be limited based on federal income tax requirements. See the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section for more information on the limitations that may apply to this option.

**Are there any exceptions to these rules for paying the Death Benefit?**

There are exceptions that apply no matter how your Death Benefit is calculated. There are exceptions to the Death Benefit if the decedent was not the Owner or Annuitant as of the Issue Date and did not become the Owner or Annuitant due to the prior Owner's or Annuitant's death. Any Death Benefit (including either optional Death Benefit) that applies will be suspended for a two-year period from the date he or she first became Owner or Annuitant. After the two-year suspension period is completed, the Death Benefit is the same as if this person had been an Owner or Annuitant on the Issue Date.

**When do you determine the Death Benefit?**

We determine the amount of the Death Benefit as of the date we receive "due proof of death", any instructions we require to determine the method of payment and any other written representations we require to determine the proper payment of the Death Benefit to all Beneficiaries. "Due proof of death" may include a certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death or other satisfactory proof of death. Upon our receipt of "due proof of death" we automatically transfer the Death Benefit to the AST Money Market Variable Option until we further determine the universe of eligible Beneficiaries.

Each Beneficiary must make an election as to the method they wish to receive their portion of the Death Benefit. Absent an election of a Death Benefit payment method, no Death Benefit can be paid to the Beneficiary. We may require written acknowledgment of all named Beneficiaries before we can pay the Death Benefit. During the period from the date of death until we receive all required paper work, the amount of the Death Benefit may be subject to Variable Option fluctuations.

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**PURCHASES AND CONTRACT VALUE**

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**The Annuity referenced in this prospectus and its applicable riders are no longer available for new sales.**

**REQUIREMENTS FOR PURCHASING THE ANNUITY**

**We may apply certain limitations, restrictions, and/or underwriting standards as a condition of our issuance of an Annuity and/or acceptance** **of Purchase Payments. Certain of the current limitations, restrictions and standards are described below. We may change these limitations,** **restrictions and standards in the future.**

**Initial Purchase Payment:** We no longer allow new purchases of these Annuities. Previously, you must have made a minimum initial Purchase Payment as follows: $1,000 for ASAP III, $10,000 for XT6 and APEX II and $15,000 for ASL II. However, if you decided to make payments under a systematic investment or an electronic funds transfer program, we would have accepted a lower initial Purchase Payment provided that, within the first Annuity Year, your subsequent Purchase Payments plus your initial Purchase Payment totaled the minimum initial Purchase Payment amount required for the Annuity purchased.

We must approve any initial and additional Purchase Payments where the total amount of Purchase Payments equal $1,000,000 or more with respect to this Annuity and any other annuities you are purchasing from us (or that you already own) and/or our affiliates. To the extent allowed by state law, that required approval also will apply to a proposed change of Owner of the Annuity, if as a result of the ownership change, total Purchase Payments with respect to this Annuity and all other annuities owned by the new Owner would equal or exceed that $1 million threshold.

Applicable laws designed to counter terrorists and prevent money laundering might, in certain circumstances, require us to block an Annuity Owner's ability to make certain transactions, and thereby refuse to accept Purchase Payments or requests for transfers, partial withdrawals, total withdrawals, death benefits, or income payments until instructions are received from the appropriate regulator. We also may be required to provide additional information about you and your Annuity to government regulators.

**Speculative Investing:** Do not purchase this Annuity if you, anyone acting on your behalf, and/or anyone providing advice to you plan to use it, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme now or at any time prior to termination of the Annuity. Your Annuity may not be traded on any stock exchange or secondary market. By purchasing this Annuity, you represent and warrant that you are not using this Annuity, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme.

Currently, we will not issue an Annuity, permit changes in ownership or allow assignments to certain ownership types, including but not limited to: corporations, partnerships, endowments and grantor trusts with multiple grantors. Further, we will only issue an Annuity, allow changes of ownership and/or permit assignments to certain ownership types if the Annuity is held exclusively for the benefit of the designated annuitant. These rules are subject to state law. Additionally, we will not permit election or re-election of any optional death benefit or optional living benefit by certain ownership types. We may issue an Annuity in ownership structures where the annuitant is also the participant in a qualified or Non-qualified employer sponsored plan and the Annuity represents his or her segregated interest in such plan. We reserve the right to further limit, restrict and/or change to whom we will issue an Annuity in the future, to the extent permitted by state law. Further, please be aware that we do not provide administration for employer-sponsored plans and may also limit the number of plan participants that elect to use our Annuity as a funding vehicle.

Except as noted below, Purchase Payments must be submitted by check drawn on a U.S. bank, in U.S. dollars, and made payable to us. Purchase payments may also be submitted via 1035 exchange or direct transfer of funds. Under certain circumstances, Purchase Payments may be transmitted to us via wiring funds through your financial professional's broker-dealer firm. Additional Purchase Payments may also be applied to your Annuity under an electronic funds transfer arrangement where you authorize us to deduct money directly from your bank account. We may reject any payment if it is received in an unacceptable form. We may also suspend or cancel electronic funds transfer privileges if we have limited, restricted, suspended or rejected our acceptance of additional Purchase Payments. Our acceptance of a check is subject to our ability to collect funds.

**Age Restrictions:** Unless we agree otherwise and subject to our rules, the Owner (or Annuitant if entity owned) must not be older than a maximum issue age as of the Issue Date of the Annuity as follows: age 80 for ASAP III, age 75 for XT6 and age 85 for APEX II and ASL II. If an Annuity is owned jointly, the oldest of the Owners must not be older than the maximum issue age on the Issue Date. You should consider your need to access your Account Value and whether the Annuity's liquidity features will satisfy that need. Under the Beneficiary Annuity, the maximum issue age is 70 based on the Key Life. If you take a distribution prior to age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain. The availability and level of protection of certain optional benefits may vary based on the age of the Owner on the Issue Date of the Annuity or the date of the Owner's death.

**"Beneficiary" Annuity**

If you are a beneficiary of an annuity that was owned by a decedent, subject to the following requirements, you may transfer the proceeds of the decedent's annuity into one of the Annuities described in this prospectus and continue receiving the distributions that are required by the tax laws. This transfer option is only available for purchase of an IRA, Roth IRA, or a Non-qualified annuity, for distributions based on lives age 70 or under. This transfer option is also not available if the proceeds are being transferred from an annuity issued by us or one of our affiliates and the annuity offers a "Beneficiary Continuation Option".

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Upon purchase, the Annuity will be issued in the name of the decedent for your benefit. We do not assess a CDSC (if applicable) on distributions from your Annuity if you are required by law to take such distributions from your Annuity at the time it is taken, provided the amount withdrawn is the amount we calculate and is paid out through a program of systematic withdrawals that we make available.

For IRAs and Roth IRAs, an "eligible designated beneficiary" must elect stretch distributions by December 31 of the year following the year of the decedent's death. If you are the surviving spouse beneficiary, distributions may be deferred until the decedent would have attained the applicable age, however, if you choose to defer distributions, you are responsible for complying with the distribution requirements under the Code, and you must make a valid election as to when you would like distributions to begin. For additional information regarding the tax considerations applicable to beneficiaries of an IRA or Roth IRA, including information about the applicable age, see the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section of this prospectus.

For Non-qualified Annuities, distributions must begin within one year of the decedent's death. For additional information regarding the tax considerations applicable to beneficiaries of a Non-qualified Annuity see "Required Distributions Upon Your Death for Non-qualified Annuity Contracts" in the "[<u>Taxes</u>](#chapter_14-sect1_1_930)" section of this prospectus.

You may choose to take more than your required distribution. You may take withdrawals in excess of your required distributions, however your withdrawal may be subject to the Contingent Deferred Sales Charge. Any withdrawals reduce the required distribution for the year. All applicable charges will be assessed against your Annuity, such as the insurance charge and the Annual Maintenance Fee.

The Annuity may provide a basic Death Benefit upon death, and you may name "successors" who may either receive the Death Benefit as a lump sum or continue receiving distributions after your death under the Beneficiary Continuation Option.

Please note the following additional limitations for a Beneficiary Annuity:

• No
 additional Purchase Payments are permitted. You may only make a one-time initial Purchase Payment transferred to us directly from another
 annuity or eligible account. You may not make your Purchase Payment as an indirect rollover, or combine multiple "Transfer of Assets"
 or "TOA's" into a single contract as part of this "Beneficiary" Annuity. You may not elect any optional
 living or death benefits. Annuity
 Rewards is not available.

• You
 may not annuitize the Annuity; no annuity options are available.

• You
 may participate only in the following programs: Automatic Rebalancing, Dollar Cost Averaging (but not the 6 or 12 Month Dollar Cost Averaging
 Program), Systematic Withdrawals, and Third Party Investment Advisor.

• You
 may not assign or change ownership of the Annuity, and you may not change or designate another life upon which distributions are based.
 A "Beneficiary Annuity" may not be co-owned.

• If
 the Annuity is funded by means of transfer from another "Beneficiary Annuity" with another company, we require that the sending company or the beneficial
 Owner provide certain information in order to ensure that applicable required distributions have been made prior
 to the transfer of the contract proceeds to us. We further require appropriate information to enable us to accurately determine future distributions from
 the Annuity. Please note we are unable to accept a transfer of another "Beneficiary Annuity" where taxes are calculated based
 on an exclusion amount or an exclusion ratio of earnings to original investment. We are also unable to accept a transfer of an annuity
 that has annuitized.

• The
 beneficial Owner of the Annuity can be an individual, grantor trust, or, for an IRA or Roth IRA, an estate or a qualified trust. In general, a qualified trust
 (1) must be valid under state law; (2) must be irrevocable or became irrevocable by its terms upon the death of the IRA or Roth
 IRA owner; and (3) the beneficiaries of the trust who are beneficiaries with respect to the trust's interest in this Annuity must
 be identifiable from
 the trust instrument and must be individuals. A qualified trust must provide us with a list of all beneficiaries to the trust (including
 contingent and remainder beneficiaries with a description of the conditions on their entitlement), all of whom must be individuals,
 as of September 30 <sup>th</sup> of the year following the year of death of the IRA or Roth IRA owner, or date of Annuity application if later.
 The trustee must also provide a copy of the trust document upon request. If the beneficial Owner of the Annuity is a grantor trust, distributions
 must be based on the life expectancy of the grantor. If the beneficial Owner of the Annuity is a qualified trust, distribution options
 may be limited. In certain instances, we may allow distributions based on the life expectancy of a sole individual beneficiary under the
 trust if they qualify as an eligible designated beneficiary. Special rules and limitations may apply to qualified trusts with multiple beneficiaries.

• If
 this Beneficiary Annuity is transferred to another company as a tax-free exchange with the intention of qualifying as a Beneficiary Annuity
 with the receiving company, we may require certifications from the receiving company that required distributions will be made as required
 by law.

• If
 you are transferring proceeds as beneficiary of an annuity that is owned by a decedent, we must receive your transfer request at least 45 days prior to
 your first required distribution. If, for any reason, your transfer request impedes our ability to complete your first distribution
 by the required date, we will be unable to accept your transfer request.

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**DESIGNATION OF OWNER, ANNUITANT, AND BENEFICIARY**

**Owner, Annuitant and Beneficiary Designations:** We will ask you to name the Owner(s), Annuitant and one or more Beneficiaries for your Annuity.

• <u>Owner:</u> The Owner(s) holds all rights under the Annuity. You may name up to two Owners in which case all ownership rights are held jointly.
 Generally, joint Owners are required to act jointly; however, if each Owner provides us with a written form that we find acceptable, we
 will permit each Owner to act independently on behalf of both Owners. All information and documents that we are required to send you will
 be sent to the first named Owner. This Annuity does not provide a right of survivorship. Refer to the Glossary of Terms for a complete description of the
 term "Owner."

• <u>Annuitant:</u> The Annuitant is the person upon whose life we continue to make annuity payments. You must name an Annuitant who is a natural
 person. We do not accept a designation of joint Annuitants during the Accumulation Period. In limited circumstances and where allowed
 by law, you may name one or more Contingent Annuitants. Generally, a Contingent Annuitant will become the Annuitant if the Annuitant
 dies before the Annuity Date. Please refer to the discussion of "Considerations for Contingent Annuitants" in the " [<u>Taxes</u>](#chapter_14-sect1_1_930) "
 section of the prospectus.
 For Beneficiary Annuities, instead of an Annuitant there is a "Key Life" which is used to determine the annual required distributions.

• <u>Beneficiary:</u> The Beneficiary is the person(s) or entity you name to receive the Death Benefit. Your Beneficiary Designation should be the exact
 name of your beneficiary, not only a reference to the beneficiary's relationship to you. If you use a designation of "surviving
 spouse," we
 will pay the Death Benefit to the individual that is your spouse at the time of your death (as defined under the federal tax laws and regulations). If
 no beneficiary is named, the Death Benefit will be paid to you or your estate. For Annuities that designate a custodian, trust,
 or a plan as Owner, the custodian or plan must also be designated as the Beneficiary. For Beneficiary Annuities, instead of a Beneficiary,
 the term "Successor" is used. If no beneficiary is named for a trust owned contract, the default beneficiary will be the contract owner.

Your right to make certain designations may be limited if your Annuity is to be used as an IRA, Beneficiary Annuity or other "qualified" investment that is given beneficial tax treatment under the Code. You should seek competent tax advice on the income, estate and gift tax implications of your designations.

**HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?**

(See "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_15_930)" for a description of our procedure for pricing initial and subsequent Purchase Payments.)

**Initial Purchase Payment:** Once we accept your application, we invest your Purchase Payment in your Annuity according to your instructions for allocating your Account Value. The Purchase Payment is your initial Purchase Payment minus any Tax Charge that may apply. You can allocate Purchase Payments to one or more available Variable Option or available Fixed Allocations. Investment restrictions will apply if you elect certain optional benefits.

**Subsequent Purchase Payments:** Unless you participate in an asset allocation program, or unless you have provided us with other specific allocation instructions for one, more than one, or all subsequent Purchase Payments, we will allocate any additional Purchase Payments you make according to your initial Purchase Payment allocation instructions. If you so instruct us, we will allocate subsequent Purchase Payments according to any new allocation instructions. Unless you tell us otherwise, Purchase Payments made while you participate in an asset allocation program will be allocated in accordance with such program.

**HOW DO I RECEIVE A LOYALTY CREDIT UNDER THE ASAP III AND APEX II ANNUITIES?**

We apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth Annuity Year ("fifth Annuity Anniversary"). With respect to ASAP III, for annuities issued on or after February 13, 2006, the Loyalty Credit is equal to 0.50% of total Purchase Payments made during the first four Annuity Years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Annuity Anniversary. With respect to APEX II, for annuities issued between June 20, 2005 and February 13, 2006, the Loyalty Credit is equal to 2.25% of total Purchase Payments made during the first four Annuity Years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Annuity Anniversary. For APEX II Annuities issued on or after February 13, 2006, the Loyalty Credit is equal to 2.75% of total Purchase Payments made during the first four Annuity Years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Annuity Anniversary.

If the total Purchase Payments made during the first four Annuity Years is less than the cumulative amount of withdrawals made on or before the fifth Annuity Anniversary, no Loyalty Credit will be applied to your Annuity. Also, no Loyalty Credit will be applied to your Annuity if your Account Value is zero on the fifth Annuity Anniversary. This would include any situation where the Annuity is still in force due to the fact that payments are being made under an optional benefit such as Lifetime Five, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus, Guaranteed Minimum Withdrawal Benefit, Highest Daily Lifetime 6 Plus, and Spousal Highest Daily Lifetime 6 Plus. In addition, no Loyalty Credit will be applied to your Annuity if before the fifth Annuity Anniversary: (i) you have surrendered your Annuity; (ii) you have annuitized your Annuity; (iii) your Beneficiary has elected our Beneficiary Continuation Option; or (iv) we have received due proof of your death (and there has been no spousal continuation election made). If your spouse continues the Annuity under our spousal continuation option, we will apply the Loyalty Credit to your Annuity only on the fifth Annuity Anniversary measured from the date that we originally issued

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you the Annuity. Since the Loyalty Credit is applied to the Account Value only, any guarantees that are not based on Account Value will not reflect the Loyalty Credit. Similarly, guarantees that are made against a loss in Account Value will not be triggered in certain very limited circumstances where they otherwise would have been, had no Loyalty Credit been applied to the Account Value.

**HOW ARE LOYALTY CREDITS APPLIED TO MY ACCOUNT VALUE UNDER THE ASAP III AND APEX II ANNUITIES?**

Any Loyalty Credit that is allocated to your Account Value on the fifth Annuity Anniversary will be allocated to the Fixed Allocations and Variable Options according to the "hierarchy" described in this paragraph. This hierarchy consists of a priority list of investment options, and the Loyalty Credit is applied based on which of the items below is applicable and in effect when the Loyalty Credit is applied. Thus, if a given item in the priority list is inapplicable to you, we move to the next item. **The hierarchy is as follows: (a) if you participate in the Custom Portfolios Program (we may have referred to the** **"Custom Portfolios Program" as the "Optional Allocation and Rebalancing Program" in other materials), any Loyalty Credit will be invested in** **accordance with such Program, (b) if you participate in an asset allocation program (see** [**<u>Appendix C</u>**](#chapter_20-sect1_1_930) **for a description of such programs), in** **accordance with that program, (c) in accordance with your standing allocation instructions (d) if you participate in the Systematic Investment** **Program, in accordance with that Plan, (e) if you participate in an automatic rebalancing program, in accordance with that program (f) in** **accordance with how your most recent Purchase Payment was allocated and (g) otherwise in accordance with your instructions, if items (a)** **through (f) above are not permitted or applicable.**

**Example of Applying the Loyalty Credit with respect to ASAP III.**

Assume you make an initial Purchase Payment of $10,000 and your Annuity is issued on or after February 13, 2006. During Annuity Year four (i.e., prior to the fourth Annuity Anniversary) you make an additional $10,000 Purchase Payment. During the early part of Annuity Year five (i.e., prior to the fifth Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year make a withdrawal of $5,000. The Loyalty Credit that we will apply to your Annuity on the fifth Annuity Anniversary is, subject to state availability, equal to 0.50% of $15,000 (this represents the $20,000 of Purchase Payments made during the first four Annuity Years minus the $5,000 withdrawal made in the fifth Annuity Year. The computation disregards the additional $10,000 Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit amount would be equal to $75.00.

**Example of Applying the Loyalty Credit with respect to APEX II.**

Assume you make an initial Purchase Payment of $10,000 and your Annuity is issued on or after February 13, 2006. During Annuity Year four (i.e., prior to the fourth Annuity Anniversary) you make an additional $10,000 Purchase Payment. During the early part of Annuity Year five (i.e., prior to the fifth Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year make a withdrawal of $5,000. The Loyalty Credit that we will apply to your Annuity on the fifth Annuity Anniversary is, subject to state availability, equal to 2.75% of $15,000 (this represents the $20,000 of Purchase Payments made during the first four Annuity Years minus the $5,000 withdrawal made in the fifth Annuity Year. The computation disregards the additional $10,000 Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit amount would be equal to $412.50.

**HOW DO I RECEIVE CREDITS UNDER THE XT6 ANNUITY?**

We apply a "Credit" to your Annuity's Account Value each time you make a Purchase Payment during the first six (6) Annuity Years. The amount of the Credit is payable from our general account. The amount of the Credit depends on the Annuity Year in which the Purchase Payment(s) is made and is described in your Contract. No Credits are available for Purchase Payments in Annuity Years seven and later.

**Credits Applied to Purchase Payments for Designated Class of Annuity Owner**

Prior to May 1, 2004, where allowed by state law, Annuities could be purchased by a member of the class defined below, with a different table of Credits. The Credit applied to all Purchase Payments on such Annuities is as follows based on the Annuity Year in which the Purchase Payment was made: Year 1: 9.0%; Year 2: 9.0%; Year 3: 8.5%; Year 4: 8.0%; Year 5: 7.0%; Year 6: 6.0%; Year 7: 5.0%; Year 8: 4.0%; Year 9: 3.0%; Year 10: 2%; Year 11+: 0.0%.

The designated class of Annuity Owners included: (a) any parent company, affiliate or subsidiary of ours; (b) an officer, director, employee, retiree, sales representative, or in the case of an affiliated broker-dealer, registered representative of such company; (c) a director, officer or trustee of any underlying mutual fund; (d) a director, officer or employee of any investment manager, sub-advisor, transfer agent, custodian, auditing, legal or administrative services provider that is providing investment management, advisory, transfer agency, custodian-ship, auditing, legal and/or administrative services to an underlying mutual fund or any affiliate of such firm; (e) a director, officer, employee or registered representative of a broker-dealer or insurance agency that has a then current selling agreement with us and/or with Prudential Annuities Distributors, Inc., a Prudential Financial Company; (f) a director, officer, employee or authorized representative of any firm providing us or our affiliates with regular legal, actuarial, auditing, underwriting, claims, administrative, computer support, marketing, office or other services; (g) the then current spouse of any such person noted in (b) through (f), above; (h) the parents of any such person noted in (b) through (g), above; (i) the child(ren) or other legal dependent under the age of 21 of any such person noted in (b) through (h); and (j) the siblings of any such persons noted in (b) through (h) above. Membership in a designated class was determined at the time the annuity was purchased.

All other terms and conditions of the Annuity apply to Owners in the designated class.

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**HOW ARE CREDITS APPLIED TO ACCOUNT VALUE UNDER THE XT6 ANNUITY?**

Each Credit is allocated to your Account Value at the time the Purchase Payment is applied to your Account Value. The amount of the Credit is allocated to the investment options in the same ratio as the applicable Purchase Payment is applied and is thereafter treated as a Purchase Payment.

**Examples of Applying Credits**

***Initial Purchase Payment***

Assume you make an initial Purchase Payment of $10,000 and your Annuity is issued on or after February 13, 2006. We would apply a 6.5% Credit to your Purchase Payment and allocate the amount of the Credit ($650 = $10,000 × .065) to your Account Value in the proportion that your Purchase Payment is allocated.

***Additional Purchase Payment in Annuity Year 2***

Assume that you make an additional Purchase Payment of $5,000. We would apply a 5.0% Credit to your Purchase Payment and allocate the amount of the Credit ($250 = $5,000 × .05) to your Account Value.

***Additional Purchase Payment in Annuity Year 6***

Assume that you make an additional Purchase Payment of $15,000. We would apply a 1.0% Credit to your Purchase Payment and allocate the amount of the Credit ($150 = $15,000 x.01) to your Account Value.

The amount of any Credits applied to your XT6 Annuity Account Value can be recaptured by us under certain circumstances:

• any
 Credits applied to your Account Value on Purchase Payments made within the 12 months before the Owner's (or Annuitant's if
 entity owned) date
 of death will be recaptured (to the extent allowed by state law);

• the
 amount available under the Medically-Related Surrender portion of the Annuity will not include the amount of any Credits payable on Purchase
 Payments made within 12 months prior to the date of a request under the Medically-Related Surrender provision (to the extent allowed
 by State law); and

• if
 you elect to "Free Look" your Annuity, the amount returned to you will not include the amount of any Credits.

The Account Value may be substantially reduced if we recapture the Credit amount under these circumstances. The amount we recapture will equal the Credit, without adjustment up or down for investment performance. Therefore, any gain on the Credit amount will not be recaptured. But if there was a loss on the Credit, the amount we recapture will still equal the amount of the Credit. We do not deduct a CDSC in any situation where we recapture the Credit amount. During the first 10 Annuity Years, the total asset-based charges on this Annuity (including the insurance charge and the Distribution Charge) are higher than many of our other annuities, including other annuities we offer that apply Credits to Purchase Payments.

**Examples of Recapturing Credits**

The following are hypothetical examples of how Credits could be recaptured by us. These examples do not cover every potential situation. These are the only situations in which Credits may be recaptured.

*Recapture from payment of Death Benefits for contracts issued prior to 2/13/06*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If the Death Benefit becomes payable
 in the 9 <sup>th</sup> month after the Issue Date, the amount of the Death Benefit would be reduced by the entire amount of the prior Credits ($3,600).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If death occurs in the 16 <sup>th</sup> month after the Issue
 Date, the amount of the Death Benefit would be reduced but only in the amount of those Credits applied within the previous
 12-months. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the date
 of death, the Death Benefit would not be reduced by the amount of the Credits applied to the initial Purchase Payment. However, the $10,000
 additional Purchase Payment was made within 12-months of the date of death. Therefore, the amount of the Death Benefit would be
 reduced by the amount of the Credits payable on the additional Purchase Payment ($600).

• NOTE:
 If the Death Benefit would otherwise have been equal to the Purchase Payments minus any withdrawals due to poor investment performance,
 we will not reduce the amount of the Death Benefit by the amount of the Credits as shown in Example 2 above.

*Recapture from Medically-Related Surrenders for contracts issued prior to 2/13/06*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You receive a Credit of $3,000 ($50,000 X.06). The Annuitant
 is diagnosed as terminally ill in the 6 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the
 medically-related surrender provision. Assuming the Credits were applied within 12-months of the date of diagnosis of the terminal illness,
 the amount that would be payable under the medically-related surrender provision would be reduced by the entire amount of the Credits
 ($3,000).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. The Annuitant is diagnosed as terminally
 ill in the 16 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the medically-related surrender
 provision. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the diagnosis,
 the amount that would be payable upon the medically-related surrender provision would not be reduced by the amount of the Credits
 applied to the initial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date
 of diagnosis. Therefore, the amount that would be payable under the medically-related surrender provision would be reduced by the amount
 of the Credits payable on the additional Purchase Payment ($600).

*Recapture from payment of Death Benefits for contracts issued on or after 2/13/06*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.5% Credit, for a total of $3,900. If the Death Benefit becomes payable
 in the 9 <sup>th</sup> month after the Issue Date, the amount of the Death Benefit would be reduced by the entire amount of the prior Credits ($3,900).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.5% Credit, for a total of $3,900. If death occurs in the 16 <sup>th</sup> month after the Issue
 Date, the amount of the Death Benefit would be reduced but only in the amount of those Credits applied within the previous
 12-months. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the date
 of death, the Death Benefit would not be reduced by the amount of the Credits applied to the initial Purchase Payment. However, the $10,000
 additional Purchase Payment was made within 12-months of the date of death. Therefore, the amount of the Death Benefit would be
 reduced by the amount of the Credits payable on the additional Purchase Payment ($650).

• NOTE:
 If the Death Benefit would otherwise have been equal to the Purchase Payments minus any withdrawals due to poor investment performance,
 we will not reduce the amount of the Death Benefit by the amount of the Credits as shown in Example 2 above.

*Recapture from Medically-Related Surrenders for contracts issued on or after 2/13/06*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You receive a Credit of $3,250 ($50,000 X  .065). The Annuitant
 is diagnosed as terminally ill in the 6 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the
 medically-related surrender provision. Assuming the Credits were applied within 12-months of the date of diagnosis of the terminal illness,
 the amount that would be payable under the medically-related surrender provision would be reduced by the entire amount of the Credits
 ($3,250).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.5% Credit, for a total of $3,900. The Annuitant is diagnosed as terminally
 ill in the 16 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the medically-related surrender
 provision. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the diagnosis,
 the amount that would be payable upon the medically-related surrender provision would not be reduced by the amount of the Credits
 applied to the initial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date
 of diagnosis. Therefore, the amount that would be payable under the medically-related surrender provision would be reduced by the amount
 of the Credits payable on the additional Purchase Payment ($650).

**General Information about Credits**

• We
 do not consider Credits to be "investment in the contract" (also known as "basis") for income tax purposes.

• You
 may not withdraw the amount of any Credits under the Free Withdrawal provision. The Free Withdrawal provision only applies to withdrawals
 of Purchase Payments.

• Credits
 are included in any contract level standardized or non-standardized performance calculations.

• Please
 note that we expect to make a profit from the Annuity, even though there is not an explicit charge for the Credits.

**ADDITIONAL PURCHASE PAYMENTS**

Unless we agree otherwise and subject to our rules, the minimum amount that we accept as an additional Purchase Payment is $100 unless you participate in our Systematic Investment Program or a periodic Purchase Payment program. Purchase payments made while you participate in an asset allocation program will be allocated in accordance with such benefit. Additional Purchase Payments may be made at any time before the Annuity Date prior to the Account Value being reduced to zero. Purchase payments are not permitted if the Annuity is held as a Beneficiary Annuity. Please see the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" section of this prospectus for further information on additional Purchase Payments.

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**SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT**

You can make additional Purchase Payments to your Annuity by authorizing us to deduct money directly from your bank account and applying it to your Annuity (unless your Annuity is being held as a Beneficiary Annuity). We call our electronic funds transfer program "The Systematic Investment Program." Purchase Payments made through electronic funds transfer may only be allocated to the Variable Options when applied. Different allocation requirements may apply in connection with certain optional benefits. We may allow you to invest in your Annuity with a lower initial Purchase Payment, as long as you authorize payments through an electronic funds transfer that will equal at least the minimum Purchase Payment set forth above during the first 12 months of your Annuity. We may suspend or cancel electronic funds transfer privileges if sufficient funds are not available from the applicable financial institution on any date that a transaction is scheduled to occur. We may also suspend or cancel electronic funds transfer privileges if we have limited, restricted, suspended or rejected our acceptance of additional Purchase Payments.

**SALARY REDUCTION PROGRAMS**

These types of programs are only available with certain types of qualified investments. If your employer sponsors such a program, we may agree to accept periodic Purchase Payments through a salary reduction program as long as the allocations are made only to Variable Options and the periodic Purchase Payments received in the first year total at least the minimum Purchase Payment set forth above.

**HOW IS MY ACCOUNT VALUE DETERMINED?**

During the Accumulation Period, your Annuity has an Account Value. The Account Value is determined separately for each Variable Option allocation and for each Fixed Allocation. The Account Value is the sum of the values of each Variable Option allocation and the value of each Fixed Allocation. For Annuities with a Highest Daily Lifetime Five election, Account Value also includes the value of any allocation to the Benefit Fixed Rate Account. See the "[<u>Highest Daily Lifetime Five Income Benefit (HD5)</u>](#chapter_11-sect1_15_930)" section of the prospectus for a description of the Benefit Fixed Rate Account. The Account Value does not reflect any CDSC that may apply to a withdrawal or surrender. With respect to ASAP III and APEX II, the Account Value includes any Loyalty Credit we apply. With respect to XT6, the Account Value includes any Credits we applied to your Purchase Payments which we are entitled to recapture under certain circumstances. When determining the Account Value on a day more than 30 days prior to a Market Value Adjustment Fixed Allocation's Maturity Date, the Account Value may include any Market Value Adjustment that would apply to a Market Value Adjustment Fixed Allocation (if withdrawn or transferred) on that day.

**SURRENDER VALUE**

The Surrender Value of your Annuity is the value available to you on any day during the Accumulation Period. The Surrender Value is defined under "[<u>Glossary of Terms</u>](#chapter_2-sect1_1_930)".

**VALUING THE VARIABLE OPTIONS**

When you allocate Account Value to a Variable Option, you are purchasing Units of the Variable Option. Each Variable Option invests exclusively in shares of an underlying Portfolio. The value of the Units fluctuates with the market fluctuations of the Portfolios. The value of the Units also reflects the daily accrual for the insurance charge, the Distribution Charge (if applicable), and if you elected one or more optional benefits whose annual charge is deducted daily, the additional charge made for such benefits. There may be several different Unit Prices for each Variable Option to reflect the insurance charge, any Distribution Charge and the charges for any optional benefits. The Unit Price for the Units you purchase will be based on the total charges for the benefits that apply to your Annuity. See the section entitled "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_15_930)" for a detailed discussion of how Units are purchased and redeemed to reflect changes in the daily charges that apply to your Annuity.

Each Valuation Day, we determine the price for a Unit of each Variable Option, called the "Unit Price." The Unit Price is used for determining the value of transactions involving Units of the Variable Options. We determine the number of Units involved in any transaction by dividing the dollar value of the transaction by the Unit Price of the Variable Option as of the Valuation Day. The investment performance of the Portfolios, expenses, and deductions of certain charges affects the Unit Price, the number of Units, or both.

**Example**

Assume you allocate $5,000 to a Variable Option. On the Valuation Day you make the allocation, the Unit Price is $14.83. Your $5,000 buys 337.154 Units of the Variable Option. Assume that later, you wish to transfer $3,000 of your Account Value out of that Variable Option and into another Variable Option. On the Valuation Day you request the transfer, the Unit Price of the original Variable Option has increased to $16.79 and the Unit Price of the new Variable Option is $17.83. To transfer $3,000, we sell 178.677 Units at the current Unit Price, leaving you 158.477 Units. We then buy $3,000 of Units of the new Variable Option at the Unit Price of $17.83. You would then have 168.255 Units of the new Variable Option.

**VALUING THE FIXED ALLOCATIONS**

During the Guarantee Period, we use the concept of an Interim Value for the Market Value Adjustment Fixed Allocations. The Interim Value can be calculated on any day and is equal to the initial value allocated to a Market Value Adjustment Fixed Allocation plus all interest credited to a Market Value Adjustment Fixed Allocation as of the date calculated. The Interim Value does not include the impact of any Market Value Adjustment. If you made any

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transfers or withdrawals from a Market Value Adjustment Fixed Allocation, the Interim Value will reflect the withdrawal of those amounts and any interest credited to those amounts before they were withdrawn. To determine the Account Value of a Market Value Adjustment Fixed Allocation on any day more than 30 days prior to its Maturity Date, we multiply the Account Value of the Market Value Adjustment Fixed Allocation times the Market Value Adjustment factor. In addition to Market Value Adjustment Fixed Allocations that are subject to a Market Value Adjustment, we offer DCA Fixed Rate Options that are used with our 6 or 12 Month Dollar Cost Averaging Program, and are not subject to any Market Value Adjustment. Account Value allocated to the DCA Fixed Rate Options earns the declared rate of interest while it is transferred over a 6 month or 12 month period into the Variable Options that you have designated.

**PROCESSING AND VALUING TRANSACTIONS**

We are generally open to process financial transactions on those days that the New York Stock Exchange (NYSE) is open for trading. There may be circumstances where the NYSE does not open on a regularly scheduled date or time or closes at an earlier time than scheduled (normally 4:00 p.m. Eastern Time). Generally, financial transactions requested before the close of the NYSE which meet our requirements will be processed according to the value next determined following the close of business. Financial transactions requested on a non-Valuation Day or after the close of the NYSE will be processed based on the value next computed on the next Valuation Day. There may be circumstances when the opening or closing time of the NYSE is different than other major stock exchanges, such as NASDAQ. Under such circumstances, the closing time of the NYSE will be used when valuing and processing transactions.

There may be circumstances where the NYSE is open, however, due to inclement weather, natural disaster or other circumstances beyond our control, our offices may be closed or our business processing capabilities may be restricted. Under those circumstances, your Account Value may fluctuate based on changes in the Unit Values, but you may not be able to transfer Account Value, or make a purchase or redemption request.

The NYSE is closed on certain announced holidays. On those dates, we will not process any financial transactions involving purchase or redemption orders.

We will also not process financial transactions involving purchase or redemption orders or transfers on any day that:

• trading
 on the NYSE is restricted;

• an
 emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or

• the
 SEC, by order, permits the suspension or postponement for the protection of security holders.

**Initial Purchase Payments:**

We no longer allow new purchases of this Annuity. We are required to allocate your initial Purchase Payment to the Variable Options within two (2) Valuation Days after we receive all of our requirements at our office to issue an Annuity. If we do not have all the required information to allow us to issue your Annuity, we may retain the Purchase Payment while we try to reach you or your representative to obtain all of our requirements. If we are unable to obtain all of our required information within five (5) Valuation Days, we are required to return the Purchase Payment to you at that time, unless you specifically consent to our retaining the Purchase Payment while we gather the required information. Once we obtain the required information, we will invest the Purchase Payment (and any associated Credits) and issue an Annuity within two (2) Valuation Days. With respect to both your initial Purchase Payment and any subsequent Purchase Payment that is pending investment in our Separate Account, we may hold the amount temporarily in our general account and may earn interest on such amount. You will not be credited with interest during that period.

As permitted by applicable law, the broker-dealer firm through which you purchase your Annuity may forward your initial Purchase Payment to us prior to approval of your purchase by a registered principal of the firm. These arrangements are subject to a number of regulatory requirements, including that customer funds will be deposited in a segregated bank account and held by the insurer until such time that the insurer is notified of the firm's principal approval and is provided with the application, or is notified of the firm principal's rejection. In addition, the insurer must promptly return the customer's funds at the customer's request prior to the firm's principal approval or upon the firm's rejection of the application. The monies held in the bank account will be held in a suspense account within our general account and we may earn interest on amounts held in that suspense account. Contract Owners will not be credited with any interest earned on amounts held in that suspense account. The monies in such suspense account may be subject to our general creditors.

**Additional Purchase Payments:**

We will apply any additional Purchase Payments on the Valuation Day that we receive the Purchase Payment with satisfactory allocation instructions.

**Scheduled Transactions:** Scheduled transactions include transfers made in connection with dollar cost averaging, the asset allocation program, automatic rebalancing, systematic withdrawals, systematic investments, required minimum distributions, substantially equal periodic payments under Section 72(t) of the Code, annuity payments and fees that are assessed daily as a percentage of the net assets of the Variable Options. Scheduled transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Valuation Day. In that case, the transaction will be processed and valued on the next Valuation Day, unless (with respect to required minimum distributions, substantially equal periodic payments under Section 72(t)/72(q) of the Code, annuity payments and fees that are assessed daily as a percentage of the net assets of the Variable Options only), the next Valuation Day falls in the subsequent calendar year, in which case the transaction will be processed and valued on the prior Valuation Day.

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In addition, if you are taking your Annual Income Amount through our systematic withdrawal program; and the scheduled day is not a Valuation Day; and the next Valuation Day will occur in a new contract year, the transaction will be processed and valued on the prior Valuation Day.

**Unscheduled Transactions:** "Unscheduled" transactions include any other non-scheduled transfers and requests for Partial Withdrawals or Free Withdrawals or Surrenders. With respect to certain written requests to withdraw Account Value, we may seek to verify the requesting Owner's signature. Specifically, we reserve the right to perform a signature verification for (a) any withdrawal exceeding a certain dollar amount and (b) a withdrawal exceeding a certain dollar amount if the payee is someone other than the Owner. In addition, we will not honor a withdrawal request in which the requested payee is the financial professional or agent of record. We reserve the right to request a signature guarantee with respect to a written withdrawal request. If we do perform a signature verification, we will pay the withdrawal proceeds within 7 days after the withdrawal request was received by us in Good Order, and will process the transaction in accordance with the discussion in this section.

**Medically-Related Surrenders & Death Benefits:** Medically-Related Surrender requests and Death Benefit claims require our review and evaluation before processing. We price such transactions as of the date we receive at our Office all supporting documentation we require for such transactions and that are satisfactory to us.

We are generally required by law to pay any surrender request or death benefit claims from the Separate Account within 7 days of our receipt of your request in Good Order.

**Transactions in ProFunds VP Variable Options:** Generally, purchase or redemption orders or transfer requests must be received by us by no later than the close of the NYSE to be processed on the current Valuation Day. However, any purchase order or transfer request involving the ProFunds VP Variable Options must be received by us no later than one hour prior to any announced closing of the applicable securities exchange (generally, 3:00 p.m. Eastern Time) to be processed on the current Valuation Day. The "cut-off" time for such financial transactions involving a ProFunds VP Variable Option will be extended to ½ hour prior to any announced closing (generally, 3:30 p.m. Eastern Time) for transactions submitted electronically through our website (<u>www.prudential.com/annuities</u>). You cannot request a transaction (other than a redemption order) involving the transfer of Units in one of the ProFunds VP Variable Options between the applicable "cut-off" time and 4:00 p.m. Eastern Time Owners attempting to process a purchase order or transfer request between the applicable "cut-off" time and 4:00 p.m. Eastern Time, are informed that their transactions cannot be processed as requested. We will not process the trade until we receive further instructions from you. However, Owners receiving the "cut-off" message may process a purchase order or transfer request up until 4:00 p.m. Eastern Time on that same day with respect to any other available investment option under their Annuity, other than ProFunds. Transactions received after 4:00 p.m. Eastern Time will be treated as received by us on the next Valuation Day.

**Distribution Charge Applicable to ASAP III and XT6:** At the end of the Period during which the Distribution Charge applies, your Annuity will become subject to a lower daily asset-based charge. We will process a transaction where your Account Value allocated to the Variable Options will be used to purchase new Units of the same Variable Options that reflect the insurance charge (and the charge for any optional benefits you have elected) but not the Distribution Charge. The number of Units attributed to your Annuity will be decreased and the Unit Price of each Unit of the Variable Options in which you invested will be increased. **The adjustment in the number of Units and Unit price will not affect your Account Value at the time that the** **transaction is processed.** However, beginning on that date, your Account Value will be determined based on the change in the value of Units that reflect the insurance charge and any other optional benefits that you have elected.

**Termination of Optional Benefits:** Except for the Guaranteed Minimum Income Benefit, the "Combination 5% Roll-up and Highest Anniversary Value Death Benefit" and the Highest Daily Value Death Benefit, which generally cannot be terminated by the Owner once elected, if any optional benefit terminates, we will no longer deduct the charge we apply to purchase the optional benefit. Certain optional benefits may be added after you have purchased your Annuity. On the date a charge no longer applies or a charge for an optional benefit begins to be deducted, your Annuity will become subject to a different daily asset-based charge. This change may result in the number of Units attributed to your Annuity and the value of those Units being different than it was before the change; however, the adjustment in the number of Units and Unit Price will not affect your Account Value (although the change in charges that are deducted will affect your Account Value).

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**SURRENDERS AND WITHDRAWALS**

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**TYPES OF DISTRIBUTIONS AVAILABLE TO YOU**

During the Accumulation Period you can access your Account Value through partial withdrawals, Systematic Withdrawals, and where required for tax purposes, Required Minimum Distributions ("RMD"). You can also surrender your Annuity at any time. Depending on your instructions, we may deduct a portion of the Account Value being withdrawn or surrendered as a CDSC, if applicable. If you surrender your Annuity, in addition to any CDSC, we may deduct the Annual Maintenance Fee, any Tax Charge that applies and the charge for any optional benefits. We may also apply a Market Value Adjustment to Market Value Adjustment Fixed Allocations being withdrawn or surrendered. Certain amounts may be available to you each Annuity Year that are not subject to a CDSC. These are called "Free Withdrawals." Unless you notify us differently, as permitted, withdrawals are taken on a proportional basis based on the Account Value in the investment options at the time we receive your withdrawal request. Each of these types of distributions is described more fully below.

If you participate in certain Lifetime Guaranteed Minimum Withdrawal Benefits, and you take a withdrawal deemed to be Excess Income that brings your Account Value to zero, both the benefit and the Annuity itself may terminate. See "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" for more information.

**TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NON-QUALIFIED ANNUITIES**

**Prior to Annuitization**

For federal income tax purposes, a distribution during the Accumulation Period is deemed to come first from any "gain" in your Annuity and second as a return of your "cost basis", if any. Distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. If you take a distribution prior to the taxpayer's age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain. You may wish to consult a professional tax advisor for advice before requesting a distribution.

**During Annuitization**

During the Annuitization period, a portion of each annuity payment is taxed as ordinary income at the tax rate you are subject to at the time of the payment. The Code and regulations have "exclusionary rules" that we use to determine what portion of each annuity payment should be treated as a return of any cost basis you have in your Annuity. Once the cost basis in your Annuity has been distributed, the remaining annuity payments are taxable as ordinary income. The cost basis in your Annuity may be based on the cost basis from a prior contract in the case of a Section 1035 exchange or other qualifying transfer.

There may also be tax implications on distributions from qualified Annuities. See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for information about qualified Annuities and for additional information about Non-qualified Annuities.

**CAN I WITHDRAW A PORTION OF MY ANNUITY?**

You can make a withdrawal during the Accumulation Period.

• To
 meet liquidity needs, you can withdraw a limited amount from your Annuity during each Annuity Year without application of any CDSC. We
 call this the "Free Withdrawal" amount. The Free Withdrawal amount is not available if you choose to surrender your Annuity.
 Amounts withdrawn
 as a Free Withdrawal do not reduce the amount of CDSC that may apply upon a subsequent withdrawal or surrender of your Annuity.
 After any partial withdrawal, your Annuity must have a Surrender Value of at least $1,000, or we may treat the partial withdrawal request
 as a request to fully surrender your Annuity. The minimum Free Withdrawal you may request is $100.

• You
 can also make withdrawals in excess of the Free Withdrawal amount. The minimum partial withdrawal you may request is $100.

To determine if a CDSC applies to partial withdrawals, we:

1. First
 determine what, if any, amounts qualify as a Free Withdrawal. These amounts are not subject to the CDSC.

2. Next
 determine what, if any, remaining amounts are withdrawals of Purchase Payments. Amounts in excess of the Free Withdrawal amount
 will be treated as withdrawals of Purchase Payments unless all Purchase Payments have been previously withdrawn. These amounts
 are subject to the CDSC. Purchase payments are withdrawn on a first in, first out basis.

3. Withdraw
 any remaining amounts from any other Account Value. These amounts are not subject to the CDSC.

You may request a withdrawal for an exact dollar amount after deduction of any CDSC that applies (called a "net withdrawal") or request a gross withdrawal from which we will deduct any CDSC that applies, resulting in less money being payable to you than the amount you requested. If you request a net withdrawal, the amount deducted from your Account Value to pay the CDSC may also be subject to a CDSC.

Partial withdrawals may also be available following Annuitization but only if you choose certain annuity payment options. **(Note, however, that we do** **not permit commutation once annuity payments have commenced).**

To request the forms necessary to make a withdrawal from your Annuity, call 1-800-879-7012 or visit our website at <u>www.prudential.com/annuities</u>.

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**FREE WITHDRAWAL AMOUNTS**

The maximum Free Withdrawal amount during each Annuity Year is equal to 10% of all Purchase Payments that are subject to a CDSC. Withdrawals made within an Annuity Year reduce the Free Withdrawal amount available for the remainder of the Annuity Year. If you do not make a withdrawal during an Annuity Year, you are not allowed to carry over the Free Withdrawal amount to the next Annuity Year.

**CAN YOU CLOSE MY ACCOUNT AND INVOLUNTARILY REDEEM MY INVESTMENT?**

As explained above, after any Partial Withdrawal, your Annuity must have a Surrender Value of at least $1,000, or we may treat the Partial Withdrawal request as a request to fully surrender your Annuity.

**SYSTEMATIC WITHDRAWALS**

Our systematic withdrawal program is an administrative program designed for you to withdraw a specified amount from your Annuity on an automated basis at the frequency you select ("systematic withdrawals"). This program is available to you at no additional charge. We may cease offering this program or change the administrative rules related to the program at any time on a non-discriminatory basis.

You may not have a systematic withdrawal program, as described in this section, if you are receiving substantially equal periodic payments under Sections 72(t) or 72(q) of the Code or Required Minimum Distributions.

You may terminate your systematic withdrawal program at any time. Ownership changes to, and assignment of, your Annuity will terminate any systematic withdrawal program on the Annuity as of the effective date of the change or assignment. Requesting partial withdrawals while you have a systematic withdrawal program may also terminate your systematic withdrawal program as described below.

Systematic withdrawals can be made from your Account Value allocated to the Variable Options or certain Market Value Adjustment Options. Please note that systematic withdrawals may be subject to any applicable CDSC and/or a Market Value Adjustment. We will determine whether a CDSC applies and the amount in the same way as we would for a partial withdrawal.

Systematic Withdrawals based on the Free Withdrawal amount may be available, but only if the contract is still within the surrender charge period. The withdrawals will be calculated based only on the Purchase Payments that are still subject to CDSC.

The minimum amount for each systematic withdrawal is $100. If any scheduled systematic withdrawal is for less than $100 (which may occur under a program that provides payment of an amount equal to the earnings in your Annuity for the period requested), we may postpone the withdrawal and add the expected amount to the amount that is to be withdrawn on the next scheduled systematic withdrawal.

If you do not have an optional benefit, we will withdraw systematic withdrawals from the Investment Options you have designated (your "designated Investment Options"). If you do not designate Investment Options for systematic withdrawals, we will withdraw systematic withdrawals on a proportional basis based on the Account Value in the Investment Options at the time we pay out your withdrawal. "On a proportional basis" means that the percentage of each Investment Option withdrawn is the same percentage that the Investment Option bears to the total Account Value. For any scheduled systematic withdrawal for which you have elected a specific dollar amount and have specified percentages to be withdrawn from your designated Investment Options, if the amounts in your designated Investment Options cannot satisfy such instructions, we will withdraw systematic withdrawals on a proportional basis (as described above) based on the Account Value across all of your Investment Options.

If you have a Guaranteed Lifetime Minimum Withdrawal Benefit or the Guaranteed Minimum Withdrawal Benefit (GMWB) and elect, or have elected, to receive withdrawals under the benefit using our systematic withdrawal program, please be advised of the current administrative rules associated with this program:

• Excluding
 Lifetime Five and GMWB, systematic withdrawals must be taken from your Account Value on a proportional basis from the Investment
 Options at the time we process each withdrawal.

• If
 you either have an existing or establish a new systematic withdrawal program for a) your Annual Income Amount, Annual Withdrawal Amount
 (only applicable to Lifetime Five), Protected Annual Withdrawal Amount (only applicable to GMWB) or LIA Amount (only applicable
 to a Lifetime Income Accelerator Benefit) or b) for a designated amount that is less than your Annual Income Amount, Protected Annual
 Withdrawal Amount, or LIA Amount, and we receive a request for a partial withdrawal from your Annuity in Good Order, we will process
 your partial withdrawal request and may cancel your systematic withdrawal program.

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*Gross Withdrawal or Net Withdrawal.* Generally, you can request either a gross withdrawal or a net withdrawal. If, however, you are taking your withdrawal under your living benefit as described above through our Systematic Withdrawal program, you will only be permitted to take that withdrawal on a gross basis. In a gross withdrawal, you request a specific withdrawal amount with the understanding that the amount you actually receive is reduced by any applicable CDSC or tax withholding. In a net withdrawal, you request a withdrawal for an exact dollar amount with the understanding that any applicable deduction for CDSC or tax withholding is taken from your Account Value. This means that an amount greater than the amount of your requested withdrawal will be deducted from your Unadjusted Account Value. To make sure that you receive the full amount requested, we calculate the entire amount, including the amount generated due to the CDSC or tax withholding, that will need to be withdrawn. We then apply the CDSC or tax withholding to that entire amount. As a result, you will pay a greater CDSC or have more tax withheld if you elect a net withdrawal.

• If
 you either have or establish a new systematic withdrawal program for an amount greater than your Annual Income Amount, Annual Withdrawal
 Amount, Protected Annual Withdrawal Amount or LIA Amount, it is important to note that these systematic withdrawals may result
 in Excess Income which will negatively impact your guaranteed withdrawal amounts available in future Annuity Years. Taking partial withdrawals
 in addition to your systematic withdrawal program will further increase the impact on your future guaranteed withdrawal amounts.

• For
 a discussion of how a withdrawal of Excess Income would impact your optional living benefits, see the " [<u>Benefits Available Under the</u> <u>Contract</u>](#chapter_11-sect1_1_930) "
 section of this prospectus.

**SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t) AND 72(q) OF THE INTERNAL REVENUE CODE**

If your Annuity is used as a funding vehicle for certain retirement plans that receive special tax treatment under Sections 401, 403(b), 408 or 408A of the Code, Section 72(t) of the Code may provide an exception to the 10% additional tax on distributions made prior to age 59<sup>½</sup> if you elect to receive distributions as a series of "substantially equal periodic payments". For Annuities issued as Non-qualified Annuities, Section 72(q) of the Code may provide a similar exception to the 10% additional tax. Distributions received under these provisions in any Annuity Year that exceed the maximum amount available as a Free Withdrawal will be subject to any applicable CDSC. We may apply a Market Value Adjustment to any Market Value Adjustment Fixed Allocations. To request a program that complies with Section 72(t)/72(q), you must provide us with certain required information in writing on a form acceptable to us. We may require advance notice to allow us to calculate the amount of 72(t)/72(q) withdrawals. The Surrender Value of your Annuity must be at least $20,000 before we will allow you to begin a program for withdrawals under Section 72(t)/72(q). The minimum amount for any such withdrawal is $100 and payments may be made monthly, quarterly, semi-annually or annually.

You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments before age 59½ that are not subject to the 10% additional tax.

**REQUIRED MINIMUM DISTRIBUTIONS**

(See "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for a further discussion of Required Minimum Distributions.)

Required Minimum Distributions are a type of Systematic Withdrawal we allow to meet distribution requirements under Sections 401, 403(b) or 408 of the Code. Required Minimum Distribution rules do not apply to Roth IRAs during the Owner's lifetime. Under the Code, you may be required to begin receiving periodic amounts from your Annuity. In such case, we will allow you to make Systematic Withdrawals in amounts that satisfy the Required Minimum Distribution rules under the Code. We do not assess a CDSC on Required Minimum Distributions from your Annuity if you are required by law to take such Required Minimum Distributions from your Annuity at the time it is taken, provided the amount withdrawn is the amount we calculate as the RMD and is paid out through a program of systematic withdrawals that we make available. However, a CDSC (if applicable) may be assessed on that portion of a Systematic Withdrawal that is taken to satisfy the Required Minimum Distribution provisions in relation to other savings or investment plans under other qualified retirement plans not maintained with us. However, no Market Value Adjustment will be assessed on a withdrawal taken to meet RMD requirements applicable to your Annuity.

The amount of the Required Minimum Distribution for your particular situation may depend on other annuities, savings or investments. We will only calculate the amount of your Required Minimum Distribution based on the value of your Annuity. We require three (3) days advance written notice to calculate and process the amount of your payments. You may elect to have Required Minimum Distributions paid out monthly, quarterly, semi-annually or annually. The $100 minimum amount that applies to Systematic Withdrawals applies to monthly Required Minimum Distributions but does not apply to Required Minimum Distributions taken out on a quarterly, semi-annual or annual basis.

You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments and satisfying the Required Minimum Distribution provisions under the Code.

Please see "[<u>Highest Daily Lifetime 6 Plus</u>](#chapter_11-sect1_18_930)" under the subsection "Required Minimum Distributions" for further information relating to Required Minimum Distributions if you own that benefit.

In any year in which the requirement to take Required Minimum Distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a Required Minimum Distribution if not for the suspension as eligible for treatment as descrined herein.

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**SURRENDER VALUE**

During the Accumulation Period you can surrender your Annuity at any time. Upon surrender, you will receive the Surrender Value. Upon surrender of your Annuity, you will no longer have any rights under the surrendered Annuity.

For purposes of calculating any applicable CDSC on surrender, the Purchase Payments being withdrawn may be greater than your remaining Account Value or the amount of your withdrawal request. This is most likely to occur if you have made prior withdrawals under the Free Withdrawal provision or if your Account Value has declined in value due to negative Variable Option performance. In that scenario, we would determine the CDSC amount as the applicable percentage of the Purchase Payments being withdrawn, rather than as a percentage of the remaining Account Value or withdrawal request. Thus, the CDSC would be greater than if it were calculated as a percentage of remaining Account Value or withdrawal amount. We may apply a Market Value Adjustment to any Market Value Adjustment Fixed Allocations.

Under certain annuity payment options, you may be allowed to surrender your Annuity for its then current value.

To request the forms necessary to surrender your Annuity, call 1-800-879-7012 or visit our website at <u>www.prudential.com/annuities</u>.

We apply as a threshold, in certain circumstances, a minimum Surrender Value of $1,000. If you purchase an Annuity without a lifetime Guaranteed Minimum Withdrawal Benefit, we will not allow you to take any withdrawals that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value. Likewise, if you purchase an Annuity with certain lifetime Guaranteed Minimum Withdrawal Benefits, we will not allow you to take a Non-Lifetime Withdrawal (see "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)") that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value.

**MEDICALLY-RELATED SURRENDERS**

Where permitted by law, you may request to surrender all or part of your Annuity prior to the Annuity Date without application of any otherwise applicable CDSC upon occurrence of a medically-related "Contingency Event" as described below (a "Medically-Related Surrender"). The requirements of such a surrender and waiver may vary by state. We may apply a Market Value Adjustment to any Market Value Adjustment Fixed Allocations. If you request a full surrender, the amount payable will be your Account Value minus, with respect to XT6, (a) the amount of any Credits applied within 12 months prior to your request to surrender your Annuity (or as otherwise stipulated by applicable State law); and (b) the amount of any Credits added in conjunction with any Purchase Payments received after our receipt of your request for a Medically-Related Surrender (e.g. Purchase Payments received at such time pursuant to a salary reduction program). With respect to partial surrenders, we similarly reserve the right to recapture Credits as described above (if allowed by State law).

This waiver of any applicable CDSC is subject to our rules in place at the time of your request, which currently include but are not limited to the following:

• The
 Annuitant must have been named or any change of Annuitant must have been accepted by us, prior to the "Contingency Event" described below in
 order to qualify for a Medically-Related Surrender;

• the
 Annuitant must be alive as of the date we pay the proceeds of such surrender request;

• if
 the Owner is one or more natural persons, all such Owners must also be alive at such time;

• we
 must receive satisfactory proof of the Annuitant's confinement in a Medical Care Facility or Fatal Illness in writing on a form satisfactory to us;

• no
 additional Purchase Payments can be made to the Annuity; and

• proceeds
 will only be sent by check or electronic fund transfer directly to the Owner.

A "Contingency Event" occurs if the Annuitant is:

• first
 confined in a "Medical Care Facility" while your Annuity is in force and remains confined for at least 90 days in a row; or

• first
 diagnosed as having a "Fatal Illness" while your Annuity is in force.

The definitions of "Medical Care Facility" and "Fatal Illness," as well as additional terms and conditions, are provided in your Annuity. Specific details and definitions in relation to this benefit may differ in certain jurisdictions. This waiver is not available in Massachusetts and New York.

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**TAXES**

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The tax considerations associated with an Annuity vary depending on whether the Annuity is (i) owned by an individual or non-natural person, and not associated with a tax-favored retirement plan, or (ii) held under a tax-favored retirement plan. We discuss the tax considerations for these categories of Annuities below. The discussion is general in nature and describes only federal income tax law. We generally do not describe state, local, foreign or other federal tax laws. It is based on current law and interpretations which may change. The information provided is not intended as tax advice. The federal income tax treatment of the Annuity is unclear in certain circumstances, and you should always consult a qualified tax advisor regarding the application of law to individual circumstances. Generally, the cost basis in an Annuity is the amount you pay into your Annuity, or into an annuity exchanged for your Annuity, on an after-tax basis less any withdrawals of such payments. Cost basis for a tax-favored retirement plan is provided only in limited circumstances, such as for contributions to a Roth IRA or nondeductible contributions to a traditional IRA. We do not track cost basis for tax-favored retirement plans, which is the responsibility of the Owner.

On advisory products, you may establish an advisory fee deduction program for a qualified or Non-qualified Annuity such that charges for investment advisory fees are not taxable to the Annuity Owner. Please note that there are additional requirements that must be satisfied in order for investment advisory fee charges paid from a Non-qualified Annuity to be treated as not taxable.

The discussion below generally assumes that the Annuity is issued to the Annuity Owner. For Annuities issued under the Beneficiary Continuation Option or as a Beneficiary Annuity, refer to the Taxes Payable by Beneficiaries for a Non-qualified Annuity and Required Distributions Upon Your Death for Qualified Annuities sections below.

**NON-QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Non-qualified Annuity is owned by an individual or non-natural person and is not associated with a** **tax-favored retirement plan.**

**Taxes Payable by You**

We believe the Annuity is an Annuity for tax purposes. Accordingly, as a general rule, you should not pay any tax until you receive money under the Annuity. Generally, all Annuity contracts issued by the same company (and affiliates) to you during the same calendar year must be treated as one Annuity for purposes of determining the amount of any withdrawal that is subject to tax under the rules described below. We treat advisory fee payments as an expense of the Annuity and not a taxable distribution if your Non-qualified Annuity satisfies the requirements of a Private Letter Ruling issued to us by the Internal Revenue Service ("IRS"). In accordance with the PLR, advisory fee payments from your Non-qualified Annuity are treated as an expense as long as your advisor attests to us that the PLR requirements have been met, including that the advisory fees will not exceed 1.5% of the Annuity's cash value and the Annuity only pays the advisor for fees related to investment advice with respect to the Annuity and no other services. The PLR does not generally allow such favorable tax treatment of advisory fee payments where a commission is also paid on the Annuity.

It is possible that the IRS could assert that some or all of the charges for the optional living or death benefits under the Annuity should be treated for federal income tax purposes as a partial withdrawal from the Annuity. If this were the case, the charge for this benefit could be deemed a withdrawal and treated as taxable income to the extent there are earnings in the Annuity. Additionally, for Owners under age 59½, the taxable income attributable to the charge for the benefit could be subject to the 10% additional tax. If the IRS determines that the charges for one or more benefits under the Annuity are taxable withdrawals, then the sole, primary, or surviving Owner will be provided with a notice from us describing available alternatives regarding these benefits.

**Taxes on Withdrawals and Surrender Before Annuity Payments Begin**

If you make a withdrawal from your Annuity or surrender it before annuity payments begin, the amount you receive will be taxed as ordinary income, rather than as a return of cost basis, until all gain has been withdrawn. At any time there is no gain in your Annuity, payments will be treated as a nontaxable return of cost basis until all cost basis has been returned. After all cost basis is returned, all subsequent amounts will be taxed as ordinary income. An exception to this treatment exists for contracts that include Purchase Payments made prior to August 14, 1982 that are issued via 1035 exchange. Withdrawals from a contract with Purchase Payments made before August 14, 1982 are treated as a return of cost basis in the Annuity first until those pre-August 14, 1982 Purchase Payments are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982 is not subject to the 10% additional tax.

You will generally be taxed on any withdrawals from the Annuity while you are alive even if the withdrawal is paid to someone else. Withdrawals under any of the optional living benefits or as a systematic payment are taxed under these rules. If you assign or pledge all or part of your Annuity as collateral for a loan, the part assigned generally will be treated as a withdrawal and subject to income tax to the extent of gain. If the entire Account Value is assigned or pledged, subsequent increases in the Account Value are also treated as withdrawals for as long as the assignment or pledge remains in place. The cost basis is increased by the amount includible in income with respect to such assignment or pledge. If you transfer your Annuity for less than full consideration, such as by gift, you will also trigger tax on any gain in the Annuity. Under most circumstances, this rule does not apply if you transfer the Annuity to your spouse or if you transfer the Annuity incident to divorce.

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If you choose to receive payments under an interest payment option, or a Beneficiary chooses to receive a death benefit under an interest payment option, that election will be treated, for tax purposes, as surrendering your Annuity and will immediately subject any gain in the Annuity to income tax and possibly the 10% additional tax.

**Taxes on Annuity Payments**

If you select an annuity payment option as described in "[<u>Annuity Period</u>](#chapter_10-sect1_1_930)", a portion of each annuity payment you receive will be treated as a partial return of your cost basis and will not be taxed. The remaining portion will be taxed as ordinary income. Generally, the nontaxable portion is determined by multiplying the annuity payment you receive by a fraction, the numerator of which is your cost basis (less any amounts previously received tax-free) and the denominator of which is the total expected payments under the Annuity. After the full amount of your cost basis has been recovered tax-free, the full amount of the annuity payments will be taxable. If annuity payments stop due to the death of the Annuitant before the full amount of your cost basis has been recovered, a tax deduction may be allowed for the unrecovered amount.

If your Account Value is reduced to zero but the Annuity remains in force due to a benefit provision, further distributions from the Annuity will be reported as annuity payments, using an exclusion ratio based upon the undistributed cost basis in the Annuity and the total value of the anticipated future payments until such time as all cost basis has been recovered.

**Maximum Annuity Date**

You must commence annuity payments no later than the first day of the calendar month following the maximum Annuity Date for your Annuity. Upon reaching the maximum Annuity Date you can no longer make Purchase Payments, surrender, exchange, or transfer your contract. The maximum Annuity Date may be the same as the Latest Annuity Date as described elsewhere in this prospectus. For some of our Annuities, you can choose to defer the Annuity Date beyond the default or Latest Annuity Date, as applicable, described in your Annuity. However, the IRS may not then consider your Annuity to be an Annuity under the tax law.

Please refer to your Annuity contract for the maximum Annuity Date.

**Partial Annuitization**

We do not currently permit partial annuitization.

**Medicare Tax on Net Investment Income**

The Code includes a Medicare tax on investment income. This tax assesses a 3.8% surtax on the lesser of (1) net investment income or (2) the excess of "modified adjusted gross income" over a threshold amount. The "threshold amount" is $250,000 for married taxpayers filing jointly or qualifying widow(er) with dependent child, $125,000 for married taxpayers filing separately, $200,000 for all others, and approximately $16,000 for estates and certain trusts. The taxable portion of payments received as a withdrawal, surrender, annuity payment, death benefit payment or any other actual or deemed distribution under the Annuity will be considered investment income for purposes of this surtax.

**10% Additional Tax for Early Withdrawal from a Non-Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from your Non-qualified Annuity. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½;

• the
 amount is paid on or after your death (or the death of the Annuitant when the owner is not an individual);

• the
 amount received is attributable to your becoming disabled (as defined in the Code);

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually (please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years
 and the impermissible
 modification of payments during that time period will result in retroactive application of the 10% additional tax); or

• the
 amount received is paid under an immediate Annuity (within the meaning of the Code) and the annuity start date is no more than one year
 from the date of purchase (the first monthly annuity payment being required to be paid within 13 months).

Other exceptions to this tax may apply. You should consult your tax advisor for further details.

**Special Rules in Relation to Tax-free Exchanges Under Section 1035**

Section 1035 of the Code permits certain tax-free exchanges of a life insurance contract, annuity contract or endowment contract for an Annuity, including tax-free exchanges of annuity death benefits for a Beneficiary Annuity. Partial exchanges may be treated in the same way as tax-free 1035 exchanges of entire contracts, therefore avoiding current taxation of the partially exchanged amount as well as the 10% additional tax on pre-age 59½ withdrawals. In Revenue Procedure 2011-38, the IRS indicated that, for partial exchanges on or after October 24, 2011, where there is a surrender or distribution from either the initial annuity contract or receiving annuity contract within 180 days of the date on which the partial exchange was completed

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(other than an amount received as an annuity for a period of 10 years or more or during one or more lives), the IRS may not treat the transaction as a tax-free Section 1035 exchange. The IRS will apply general tax rules to determine the substance and treatment of the transaction in such cases. We strongly urge you to discuss any partial exchange transaction of this type with your tax advisor before proceeding with the transaction.

If an Annuity is purchased through a tax-free exchange of a life insurance contract, annuity contract or endowment contract that was purchased prior to August 14, 1982, then any Purchase Payments made to the original contract prior to August 14, 1982 will be treated as made to the new Annuity prior to that date. Generally, such pre-August 14, 1982 withdrawals are treated as a return of cost basis first until Purchase Payments made before August 14, 1982 are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982, is not subject to the 10% additional tax.

After you elect an Annuity Payout Option, we do not allow you to exchange your Annuity.

**Taxes Payable by Beneficiaries for a Non-Qualified Annuity**

If an Owner dies before the Annuity Date, the Death Benefit distributions are taxed at ordinary income tax rates. The value of the Death Benefit, as determined under federal law, is also included in the Owner's estate for federal estate tax purposes. Generally, the same income tax rules described above would also apply to amounts received by your Beneficiary. Choosing an option other than a lump sum Death Benefit may defer taxes. Certain minimum distribution requirements apply upon your death, as discussed further below in the Annuity Qualification section. Tax consequences to the Beneficiary vary depending upon the Death Benefit payment option selected. Generally, for payment of the Death Benefit:

• As
 a lump sum payment, the Beneficiary is taxed in the year of payment on gain in the Annuity.

• Within
 5 years of death of Owner, the Beneficiary is taxed on the lump sum payment. The Death Benefit must be taken as one lump sum payment
 within 5 years of the death of the Owner. Partial withdrawals are not permitted to be paid to Beneficiaries under our Annuity contracts.

• Under
 an Annuity or Annuity settlement option where distributions begin within one year of the date of death of the Owner, the Beneficiary is
 taxed on each payment with part as gain and part as return of cost basis. After the full amount of cost basis has been recovered tax-free,
 the full amount of the annuity payments will be taxable.

After the Annuity Date, if a period certain remains under the annuity option and the Annuitant dies before the end of that period, any remaining payments made to the Beneficiary will be fully excluded from income until the remaining cost basis is recovered and all annuity payments thereafter are fully includible in income. If we allow the Beneficiary to commute the remaining payments in a lump sum, the proceeds will be taxable as a surrender.

**Considerations for Contingent Annuitants:** We may allow the naming of a contingent Annuitant when a Non-qualified Annuity is held by a pension plan or a tax favored retirement plan, or held by a Custodial Account (as defined in this prospectus). In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a contingent annuitant when a Non-qualified Annuity is held by an entity owner when such Annuities do not qualify for tax deferral under the current tax law. This does not supersede any benefit language which may restrict the use of the contingent annuitant.

**Reporting and Withholding on Distributions**

Amounts distributed from an Annuity are subject to federal and state income tax reporting and withholding. In general, we will withhold federal income tax from the taxable portion of such distribution based on the type of distribution. In the case of an annuity payment, we apply default withholding under the applicable tax rules unless you designate a different withholding status. In the case of all other distributions, we will withhold at a 10% rate. You may generally elect a different tax withholding rate or elect not to have tax withheld from your payments. An election out of withholding must be made on forms that we provide. If you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the United States or do not provide a U.S. taxpayer identification number, we are required to withhold income tax.

State income tax withholding rules vary and we will withhold based on the rules of your state of residence. Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country. Please refer to the discussion below regarding withholding rules for a Qualified Annuity.

Regardless of the amount withheld by us, you are liable for payment of income taxes (including any estimated taxes that may be due) on the taxable portion of distributions from the Annuity. You should consult with your tax advisor regarding the payment of the correct amount of these income taxes and potential liability if you fail to pay such taxes.

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**Entity Owners**

Where an Annuity is held by a non-natural person (e.g., a corporation, partnership), other than as an agent or nominee for a natural person (or in other limited circumstances), increases in the value of the Annuity over its cost basis will be subject to tax annually.

Where an Annuity is issued to a Charitable Remainder Trust (CRT), increases in the value of the Annuity over its cost basis will be subject to tax reporting annually. As there are charges for the optional living and death benefits described elsewhere in this prospectus, and such charges reduce the contract value of the Annuity, trustees of the CRT should discuss with their legal advisors whether election of such optional living or death benefits violates their fiduciary duty to the remainder beneficiary.

Where an Annuity is issued to a trust, and such trust is characterized as a grantor trust under the Code, such Annuity is generally not considered to be held by a non-natural person and will be subject to the tax reporting and withholding requirements generally applicable to a Non-qualified Annuity held by a natural person, provided that all grantors of the trust are natural persons. At this time, we will not issue an Annuity to grantor trusts with more than two grantors.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within five years after the date of the first grantor's death (or the Annuitant's death in certain instances) under Section 72(s) of the Code. See the "[<u>Payment of Death Benefits</u>](#chapter_11-sect1_25_930ab)" section for scenarios where a Death Benefit or Surrender Value is payable depending upon the underlying facts.

Trusts are required to complete and submit a Certificate of Entity form, and we will tax report based on the information provided on this form.

**Annuity Qualification**

*Diversification And Investor Control.* In order to qualify for the tax rules applicable to Annuities described above, the investment assets in the Non-qualified Annuity Variable Options must be diversified according to certain rules under the Code. Each Portfolio is required to diversify its investments each quarter so that no more than 55% of the value of its assets is represented by any one investment, no more than 70% is represented by any two investments, no more than 80% is represented by any three investments, and no more than 90% is represented by any four investments. Generally, securities of a single issuer are treated as one investment, and obligations of each U.S. Government agency and instrumentality (such as the Government National Mortgage Association) are treated as issued by separate issuers. In addition, any security issued, guaranteed or insured (to the extent so guaranteed or insured) by the U.S. or an instrumentality of the U.S. will be treated as a security issued by the U.S. Government or its instrumentality, where applicable. We believe the Portfolios underlying the Variable Options of the Annuity meet these diversification requirements.

An additional requirement for qualification for the tax treatment described above is that we, and not you as the Annuity Owner, must have sufficient control over the underlying assets to be treated as the owner of the underlying assets for tax purposes. The tax law limits the amount of control you may have over choosing investments for your Annuity. If this "investor control" rule is violated your Annuity assets will be considered owned directly by you and you lose the favorable tax treatment generally afforded to annuities.

While we also believe these investor control rules will be met, the Treasury Department may promulgate guidelines under which a variable annuity will not be treated as an annuity contract for tax purposes if persons with ownership rights have excessive control over the investments underlying such variable annuity contract. It is unclear whether such guidelines, if in fact promulgated, would have retroactive effect. It is also unclear what effect, if any, such guidelines might have on transfers between the Investment Options offered pursuant to this prospectus. We reserve the right to take any action, including modifications to your Annuity or the Investment Options, required to comply with such guidelines if promulgated. Any such changes will apply uniformly to affected Owners and will be made with such notice to affected Owners as is feasible under the circumstances.

**Required Distributions Upon Your Death for a Non-Qualified Annuity.**

Upon your death, certain distributions must be made under the Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. If you die before the Annuity Date, the entire interest in the Annuity must be distributed within five years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the designated Beneficiary (provided such payments begin within one year of your death). If the Beneficiary does not begin installments within one year of the date of death, no partial withdrawals will be permitted thereafter, and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline. Your designated Beneficiary is the person to whom benefit rights under the Annuity pass by reason of death, and must be a natural person in order to elect a periodic payment option based on life expectancy or a period exceeding five years. Additionally, if the Annuity is payable to (or for the benefit of) your surviving spouse, that portion of the Annuity may be continued with your spouse as the Owner. For Non-qualified Annuities owned by a non-natural person, the required distribution rules generally apply upon the death of the Annuitant. This means, for example, that for an Annuity held by a non-natural person (such as a trust) for which there is named a co-annuitant, then such required distributions will be triggered by the death of the first co-annuitant to die.

*Changes To Your Annuity.* We reserve the right to make any changes we deem necessary to assure that your Annuity qualifies as an Annuity for tax purposes. Any such changes will apply to all Annuity Owners and you will be given notice to the extent feasible under the circumstances.

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**QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Qualified Annuity is an Annuity with applicable endorsements for a tax-favored plan or a** **Non-qualified Annuity held by a tax-favored retirement plan.**

The following is a general discussion of the tax considerations for Qualified Annuities. This Annuity may or may not be available for all types of the tax-favored retirement plans discussed below. This discussion assumes that you have satisfied the eligibility requirements for any tax-favored retirement plan. Please consult your financial professional prior to purchase to confirm if this Annuity is available for a particular type of tax-favored retirement plan or whether we will accept the type of contribution you intend for this Annuity.

A Qualified Annuity may have been purchased for use in connection with:

• Individual
 retirement accounts and annuities (IRAs), including inherited IRAs (which we refer to as a Beneficiary IRA), which are subject to Sections
 408(a) and 408(b) of the Code;

• Roth
 IRAs, including inherited Roth IRAs (which we refer to as a Beneficiary Roth IRA) under Section 408A of the Code;

• A
 corporate Pension or Profit-sharing plan (subject to 401(a) of the Code);

• H.R.
 10 plans (also known as Keogh Plans, subject to 401(a) of the Code);

• Tax
 Sheltered Annuities (subject to 403(b) of the Code, also known as Tax Deferred Annuities or TDAs);

• Section
 457 plans (subject to 457 of the Code).

A Non-qualified Annuity may have been purchased by a 401(a) trust, a custodial IRA or a custodial Roth IRA account, or a Section 457 plan, which can hold other permissible assets. The terms and administration of the trust or custodial account or plan in accordance with the laws and regulations for 401(a) plans, IRAs or Roth IRAs, or a Section 457 plan, as applicable, are the responsibility of the applicable trustee or custodian.

You should be aware that tax favored plans such as IRAs generally provide income tax deferral regardless of whether they invest in Annuities. This means that when a tax favored plan invests in an Annuity, it generally does not result in any additional tax benefits (such as income tax deferral and income tax free transfers).

**Types of Tax-favored Plans**

***IRAs.*** The "IRA Disclosure Statement" and "Roth IRA Disclosure Statement" which accompany the prospectus contain information about eligibility, contribution limits, tax particulars, and other IRA information. In addition to this information (the material terms are summarized in this prospectus and in those Disclosure Statements), the IRS requires that you have a "Free Look" after making an initial contribution to the Annuity. During this time, you can cancel the Annuity by notifying us in writing, and we will refund the greater of all purchase payments under the Annuity or the Account Value, less any applicable federal and state income tax withholding.

*Contribution Limits/Rollovers.* Subject to the minimum purchase payment requirements of an Annuity, you may purchase an Annuity for an IRA in connection with a "rollover" of amounts from a qualified retirement plan, as a transfer from another IRA, by making a contribution consisting of your IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the later applicable due date of your federal income tax return, without extension), or as a current year contribution. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits for the subsequent year in the fourth quarter of the current year. The tax law also provides for a catch-up provision for individuals who are age 50 and above, allowing these individuals an additional $1,000 contribution each year. The $1,000 catch-up contribution for IRA owners age 50 or older is indexed for inflation starting in 2024 in accordance with the Consolidated Appropriations Act, 2023 (which includes SECURE 2.0 of 2022 ("SECURE 2.0"). You may be able to claim a deduction for your contributions depending on your modified adjusted gross income. Go to <u>www.irs.gov</u> for the limits for each year.

The "rollover" rules under the Code are fairly technical; however, an individual (or his or her surviving spouse) may generally "roll over" certain distributions from tax favored retirement plans (either directly or within 60 days from the date of these distributions) if he or she meets the requirements for distribution. Once you buy an Annuity, you can make regular IRA contributions under the Annuity (to the extent permitted by law and the terms of the Annuity). For IRA rollovers, an individual can only make an IRA to IRA rollover if the individual has not made a rollover involving any IRAs owned by the individual in the prior 12 months. An IRA transfer is a tax-free trustee-to-trustee "transfer" from one IRA account to another. IRA transfers are not subject to this 12-month rule. There is no age limitation with regard to contributions to a traditional IRA as long as the earned income requirements are met.

In some circumstances, non-spouse Beneficiaries may roll over to an IRA amounts due from qualified plans, 403(b) plans, and governmental 457(b) plans. However, the rollover rules applicable to non-spouse Beneficiaries under the Code are more restrictive than the rollover rules applicable to Owner/participants and spouse Beneficiaries. Generally, non-spouse Beneficiaries may roll over distributions from tax favored retirement plans only as a direct rollover. An inherited IRA must be directly rolled over from the employer plan or transferred from an IRA and must be titled in the name of the deceased (i.e., John Doe deceased for the benefit of Jane Doe). No additional contributions can be made to an inherited IRA. In this prospectus, an inherited IRA is also referred to as a Beneficiary Annuity.

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*Required Provisions.* Annuities that are IRAs (or endorsements that are part of the contract) must contain certain provisions:

• You,
 as Owner of the Annuity, must be the "Annuitant" under the contract (except in certain cases involving the division of property
 under a decree of
 divorce);

• Your
 rights as Owner are non-forfeitable;

• You
 cannot sell, assign or pledge the Annuity;

• The
 annual contribution you pay cannot be greater than the maximum amount allowed by law, including catch-up contributions if applicable
 (which does not include any rollover amounts or amounts transferred by trustee-to-trustee transfer);

• The
 date on which required minimum distributions must begin cannot be later than April 1 <sup>st</sup> of the calendar year after the calendar year you
 turn the applicable age (see the Required Minimum Distribution rules for more details); and

• Death
 and annuity payments must meet Required Minimum Distribution rules described below.

Usually, the full amount of any distribution from an IRA (including a distribution from this Annuity) which is not a transfer or rollover is taxable. As taxable income, these distributions are subject to the general income tax withholding rules described earlier regarding an Annuity in the Non-qualified Annuity section. In addition to this normal tax liability, you may also be liable for the following, depending on your actions:

• A
 10% early withdrawal additional tax described below;

• Liability
 for "prohibited transactions" if you, for example, borrow against the value of an IRA; or

• Failure
 to take a Required Minimum Distribution, also described below.

If you make any non-deductible contributions to your IRA, a portion of any subsequent distribution may be tax-free as a return of those contributions. You are required to keep track of this and determine the taxable and non-taxable portions. IRS rules require that we report the full amount of any distribution as taxable.

***Simplified Employee Pensions (SEP).*** SEPs are a variation on a standard IRA, and Annuities issued to a SEP must satisfy the same general requirements described under IRAs (above). There are, however, some differences:

• If
 you participate in a SEP, you generally do not include in income any employer contributions made to the SEP on your behalf up to the lesser
 of (a) the annual employer contribution limit as indexed for inflation, or (b) 25% of your taxable compensation paid by the contributing
 employer (not including the employer's SEP contribution as compensation for these purposes). However, for these purposes, compensation
 in excess of certain limits established by the IRS will not be considered. Go to <u>www.irs.gov</u> for the current year contribution and
 catch-up limits and compensation limit.

• SEPs
 must satisfy certain participation and nondiscrimination requirements not generally applicable to IRAs; and

• SEPs
 that contain a salary reduction or "SARSEP" provision prior to 1997 may permit salary deferrals from employee income with
 the employer making
 these contributions to the SEP. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits
 for the subsequent year in the fourth quarter of the current year. However, no new "salary reduction" or "SARSEPs"
 can be established
 after 1996. Individuals participating in a SARSEP who are age 50 or above by the end of the year are permitted to contribute an
 additional catch-up contribution amount. These amounts are indexed for inflation and may depend on the participant's age. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Not all Annuities issued by us are available for SARSEPs.

• You
 will also be provided the same information, and have the same "Free Look" period, as you would have if you purchased the Annuity for a standard IRA.

• Roth
 contributions are permitted for SEP IRAs starting in 2023. The Company does not currently offer Roth contributions for  SEP IRAs, but we reserve the
 right to offer this contribution type in the future.

***ROTH IRAs.*** The "Roth IRA Disclosure Statement" contains information about eligibility, contribution limits, tax particulars and other Roth IRA information. Like standard IRAs, income within a Roth IRA accumulates tax-free, and contributions are subject to specific limits. Roth IRAs have, however, the following differences:

• Contributions
 to a Roth IRA cannot be deducted from your gross income;

• "Qualified
 distributions" from a Roth IRA are excludable from gross income. A "qualified distribution" is a distribution that satisfies
 two requirements:
 (1) the distribution must be made (a) after the Owner of the IRA attains age 59½; (b) after the Owner's death; (c) due to the Owner's disability;
 or (d) for a qualified first time homebuyer distribution within the meaning of Section 72(t)(2)(F) of the Code; and (2) the distribution
 must be made in the year that is at least five tax years after the first year for which a contribution was made to any Roth IRA established
 for the Owner. Distributions from a Roth IRA that are not qualified distributions will be treated as made first from contributions and
 then from earnings and earnings will be taxed generally in the same manner as distributions from a traditional IRA.

• If
 eligible (including meeting income limitations and earnings requirements), you may make contributions to a Roth IRA during your lifetime,
 and distributions are not required during the owner's lifetime.

Subject to the minimum Purchase Payment requirements of an Annuity, you may purchase an Annuity for a Roth IRA in connection with a "rollover" of amounts of another traditional IRA, SEP, SIMPLE-IRA (subject to a timing restriction), employer sponsored retirement plan (under Sections 401(a) or 403(b) of the Code) or Roth IRA. You may also purchase an Annuity for a Roth IRA, if you meet certain income limitations, by making a contribution consisting of your Roth IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the applicable due date of your federal income tax return, without extension), or as a current year contribution. The Code permits persons who

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receive certain qualifying distributions from such non-Roth IRAs, to directly rollover or make, within 60 days, a "rollover" of all or any part of the amount of such distribution to a Roth IRA which they establish (a "conversion"). The conversion of non-Roth accounts triggers current taxation (but is not subject to a 10% early distribution additional tax unless a distribution that is allocable to the rollover contribution is distributed within 5 years of the conversion).

In addition, SECURE 2.0 amends the Code to allow for tax and penalty free rollovers from 529 accounts to Roth IRAs, under certain conditions. Starting in 2024, beneficiaries of 529 college savings accounts would be permitted to roll over up to $35,000 over the course of their lifetime from any 529 account in their name to their Roth IRA. These rollovers generally are also subject to Roth IRA annual contribution limits, and the 529 account must have been open for at least 15 years, among other requirements.

The Code also permits the recharacterization of current year contribution amounts from a traditional IRA into a Roth IRA, or from a Roth IRA to a traditional IRA. Recharacterization is accomplished through a trustee-to-trustee transfer of a contribution (or a portion of a contribution) plus earnings, between different types of IRAs. A properly recharacterized contribution is treated as a contribution made to the second IRA instead of the first IRA. Such recharacterization must be completed by the applicable tax return due date (with extensions). However, no recharacterizations of conversions can be made.

Once an Annuity has been purchased, regular Roth IRA contributions will be accepted to the extent permitted by law and the terms of the Annuity. In addition, an individual receiving an eligible rollover distribution from a designated Roth account under an employer plan may roll over the distribution to a Roth IRA even if the individual is not eligible to make regular contributions to a Roth IRA. Non-spouse Beneficiaries receiving a distribution from an employer sponsored retirement plan under Sections 401(a) or 403(b) of the Code can also directly roll over contributions to a Roth IRA. However, it is our understanding of the Code that non-spouse Beneficiaries cannot "rollover" benefits from a traditional IRA to a Roth IRA.

***TDAs.*** In general, you may own a Tax Deferred Annuity (also known as a TDA, Tax Sheltered Annuity (TSA), 403(b) plan or 403(b) Annuity) if you are an employee of a tax-exempt organization (as defined under Code Section 501(c)(3)) or a public educational organization, and you may make contributions to a TDA so long as your employer maintains such a plan and your rights to the Annuity are non-forfeitable. Contributions to a TDA, and any earnings, are not taxable until distribution. You may also make contributions to a TDA under a salary reduction agreement subject to specific limits. Individuals participating in a TDA who are age 50 or above by the end of the year will be permitted to contribute an additional amount. This amount is indexed for inflation. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Further, you may roll over TDA amounts to another TDA or an IRA. You may also roll over TDA amounts to a qualified retirement plan, a SEP and a governmental 457(b) plan. An Annuity may generally only qualify as a TDA if distributions of salary deferrals (other than "grandfathered" amounts held as of December 31, 1988) may be made only on account of:

• Your
 attainment of age 59½;

• Your
 severance of employment;

• Your
 death;

• Your
 total and permanent disability; or

• Hardship

In any event, you must begin receiving distributions from your TDA by April 1<sup>st</sup> of the calendar year after the calendar year you turn the applicable age or retire, whichever is later. These distribution limits do not apply either to transfers or exchanges of investments under the Annuity, or to any "direct transfer" of your interest in the Annuity to another employer's TDA plan or mutual fund "custodial account" described under Code Section 403(b)(7). Employer contributions to TDAs are subject to the same general contribution, nondiscrimination, and minimum participation rules applicable to "qualified" retirement plans.

**Caution:** Under IRS regulations we can accept contributions, transfers and rollovers only if we have entered into an information-sharing agreement, or its functional equivalent, with the applicable employer or its agent. In addition, in order to comply with the regulations, we will only process certain transactions (e.g., transfers, withdrawals, hardship distributions and, if applicable, loans) with employer approval. This means that if you request one of these transactions we will not consider your request to be in Good Order, and will not therefore process the transaction, until we receive the employer's approval in written or electronic form.

**Late Rollover Self-Certification**

You may be able to apply a rollover contribution to your IRA or qualified retirement plan after the 60-day deadline through a self-certification procedure established by the IRS. Please consult your tax or legal advisor regarding your eligibility to use this self-certification procedure. As indicated in this IRS guidance, we, as a financial institution, are not required to accept your self-certification for waiver of the 60-day deadline.

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**Required Minimum Distributions and Payment Options**

If you hold the Annuity under an IRA (or other tax-favored plan), Required Minimum Distribution rules must be satisfied. This means that generally payments must start by April 1 of the year after the year you reach the applicable age ("required beginning date") and must be made for each year thereafter. For a TDA or a 401(a) plan for which the participant is not a greater than 5% owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs and designated Roth accounts under employer sponsored plans are not subject to these rules during the Owner's lifetime.

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| | |
|:---|:---|
| **If you were born...** | **Your "applicable age" is …** |
|  Before July 1, 1949 | 70½ |
|  After June 30, 1949 and before 1951 | 72 |
|  After 1950 and before 1960 | 73 |
|  After 1959 | 75 |

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The amount of the payment must at least equal the minimum required under the IRS rules. Several choices are available for calculating the minimum amount. More information on the mechanics of this calculation is available on request. Please contact us at a reasonable time before the Required Minimum Distribution deadline so that a timely distribution is made. Please note that there is a 25% excise tax (a 50% excise tax applied prior to the 2023 taxable year) on the amount of any required minimum distribution not made in a timely manner. The excise tax on failure is further reduced from 25% to 10% if corrected in a timely manner and certain other conditions are met in accordance with SECURE 2.0.

Required Minimum Distributions are calculated based on the sum of the Account Value and the actuarial present value of any additional living and death benefits from optional riders that you have purchased under the Annuity. As a result, the Required Minimum Distributions may be larger than if the calculation were based on the Account Value only, which may in turn result in an earlier (but not before the required beginning date) distribution of amounts under the Annuity and an increased amount of taxable income distributed to the Annuity Owner, and a reduction of payments under the living and death benefit optional riders.

You can use the Minimum Distribution option to satisfy the Required Minimum Distribution rules for an Annuity without either beginning annuity payments or surrendering the Annuity. Under this option we will distribute to you the Required Minimum Distribution amount, less any other partial withdrawals that you made during the year. Such amount will be based on the value of the Annuity as of December 31 of the prior year, but is determined without regard to other tax favored retirement plans you may own. If a trustee-to-trustee transfer or direct rollover of the full contract value is requested when there is an active Required Minimum Distribution program running, the Required Minimum Distribution will be removed and sent to the Owner prior to the remaining funds being sent to the transfer institution.

Although the IRS rules determine the required amount to be distributed from your IRA each year, certain payment alternatives are still available to you. In accordance with SECURE 2.0, a new optional method for calculating your RMDs may be available if you have an IRA in an annuity payout (or partial annuity payout), and an IRA in the deferral stage. Please contact your tax advisor to determine if this calculation method is appropriate for you. In addition, if you own more than one IRA, you can choose to satisfy your minimum distribution requirement for each of your IRAs by withdrawing that amount from any of your non-Roth IRAs. If you inherit more than one IRA or more than one Roth IRA from the same Owner, similar rules apply. These rules may also apply to other types of tax favored retirement plans such as TDAs.

**Charitable IRA Distributions.**

Certain qualified IRA distributions used for charitable purposes are eligible for an exclusion from gross income, up to $100,000 (indexed for inflation beginning after 2023), for otherwise taxable IRA distributions from a traditional or Roth IRA. A qualified charitable distribution is a distribution that is made (1) directly by the IRA trustee to certain qualified charitable organizations and (2) on or after the date the IRA owner attains age 70½. Distributions that are excluded from income under this provision are not taken into account in determining the individual's deductions, if any, for charitable contributions. The amount of your qualified charitable distributions that are excluded from income for a tax year is reduced (but not below zero) by the excess of: (1) the total amount of your IRA deductions allowed for all tax years ending on or after the date you attain age 70½, over (2) the total amount of reductions for all tax years preceding the current tax year. You should consult your tax advisor about whether a one-time distribution up to $50,000 (indexed for inflation beginning after 2023) that is made from your IRA to a "split-interest entity" can be excluded from your gross income.

The IRS has currently indicated that an IRA trustee is not responsible for determining whether a distribution to a charity is one that satisfies the requirements of the charitable giving incentive. Unless otherwise required in the future by the IRS, we will report the distribution as a normal IRA distribution on Form 1099-R. In those instances, individuals are responsible for reflecting the distributions as charitable IRA distributions on their personal tax returns. However, if we receive certification that the distribution satisfies the requirements, we will report the distribution as a charitable IRA distribution on Form 1099-R.

**Required Distributions Upon Your Death for a Qualified Annuity**

Upon your death under an IRA, Roth IRA, 403(b) or other employer sponsored plan, any remaining interest must be distributed in accordance with federal income tax requirements. For Owner and Beneficiary deaths prior to 2020, please consult your tax advisor regarding the applicable post-death distribution requirements.

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The information provided below applies to Owner and Beneficiary deaths after 2019. In addition, if you are an employee under a governmental plan, such as a section 403(b) plan of a public school or a governmental 457(b) plan, this law applies if you die after 2021. In addition, if your plan is maintained pursuant to one or more collective bargaining agreements, this law generally applies if you die after 2021 (unless the collective bargaining agreements terminate earlier).

• *Death before your required beginning date.* If you die before your required beginning date, and you have a designated beneficiary, any remaining
 interest must be distributed within 10 years after your death, unless the designated beneficiary is an "eligible designated beneficiary"
 ("EDB") or some other exception applies. A designated beneficiary is any individual designated as a beneficiary by the employee
 or IRA owner. An EDB is any designated beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically
 ill, or (5) an individual not more than 10 years younger than you. An individual's status as an EDB is generally determined on the
 date of your death. An EDB (other than a minor child) can generally stretch distributions over their life or life expectancy if payments begin by the end
 of the calendar year following the year of your death and continuing over the EDB's remaining life expectancy after the EDB's
 death. However, all amounts must be fully distributed by the end of the year containing the 10 <sup>th</sup> anniversary of the EDB's death. Special
 rules apply to minors and Beneficiaries that are not individuals. Additional special rules apply to surviving spouses, see "Spousal Continuation"
 below.

• *Death on or after your required beginning date.* In general, if you die on or after your required beginning date, and you have a designated beneficiary
 who is not an EDB, any remaining interest in your Qualified Annuity must continue to be distributed over the longer of your remaining
 life expectancy and your designated beneficiary's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of your
 death. If your Beneficiary is an EDB (other than a minor child), distributions must continue over the longer of your remaining
 life expectancy and the EDB's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of the EDB's
 death. Special rules apply to EDBs who are minors  and Beneficiaries that are not individuals.

• *Annuity payments.* If
 you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a
 joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled
 to be made beyond the applicable distribution period imposed under the law might need to be commuted at the end of that period
 (or otherwise modified after your death if permitted under federal tax law and by us) in order to comply with the post-death distribution
 requirements.

• *Other rules.* The post-death
 distribution requirements do not apply if the employee or IRA owner elected annuity payments that comply with
 prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the
 requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election
 before that date as to the method and amount of the annuity.

If your beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your beneficiary designations.

In addition, these post-death distribution requirements generally do not apply if the employee or IRA owner died prior to January 1, 2020. However, if the designated beneficiary of the deceased employee or IRA owner dies after January 1, 2020, and the designated beneficiary had elected the lifetime payout rule or was under the at-least-as rapidly rule, any remaining interest must be distributed within 10 year of the designated beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated beneficiary of an employee or IRA owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated beneficiary of an employee or IRA owner who died prior to 2020.

• *Spousal continuation.* If your beneficiary is your spouse, such surviving spouse can delay the application of the post-death distribution requirements
 until after their death by transferring the remaining interest tax-free to their own IRA, or by electing to treat your IRA as their own
 IRA. However, in certain circumstances the surviving spouse may have to take "hypothetical RMDs" (i.e., catch-up amounts required in accordance with
 the regulations).

The post-death distribution requirements are complex in numerous respects. Treasury has issued final and proposed regulations that may impact these required minimum distribution requirements. We reserve the right to make changes in order to comply with the final and proposed regulations, or any regulations published in the future. Any such changes will apply uniformly to affected Owners or Beneficiaries and will be made with such notice to affected Owners or Beneficiaries as is feasible under the circumstances. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

Unless payments are being made in the form of an annuity, a Beneficiary has the flexibility to take out more each year than mandated under the required minimum distribution rules.

Note that in 2014, the U.S. Supreme Court ruled that Inherited IRAs, other than IRAs inherited by the owner's spouse, do not qualify as retirement assets for purposes of protection under the federal bankruptcy laws.

Until withdrawn, amounts in a Qualified Annuity continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the required minimum distribution rules, are subject to tax. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

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For a Roth IRA, if death occurs before the entire interest is distributed, the death benefit must be distributed under the same rules applied to IRAs where death occurs before the required beginning date. Similar rules may apply to designated Roth accounts under an employer-sponsored retirement plan. Consult your plan sponsor or tax advisor for more information on designated Roth accounts.

**10% Additional Tax for Early Withdrawals from a Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from an IRA, SEP, Roth IRA, TDA or qualified retirement plan. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½ or die;

• the
 amount received is attributable to your becoming disabled; or

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually. (Please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years. Certain modification
 of payments or additional contributions to the Annuity during that time period will result in retroactive application of the
 10% additional tax.)

There are a number of other exceptions to this tax that may apply. In addition, distributions that satisfy certain exceptions to this tax may be repaid in certain circumstances. You should consult your tax advisor for further details.

**Withholding**

For 403(b) Tax Deferred annuities, we will withhold federal income tax at the rate of 20% for any eligible rollover distribution paid by us to or for a plan participant, unless such distribution is "directly" rolled over into another qualified plan, IRA (including the IRA variations described above), SEP, governmental 457(b) plan or TDA. An eligible rollover distribution is defined under the tax law as a distribution from an employer plan under 401(a), a TDA or a governmental 457(b) plan, excluding any distribution that is part of a series of substantially equal payments (at least annually) made over the life expectancy of the employee or the joint life expectancies of the employee and his designated Beneficiary, any distribution made for a specified period of 10 years or more, any distribution that is a required minimum distribution and any hardship distribution. Regulations also specify certain other items which are not considered eligible rollover distributions. We will not withhold for payments made from trustee owned Annuities or for payments under a 457 plan. For all other distributions, unless you elect otherwise, we will withhold federal income tax from the taxable portion of such distribution at an appropriate percentage. The rate of withholding on annuity payments where no mandatory withholding is required is determined on the basis of the withholding certificate that you file with us. If you do not file a certificate, we will automatically withhold federal taxes on the following basis:

• For
 any annuity payments not subject to mandatory withholding, you will have taxes withheld under the applicable default withholding rules;
 and

• For
 all other distributions, we will withhold at a 10% rate.

If no U.S. taxpayer identification number is provided, no election out of withholding will be allowed, and we will automatically withhold using the default withholding rules. In addition, if you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the U.S., we are required to withhold income tax

We will provide you with forms and instructions concerning the right to elect that no amount be withheld from payments in the ordinary course. However, you should know that, in any event, you are liable for payment of federal income taxes (including any estimated tax liabilities) on the taxable portion of the distributions, and you should consult with your tax advisor to find out more information on your potential liability if you fail to pay such taxes. There may be additional state income tax withholding requirements.

Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country.

**ERISA Requirements**

ERISA (the "Employee Retirement Income Security Act of 1974") and the Code prevent a fiduciary and other "parties in interest" with respect to a plan (and, for these purposes, an IRA would also constitute a "plan") from receiving any benefit from any party dealing with the plan, as a result of the sale of the Annuity. Administrative exemptions under ERISA generally permit the sale of insurance/annuity products to plans, provided that certain information is disclosed to the person purchasing the Annuity. This information has to do primarily with the fees, charges, discounts and other costs related to the Annuity, as well as any commissions paid to any agent selling the Annuity. Information about any applicable fees, charges, discounts, penalties or adjustments may be found in the applicable sections of this prospectus. Information about sales representatives and commissions may be found in the sections of this prospectus addressing distribution of the Annuities.

Other relevant information required by the exemptions is contained in the contract and accompanying documentation.

Please consult with your tax advisor if you have any questions about ERISA and these disclosure requirements.

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**Spousal Consent Rules for Retirement Plans – Qualified Annuities**

If you are married at the time your payments commence, you may be required by federal law to choose an income option that provides survivor annuity income to your spouse, unless your spouse waives that right. Similarly, if you are married at the time of your death, federal law may require all or a portion of the Death Benefit to be paid to your spouse, even if you designated someone else as your Beneficiary. A brief explanation of the applicable rules follows. For more information, consult the terms of your retirement arrangement.

*Defined Benefit Plans and Money Purchase Pension Plans.* If you are married at the time your payments commence, federal law requires that benefits be paid to you in the form of a "qualified joint and survivor annuity" (QJSA), unless you and your spouse waive that right, in writing. Generally, this means that you will receive a reduced payment during your life and, upon your death, your spouse will receive at least one-half of what you were receiving for life. You may elect to receive another income option if your spouse consents to the election and waives his or her right to receive the QJSA. If your spouse consents to the alternative form of payment, your spouse may not receive any benefits from the plan upon your death. Federal law also requires that the plan pay a Death Benefit to your spouse if you are married and die before you begin receiving your benefit. This benefit must be available in the form of an Annuity for your spouse's lifetime and is called a "qualified pre-retirement survivor annuity" (QPSA). If the plan pays Death Benefits to other Beneficiaries, you may elect to have a Beneficiary other than your spouse receive the Death Benefit, but only if your spouse consents to the election and waives his or her right to receive the QPSA. If your spouse consents to the alternate Beneficiary, your spouse will receive no benefits from the plan upon your death. Any QPSA waiver prior to your attaining age 35 will become null and void on the first day of the calendar year in which you attain age 35, if still employed.

*Defined Contribution Plans (including 401(k) Plans and ERISA 403(b) Annuities).* Spousal consent to a distribution is generally not required. Upon your death, your spouse will receive the entire Death Benefit, even if you designated someone else as your Beneficiary, unless your spouse consents in writing to waive this right. Also, if you are married and elect an Annuity as a periodic income option, federal law requires that you receive a QJSA (as described above), unless you and your spouse consent to waive this right.

*IRAs, non-ERISA 403(b) Annuities, and 457 Plans.* Spousal consent to a distribution usually is not required unless specifically required under the terms of the plan. Upon your death, any Death Benefit will be paid to your designated Beneficiary.

**ADDITIONAL CONSIDERATIONS**

**Reporting and Withholding for Escheated Amounts**

Revenue Rulings 2018-17 and 2020-24 provide that an amount transferred from an IRA or 401(a) qualified retirement plan to a state's unclaimed property fund is subject to federal income tax withholding at the time of transfer. The amount transferred is also subject to federal tax reporting. Consistent with these Rulings, we will withhold federal and state income taxes and report to the applicable Owner or Beneficiary as required by law when amounts are transferred to a state's unclaimed property fund. Non-qualified annuity contracts generally are subject to the same or similar federal income tax reporting and withholding requirements as IRAs and qualified retirement plans. As a result, we may determine in the future that we have an obligation to follow similar guidelines with respect to any amounts escheated from your Non-qualified Annuity.

**Gifts and Generation-skipping Transfers**

If you transfer your Annuity to another person for less than adequate consideration, there may be gift tax consequences in addition to income tax consequences. Also, if you transfer your Annuity to a person two or more generations younger than you (such as a grandchild or grandniece) or to a person that is more than 37½ years younger than you, there may be generation-skipping transfer tax consequences.

**Civil Unions and Domestic Partnerships**

U.S. Treasury Department regulations provide that for federal tax purposes, the term "spouse" does not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship that is not denominated as a marriage under the laws of the state where the relationship was entered into, regardless of domicile. As a result, if a Beneficiary of a deceased Owner and the Owner were parties to such a relationship, the Beneficiary will be required by federal tax law to take distributions from the Contract in the manner applicable to non-spouse Beneficiaries and will not be able to continue the Contract. Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

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**LEGAL PROCEEDINGS**

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As of the date of this prospectus, neither the Company nor the Registered Separate Account is a party to any material legal proceedings outside of the ordinary routine litigation incidental to the business. Although the Company and its affiliates are involved in pending and threatened legal proceedings in the normal course of its business, we do not anticipate that the outcome of any such legal proceedings will have a material adverse effect on the Registered Separate Account, or the Company's ability to meet its obligations under the Annuity.

As of the date of this prospectus, Prudential Annuities Distributors, Inc. is not a party to any material legal proceedings outside of the ordinary routine litigation incidental to the business. Although Prudential Annuities Distributors, Inc. can be involved in pending and threatened legal proceedings in the normal course of its business, we do not anticipate that the outcome of any such legal proceedings will have a material adverse effect on its ability to meet its obligations related to the Annuity.

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**FINANCIAL STATEMENTS**

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The financial statements of Fortitude Life Insurance & Annuity Company and the Registered Separate Account are incorporated by reference in the Statement of Additional Information.

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**ADDITIONAL INFORMATION**

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**HOW WILL I RECEIVE STATEMENTS AND REPORTS?**

We send any statements and reports required by applicable law or regulation to you at your last known address of record. You should therefore give us prompt notice of any address change. We reserve the right, to the extent permitted by law and subject to your prior consent, to provide any prospectus, prospectus supplements, confirmations, statements and reports required by applicable law or regulation to you at <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u> or any other electronic means. We send a confirmation statement to you each time a transaction is made affecting Account Value, such as making subsequent Purchase Payments, transfers, exchanges or withdrawals. We also send quarterly statements detailing the activity affecting your Annuity during the calendar quarter. We may confirm regularly scheduled transactions, such as systematic withdrawals (including 72(t) payments and required minimum distributions), and bank drafting, in quarterly statements instead of confirming them immediately. You should review the information in these statements carefully. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

Any errors or corrections on transactions for your Annuity must be reported to us at our Service Center as soon as possible to assure proper accounting to your Annuity. For transactions that are confirmed immediately, we assume all transactions are accurate unless you notify us otherwise within 30 days from the date you receive the confirmation. For transactions that are first confirmed on the quarterly statement, we assume all transactions are accurate unless you notify us within 30 days from the date you receive the quarterly statement. All transactions confirmed immediately or by quarterly statement are deemed conclusive after the applicable 30-day period. We may also send an annual report and a semi-annual report containing applicable financial statements for the Registered Separate Account and the Portfolios, as of December 31 and June 30, respectively, to Owners or, with your prior consent, make such documents available electronically through our website or other electronic means.

**HOW TO CONTACT US**

Please communicate with us using the telephone number and addresses below for the purposes described. Failure to send mail to the proper address may result in a delay in our receiving and processing your request.

**Annuities Service Center**

Call our Annuities Service Center at 1-800-879-7012 during normal business hours.

**Internet**

Access information about your Annuity through our website: www.prudential.com/annuities

**Correspondence Sent by Regular Mail**

Annuities Service Center<br>P.O. Box 7960<br>Philadelphia, PA 19176

**Correspondence Sent by Overnight\*, Certified or Registered Mail**

Annuities Service<br>1600 Malone Street<br>Millville, NJ 08332

\*Please note that overnight correspondence sent through the United States Postal Service may be delivered to the P.O. Box listed above, which could delay receipt of your correspondence at our Annuities Service Center. Overnight mail sent through other methods (e.g. Federal Express, United Parcel Service) will be delivered to the address listed below.

Correspondence sent by regular mail to our Annuities Service Center should be sent to the address shown above. Your correspondence will be picked up at this address and then delivered to our Annuities Service Center. Your correspondence is not considered received by us until it is received at our Annuities Service Center. Where this prospectus refers to the day when we receive a Purchase Payment, request, election, notice, transfer or any other transaction request from you, we mean the day on which that item (or the last requirement needed for us to process that item) arrives in complete and proper form at our Annuities Service Center or via the appropriate telephone or fax number if the item is a type we accept by those means. There are two main exceptions: if the item arrives at our Annuities Service Center (1) on a day that is not a business day, or (2) after the close of a business day, then, in each case, we are deemed to have received that item on the next business day.

You can obtain account information by calling our automated response system, and at <u>www.prudential.com/annuities</u>, our website. Our Customer Service representatives are also available during business hours to provide you with information about your account. You can request certain transactions through our telephone voice response system, our website or through a customer service representative. You can provide authorization for a third party, including your attorney-in-fact acting pursuant to a power of attorney or your financial professional, to access your account information and perform certain transactions on your account. You will need to complete a form provided by us which identifies those transactions that you wish to authorize via telephonic and electronic means and whether you wish to authorize a third party to perform any such transactions. Please note that unless you tell us otherwise, we deem that all transactions that are directed by your financial professional with respect to your Annuity have been authorized by you. We

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require that you or your representative provide proper identification before performing transactions over the telephone or through our website. This may include a Personal Identification Number (PIN) that will be provided to you upon issue of your Annuity or you may establish or change your PIN by calling our automated response system, and at <u>www.prudential.com/annuities</u>, our website. Any third party that you authorize to perform financial transactions on your account will be assigned a PIN for your account.

Transactions requested via telephone are recorded. To the extent permitted by law, we will not be responsible for any claims, loss, liability or expense in connection with a transaction requested by telephone or other electronic means if we acted on such transaction instructions after following reasonable procedures to identify those persons authorized to perform transactions on your Annuity using verification methods which may include a request for your Social Security number, PIN or other form of electronic identification. We may be liable for losses due to unauthorized or fraudulent instructions if we did not follow such procedures.

We do not guarantee access to telephonic, facsimile, Internet or any other electronic information or that we will be able to accept transaction instructions via such means at all times. Regular and/or express mail will be the only means by which we will accept transaction instructions when telephonic, facsimile, Internet or any other electronic means are unavailable or delayed. We reserve the right to limit, restrict or terminate telephonic, facsimile, Internet or any other electronic transaction privileges at any time.

**This prospectus is being provided for informational or educational purposes only and does not consider the investment objectives or** **financial situation of any Annuity Owner. The information is not intended as investment advice and is not a recommendation about managing** **or investing your retirement savings. Annuity Owners seeking information regarding their particular investment needs should contact a** **financial professional.**

PRUDENTIAL, THE PRUDENTIAL LOGO AND THE ROCK DESIGN ARE TRADEMARKS OF PRUDENTIAL FINANCIAL, INC. AND ITS RELATED ENTITIES, REGISTERED IN MANY JURISDICTIONS WORLDWIDE. USED UNDER LICENSE.

FORTITUDE RE AND THE FORTITUDE RE LOGO ARE SERVICE MARKS OF FORTITUDE GROUP HOLDINGS, LLC AND ITS AFFILIATES. OTHER PROPRIETARY FORTITUDE RE MARKS MAY BE DESIGNATED AS SUCH THROUGH THE USE OF THE <sup>SM</sup> OR <sup>®</sup> SYMBOLS.

ADVANCED SERIES ADVISOR PLAN, ASAP III, ADVANCED SERIES XTRA CREDIT SIX, ASXT6, ADVANCED SERIES LIFEVEST II, APEX II, AST, GUARANTEED RETURN OPTION PLUS (GRO PLUS), GUARANTEED RETURN OPTION PLUS 2008 (GRO PLUS 2008), HIGHEST DAILY, HIGHEST DAILY LIFETIME AND PLUS40 ARE SERVICE MARKS OR REGISTERED TRADEMARKS OF THE PRUDENTIAL INSURANCE COMPANY OF AMERICA AND ARE USED UNDER LICENSE BY FORTITUDE RE.

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**APPENDIX A –** **INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT**

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**Certain Investment Options may not be available through certain financial intermediaries. See the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_930) **of this prospectus for additional information.**

**Variable Options**

The following is a list of Portfolios available under the Contract. More information about the Portfolios is available in the prospectuses for the Portfolios, which may be amended from time to time and can be found online at <u>www.prudential.com/regdocs/FLIAC-CORE-USP</u>. You can also request this information at no cost by calling 1-800-346-3778 or by sending an email request to service@prudential.com. Depending on the optional benefits you choose, you may not be able to invest in certain Portfolio Companies.

The current expenses and performance information below reflects fees and expenses of the Portfolios, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher, and performance would be lower if these other charges were included. Each Portfolio's past performance is not necessarily an indication of future performance.

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|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity<br> Allspring VT Discovery All Cap Growth Fund - Class 1<sup>1,</sup><sup>♦</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 0.75% | 15.53% | 6.31% | 13.84% |
|  Equity<br> Allspring VT Small Cap Growth Fund - Class 1<sup>1,</sup><sup>♦</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 0.91% | 9.55% | -0.70% | 10.22% |
|  Allocation<br> AST Aggressive Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.86% | 16.17% | 8.81% | 9.59% |
|  Allocation<br> AST Balanced Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.87% | 14.35% | 6.96% | 8.05% |
|  Fixed Income<br> AST Bond Portfolio 2026<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 5.19% | 0.02% | 2.35% |
|  Fixed Income<br> AST Bond Portfolio 2027<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 5.99% | -0.67% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2028<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 7.02% | -0.99% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2029<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 7.78% | -1.51% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2030<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.04% | -1.80% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2031<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.43% | -2.39% | N/A |

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|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Fixed Income<br> AST Bond Portfolio 2032<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.73% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2033<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.94% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2034<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 9.10% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2035<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 9.21% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2036<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | N/A | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2037<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | N/A | N/A | N/A |
|  Fixed Income<br> AST Core Fixed Income Portfolio<sup>1</sup><br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Limited*<br>*Wellington Management Company LLP* | 0.68% | 7.15% | -1.10% | 2.30% |
|  Fixed Income<br> AST Government Money Market Portfolio<sup>1</sup><br>*PGIM Fixed Income* | 0.58% | 3.78% | 2.86% | 1.78% |
|  Equity<br> AST International Equity Portfolio<sup>1</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Massachusetts Financial Services Company*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 1.02% | 32.84% | 5.76% | 10.00% |
|  Fixed Income<br> AST Investment Grade Bond Portfolio<sup>1,</sup><sup>3,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.69% | 8.57% | -0.12% | 3.39% |
|  Allocation<br> AST J.P. Morgan Conservative Multi-Asset Portfolio<sup>1,</sup><sup>♦</sup><br>*J.P. Morgan Investment Management Inc.* | 0.92% | 10.37% | 3.31% | 5.19% |
|  Allocation<br> AST J.P. Morgan Moderate Multi-Asset Portfolio<sup>1,</sup><sup>♦</sup><br>*J.P. Morgan Investment Management Inc.* | 0.97% | 12.53% | 5.61% | 7.30% |
|  Equity<br> AST Large-Cap Equity Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Quantitative Solutions LLC* | 0.84% | 14.88% | 13.25% | 12.47% |
|  Equity<br> AST Large-Cap Growth Portfolio<sup>1</sup><br>*Clearbridge Investments, LLC*<br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*T. Rowe Price Associates, Inc.*<br>*Putnam Investment Management LLC* | 0.87% | 17.06% | 11.35% | 16.27% |

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|:---|:---|:---|:---|:---|:---|
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity | AST Large-Cap Value Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Putnam Investment Management LLC* | 0.81% | 16.05% | 12.97% | 11.35% |
|  Allocation | AST Multi-Asset Diversified Plus Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate*<br>*Putnam Investment Management LLC* | 1.13% | 13.55% | 5.58% | 5.73% |
|  Allocation | AST Multi-Asset Diversified Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate*<br>*Putnam Investment Management LLC* | 0.90% | 15.55% | 6.86% | 8.28% |
|  Allocation | AST PGIM Aggressive Multi-Asset Portfolio<sup>1</sup><br>*Jennison Associates LLC*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate* | 0.90% | 16.00% | 8.22% | 8.26% |
|  Allocation | AST Preservation Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.89% | 11.33% | 3.76% | 5.45% |
|  Allocation | AST Quantitative Modeling Portfolio<sup>1,</sup><sup>♦</sup><br>*PGIM Quantitative Solutions LLC*<br>*PGIM Fixed Income*<br>*PGIM Limited*<br>*Jennison Associates LLC* | 1.06% | 14.76% | 7.62% | 8.65% |
|  Equity | AST Small-Cap Equity Portfolio<sup>1</sup><br>*Boston Partners Global Investors, Inc.*<br>*Dimensional Fund Advisors LP*<br>*Driehaus Capital Management LLC*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*TimesSquare Capital Management, LLC* | 1.01% | 7.41% | 1.81% | 10.39% |
|  Equity | Invesco V.I. Discovery Mid Cap Growth Fund - Series I shares<sup>1,</sup><sup>‡</sup><br>*Invesco Advisers, Inc* | 0.86% | 4.79% | 3.90% | 11.38% |
|  Equity | Invesco V.I. Diversified Dividend Fund - Series I shares<sup>1</sup><br>*Invesco Advisers, Inc* | 0.68% | 15.74% | 10.81% | 9.20% |
|  Equity | Invesco V.I. Health Care Fund - Series I shares<sup>1</sup><br>*Invesco Advisers, Inc* | 0.99% | 15.33% | 3.80% | 6.58% |
|  Equity | Invesco V.I. Technology Fund - Series I shares<sup>‡</sup><br>*Invesco Advisers, Inc* | 0.96% | 20.47% | 10.30% | 15.78% |

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|:---|:---|:---|:---|:---|:---|
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity | NVIT Fidelity Institutional AM<sup>®</sup> Emerging Markets Fund - Class D<sup>1,</sup><sup>♦</sup><br>*Nationwide Fund Advisors*<br>*FIAM LLC* | 1.46% | 35.77% | 0.70% | 5.98% |
|  Fixed Income | ProFund Access VP High Yield<sup>‡</sup><br>*ProFund Advisors LLC* | 1.64% | 6.24% | 2.85% | 3.92% |
|  Equity | ProFund VP Asia 30<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 24.12% | -2.31% | 5.18% |
|  Equity | ProFund VP Banks<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 10.53% | 9.89% | 8.26% |
|  Equity | ProFund VP Bear<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -14.47% | -11.20% | -13.49% |
|  Equity | ProFund VP Biotechnology<br>*ProFund Advisors LLC* | 1.60% | 34.03% | 9.50% | 7.41% |
|  Equity | ProFund VP Bull<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 15.56% | 12.18% | 12.55% |
|  Equity | ProFund VP Communication Services<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 20.91% | 14.55% | 8.97% |
|  Equity | ProFund VP Consumer Discretionary<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.51% | 5.53% | 10.01% |
|  Equity | ProFund VP Consumer Staples<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -0.17% | 0.62% | 5.67% |
|  Equity | ProFund VP Energy<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.86% | 21.01% | 5.88% |
|  Equity | ProFund VP Europe 30<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 29.59% | 12.78% | 8.01% |
|  Equity | ProFund VP Financials<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 12.90% | 12.77% | 11.04% |
|  Equity | ProFund VP Health Care<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 12.56% | 5.50% | 8.02% |
|  Equity | ProFund VP Industrials<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 17.25% | 9.11% | 11.45% |
|  Equity | ProFund VP Internet<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 9.13% | 3.71% | 12.40% |
|  Equity | ProFund VP Japan<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 30.69% | 14.99% | 11.39% |
|  Equity | ProFund VP Large-Cap Growth<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 19.96% | 13.07% | 14.95% |
|  Equity | ProFund VP Large-Cap Value<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 11.37% | 11.09% | 9.89% |
|  Equity | ProFund VP Materials<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 8.05% | 6.41% | 8.42% |
|  Equity | ProFund VP Mid-Cap Growth<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.67% | 5.32% | 8.63% |

---

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity | ProFund VP Mid-Cap Value<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.84% | 9.19% | 8.92% |
|  Equity | ProFund VP NASDAQ-100<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 18.62% | 12.94% | 17.28% |
|  Equity | ProFund VP Pharmaceuticals<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 29.34% | 5.70% | 5.37% |
|  Equity | ProFund VP Precious Metals<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 150.31% | 17.01% | 18.89% |
|  Equity | ProFund VP Real Estate<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 0.63% | 2.85% | 3.95% |
|  Equity | ProFund VP Rising Rates Opportunity<sup>1</sup><br>*ProFund Advisors LLC* | 1.59% | 1.67% | 14.28% | 0.27% |
|  Equity | ProFund VP Semiconductor<br>*ProFund Advisors LLC* | 1.64% | 41.70% | 34.17% | 30.80% |
|  Equity | ProFund VP Short Mid-Cap<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -4.51% | -7.65% | -11.55% |
|  Equity | ProFund VP Short NASDAQ-100<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -15.80% | -13.57% | -18.48% |
|  Equity | ProFund VP Short Small-Cap<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -10.08% | -6.50% | -11.77% |
|  Equity | ProFund VP Small-Cap Growth<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 3.62% | 3.79% | 7.98% |
|  Equity | ProFund VP Small-Cap Value<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.00% | 7.17% | 7.81% |
|  Equity | ProFund VP Technology<br>*ProFund Advisors LLC* | 1.58% | 22.60% | 15.01% | 20.16% |
|  Fixed Income | ProFund VP U.S. Government Plus<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.38% | 1.17% | -13.73% | -3.45% |
|  Equity | ProFund VP UltraBull<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 24.38% | 19.82% | 20.95% |
|  Equity | ProFund VP UltraMid-Cap<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 3.20% | 7.98% | 11.51% |
|  Equity | ProFund VP UltraNASDAQ-100<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 29.25% | 18.60% | 29.22% |
|  Allocation | ProFund VP UltraSmall-Cap<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 12.93% | 1.23% | 8.81% |
|  Equity | ProFund VP Utilities<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 13.98% | 7.78% | 8.61% |

---

**The additional information below may be applicable to the Portfolios listed in the above table.**

PGIM Fixed Income is a business unit of PGIM, Inc.

PGIM Investments LLC manages each of the Portfolios of The Prudential Series Fund (PSF).

PGIM Investments LLC manages each of the Portfolios of the Advanced Series Trust (AST). AST Investment Services, Inc. serves as co-manager, along with PGIM Investments LLC, to many of the Portfolios of AST.

PGIM Real Estate is a business unit of PGIM, Inc.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1. **These Portfolios are also offered in other variable annuity contracts that utilize a predetermined mathematical formula to manage the guarantees offered in connection with** **optional benefits.** 

Those other variable annuity contracts offer certain optional living benefits that utilize a predetermined mathematical formula (the "formula") to manage the guarantees offered in connection with those optional benefits. The formula monitors each contract Owner's Account Value daily and, if necessary, will systematically transfer amounts among investment options. The formula transfers funds between the Variable Options for those variable annuity contracts and an AST Bond Portfolio Variable Option or a fixed account (those AST Bond Portfolios or a fixed account may not be available in connection with the annuity contracts offered through this prospectus). **You should be aware that the operation of the formula in those other variable annuity** **contracts may result in large-scale asset flows into and out of the underlying Portfolios that are available with your contract. These asset flows could adversely impact the** **underlying Portfolios, including their risk profile, expenses and performance**. Because transfers between the Variable Options and the AST Bond Variable Option or a fixed account can be frequent and the amount transferred can vary from day to day, any of the underlying Portfolios could experience the following effects, among others:

(a) a
 Portfolio's investment performance could be adversely affected by requiring a subadvisor to purchase and sell securities at inopportune
 times or by otherwise limiting the subadvisor's
 ability to fully implement the Portfolio's investment strategy;

(b) the
 subadvisor may be required to hold a larger portion of assets in highly liquid securities than it otherwise would hold, which could adversely
 affect performance if the highly
 liquid securities underperform other securities (e.g., equities) that otherwise would have been held; and

(c) a Portfolio may experience higher turnover and greater negative asset flows than it would have experienced without the formula,
 which could result in higher operating expense
 ratios and higher transaction costs for the Portfolio compared to other similar funds.

The efficient operation of the asset flows among Portfolios triggered by the formula depends on active and liquid markets. If market liquidity is strained, the asset flows may not operate as intended. For example, it is possible that illiquid markets or other market stress could cause delays in the transfer of cash from one Portfolio to another Portfolio, which in turn could adversely impact performance.

Before you allocate to the Variable Option with the AST Portfolios listed above, you should consider the potential effects on the Portfolios that are the result of the operation of the formula in the variable annuity contracts that are unrelated to your Variable Annuity. Please work with your financial professional to determine which Portfolios are appropriate for your needs.

2. Please
 note that you may not allocate Purchase Payments to the target date Bond Portfolios (e.g., AST Bond Portfolio 2036).

3. The
 AST Investment Grade Bond Variable Option is not available for allocation of Purchase Payments or contract Owner transfers.

♦ **This information includes annual expenses that reflect temporary or other fee reductions or waivers. Please see the Portfolio prospectus for additional information.** 

‡ The
 Portfolio has certain restrictions regarding availability for investment by Contract Owners as listed below.

**<u>Invesco V.I. Discovery Mid Cap Growth Fund - Series I shares</u>**<br>Effective May 1, 2020 was closed to all new investments except those made by contract Owners who had account value in the Portfolio on the effective date or at any time prior to the effective date.

**<u>Invesco V.I. Technology Fund - Series I shares</u>**<br>Effective May 1, 2022 was closed to all new investments except those made by contract Owners who had account value in the Portfolio on the effective date or at any time prior to the effective date.

**<u>ProFund Access VP High Yield</u>**<br>Effective April 26, 2021 was closed to all new investments except those made by contract Owners who had account value in the Portfolio on the effective date or at any time prior to the effective date.

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**Fixed Options**

The following is a list of Fixed Options currently available under the Contract. We may change the features of the Fixed Options listed below, offer new Fixed Options, and terminate existing Fixed Options. We will provide you with written notice before doing so. For more information about the Fixed Options, see "[Description of Insurance Company, Registered Separate Account, and Investment Options](#chapter_7_930)" in this prospectus.

**Note: If amounts are withdrawn from MVA Fixed Allocation before the end of its term, we will apply a Contract Adjustment. This may result in a** **significant reduction in your Contract value. For more information about Market Value Adjustments, please refer to the "[Charges and Adjustments](#chapter_8_930)** **" section of this prospectus.**

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| | | |
|:---|:---|:---|
| **Name** | **Term** | **Minimum Guaranteed Interest Rate\*** |
| Benefit Fixed Rate Account<sup>1</sup> | N/A | 1.00% for contract years 1-10; 1.05% thereafter |
| Guaranteed Period GRO<sup>1</sup> | 7 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 3 Month | 0%<sup>2</sup> |
| MVA Fixed Allocation | 6 Month | 0%<sup>2</sup> |
| MVA Fixed Allocation | 1 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 2 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 3 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 5 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 7 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 10 Year | 0%<sup>2</sup> |

---

\*The rate shown is the last Minimum Guaranteed Interest Rate issued before the product closed to new customers. Your Minimum Guaranteed Interest Rate is the amount shown on your Contract and can vary by state. Please consult with your representative for availability and current rates.

<sup>1</sup> Not available for allocations. <br><sup>2</sup> The Minimum Guaranteed Interest Rate is linked to an index and never less than zero, as shown on your Contract and subject to state minimums.

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**Stipulated Investment Options if you Elect Certain Optional Benefits**

------

Depending on the optional benefits you choose, you may not be able to invest in certain Portfolio Companies. Broadly speaking, we offer two groups of "Permitted Variable Options". Under the first group (Group I), your allowable investment options are more limited, but you are not subject to mandatory quarterly re-balancing. Under the second group (Group II), you may allocate your Account Value between a broader range of investment options, but must participate in quarterly re-balancing. The set of tables immediately below describes the first category of permitted Investment Options.

While those who do not participate in any optional benefit generally may invest in any of the investment options described in the prospectus, only those who participate in the optional benefits listed in Group II below may participate in the second category (along with its attendant re-balancing requirement). This second category is called our "Custom Portfolios Program" (we may have referred to the "Custom Portfolios Program" as the "Optional Allocation and Rebalancing Program" in other materials). If you participate in the Custom Portfolios Program, you may not participate in an Automatic Rebalancing Program. We may modify or terminate the Custom Portfolios Program at any time. **Any such modification or termination will (i) be implemented only** **after we have notified you in advance, (ii) not affect the guarantees you had accrued under the optional benefit or your ability to continue to** **participate in those optional benefits, and (iii) not require you to transfer Account Value out of any Portfolio in which you participated** **immediately prior to the modification or termination.**

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| | |
|:---|:---|
| **Group I: Allowable Benefit Allocations** |  |
| **Optional Benefit Name\*** | **Permitted Investment Options:** |
| GRO Plus II<br>Highest Daily GRO II<br>Highest Daily Lifetime Five Income Benefit<br>Highest Daily Lifetime Seven Income Benefit<br>Highest Daily Lifetime 7 Plus Income Benefit<br>Highest Daily Lifetime 7 Plus with Beneficiary Income Option<br>Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator<br>Highest Daily Lifetime Seven with Beneficiary Income Option<br>Highest Daily Lifetime Seven with Lifetime Income Accelerator<br>Highest Daily Lifetime 6 Plus<br>Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator<br>Highest Daily Value Death Benefit<br>Lifetime Five Income Benefit<br>Spousal Highest Daily Lifetime Seven Income Benefit<br>Spousal Highest Daily Lifetime 7 Plus Income Benefit <br>Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option<br>Spousal Highest Daily Lifetime Seven with Beneficiary Income Option<br>Spousal Highest Daily Lifetime 6 Plus<br>Spousal Lifetime Five Income Benefit | AST Aggressive Asset Allocation Portfolio<br>AST Balanced Asset Allocation Portfolio<br>AST J.P. Morgan Conservative Multi-Asset Portfolio<br>AST J.P. Morgan Moderate Multi-Asset Portfolio<br>AST Multi-Asset Diversified Plus Portfolio<br>AST Multi-Asset Diversified Portfolio<br>AST PGIM Aggressive Multi-Asset Portfolio<br>AST Preservation Asset Allocation Portfolio |

---

---

| | |
|:---|:---|
| **Optional Benefit Name\*** | **All Investment Options Permitted, EXCEPT These:** |
| Combo 5% Rollup & HAV Death Benefit<br>Guaranteed Minimum Income Benefit<br>Guaranteed Minimum Withdrawal Benefit<br>Highest Anniversary Value Death Benefit | Invesco V.I. Technology - Series I shares<br>ProFund Access VP High Yield<br>ProFund VP Biotechnology<br>ProFund VP Internet<br>ProFund VP Semiconductor<br>ProFund VP Short Mid-Cap<br>ProFund VP Short Small-Cap<br>ProFund VP Technology<br>ProFund VP UltraBull<br>ProFund VP UltraNASDAQ-100<br>ProFund VP UltraSmall-Cap |

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| | |
|:---|:---|
| **Optional Benefit Name\*** | **All Investment Options Permitted, EXCEPT These:** |
| GRO PLUS 2008<br>Highest Daily GRO | Allspring VT Small-Cap Growth<br>AST Quantitative Modeling Portfolio<br>Invesco V.I. Technology - Series I shares<br>ProFund Access VP High Yield<br>ProFund VP Asia 30<br>ProFund VP Biotechnology<br>ProFund VP Internet<br>ProFund VP NASDAQ-100<br>ProFund VP Precious Metals<br>ProFund VP Semiconductor<br>ProFund VP Short Mid-Cap<br>ProFund VP Short NASDAQ-100<br>ProFund VP Short Small-Cap<br>ProFund VP Technology<br>ProFund VP UltraBull<br>ProFund VP Ultra Mid-Cap<br>ProFund VP UltraNASDAQ-100<br>ProFund VP UltraSmall-Cap |

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| | |
|:---|:---|
| **Optional Benefit Name** **\*** | **All Investment Options Permitted, EXCEPT These:** |
| GRO/ GRO PLUS | AST Quantitative Modeling Portfolio<br>Invesco V.I. Technology - Series I shares<br>ProFund Access VP High Yield<br>ProFund VP Biotechnology<br>ProFund VP Internet<br>ProFund VP Semiconductor<br>ProFund VP Short Mid-Cap<br>ProFund VP Short Small-Cap<br>ProFund VP Technology<br>ProFund VP UltraBull<br>ProFund VP UltraNASDAQ-100<br>ProFund VP UltraSmall-Cap |

---

\* Detailed Information regarding these optional benefits can be found in the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" section of this prospectus.

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The following set of tables describes the second category (i.e., Group II below), under which:

(a) you
 must allocate at least 20% of your Account Value to certain fixed income Portfolios (currently, the AST Core Fixed Income Portfolio).

(b) you
 may allocate up to 80% in equity and other Portfolios listed in the table below.

**(c)** on
 each benefit quarter (or the next Valuation Day, if the quarter-end is not a Valuation Day), we will automatically re-balance your Account Value, so that the
 percentages devoted to each Portfolio remain the same as those in effect on the immediately preceding quarter-end, subject
 to the predetermined mathematical formula inherent in any applicable optional benefit. **Note that on the first quarter-end** **following your participation in the Custom Portfolios Programs (we may have referred to the "Custom Portfolios Program" as** **the "Optional Allocation and Rebalancing Program" in other materials), we will re-balance your Account Value so that the** **percentages devoted to each Portfolio remain the same as those in effect when you began the Custom Portfolios Program.** 

(d) between
 quarter-ends, you may re-allocate your Account Value among the investment options permitted within this category. If you reallocate,
 the next quarterly rebalancing will restore the percentages to those of your most recent reallocation.

(e) if
 you are already participating in the Custom Portfolios Program (we may have referred to the "Custom Portfolios Program" as
 the "Optional
 Allocation and Rebalancing Program" in other materials) and add a new benefit that also participates in this program, your rebalancing
 date will continue to be based upon the quarterly anniversary of your initial benefit election.

**Group II: Custom Portfolios Program** (we may have referred to the "Custom Portfolios Program" as the "Optional Allocation and Rebalancing Program" in other materials)

---

| | |
|:---|:---|
| **Group II: Allowable Benefit Allocations** |  |
| **Optional Benefit Name\*** | **Permitted Investment Options:** |
| Highest Daily Lifetime Seven<br>Spousal Highest Daily Lifetime Seven<br>Highest Daily Lifetime Seven with Beneficiary Income Option<br>Spousal Highest Daily Lifetime Seven with Beneficiary Income Option<br>Highest Daily Lifetime Seven with Lifetime Income Accelerator<br>Highest Daily Lifetime 7 Plus Spousal<br>Highest Daily Lifetime 7 Plus<br>Highest Daily Lifetime 7 Plus with Beneficiary Income Option<br>Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option<br>Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator<br>Highest Daily Lifetime 6 Plus<br>Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator<br>Spousal Highest Daily Lifetime 6 Plus<br>GRO Plus II<br>Highest Daily GRO II | AST Aggressive Asset Allocation Portfolio<br>AST Balanced Asset Allocation Portfolio<br>AST Core Fixed Income Portfolio<br>AST Government Money Market Portfolio<br>AST International Equity Portfolio<br>AST J.P. Morgan Conservative Multi-Asset Portfolio<br>AST J.P. Morgan Moderate Multi-Asset Portfolio<br>AST Multi-Asset Diversified Plus Portfolio<br>AST Multi-Asset Diversified Portfolio<br>AST Large-Cap Equity Portfolio<br>AST Large-Cap Growth Portfolio<br>AST Large-Cap Value Portfolio<br>AST PGIM Aggressive Multi-Asset Portfolio<br>AST Preservation Asset Allocation Portfolio<br>AST Small-Cap Equity Portfolio |

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The following additional Portfolios are available subject to certain restrictions:

---

| |
|:---|
| **ProFund VP** **\*<sup>,</sup>** **\*\*** |
| ProFund Access VP High Yield<br>ProFund VP Asia 30<br>ProFund VP Banks<br>ProFund VP Bear<br>ProFund VP Biotechnology<br>ProFund VP Bull<br>ProFund VP Communication Services<br>ProFund VP Consumer Discretionary<br>ProFund VP Consumer Staples<br>ProFund VP Energy<br>ProFund VP Europe 30<br>ProFund VP Financials<br>ProFund VP Health Care<br>ProFund VP Industrials<br>ProFund VP Internet<br>ProFund VP Japan<br>ProFund VP Large-Cap Growth<br>ProFund VP Large-Cap Value<br>ProFund VP Materials<br>ProFund VP Mid-Cap Growth<br>ProFund VP Mid-Cap Value<br>ProFund VP NASDAQ-100<br>ProFund VP Pharmaceuticals<br>ProFund VP Precious Metals<br>ProFund VP Real Estate<br>ProFund VP Rising Rates Opportunity<br>ProFund VP Semiconductor<br>ProFund VP Short Mid-Cap<br>ProFund VP Short NASDAQ-100<br>ProFund VP Short Small-Cap<br>ProFund VP Small-Cap Growth<br>ProFund VP Small-Cap Value<br>ProFund VP Technology<br>ProFund VP U.S. Government Plus<br>ProFund VP UltraBull<br>ProFund VP UltraMid-Cap<br>ProFund VP UltraNASDAQ-100<br>ProFund VP UltraSmall-Cap<br>ProFund VP Utilities |

---

\* Detailed Information regarding these optional benefits can be found in the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930)" section of this prospectus.

\*\* For ASAP III, XT6, and ASL II Annuities issued beginning on May 26, 2008, we limit the Owner's ability to invest in the ProFund VP Portfolios. Specifically:

• We
 will not permit those who acquire an ASAP III, XT6, or ASL II Annuity on or after May 26, 2008 (including beneficiaries who acquire such
 an Annuity under the <br> Beneficiary
 Continuation Option) to invest in any ProFund VP Portfolio; and

• Those
 who acquired an ASAP III, XT6, or ASL II Annuity prior to May 26, 2008 may invest in any ProFund VP Portfolio without being subject to
 the above restrictions; <br> and

• Those
 who currently hold an APEX II Annuity, or who acquired an APEX II Annuity after May 26, 2008, may invest in any ProFund VP Portfolio (except
 that <br> beneficiaries
 who acquire an APEX II Annuity on or after May 26, 2008 under the Beneficiary Continuation Option may not invest in any ProFund VP Portfolio).

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**APPENDIX B – PLUS40 OPTIONAL LIFE INSURANCE RIDER**

------

**Plus40™ Optional Life Insurance Rider was offered, in those States where approved, between November 18, 2002 for ASAP III, January 17,** **2002 for ASL II and APEX II, and January 23, 2002 for XT6 and May 1, 2003. The description below of the Plus40™ benefit applies to those** **Contract Owners who purchased an annuity during that time period and elected the Plus40™ benefit.**

**The life insurance coverage provided under the Plus40™ Optional Life Insurance Rider ("Plus40™ rider" or the "Rider") is supported by our** **general account and is not subject to, or registered as a security under, either the Securities Act of 1933 or the Investment Company Act of** **1940. Information about the Plus40™ rider is included as an Appendix to this prospectus to help you understand the Rider and the** **relationship between the Rider and the value of your Annuity. It is also included because you can elect to pay for the Rider with taxable** **withdrawals from your Annuity. The staff of the Securities and Exchange Commission has not reviewed this information. However, the** **information may be subject to certain generally applicable provisions of the Federal securities laws regarding accuracy and completeness.**

**The income tax-free life insurance payable to your Beneficiary(ies) under the Plus40™ rider is equal to 40% of the Account Value of your** **Annuity as of the date we receive due proof of death, subject to certain adjustments, restrictions and limitations described below.**

**ELIGIBILITY**

The Plus40™ rider may be purchased as a rider on your Annuity. The Rider must cover those persons upon whose death the Annuity's death benefit becomes payable – the Annuity's Owner or Owners, or the Annuitant (in the case of an entity owned Annuity). If the Annuity has two Owners, the Rider's death benefit is payable upon the first death of such persons. If the Annuity is owned by an entity, the Rider's death benefit is payable upon the death of the Annuitant, even if a Contingent Annuitant is named.

The minimum allowable age to purchase the Plus40™ rider is 40; the maximum allowable age is 75. If the Rider is purchased on two lives, both persons must meet the age eligibility requirements. The Plus40™ rider is not available to purchasers who use their Annuity as a funding vehicle for a Tax Sheltered Annuity (or 403(b)) or as a funding vehicle for a qualified plan under Section 401 of the Code.

**ADJUSTMENTS, RESTRICTIONS & LIMITATIONS**

• If
 you die during the first 24 months following the effective date of the Plus40 rider (generally, the Issue Date of your Annuity), the death benefit will be limited
 to the amount of any charges paid for the Rider while it was in effect. *While we will return the charges you have paid* *during the applicable period as the death benefit, your Beneficiary(ies) will receive no* *<u>additional</u>* *life insurance benefit from the Plus40* *rider if you die within 24 months of its effective date.* 

• If
 you make a Purchase Payment within 24 months prior to the date of death, the Account Value used to determine the amount of the death
 benefit will be reduced by the amount of such Purchase Payment(s). If we reduce the death benefit payable under the Plus40 rider based
 on this provision, we will return 50% of any charges paid for the Rider based on those Purchase Payments as an additional amount included
 in the death benefit under the Rider.

• If
 we apply Credits to your Annuity based on Purchase Payments, such Credits are treated as Account Value for purposes of determining the
 death benefit payable under the Plus40 rider. However, if Credits were applied to Purchase Payments made within 24 months prior to the
 date of death, the Account Value used to determine the amount of the death benefit will be reduced by the amount of such Credits. If we
 reduce the death benefit payable under the Plus40 rider based on this provision, we will return 50% of any charges paid for the Rider based on such Credits
 as an additional amount included in the death benefit under the Rider.

• If
 you become terminally ill (as defined in the Rider) and elect to receive a portion of the Plus40 rider's death benefit under the
 Accelerated Death
 Benefit provision, the amount that will be payable under the Rider upon your death will be reduced. Please refer to the Accelerated Death
 Benefit provision described below.

• If
 charges for the Plus40 rider are due and are unpaid as of the date the death benefit is being determined, such charges will be deducted from the amount paid
 to your Beneficiary(ies).

• If
 the age of any person covered under the Plus40 rider is misstated, we will adjust any coverage under the Rider to conform to the facts. For example, if,
 due to the misstatement, we overcharged you for coverage under the Rider, we will add any additional charges paid to the amount
 payable to your Beneficiary(ies). If, due to the misstatement, we undercharged you for coverage under the Rider, we will reduce the
 death benefit in proportion to the charges not paid as compared to the charges that would have been paid had there been no misstatement.

• On
 or after an Owner reaches the expiry date of the Rider (the anniversary of the Annuity's Issue Date on or immediately after the
 95 <sup>th</sup> birthday), coverage
 will terminate. No charge will be made for an Owner following the expiry date. If there are two Owners, the expiry date applies
 separately to each Owner; therefore, coverage may continue for one Owner and terminate as to the other Owner.

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**MAXIMUM BENEFIT**

The Plus40 rider is subject to a Maximum Death Benefit Amount based on the Purchase Payments applied to your Annuity. The Plus40 rider may also be subject to a Per Life Maximum Benefit that is based on all amounts paid under any annuity contract we issue to you under which you have elected the Plus40 rider or similar life insurance coverage.

• The <u>Maximum Death Benefit Amount</u> is 100% of the Purchase Payments increasing at 5% per year following the date each Purchase Payment
 is applied to the Annuity until the date of death. If Purchase Payments are applied to the Annuity within 24 months prior to the date
 of death, the Maximum Death Benefit Amount is decreased by the amount of such Purchase Payments.

• The <u>Per Life Maximum Benefit</u> applies to Purchase Payments applied to any such annuity contracts more than 24 months from the date of death
 that exceed $1,000,000. If you make Purchase Payments in excess of $1,000,000, we will reduce the aggregate death benefit payable
 under all Plus40 riders, or similar riders issued by us, based on the combined amount of Purchase Payments in excess of $1,000,000
 multiplied by 40%. If the Per Life Maximum Benefit applies, we will reduce the amount payable under each applicable Plus40 rider
 on a proportional basis. If the Per Life Maximum Benefit applies upon your death, we will return any excess charges that you paid on the
 portion of your Account Value on which no benefit is payable. *The Per Life Maximum Benefit does not limit the amount of Purchase* *Payments that you may apply to your Annuity.* 

**ACCELERATED DEATH BENEFIT PROVISION**

If you become terminally ill, you may request that a portion of the death benefit payable under the Plus40 rider be prepaid instead of being paid to your Beneficiary(ies) upon your death. Subject to our requirements and where allowed by law, we will make a one time, lump sum payment. Our requirements include proof satisfactory to us, in writing, of terminal illness after the Rider's Effective Date.

The maximum we will pay, before any reduction, is the lesser of 50% of the Rider's death benefit or $100,000. If you elect to accelerate payment of a portion of the death benefit under the Plus40 rider, the amount of the remaining death benefit is reduced by the prepaid amount accumulating at an annualized interest rate of 6.0%. Eligibility for an accelerated payout of a portion of your Plus40 rider death benefit may be more restrictive than any medically-related surrender provision that may be applicable to you under the Annuity.

**CHARGES FOR THE PLUS40 RIDER**

The Plus40 rider has a current charge and a guaranteed maximum charge. The current charge for the Plus40 rider is based on a percentage of your Account Value as of the anniversary of the Issue Date of your Annuity. The applicable percentages differ based on the attained age, last birthday of the Owner(s) or Annuitant (in the case of an entity owned Annuity) as of the date the charge is due. We reserve the right to change the current charge, at any time, subject to regulatory approval where required. If there are two Owners, we calculate the current charge that applies to each Owner individually and deduct the combined amount as the charge for the Rider. There is no charge based on a person's life after coverage expires as to that person. However, a charge will still apply to the second of two Owners (and coverage will continue for such Owner) if such Owner has not reached the expiry date.

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| | |
|:---|:---|
| **Attained Age** | **Percentage of Account Value** |
| Age 40-75 | .80<br> %<br>|
| Age 76-80 | 1.60<br> %<br>|
| Age 81-85 | 3.20<br> %<br>|
| Age 86-90 | 4.80<br> %<br>|
| Age 91 | 6.50<br> %<br>|
| Age 92 | 7.50<br> %<br>|
| Age 93 | 8.50<br> %<br>|
| Age 94 | 9.50<br> %<br>|
| Age 95 | 10.50<br> %<br>|

---

The charge for the Plus40 rider may also be subject to a guaranteed maximum charge that will apply if the current charge, when applied to the Account Value, exceeds the guaranteed maximum charge. The guaranteed maximum charge is based on a charge per $1,000 of insurance.

We determine the charge for the Rider annually, in arrears. We deduct the charge: (1) upon your death; (2) on each anniversary of the Issue Date; (3) on the date that you begin receiving annuity payments; (4) if you surrender your Annuity other than a medically-related surrender; or (5) if you choose to terminate the Rider. If the Rider terminates for any of the preceding reasons on a date other than the anniversary of the Annuity's Issue Date, the charge will be prorated. During the first year after the Annuity's Issue Date, the charge will be prorated from the Issue Date. In all subsequent years, the charge will be prorated from the last anniversary of the Issue Date.

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You can elect to pay the annual charge through a redemption from your Annuity's Account Value or through funds other than those within the Annuity. If you do not elect a method of payment, we will automatically deduct the annual charge from your Annuity's Account Value. The manner in which you elect to pay for the Rider may have tax implications.

• If
 you elect to pay the charge through a redemption of your Annuity's Account Value, the withdrawal will be treated as a taxable distribution,
 and will generally be subject to ordinary income tax on the amount of any investment gain withdrawn. If you are under the age of
 59½, the distribution may also be subject to a 10% additional tax on any gain withdrawn, in addition to ordinary income taxes. We
 first deduct the
 amount of the charge on a proportional basis from the Account Value in the Variable Options. We only deduct the charge on a proportional
 basis from the Fixed Allocations to the extent there is insufficient Account Value in the Variable  Options to pay the charge.

• If
 you elect to pay the charge through funds other than those from your Annuity, we require that payment be made electronically in U.S. currency
 through a U.S. financial institution. If you elect to pay the charge through electronic transfer of funds and payment has not been received
 within 31 days from the due date, we will deduct the charge as a redemption from your Annuity, as described above.

**TERMINATION**

You can terminate the Plus40 rider at any time. Upon termination, you will be required to pay on a proportional basis a portion of the annual charge for the Rider. The Plus40 rider will terminate automatically on the date your Account Value is applied to begin receiving annuity payments, on the date you surrender the Annuity or, on the expiry date with respect to such person who reaches the expiry date. We may also terminate the Plus40 rider, if necessary, to comply with our interpretation of the Code and applicable regulations. Once terminated, you may not reinstate your coverage under the Plus40 rider.

CHANGES IN ANNUITY DESIGNATIONS

Changes in ownership and annuitant designations under the Annuity may result in changes in eligibility and charges under the Plus40 rider. These changes may include termination of the Rider. Please refer to the Rider for specific details.

SPOUSAL ASSUMPTION

A spousal beneficiary may elect to assume ownership of the Annuity instead of taking the Annuity's Death Benefit. However, regardless of whether a spousal beneficiary assumes ownership of the Annuity, **the death benefit under the Plus40 rider will be paid despite the fact that the Annuity will** **continue.** The spousal beneficiary can apply the death benefit proceeds under the Plus40 rider to the Annuity as a new Purchase Payment, can purchase a new annuity contract or use the death benefit proceeds for any other purpose. Certain restrictions may apply to an Annuity that is used as a qualified investment. Spousal beneficiaries may also be eligible to purchase the Plus40 rider, in which case the Annuity's Account Value, as of the date the assumption is effective, will be treated as the initial Purchase Payment under applicable provisions of the Rider.

**TAX CONSIDERATION**

The Plus40™ rider was designed to qualify as a life insurance contract under the Code. As life insurance, under most circumstances, the Beneficiary(ies) does not pay any Federal income tax on the death benefit payable under the Rider.

If your Annuity is being used as an Individual Retirement Annuity (IRA), we consider the Plus40™ rider to be outside of your IRA, since premium for the Rider is paid for either with funds outside of your Annuity or with withdrawals previously subject to tax and any applicable additional taxes or penalties.

We believe payments under the accelerated payout provision of the Rider will meet the requirements of the Code and the regulations in order to qualify as tax-free payments. To the extent permitted by law, we will change our procedures in relation to the Rider, or the definition of terminally ill, or any other applicable term in order to maintain the tax-free status of any amounts paid out under the accelerated payout provision.

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**APPENDIX C – ADDITIONAL INFORMATION ON ASSET ALLOCATION PROGRAM**

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**PROGRAM RULES**

• Prior
 to December 5, 2005, you could elect an asset allocation program where the Variable Options for each asset class in each model Portfolio
 were designated based on an evaluation of available Variable Options. Effective December 5, 2005, you can no longer enroll in an
 asset allocation program, but you will be permitted to remain in the program if you enrolled prior to the date. These program Rules reflect
 how the asset allocation program will be administered as of December 5, 2005 for those Owners who have chosen to remain in their
 program. Asset allocation is a sophisticated method of diversification that allocates assets among asset classes in order to manage investment
 risk and potentially enhance returns over the long term. However, asset allocation does not guarantee a profit or protect against
 a loss.

**HOW THE ASSET ALLOCATION PROGRAM WORKS**

• Amounts
 will automatically be allocated in accordance with the percentages and to Variable Options indicated for the model Portfolio that you
 previously chose. If you allocate your Account Value or transfer your Account Value among any Variable Options that are outside of your
 model Portfolio, we will allocate these amounts according to the allocation percentages of the applicable model Portfolio upon the next
 rebalancing. You will not be permitted to change from one model Portfolio to another. Upon each rebalance, 100% of your Account Value
 allocated to the variable Variable Options will be allocated to the asset allocation program. Any Account Value not invested in the Variable
 Options will not be part of the program.

• **Additional Purchase Payments:** Unless otherwise requested, any additional Purchase Payments applied to the variable Variable Options
 in the Annuity will be allocated to the Variable Options according to the allocation percentages for the model Portfolio you chose. Allocation
 of additional Purchase Payments outside of your model Portfolio but into a Variable Option will be reallocated according to the allocation
 percentages of the applicable model Portfolio upon the next rebalancing.

• **Rebalancing Your Model Portfolio:** Changes in the value of the Variable Option will cause your Account Value allocated to the Variable Options
 to vary from the percentage allocations of the model Portfolio you select. By selecting the asset allocation program, you have directed
 us to periodically (e.g., quarterly) rebalance your Account Value allocated to the Variable Options in accordance with the percentage
 allocations assigned to each Variable Option within your model Portfolio at the time you elected the program or had later been modified
 with your consent. Some asset allocation programs will only require that a rebalancing occur when the percent of your Account Value
 allocated to the Variable Options are outside of the acceptable range permitted under such asset allocation program. Note – Any Account Value not
 invested in the Variable Options will not be affected by any rebalance.

• **Variable Option Changes Within the Model Portfolios:** From time to time there may be a change in a Variable Option within your model Portfolio.
 Unless directed by you or your financial professional to reallocate to the new Variable Option, rebalancing will continue in accordance
 with your unchanged model Portfolio, unless the Variable Option is no longer available under your Annuity. If the Variable Option
 is no longer available we will notify you. If you do not consent to the new Variable Option, your lack of consent will be deemed a request
 to terminate the asset allocation program and the provisions under "Termination or Modification of the Asset Allocation Program" will apply.

• **Owner Changes in Choice of Model Portfolio:** You may not change from the model Portfolio that you have elected to any other model Portfolio.

**TERMINATION OR MODIFICATION OF THE ASSET ALLOCATION PROGRAM:**

• You
 may request to terminate your asset allocation program at any time. Once you terminate your asset allocation program, you will not be
 permitted to re-enroll in the program. Any termination will be effective on the date that we receive your termination request in Good Order. If you are
 enrolled in certain optional benefits, termination of your asset allocation program must coincide with (i) the enrollment in a
 then currently available and approved asset allocation program or other approved option, or (ii) the allocation of your entire Account Value to the then
 required investment option(s) available with these benefits. However, if you are enrolled in certain optional benefits, you may
 terminate the benefit in order to then terminate your asset allocation program. We reserve the right to terminate or modify the asset allocation program
 at any time.

**RESTRICTIONS ON ELECTING THE ASSET ALLOCATION:**

• You
 cannot participate in automatic rebalancing or a DCA program while enrolled in an asset allocation program and Systematic Withdrawals
 can only be made as flat dollar amounts.

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**APPENDIX D – DESCRIPTION AND CALCULATION OF PREVIOUSLY OFFERED OPTIONAL DEATH** **BENEFITS (THIS APPLIES SOLELY TO APEX II, ASL II AND XT6)**

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If you purchased your Annuity before November 18, 2002 and were not a resident of the State of New York, the following optional death benefits were offered:

**ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT**

The Enhanced Beneficiary Protection Optional Death Benefit can provide additional amounts to your Beneficiary that may be used to offset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. Whether this benefit is appropriate for you may depend on your particular circumstances, including other financial resources that may be available to your Beneficiary to pay taxes on your Annuity should you die during the Accumulation Period. No benefit is payable if death occurs on or after the Annuity Date.

**The Enhanced Beneficiary Protection Optional Death Benefit provides a benefit that is payable in addition to the basic Death Benefit.** If the Annuity has one Owner, the Owner must be age 75 or less at the time the benefit is purchased. If the Annuity has joint Owners, the oldest Owner must be age 75 or less. If the Annuity is owned by an entity, the Annuitant must be age 75 or less.

**Calculation of Enhanced Beneficiary Protection Optional Death Benefit**

If you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the Death Benefit is calculated as follows:

1. the
 basic Death Benefit described above

**PLUS**

1. 50%
 of the "**Death Benefit Amount** "
 less Purchase Payments reduced by proportional withdrawals.

**<u>"Death Benefit Amount"</u>** includes your Account Value and any amounts added to your Account Value under the Annuity's basic Death Benefit when the Death Benefit is calculated. Under the basic Death Benefit, amounts are added to your Account Value when the Account Value is less than Purchase Payments minus proportional withdrawals.

**<u>"Proportional Withdrawals"</u>** are determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn.

The amount calculated in Items 1 & 2 above may be reduced by any Credits under certain circumstances.

**The Enhanced Beneficiary Protection Optional Death Benefit is subject to a maximum of 50% of all Purchase Payments applied to the Annuity** **at least 12 months prior to the death of the decedent that triggers the payment of the Death Benefit.**

**Please refer to the section entitled "**[**<u>Taxes</u>**](#chapter_14-sect1_1_930)**" for a discussion of special tax considerations for purchasers of this benefit.**

**NOTE: You may not elect the Enhanced Beneficiary Protection Optional Death Benefit if you have elected any other Optional Death Benefit.**

GUARANTEED MINIMUM DEATH BENEFIT

If the Annuity has one Owner, the Owner must be age 80 or less at the time the optional Death Benefit is purchased. If the Annuity has joint Owners, the oldest Owner must be age 80 or less. If the Annuity is owned by an entity, the Annuitant must be age 80 or less.

**Key Terms Used with the Guaranteed Minimum Death Benefit**

• The <u>Death Benefit Target Date</u> is the contract anniversary on or after the 80 <sup>th</sup> birthday of the current Owner, the oldest of either joint Owner
 or the Annuitant, if entity owned.

• The <u>Highest Anniversary Value</u> equals the highest of all previous "Anniversary Values" on or before the earlier of the Owner's date of death
 and the "Death Benefit Target Date".

• The <u>Anniversary Value</u> is the
 Account Value as of each anniversary of the Issue Date plus the sum of all Purchase Payments on or after such
 anniversary less the sum of all "Proportional Reductions" since such anniversary.

• A <u>Proportional Reduction</u> is
 a reduction to the value being measured caused by a withdrawal, equaling the percentage of the withdrawal as
 compared to the Account Value as of the date of the withdrawal. For example, if your Account Value is $10,000 and you withdraw $2,000
 (a 20% reduction), we will reduce both your Anniversary Value and the amount determined by Purchase Payments increasing at the
 appropriate interest rate by 20%.

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**Calculation of Guaranteed Minimum Death Benefit**

The Guaranteed Minimum Death Benefit depends on whether death occurs before or after the Death Benefit Target Date.

*If the Owner dies before the Death Benefit Target Date, the Death Benefit equals the greatest of:*

1. the
 Account Value in the Variable Options plus the Interim Value of any Fixed Allocations (no Market Value Adjustment) as of the date we receive
 in writing "due proof of death"; and

2. the
 sum of all Purchase Payments minus the sum of all Proportional Reductions, each increasing daily until the Owner's date of death
 at a rate of 5.0%,
 subject to a limit of 200% of the difference between the sum of all Purchase Payments and the sum of all withdrawals as of the
 Owner's date of death; and

3. the
 "Highest Anniversary Value" on or immediately preceding the Owner's date of death.

The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and decreased by any Proportional Reductions since such date. The amount calculated in Items 1 & 3 above may be reduced by any Credits under certain circumstances.

*If the Owner dies on or after the Death Benefit Target Date, the Death Benefit equals the greater of:*

1. the
 Account Value as of the date we receive in writing "due proof of death" (a Market Value Adjustment may be applicable to amounts
 in any Fixed Allocations);
 and

2. the
 greater of Item 2 & 3 above on the Death Benefit Target Date plus the sum of all Purchase Payments less the sum of all Proportional Reductions since
 the Death Benefit Target Date.

The amount calculated in Item 1 above may be reduced by any Credits under certain circumstances.

**Annuities with Joint Owners**

For Annuities with Joint Owners, the Death Benefit is calculated as shown above except that the age of the oldest of the Joint Owners is used to determine the Death Benefit Target Date. NOTE: If you and your spouse own the Annuity jointly, we will pay the Death Benefit to the Beneficiary. If the sole primary Beneficiary is the surviving spouse, then the surviving spouse can elect to assume ownership of the Annuity and continue the contract instead of receiving the Death Benefit.

**Annuities Owned by Entities**

For Annuities owned by an entity, the Death Benefit is calculated as shown above except that the age of the Annuitant is used to determine the Death Benefit Target Date. Payment of the Death Benefit is based on the death of the Annuitant (or Contingent Annuitant, if applicable).

**Can I terminate the optional Death Benefits? Do the optional Death Benefits terminate under other circumstances?**

You can terminate the Enhanced Beneficiary Protection Optional Death Benefit and the Guaranteed Minimum Death Benefit at any time. Upon termination, you will be required to pay on a proportional basis a portion of the annual charge for the benefit. Both optional Death Benefits will terminate automatically on the Annuity Date. We may also terminate any optional Death Benefit if necessary to comply with our interpretation of the Code and applicable regulations.

**What are the charges for the optional Death Benefits?**

We deduct a charge from your Account Value if you elect to purchase either optional Death Benefit. The maximum charge for Enhanced Beneficiary Protection Death Benefit and the Guaranteed Minimum Death Benefit respectively is 0.75% and 0.55%. The charges for these death benefits are deducted in arrears each Annuity Year. No charge applies after the Annuity Date. We deduct the charge:

1. on
 each anniversary of the Issue Date;

2. when
 Account Value is transferred to our general account prior to the Annuity Date;

3. if
 you surrender your Annuity; and

4. if
 you choose to terminate the benefit (Enhanced Beneficiary Protection Optional Death Benefit only)

If you surrender the Annuity, elect to begin receiving annuity payments or terminate the benefit on a date other than an anniversary of the Issue Date, the charge will be prorated. During the first year after the Issue Date, the charge will be prorated from the Issue Date. In all subsequent years, it would be prorated from the last anniversary of the Issue Date.

We first deduct the amount of the charge on a proportional basis from the Account Value in the Variable Options. We only deduct the charge on a proportional basis from the Fixed Allocations to the extent there is insufficient Account Value in the Variable Options to pay the charge. If your Annuity's Account Value is insufficient to pay the charge, we may deduct your remaining Account Value and terminate your Annuity. We will notify you if your Account Value is insufficient to pay the charge and allow you to submit an additional Purchase Payment to continue your Annuity.

Please refer to the section entitled "[<u>Taxes</u>](#chapter_14-sect1_1_930)" for additional considerations in relation to the optional Death Benefit.

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**ADDITIONAL CALCULATIONS**

**Examples of Enhanced Beneficiary Protection Optional Death Benefit Calculation**

The following are examples of how the Enhanced Beneficiary Protection Optional Death Benefit is calculated. Each example assumes that a $50,000 initial Purchase Payment is made and that no withdrawals are made prior to the Owner's death. Each example assumes that there is one Owner who is age 50 on the Issue Date and that all Account Value is maintained in the Variable Options.

NOTE: The examples below do not include Credits which may be recaptured by us under certain circumstances.

***Example with Variable Option increase***

Assume that the Owner's Account Value has been increasing due to positive Variable Option performance. On the date we receive due proof of death, the Account Value is $75,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value less the amount of any Credits applied within 12-months prior to the date of death, whichever is greater. Therefore, the basic Death Benefit is equal to $75,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($75,000) **PLUS** 50% of the "Death Benefit Amount" less Purchase Payments reduced by proportional withdrawals.

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| | |
|:---|:---|
|  Purchase Payments | $50000 |
|  Account Value | $75000 |
|  Basic Death Benefit | $75000 |
|  Death Benefit Amount | $75,000 - $50,000 = $25,000 |
|  Amount Payable Under Enhanced Beneficiary Protection Optional Death Benefit | $75,000 + $12,500 = $87,500 |

---

**Examples with Variable Option decline**

Assume that the Owner's Account Value has been decreasing due to declines in Variable Option performance. On the date we receive due proof of death, the Account Value is $45,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, less the amount of any Credits applied within 12-months prior to the date of death, whichever is greater. Therefore, the basic Death Benefit is equal to $50,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($50,000) **PLUS** 50% of the "Death Benefit Amount" less Purchase Payments reduced by proportional withdrawals.

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| | | |
|:---|:---|:---|
|  Purchase Payments | = | $50000 |
|  Account Value | = | $40000 |
|  Basic Death Benefit | = | $50000 |
|  Death Benefit Amount | = | $50,000 - $50,000 = $0 |
|  Amount Payable Under Enhanced Beneficiary Protection Optional Death Benefit = $50,000 + $0 = $50,000 | Amount Payable Under Enhanced Beneficiary Protection Optional Death Benefit = $50,000 + $0 = $50,000 | Amount Payable Under Enhanced Beneficiary Protection Optional Death Benefit = $50,000 + $0 = $50,000 |

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**In this example you would receive no additional benefit from purchasing the Enhanced Beneficiary Protection Optional Death Benefit.**

**Examples of Guaranteed Minimum Death Benefit Calculation**

The following are examples of how the Guaranteed Minimum Death Benefit is calculated. Each example assumes that a $50,000 initial Purchase Payment is made and that no withdrawals are made prior to the Owner's death. Each example assumes that there is one Owner who is age 50 on the Issue Date and that all Account Value is maintained in the Variable Options.

NOTE: The examples below do not include Credits which may be recaptured by us under certain circumstances.

***Example of Variable Option increase***

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance. On the date we receive due proof of death, the Account Value is $90,000. The Highest Anniversary Value at the end of any previous period is $72,000. The Death Benefit would be the Account Value ($90,000) because it is greater than the Highest Anniversary Value ($72,000) or the sum of prior Purchase Payments increased by 5.0% annually ($73,872.77).

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**Example of Variable Option decrease**

Assume that the Owner's Account Value generally increased until the fifth anniversary but generally has been decreasing since the fifth contract anniversary. On the date we receive due proof of death, the Account Value is $48,000. The Highest Anniversary Value at the end of any previous period is $54,000. The Death Benefit would be the sum of prior Purchase Payments increased by 5.0% annually ($73,872.77) because it is greater than the Highest Anniversary Value ($54,000) or the Account Value ($48,000).

**Example of Variable Option increase followed by decrease**

Assume that the Owner's Account Value increased significantly during the first six years following the Issue Date. On the sixth anniversary date the Account Value is $90,000. During the seventh Annuity Year, the Account Value increases to as high as $100,000 but then subsequently falls to $80,000 on the date we receive due proof of death. The Death Benefit would be the Highest Anniversary Value at the end of any previous period ($90,000), which occurred on the sixth anniversary, although the Account Value was higher during the subsequent period. The Account Value on the date we receive due proof of death ($80,000) is lower, as is the sum of all prior Purchase Payments increased by 5.0% annually ($73,872.77).

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**APPENDIX E – FORMULA UNDER HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT**

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We set out below the current formula under which we may transfer amounts between the Variable Options and the Benefit Fixed Rate Account. Upon your election of Highest Daily Lifetime Five, we will not alter the formula that applies to your Annuity. However, as discussed in the "[<u>Benefits Available</u> <u>Under the Contract</u>](#chapter_11-sect1_1_930)" section, we reserve the right to modify this formula with respect to those who elect Highest Daily Lifetime Five in the future.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime Five benefit (the "Effective Date")
 and is not changed
 for the life of the guarantee. Currently, it is 83%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 77%.

• L
 – the target value as of the current Valuation Day.

• r
 – the target ratio.

• a
 – the factors used in calculating the target value. These factors are established on the Effective Date and are not changed for
 the life of the guarantee.
 The factors that we use currently are derived from the a2000 Individual Annuity Mortality Table with an assumed interest rate
 of 3%. Each number in the table "a" factors (which appears below) represents a factor, which when multiplied by the Highest
 Daily Annual Income
 Amount, projects our total liability for the purpose of asset transfers under the guarantee.

• Q
 – age based factors used in calculating the target value. These factors are established on the Effective Date and are not changed
 for the life of the
 guarantee. The factor is currently set equal to 1.

• V
 – the total value of all Permitted Variable Options in the Annuity.

• F
 – the total value of all Benefit Fixed Rate Account allocations.

• I
 – the income value prior to the first withdrawal. The income value is equal to what the Highest Daily Annual Income Amount would
 be if the first withdrawal
 were taken on the date of calculation. After the first withdrawal the income value equals the greater of the Highest Daily
 Annual Income Amount, the quarterly step-up amount times the annual income percentage, and the Account Value times the annual income
 percentage.

• T
 – the amount of a transfer into or out of the Benefit Fixed Rate Account.

• I%
 – Annual Income Amount percentage. This factor is established on the Effective Date and is not changed for the life of the guarantee. Currently, this percentage
 is equal to 5%

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V) is equal to zero, no calculation is necessary.

L = I × Q × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – F) / V.

• If
 r > C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to Benefit Fixed Rate Account.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the Benefit Fixed Rate Account (F > 0), assets in the Benefit Fixed Rate Account are transferred to
 the Permitted Variable Options.

The following formula, which is set on the Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

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| | | | |
|:---|:---|:---|:---|
|  T | = | {Min(V, [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | T>0, Money moving from the Permitted Variable Options to the Benefit Fixed Rate Account |
|  T | = | {Min(F, [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | T<0, Money moving from the Benefit Fixed Rate Account to the Permitted Variable Options |

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**Example:**

**Male age 65 contributes $100,000 into the Permitted Variable Options and the value drops to $92,300 during year one, end of day one. A table** **of values for "a" appears below.**

Target Value Calculation:

---

| | | |
|:---|:---|:---|
| L | = | I × Q × a |
|  | = | 5000.67 × 1 × 15.34 |
|  | = | 76,710.28 |

---

**Target Ratio:**

---

| | |
|:---|:---|
| r | (L – F) / V |
|  | (76,710.28 – 0) / 92,300.00 |
|  | 83.11% |

---

**Since r > Cu (because 83.11% > 83%) a transfer into the Benefit Fixed Rate Account occurs.**

---

| | |
|:---|:---|
| T | {Min (V, [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} |
|  | {Min (92,300.00, [76,710.28 – 0 – 92,300.00 × 0.80] / (1 – 0.80))} |
|  | {Min (92,300.00, 14,351.40)} |
|  | 14351.40 |

---

**FORMULA FOR CONTRACTS WITH 90% CAP RULE TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V) is equal to zero, no calculation is necessary.

L = I × Q × a

If you elect this feature, the following replaces the "Transfer Calculation" above.

**Transfer Calculation:**

The following formula, which is set on the effective date of this feature and is not changed for the life of the guarantee, determines when a transfer is required: On the effective date of this feature (and only on the effective date of this feature), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the Benefit Fixed Rate Account:

If (F / (V + F) >.90) then T = F – (V + F) × .90

If T is greater than $0 as described above, then no additional transfer calculations are performed on the effective date.

On each Valuation Day thereafter (including the effective date of this feature provided F / (V + F) <= .90), the following asset transfer calculation is performed

Target Ratio r = (L – F) / V.

• If
 r > C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to the Benefit Fixed Rate Account (subject to the 90% cap rule described above).

• If
 r < C <sub>l</sub> and there are currently assets in the Benefit Fixed Rate Account (F > 0), assets in the Benefit Fixed Rate Account are transferred to
 the Permitted Variable Options.

The following formula, which is set on the Effective Date of this feature and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V + F)) – F), [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the elected Permitted Variable Options to Benefit Fixed Rate Account |
|  T | = | Min (F, – [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>)), | Money is transferred from the Benefit Fixed Rate Account to the Permitted Variable Options |

---

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**Age 65 "a" Factors for Liability Calculations**

(for the corresponding Year and Month of the Benefit)\*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Month<br> 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06 |
| 31 | 4.04 | 4.02 | 4.00 | 3.98 | 3.97 | 3.95 | 3.93 | 3.91 | 3.90 | 3.88 | 3.86 | 3.84 |
| 32 | 3.83 | 3.81 | 3.79 | 3.78 | 3.76 | 3.74 | 3.72 | 3.71 | 3.69 | 3.67 | 3.66 | 3.64 |
| 33 | 3.62 | 3.61 | 3.59 | 3.57 | 3.55 | 3.54 | 3.52 | 3.50 | 3.49 | 3.47 | 3.45 | 3.44 |
| 34 | 3.42 | 3.40 | 3.39 | 3.37 | 3.35 | 3.34 | 3.32 | 3.30 | 3.29 | 3.27 | 3.25 | 3.24 |
| 35 | 3.22 | 3.20 | 3.18 | 3.17 | 3.15 | 3.13 | 3.12 | 3.10 | 3.08 | 3.07 | 3.05 | 3.03 |
| 36 | 3.02 | 3.00 | 2.98 | 2.96 | 2.95 | 2.93 | 2.91 | 2.90 | 2.88 | 2.86 | 2.85 | 2.83 |
| 37 | 2.81 | 2.79 | 2.78 | 2.76 | 2.74 | 2.73 | 2.71 | 2.69 | 2.68 | 2.66 | 2.64 | 2.62 |
| 38 | 2.61 | 2.59 | 2.57 | 2.56 | 2.54 | 2.52 | 2.51 | 2.49 | 2.47 | 2.45 | 2.44 | 2.42 |
| 39 | 2.40 | 2.39 | 2.37 | 2.35 | 2.34 | 2.32 | 2.30 | 2.29 | 2.27 | 2.25 | 2.24 | 2.22 |
| 40 | 2.20 | 2.19 | 2.17 | 2.15 | 2.14 | 2.12 | 2.11 | 2.09 | 2.07 | 2.06 | 2.04 | 2.02 |
| 41 | 2.01 | 1.84 | 1.67 | 1.51 | 1.34 | 1.17 | 1.00 | 0.84 | 0.67 | 0.50 | 0.33 | 0.17 |

---

\* The values set forth in this table are applied to all ages, and apply whether or not the 90% cap is elected.

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**APPENDIX F – ANNUITIES APPROVED FOR SALE BY THE NEW YORK STATE INSURANCE** **DEPARTMENT**

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ASL II NY | APEX II NY | ASAP III NY | XTra Credit SIX NY |
|  Minimum Investment | $15000 | $10000 | $1000 | $10000 |
|  Maximum Issue Age | Annuitant 85; <br>Oldest Owner 85 | Annuitant 85 <br>Oldest Owner 85 | Annuitant 85 <br>Oldest Owner 80 | Annuitant 85 <br>Oldest Owner 75 |
|  Contingent Deferred Sales Charge Schedule |  | 4 Years (7%, 6%, 5%, 4%) (Applied to purchase payments based on the inception date of the Annuity) | 7 Years (7%, 6%, 5%, 4%, 3%, 2%, 1%) (Applied to Purchase Payments based on the inception date of the Annuity) | 10 Years For contracts issued on or after August 27, 2007: (9%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%) For contracts issued before August 27, 2007: (9%, 9%, 8.5%, 8%, 7%, 6%, 5%, 4%, 3%, 2%) (Applied to purchase payments based on the inception date of the Annuity) |
|  Insurance Charge | 1.65% | 1.65% | 0.65% | 0.65% |
|  Distribution Charge | N/A | N/A | 0.60% Annuity Years 1-7 0.0% Annuity Years 8+ | 1.00% Annuity Years 1-10 0.00% Annuity Years 11+ |
|  Annual Maintenance Fee | Lesser of $30 or 2% of Account Value Waived for Account Values exceeding $100,000 | Lesser of $30 or 2% of Account Value Waived for Account Values exceeding $100,000 | Lesser of $30 or 2% of Account Value Waived for Account Values exceeding $100,000 | Lesser of $30 or 2% of Account Value |
|  Transfer Fee | $10 after twenty in any Annuity Year. May be increased to $15 after eight in any Annuity Year | $10 after twenty in any Annuity Year. | $10 after twenty in any Annuity Year. May be increased to $15 after eight in any Annuity Year | $10 after twenty in any Annuity Year |
|  Contract Credit | No | Yes. Effective for Contracts issued on or after June 20, 2005. Generally we apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth contract year (i.e. on your fifth Contract Anniversary). Currently the Loyalty Credit is equal to 2.75% of total purchase payments made during the first four contract years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Contract Anniversary | Yes. Effective for Contracts issued on or after July 24, 2006. Generally we apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth contract year (i.e. on your fifth Contract Anniversary). Currently the Loyalty Credit is equal to 0.50% of total purchase payments made during the first four contract years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Contract Anniversary | Yes The amount of the Credit applied to a Purchase Payment is based on the year the Purchase Payment is received, for the first 6 years of the contract. Currently the credit percentages for each year starting with the first year are: 6.50%, 5.00%, 4.00%, 3.00%, 2.00%, and 1.00%. |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ASL II NY | APEX II NY | ASAP III NY | XTra Credit SIX NY |
|  Fixed Allocation (If available, early withdrawals are subject to a Market Value Adjustment) ("Market Value Adjustment") | Fixed Allocations Available (Currently offering durations of: 5, 7, and 10 years) The Market Value Adjustment formula for NY is [(1+I)/ (1+J)] N/365 The Market Value Adjustment formula does not apply during the 30 day period immediately before the end of the Guarantee Period. | Fixed Allocations Available (Currently offering durations of: 5, 7, and 10 years) The Market Value Adjustment formula for NY is [(1+I)/ (1+J)] N/365 The Market Value Adjustment formula does not apply during the 30 day period immediately before the end of the Guarantee Period. | Fixed Allocations Available (Currently offering durations of: 2, 3, 5, 7, and 10 years) The Market Value Adjustment formula for NY is [(1+I)/ (1+J)] N/365 The Market Value Adjustment formula does not apply during the 30 day period immediately before the end of the Guarantee Period. | No |
|  Variable Options | All options generally available except where restrictions apply when certain riders are purchased. ProFund Portfolios are restricted for ASL II, ASAP III, and XTra Credit SIX. | All options generally available except where restrictions apply when certain riders are purchased. ProFund Portfolios are restricted for ASL II, ASAP III, and XTra Credit SIX. | All options generally available except where restrictions apply when certain riders are purchased. ProFund Portfolios are restricted for ASL II, ASAP III, and XTra Credit SIX. | All options generally available except where restrictions apply when certain riders are purchased. ProFund Portfolios are restricted for ASL II, ASAP III, and XTra Credit SIX. |
|  Basic Death Benefit | The greater of: Purchase Payments less proportional withdrawals or Account Value (variable) plus Interim Value (fixed). (No Market Value Adjustment applied) | The greater of: Purchase Payments less proportional withdrawals or Account Value (variable) plus Interim Value (fixed). (No Market Value Adjustment applied) | The greater of: Purchase Payments less proportional withdrawals or Account Value (variable) plus Interim Value (fixed). (No Market Value Adjustment applied) | The greater of: Purchase Payments less proportional withdrawals or Account Value (variable) (No Market Value Adjustment applied) (No recapture of Credits applied within 12 months prior to date of death) |
|  Optional Death Benefits (for an additional cost)<sup>1</sup> | Highest Anniversary Value (HAV) | HAV | HAV | HAV |
|  Optional Living Benefits (for an additional cost)<sup>2</sup> | GRO Plus, GRO Plus 2008 Guaranteed Minimum Withdrawal Benefit, (GMWB), Guaranteed Minimum Income Benefit (GMIB), Lifetime Five, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, Highest Daily GRO, Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus, Highest Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 6 Plus | GRO Plus, GRO Plus 2008 GMWB, GMIB, Lifetime Five, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, Highest Daily GRO, Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus, Highest Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 6 Plus | GRO Plus, GRO Plus 2008 GMWB, GMIB, Lifetime Five, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, Highest Daily GRO, Highest Daily Lifetime 7 Plus and Spousal Highest Daily Lifetime 7 Plus, Highest Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 6 Plus | GRO Plus, GRO Plus 2008 GMWB, GMIB, Lifetime Five, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, Highest Daily GRO, Highest Daily Lifetime 7 Plus and Spousal Highest Daily Lifetime 7 Plus, Highest Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 6 Plus |
|  Annuity Rewards<sup>3</sup> | No | Available after initial CDSC period | Available after initial CDSC period | Available after initial CDSC period |
|  Annuitization Options | Fixed option only Annuity date cannot exceed the first day of the calendar month following Annuitant's 90<sup>th</sup> birthday. The maximum Annuity Date is based on the first Owner or Annuitant to reach the maximum age, as indicated in your Annuity. | Fixed option only Annuity date cannot exceed the first day of the calendar month following Annuitant's 90<sup>th</sup> birthday. The maximum Annuity Date is based on the first Owner or Annuitant to reach the maximum age, as indicated in your Annuity. | Fixed option only Annuity date cannot exceed the first day of the calendar month following Annuitant's 90<sup>th</sup> birthday. The maximum Annuity Date is based on the first Owner or Annuitant to reach the maximum age, as indicated in your Annuity. | Fixed option only Annuity date cannot exceed the first day of the calendar month following Annuitant's 90<sup>th</sup> birthday. The maximum Annuity Date is based on the first Owner or Annuitant to reach the maximum age, as indicated in your Annuity. |
|  Medically Related Surrender | No | No | No | No |

---

1. For
 more information on these benefits, refer to the " [<u>Living Benefits</u>](#chapter_11-sect1_2_930) "
 section in the Prospectus.

2. For
 more information on these benefits, refer to the " [<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_930) "
  section in the Prospectus. Highest Daily Lifetime Seven with Beneficiary Income Option (BIO),

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Spousal Highest Daily Lifetime Seven with Beneficiary Income Option (BIO), Highest Daily Lifetime Seven with Lifetime Income Accelerator (LIA), Highest Daily Lifetime 7 Plus with BIO, Spousal Highest Daily Lifetime 7 Plus with BIO, Highest Daily Lifetime 6 Plus with LIA, and Highest Daily Lifetime 7 Plus with LIA are not currently available in New York.

3. The
 Annuity rewards benefit offers Owners an ability to increase the guaranteed death benefit so that the death benefit will at least equal
 the Annuity's Account Value on the effective date of
 the Annuity Rewards benefits, if the terms of the Annuity Rewards benefit are met.

*For more information about variations applicable to annuities approved for sale by the New York State Insurance Department, please refer to your annuity contract.*

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**APPENDIX G – FORMULA UNDER GRO PLUS 2008**

------

(The following formula also applies to elections of HD GRO, if HD GRO was elected prior to July 16, 2010)

**THE FOLLOWING ARE THE TERMS AND DEFINITIONS REFERENCED IN THE TRANSFER CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity

• V
 is the current Account Value of the elected Variable Options of the Annuity

• B
 is the total current value of the AST Bond Portfolio

• C <sub>l</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount

• N <sub>i</sub> is the number of days until the maturity date

• d <sub>i</sub> is the discount rate applicable to the number of days until the maturity date. The discount rate is determined by taking the greater of
 the Benchmark Index
 Interest Rate less the Discount Rate Adjustment, and the Discount Rate Minimum. Once selected, we will not change the
 applicable benchmark index. However, if the benchmark index is discontinued, we will substitute a successor benchmark index, if there
 is one. Otherwise we will substitute a comparable benchmark index. We will obtain any required regulatory approvals prior to substitution
 of the benchmark index.

The formula, which is set on the Effective Date and is not changed while the Rider is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the guarantee amount at the end of the Base Guarantee Period or Step-Up Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Next the formula calculates the following formula ratio:

r = (L – B) / V

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the Bond Portfolio associated with the current liability. If at the time we make a transfer to the Bond Portfolio associated with the current liability there is Account Value allocated to a Bond Portfolio not associated with the current liability, we will transfer all assets from that Bond Portfolio to the Bond Portfolio associated with the current liability.

The formula will transfer assets into the Transfer Account if r > C<sub>u</sub>.

The transfer amount is calculated by the following formula:

T = {Min(V, [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the Transfer Account, then the formula will transfer assets out of the Transfer Account into the elected Variable Options.

The transfer amount is calculated by the following formula:

T = {Min(B, – [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If following a transfer to the elected Variable Options, there are assets remaining in a Bond Portfolio not associated with the current liability, we will transfer all assets from that Bond Portfolio to the Bond Portfolio associated with the current liability.

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**FORMULA FOR ANNUITIES WITH 90% CAP RULE– GRO PLUS 2008 AND HIGHEST DAILY GRO**

------

(The following formula also applies to elections of HD GRO with 90% cap, if HD GRO with 90% cap was elected prior to July 16, 2010)

**THE FOLLOWING ARE THE TERMS AND DEFINITIONS REFERENCED IN THE TRANSFER CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity

• V
 is the current Account Value of the elected Variable Options of the Annuity

• B
 is the total current value of the AST Bond Portfolio

• C <sub>I</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

• T
 is the amount of a transfer into or out of the Transfer AST Bond Portfolio.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount

• N <sub>i</sub> is the number of days until the maturity date

• d <sub>i</sub> is the discount rate applicable to the number of days until the maturity date. It is determined with reference to a benchmark index, reduced
 by the Discount Rate Adjustment and subject to the discount rate minimum. The discount rate minimum, beginning on the effective
 date of the benefit, is three percent, and will decline monthly over the first twenty-four months following the effective date of the benefit to one percent
 in the twenty-fifth month, and will remain at one percent for every month thereafter. Once selected, we will not change
 the applicable benchmark index. However, if the benchmark index is discontinued, we will substitute a successor benchmark index,
 if there is one. Otherwise we will substitute a comparable benchmark index. We will obtain any required regulatory approvals prior to
 substitution of the benchmark index.

**TRANSFER CALCULATION:**

The formula, which is set on the Effective Date of the 90% Cap Rule, and is not changed while the benefit is in effect, determines, on each Valuation Day, when a transfer is required.

On the Effective Date of the 90% Cap Rule (and only on this date), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the AST bond Portfolio Variable Option:

If (B / (V + B) >.90), then T = B – [(V + B) × .90]

If T as described above is greater than $0, then that amount ("T") is transferred from the AST bond Portfolio Variable Option to the elected Variable Options and no additional transfer calculations are performed on the Effective Date of the 90% Cap Rule. Any transfers into the AST bond Portfolio Variable Option are suspended. The suspension will be lifted once a transfer out of the AST bond Portfolio Variable Option occurs.

On each Valuation Date thereafter (including the Effective Date of the 90% Cap Rule, provided (B / (V + B) < = .90), the formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the Guarantee Amount at the end of the Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Next the formula calculates the following formula ratio:

r = (L – B) / V

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the AST bond Portfolio Variable Option associated with the current liability, subject to the rule that prevents a transfer into that AST bond Portfolio Variable Option if 90% or more of Account Value is in that Variable Option (the "90% cap rule"). If, at the time we make a transfer to the AST bond Portfolio Variable Option associated with the current liability, there is Account Value allocated to an AST bond Portfolio Variable Option not associated with the current liability, we will transfer all assets from that AST bond Portfolio Variable Option to the AST bond Portfolio Variable Option associated with the current liability.

The formula will transfer assets into the Transfer AST bond Portfolio Variable Option if r > C<sub>u</sub>, subject to the 90% cap rule.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V + B)) – B), [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the Transfer AST bond Portfolio Variable Option, then the formula will transfer assets out of the Transfer AST bond Portfolio Variable Option into the elected Variable Options.

The formula will transfer assets out of the Transfer AST bond Portfolio Variable Option if r < C<sub>l</sub> and B > 0.

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The transfer amount is calculated by the following formula:

T = {Min(B, – [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If, following a transfer to the elected Variable Options, there are assets remaining in an AST bond Portfolio Variable Option not associated with the current liability, we will transfer all assets from that AST bond Portfolio Variable Option to the AST bond Portfolio Variable Option associated with the current liability.

If transfers into the AST bond Portfolio Variable Option are restricted due to the operation of the 90% cap rule, then we will not perform any intra-AST bond Portfolio Variable Option transfers. However, if assets transfer out of an AST bond Portfolio Variable Option and into the elected Variable Options due to the maturity of the AST bond Portfolio, by operation of the formula, assets may subsequently transfer to another AST bond Portfolio Variable Option that is associated with a future guarantee, subject to the 90% cap rule.

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**APPENDIX H – FORMULA UNDER HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT AND** **SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT**

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(including Highest Daily Lifetime Seven with BIO, Highest Daily Lifetime Seven with LIA and Spousal Highest Daily Lifetime Seven with BIO)

**1. Formula for Contracts Issued On or after July 21, 2008 (Without Election Of 90% Cap Rule)**

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime Seven benefit (the "Effective Date")
 and is not changed
 for the life of the guarantee. Currently, it is 83%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 77%.

• L
 – the target value as of the current business day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.

• V <sub>v</sub> – the total value of all Permitted Variable Options in the Annuity.

• V <sub>F</sub> – the total value of all elected Fixed Rate Options in the Annuity.

• B
 – the total value of the AST Investment Grade Bond Portfolio Variable Option.

• P
 – Income Basis. Prior to the first withdrawal, the Income Basis is the Protected Withdrawal Value calculated as if the first withdrawal were taken on the
 date of calculation. After the first withdrawal, the Income Basis is equal to the greater of (1) the Protected Withdrawal Value
 at the time of the first withdrawal, adjusted for additional Purchase Payments including the amount of any associated Credits, and adjusted
 proportionally for excess withdrawals \* ,
 (2) any highest quarterly value increased for additional Purchase Payments including the amount
 of any associated Credits, and adjusted for withdrawals, and (3) the Account Value.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond Portfolio Variable Option.

\* Note: Withdrawals of less than the Annual Income Amount do not reduce the Income Basis.

**TARGET VALUE CALCULATION:**

On each business day, a target value (L) is calculated, according to the following formula. If the Account Value (V<sub>V</sub> + V<sub>F</sub>) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 r > C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to the AST Investment Grade Bond Portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment Grade Bond Portfolio
 are transferred to the Permitted Variable Options according to most recent allocation instructions.

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | {Min ((V<sub>V</sub> + V<sub>F</sub>), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the Permitted Variable Options and Fixed Rate Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>)× C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**2. Formula for Contracts Issued Prior To 7/21/08 (Without Election of 90% Cap Rule)**

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime Seven benefit (the "Effective Date")
 and is not changed
 for the life of the guarantee. Currently, it is 83%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 77%.

• L
 – the target value as of the current business day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.

• V
 – the total value of all Permitted Variable Options in the annuity.

• B
 – the total value of the AST Investment Grade Bond Portfolio.

• P
 – Income Basis. Prior to the first withdrawal, the Income Basis is the Protected Withdrawal Value calculated as if the first withdrawal were taken on the
 date of calculation. After the first withdrawal, the Income Basis is equal to the greater of (1) the Protected Withdrawal Value
 at the time of the first withdrawal, adjusted for additional Purchase Payments including the amount of any associated Credits, and adjusted
 proportionally for excess withdrawals \* ,
 (2) any highest quarterly value increased for additional Purchase Payments including the amount
 of any associated Credits, and adjusted for withdrawals, and (3) the Account Value.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond Portfolio

\* Note: Withdrawals of less than the Annual Income Amount do not reduce the Income Basis.

**TARGET VALUE CALCULATION:**

On each business day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio = (L – B) / V.

• If
 r > C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to the AST Investment Grade Bond Portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment Grade Bond Portfolio
 are transferred to the Permitted Variable Options according to most recent allocation instructions.

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | {Min(V, [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}, | Money is transferred from the Permitted Variable Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min(B, – [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}, | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

---

**3. Formula for Annuities with 90% Cap Rule if Benefit was Elected Prior To July 21, 2008**

**See above for the Terms and Definitions Referenced in the Calculation Formula.**

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. Target values are subject to change for new elections of the Rider on a going-forward basis.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Effective Date of the 90% Cap Rule as shown in the Schedule Supplement and is not changed for the life of the guarantee, determines when a transfer is required. On the Effective Date of the 90% Cap Rule (and only on this date), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the AST Investment Grade Bond Portfolio:

If (B / (V + B) >.90) then T = B - [(V + B) ×.90]

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If T is greater than $0 as described above, then no additional transfer calculations are performed on the Effective Date of the 90% Cap Rule. Any transfers into the AST Investment Grade Bond Portfolio are suspended. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs.

On each Valuation Day thereafter (including the Effective Date of the 90% Cap Rule, provided B / (V + B) <=.90), the following asset transfer calculation is performed:

Target Ratio r = (L – B) / V.

• If
 r > C <sub>u</sub> ,
 assets in the elected Variable Options are transferred to the AST Investment Grade Bond Portfolio provided transfers <br> are
 not suspended under the 90% Cap Rule described below.

• If
 r < C <sub>l</sub> and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment <br> Grade
 Bond Portfolio are transferred to the elected Variable Options according to most recent allocation instructions.

The following formula, which is set on the Effective Date of the 90% Cap Rule and is not changed for the life of the guarantee, determines the<br>transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V + B)) – B), [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the elected Variable Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the elected Variable Options. |

---

At any given time, some, most, or none of the Account Value may be allocated to the AST Investment Grade Bond Portfolio under the Transfer Calculation formula.

**90% Cap Rule:** If, on any Valuation Day, on and after the Effective Date of the 90% Cap Rule, a transfer into the AST Investment Grade Bond Portfolio occurs which results in 90% of the Account Value being allocated to the AST Investment Grade Bond Portfolio, any transfers into the AST Investment Grade Bond Portfolio will be suspended, even if the formula would otherwise dictate that a transfer into the AST Investment Grade Bond Portfolio should occur. Transfers out of the AST Investment Grade Bond Portfolio and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs. Due to the performance of the AST Investment Grade Bond Portfolio and the elected Variable Options, the Account Value could be more than 90% invested in the AST Investment Grade Bond Portfolio.

**4. Formula for Annuities with 90% Cap Rule if Benefit was Elected on or after July 21, 2008**

**See above for the Terms and Definitions Referenced in the Calculation Formula**

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. Target values are subject to change for new elections of the Rider on a going-forward basis.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Effective Date of the 90% Cap Rule as shown in the Schedule Supplement and is not changed for the life of the guarantee, determines when a transfer is required. On the Effective Date of the 90% Cap Rule (and only on this date), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the AST Investment Grade Bond Portfolio:

If (B / (V<sub>V</sub> + V<sub>F</sub> + B) > .90) then T = B – [(V<sub>V</sub> + V<sub>F</sub> + B) × .90]

If T is greater than $0 as described above, then no additional transfer calculations are performed on the Effective Date of the 90% Cap Rule. Any transfers into the AST Investment Grade Bond Portfolio are suspended. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs.

On each Valuation Day thereafter (including the Effective Date of the 90% Cap Rule, provided B / (V<sub>V</sub> + V<sub>F</sub> + B) <= .90), the following asset transfer calculation is performed:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 r > C <sub>u</sub> ,
 assets in the elected Variable Options are transferred to the AST Investment Grade Bond Portfolio, provided transfers are not suspended
 under the 90% Cap Rule described below.

• If
 r < C <sub>l</sub> and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment Grade Bond Portfolio
 are transferred to the elected Variable Options according to most recent allocation instructions.

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The following formula, which is set on the Effective Date of the 90% Cap Rule and is not changed for the life of the guarantee, <u>determines the transfer</u> <u>amount:</u>

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B),<br>[L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the elected Variable Option to the AST Investment Grade Bond Portfolio. |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the elected Variable Options. |

---

At any given time, some, most, or none of the Account Value may be allocated to the AST Investment Grade Bond Portfolio under the Transfer Calculation formula.

**90% Cap Rule:** If, on any Valuation Day, on and after the Effective Date of the 90% Cap Rule, a transfer into the AST Investment Grade Bond Portfolio occurs which results in 90% of the Account Value being allocated to the AST Investment Grade Bond Portfolio, any transfers into the AST Investment Grade Bond Portfolio will be suspended, even if the formula would otherwise dictate that a transfer into the AST Investment Grade Bond Portfolio should occur. Transfers out of the AST Investment Grade Bond Portfolio and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs. Due to the performance of the AST Investment Grade Bond Portfolio and the elected Variable Options, the Account Value could be more than 90% invested in the AST Investment Grade Bond Portfolio.

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***"a" Factors for Liability Calculations***

(for the corresponding Year and Month of the Benefit)\*

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Month<br> 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06 |
| 31 | 4.04 | 4.02 | 4.00 | 3.98 | 3.97 | 3.95 | 3.93 | 3.91 | 3.90 | 3.88 | 3.86 | 3.84 |
| 32 | 3.83 | 3.81 | 3.79 | 3.78 | 3.76 | 3.74 | 3.72 | 3.71 | 3.69 | 3.67 | 3.66 | 3.64 |
| 33 | 3.62 | 3.61 | 3.59 | 3.57 | 3.55 | 3.54 | 3.52 | 3.50 | 3.49 | 3.47 | 3.45 | 3.44 |
| 34 | 3.42 | 3.40 | 3.39 | 3.37 | 3.35 | 3.34 | 3.32 | 3.30 | 3.29 | 3.27 | 3.25 | 3.24 |
| 35 | 3.22 | 3.20 | 3.18 | 3.17 | 3.15 | 3.13 | 3.12 | 3.10 | 3.08 | 3.07 | 3.05 | 3.03 |
| 36 | 3.02 | 3.00 | 2.98 | 2.96 | 2.95 | 2.93 | 2.91 | 2.90 | 2.88 | 2.86 | 2.85 | 2.83 |
| 37 | 2.81 | 2.79 | 2.78 | 2.76 | 2.74 | 2.73 | 2.71 | 2.69 | 2.68 | 2.66 | 2.64 | 2.62 |
| 38 | 2.61 | 2.59 | 2.57 | 2.56 | 2.54 | 2.52 | 2.51 | 2.49 | 2.47 | 2.45 | 2.44 | 2.42 |
| 39 | 2.40 | 2.39 | 2.37 | 2.35 | 2.34 | 2.32 | 2.30 | 2.29 | 2.27 | 2.25 | 2.24 | 2.22 |
| 40 | 2.20 | 2.19 | 2.17 | 2.15 | 2.14 | 2.12 | 2.11 | 2.09 | 2.07 | 2.06 | 2.04 | 2.02 |
| 41 | 2.01 | 1.84 | 1.67 | 1.51 | 1.34 | 1.17 | 1.00 | 0.84 | 0.67 | 0.50 | 0.33 | 0.17 |

---

\* The values set forth in this table are applied to all ages, and apply to each formula set out in this Appendix.

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**APPENDIX I – FORMULA FOR HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT AND SPOUSAL** **HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT**

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(including Highest Daily Lifetime 7 Plus with BIO, Highest Daily Lifetime 7 Plus with LIA and Spousal Highest Daily Lifetime 7 Plus with BIO)

**TRANSFERS OF ACCOUNT VALUE BETWEEN YOUR PERMITTED VARIABLE OPTIONS AND THE AST INVESTMENT GRADE BOND** **PORTFOLIO**

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULAS:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime 7 Plus/Spousal Highest Daily Lifetime 7 Plus
 benefit (the "Effective
 Date") and is not changed for the life of the guarantee. Currently, it is 83%.

• C <sub>u</sub> – The secondary upper target is established on the effective date of the Highest Daily Lifetime 7 Plus/Spousal Highest Daily
 Lifetime 7 Plus benefit
 (the "Effective Date") and is not changed for the life of the guarantee. Currently it is 84.5%

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>1</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 78%.

• L
 – the target value as of the current Valuation Day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.
 (See below for the table of "a" factors)

• V <sub>v</sub> – the total value of all Permitted Variable Options in the Annuity.

• V <sub>F</sub> – the total value of all elected Fixed Rate Options in the Annuity

• B
 – the total value of the AST Investment Grade Bond Portfolio.

• P
 – Income Basis. Prior to the first Lifetime Withdrawal, the Income Basis is equal to the Protected Withdrawal Value calculated as
 if the first Lifetime
 Withdrawal were taken on the date of calculation. After the first Lifetime Withdrawal, the Income Basis is equal to the greater of
 (1) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for additional Purchase Payments, including the amount of any
 associated Credits, and adjusted proportionally for excess withdrawals \* ,
 and (2) any highest daily Account Value occurring
 on or after the date of the first Lifetime Withdrawal and prior to or including the date of this calculation increased for additional Purchase Payments
 including the amount of any associated Credits, and adjusted for Lifetime Withdrawals.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond Portfolio

• T <sub>M</sub> – the amount of a monthly transfer out of the AST Investment Grade Bond Portfolio

\* Note: Lifetime Withdrawals of less than or equal to the Annual Income Amount do not reduce the Income Basis.

***DAILY CALCULATIONS***

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V<sub>V</sub> + V<sub>F</sub>) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 on the third consecutive Valuation Day r > Cu and r £ Cu <sub>s</sub> or if on any day r > Cu <sub>s</sub> ,
 and subject to the 90% cap rule described below, assets
 in the Permitted Variable Options (including DCA Fixed Rate Options used with any applicable 6 or 12 Month DCA Program) are transferred
 to the AST Investment Grade Bond Portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment Grade Bond Portfolio
 are transferred to the Permitted Variable Options according to most recent allocation instructions.

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B),<br>[L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the Permitted Variable Options and Fixed Rate Options to the AST Investment Grade Bond Portfolio |

---

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T = {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options

**90% Cap Rule:** If, on any Valuation Day, a transfer into the AST Investment Grade Bond Portfolio occurs which results in 90% of the Account Value being allocated to the AST Investment Grade Bond Portfolio, any transfers into the AST Investment Grade Bond Portfolio will be suspended, even if the formula would otherwise dictate that a transfer into the AST Investment Grade Bond Portfolio should occur. Transfers out of the AST Investment Grade Bond Portfolio and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs. Due to the performance of the AST Investment Grade Bond Portfolio and the elected Variable Options, the Account Value could be more than 90% invested in the AST Investment Grade Bond Portfolio.

**MONTHLY CALCULATION**

On each monthly anniversary of the Annuity Issue Date and following the daily Transfer Calculation above, the following formula determines if a transfer from the AST Investment Grade Bond Portfolio to the Permitted Variable Options will occur:

If, after the daily Transfer Calculation is performed,

{Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} < (C<sub>u</sub> × (V<sub>V</sub> + V<sub>F</sub>) – L + B) / (1 – C<sub>u</sub>), then

T<sub>M</sub> = {Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options

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***"a" Factors for Liability Calculations***

(for the corresponding Year and Month of the Benefit)\*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Month |  |  |  |  |  |  |  |  |  |  |  |
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06\*\* |

---

\* The values set forth in this table are applied to all ages.

\*\* In all subsequent years and months thereafter, the annuity factor is 4.06.

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**APPENDIX J – SPECIAL CONTRACT PROVISIONS FOR ANNUITIES ISSUED IN CERTAIN STATES**

------

Certain features of your Annuity may be different than the features described in this prospectus if your Annuity is issued in certain states described below. **For Annuities issued in New York, please also see** [**<u>Appendix F</u>**](#chapter_23-sect1_1_930)**.**

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| | |
|:---|:---|
| Jurisdiction | Special Provisions |
|  Connecticut | Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. |
|  Maryland | Fixed Allocations are not available. |
|  Massachusetts | If your Annuity is issued in Massachusetts after January 1, 2009, the annuity rates we use to calculate annuity payments are available only on a gender-neutral basis under any Annuity Option or any lifetime withdrawal optional benefit (except the Guaranteed Minimum Withdrawal Benefit).<br>Medically Related Surrenders are not available. |
|  Minnesota | For XT6 contracts, if your Annuity was issued in Minnesota on or after July 30, 2007, below are the applicable Contingent Deferred Sales Changes: |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Yr. 1 | Yr. 2 | Yr. 3 | Yr. 4 | Yr. 5 | Yr. 6 | Yr. 7 | Yr. 8 | Yr. 9 | Yr. 10 | Yr. 11+ |
| 9.0% | 9.0% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 1.0% | 0.0% |

---

For XT6 contracts, if your Annuity was issued in Minnesota before July 30, 2007, below are the applicable Contingent Deferred Sales Changes:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Yr. 1 | Yr. 2 | Yr. 3 | Yr. 4 | Yr. 5 | Yr. 6 | Yr. 7 | Yr. 8 | Yr. 9 | Yr. 10 | Yr. 11+ |
| 9.0% | 9.0% | 8.5% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 0.0% |

---

---

| | |
|:---|:---|
|  Montana | If your Annuity is issued in Montana, the annuity rates we use to calculate annuity payments are available only on a gender neutral basis under any Annuity Option or any lifetime withdrawal optional benefit (except the Guaranteed Minimum Withdrawal Benefit). |
|  Nevada | Fixed Allocations are not available. |
|  New York | Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. Medically Related Surrender is not available. |
|  Texas | Death benefit suspension not applicable upon provision of evidence of good health. See annuity contract for exact details. |
|  Utah | Fixed Allocations are not available. |
|  Washington | If your Annuity was issued in Washington, and you have elected Highest Daily Lifetime Five, or any version of Highest Daily Lifetime Seven or Highest Daily Lifetime 7 Plus, the Guaranteed Minimum Account Value Credit otherwise available on these optional benefits is not available.<br> Fixed Allocations are not available. Combination Roll-Up Value and Highest Periodic Value Death Benefit not available. Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. |

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**APPENDIX K – FORMULA UNDER THE GUARANTEED RETURN OPTION PLUS BENEFIT**

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We set out below the current formula under which we may transfer amounts between the Variable Options and the Fixed Allocations. We will not alter the pre-determined mathematical formula.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity (including any Market Value Adjustment on Fixed Allocations)

• V
 is the current Account Value of the elected Variable Options of the Annuity

• F
 is the current Account Value of the Fixed Allocations

For each guarantee provided under the program,

• G <sub>i</sub> is the Principal Value of the guarantee

• t <sub>i</sub> is the number of whole and partial years until the maturity date of the guarantee.

• r <sub>i</sub> is the current fixed rate associated with Fixed Allocations of length t <sub>i</sub> (t <sub>i</sub> is rounded to the next highest integer to determine this rate).

The formula determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each guarantee the value (Li) that, if appreciated at the current fixed rate, would equal the Principal Value on the applicable maturity date. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + r<sub>i</sub>)<sup>ti</sup>

Next, the formula determines whether or not a transfer to or from the Fixed Allocations is needed:

A transfer into the Fixed Allocations will occur if L > (AV – 0.2 × V), and V > 0.

The transfer amount is calculated by the following formula:

T = MIN(V, (V – (1 / 0.23) × (AV – L)))

A transfer from the Fixed Allocations to the Variable Options will occur if L < (AV – 0.26 × V), and F > 0.

The transfer amount is calculated by the following formula:

T = MIN(F, ((1 / 0.23) × (AV – L) – V))

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**APPENDIX L – FORMULA UNDER THE GUARANTEED RETURN OPTION BENEFIT**

------

We set out below the current formula under which we may transfer amounts between the Variable Options and the Fixed Allocations. We will not alter this predetermined mathematical formula.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity (including any Market Value Adjustment on Fixed Allocations)

• V
 is the current Account Value of the elected Variable Options of the Annuity

• F
 is the current Account Value of the Fixed Allocations

• G
 is the Principal Value of the guarantee

• t
 is the number of whole and partial years between the current Valuation Day and the maturity date.

• t <sub>i</sub> is the number of whole and partial years between the next Valuation Day (i.e., the Valuation Day immediately following the current Valuation
 Day) and the maturity date.

• r
 is the fixed rate associated with Fixed Allocations of length t (t <sub>1</sub> is rounded to the next highest whole number to determine this rate) as of the
 current Valuation Day.

• r <sub>i</sub> is the fixed rate associated with Fixed Allocations of length t <sub>1</sub> (t <sub>1</sub> is rounded to the next highest whole number to determine this rate) as of
 the next Valuation Day.

• M
 is the total maturity value of all Fixed Allocations, i.e., the total value that the Fixed Allocations will have on the maturity date
 of the guarantee
 if no subsequent transactions occur.

The formula determines, on each Valuation Day, when a transfer is required.

The formula begins by determining a "cushion", D:

D = 1 – [(G – M) / (1 + r)<sup>ti</sup>] / V

Next, the formula determines whether or not a transfer to or from the Fixed Allocations is needed:

A transfer into the Fixed Allocations will occur if D < 0.20, V > 0, and V > 0.02 × AV.

The transfer amount is calculated by the following formula:

T = MIN(V, (V × (0.75 × (1 + r<sub>i</sub>)<sup>ti</sup> – G + M) / (0.75 × (1 + r<sub>i</sub>)<sup>ti</sup> – (1 + r)<sup>t</sup>)))

A transfer from the Fixed Allocations to the Variable Options will occur if D > 0.30 and F > 0.

The transfer amount is calculated by the following formula:

T = MIN(F, (V × (0.75 × (1 + r<sub>i</sub>)<sup>ti</sup> – G + M) / ((1 + r)<sup>t</sup> – 0.75 × (1 + r<sub>i</sub>)<sup>ti</sup>)))

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**APPENDIX M – FORMULA FOR HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT AND** **SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT**<br>**(including Highest Daily Lifetime 6 Plus with LIA)**<br>**TRANSFERS OF ACCOUNT VALUE BETWEEN YOUR PERMITTED VARIABLE OPTIONS AND THE** **AST INVESTMENT GRADE BOND PORTFOLIO**

------

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULAS:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime 6 Plus/Spousal Highest Daily Lifetime 6 Plus
 benefit (the "Effective
 Date") and is not changed for the life of the guarantee. Currently, it is 83%.

• C <sub>us</sub> – The secondary upper target is established on the effective date of the Highest Daily Lifetime 6 Plus/Spousal Highest Daily Lifetime
 6 Plus benefit (the
 "Effective Date") and is not changed for the life of the guarantee. Currently it is 84.5%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 78%.

• L
 – the target value as of the current Valuation Day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.
 (See below for the table of "a" factors).

• V <sub>v</sub> – the total value of all Permitted Variable Options in the Annuity.

• V <sub>F</sub> – the total value of all elected Fixed Rate Options in the Annuity.

• B
 – the total value of the AST Investment Grade Bond Portfolio.

• P
 – Income Basis. Prior to the first Lifetime Withdrawal, the Income Basis is equal to the Protected Withdrawal Value calculated as
 if the first Lifetime
 Withdrawal were taken on the date of calculation. After the first Lifetime Withdrawal, the Income Basis is equal to the greater of
 (1) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for additional Purchase Payments, including the amount of any
 associated purchase Credits, and adjusted proportionally for excess withdrawals \* ,
 and (2) the Protected Withdrawal Value
 on any Annuity Anniversary subsequent to the first Lifetime Withdrawal, increased for subsequent additional Purchase Payments (including
 the amount of any associated purchase Credits) and adjusted proportionately for Excess Income\* and (3) any highest daily Account
 Value occurring on or after the later of the immediately preceding Annuity anniversary, or the date of the first Lifetime Withdrawal, and prior to or including
 the date of this calculation, increased for additional Purchase Payments (including the amount of any associated purchase
 Credits) and adjusted for withdrawals, as described herein.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond Portfolio.

• T <sub>M</sub> – the amount of a monthly transfer out of the AST Investment Grade Bond Portfolio.

\* Note: Lifetime Withdrawals of less than or equal to the Annual Income Amount do not reduce the Income Basis.

***DAILY CALCULATIONS***

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V<sub>V</sub> + V<sub>F</sub>) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 on the third consecutive Valuation Day r > C <sub>u</sub> and r ≤ C <sub>us</sub> or if on any day r > C <sub>us</sub> ,
 and subject to the 90% cap rule described below, assets
 in the Permitted Variable Options (including DCA Fixed Rate Options used with any applicable 6 or 12 Month DCA Program) are transferred
 to the AST Investment Grade Bond Portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment Grade Bond Portfolio
 are transferred to the Permitted Variable Options as described above.

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The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

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| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B),<br>[L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the Permitted Variable Options and DCA Fixed Rate Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

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**90% Cap Rule:** If, on any Valuation Day, a transfer into the AST Investment Grade Bond Portfolio occurs which results in 90% of the Account Value being allocated to the AST Investment Grade Bond Portfolio, any transfers into the AST Investment Grade Bond Portfolio will be suspended, even if the formula would otherwise dictate that a transfer into the AST Investment Grade Bond Portfolio should occur. Transfers out of the AST Investment Grade Bond Portfolio and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs. Due to the performance of the AST Investment Grade Bond Portfolio and the elected Variable Options, the Account Value could be more than 90% invested in the AST Investment Grade Bond Portfolio.

**MONTHLY CALCULATION**

On each monthly anniversary of the Annuity Issue Date and following the daily Transfer Calculation above, the following formula determines if a transfer from the AST Investment Grade Bond Portfolio to the Permitted Variable Options will occur:

If, after the daily Transfer Calculation is performed,

{Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} < (C<sub>u</sub> × (V<sub>V</sub> + V<sub>F</sub>) – L + B) / (1 – C<sub>u</sub>), then

T<sub>M</sub> = {Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options

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***"a" Factors for Liability Calculations***

(for the corresponding Year and Month of the Benefit)\*

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Month |  |  |  |  |  |  |  |  |  |  |  |
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06\*\* |

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\* The values set forth in this table are applied to all ages.

\*\* In all subsequent years and months thereafter, the annuity factor is 4.06.

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**APPENDIX N – FORMULA FOR GRO PLUS II**

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(The following formula also applies to elections of HD GRO II, if HD GRO II was elected prior to July 16, 2010)

The following are the terms and definitions referenced in the transfer calculation formula:

• AV
 is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of any fixed-rate Variable Options of the Annuity

• B
 is the total current value of the AST Bond Portfolio

• C <sub>l</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

• T
 is the amount of a transfer into or out of the AST Bond Portfolio.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount

• N <sub>i</sub> is the number of days until the maturity date

• d <sub>i</sub> is the discount rate applicable to the number of days until the maturity date. It is determined with reference to a benchmark index, reduced
 by the Discount Rate Adjustment and subject to the discount rate minimum. The discount rate minimum, beginning on the effective
 date of the benefit, is three percent, and will decline monthly over the first twenty-four months following the effective date of the benefit to one percent
 in the twenty-fifth month, and will remain at one percent for every month thereafter. Once selected, we will not change
 the applicable benchmark index. However, if the benchmark index is discontinued, we will substitute a successor benchmark index,
 if there is one. Otherwise we will substitute a comparable benchmark index. We will obtain any required regulatory approvals prior to
 substitution of the benchmark index.

The formula, which is set on the effective date and is not changed while the benefit is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the guarantee amount at the end of each applicable Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Next the formula calculates the following formula ratio:

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the AST Bond Portfolio associated with the current liability subject to the rule that prevents a transfer into that AST Bond Portfolio if 90% or more of Account Value is in that Variable Option ("90% cap rule"). If at the time we make a transfer to the AST Bond Portfolio associated with the current liability there is Account Value allocated to an AST Bond Portfolio not associated with the current liability, we will transfer all assets from that AST Bond Portfolio to the AST Bond Portfolio associated with the current liability.

The formula will transfer assets into the AST Bond Portfolio if r > C<sub>u</sub>, subject to the 90% cap rule.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the AST Bond Portfolio, then the formula will transfer assets out of the AST Bond Portfolio into the elected Variable Options.

The formula will transfer assets out of the AST Bond Portfolio if r < C<sub>l</sub> and B > 0.

The transfer amount is calculated by the following formula:

T = {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If following a transfer to the elected Variable Options, there are assets remaining in a AST Bond Portfolio not associated with the current liability, we will transfer all assets from that AST Bond Portfolio to the AST Bond Portfolio associated with the current liability.

If transfers into the AST Bond Portfolio are restricted due to the operation of the 90% cap rule, then we will not perform any intra-AST Bond Portfolio transfers. However, if assets transfer out of an AST Bond Portfolio and into the elected Variable Options due to the maturity of the AST bond portfolio, by operation of the formula, assets may subsequently transfer to another AST Bond Portfolio that is associated with a future guarantee, subject to the 90% cap.

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**APPENDIX O – FORMULA FOR HIGHEST DAILY GRO**

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Formula for elections of HD GRO on or after July 16, 2010, subject to state approval. The operation of the formula is the same as for elections of HD GRO prior to July 16, 2010. The formula below provides additional information regarding the concept of the Projected Future Guarantee throughout the Transfer Calculation.

**THE FOLLOWING ARE THE TERMS AND DEFINITIONS REFERENCED IN THE TRANSFER CALCULATION FORMULA:**

• AV
  is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of the elected Fixed Rate Options of the Annuity

• B
 is the total current value of the Transfer Account

• C <sub>l</sub> is the lower target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>t</sub> is the middle target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>u</sub> is the upper target value; it is established on the Effective Date and is not changed for the life of the guarantee

• T
 is the amount of a transfer into or out of the Transfer Account

• "Projected
 Future Guarantee" is an amount equal to the highest Account Value (adjusted for Withdrawals and additional Purchase Payments)
 within the current Benefit Year that would result in a new Guarantee Amount. For the Projected Future Guarantee, the assumed
 Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the Effective Date. We only
 calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend
 beyond the latest Annuity Date applicable to the Annuity.

The formula, which is set on the Effective Date and is not changed while the Rider is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each Guarantee Amount and for the Projected Future Guarantee, the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the Guarantee Amount at the end of the Guarantee Period. We call the greatest of these values the "current liability (L)".

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Where:

• G <sub>i</sub> is the value of the Guarantee Amount or the Projected Future Guarantee

• N <sub>i</sub> is the number of days until the end of the Guarantee Period

• d <sub>i</sub> is the discount rate associated with the number of days until the end of a Guarantee Period (or the assumed Guarantee Period, for the Projected Future
 Guarantee). The discount rate is determined by taking the greater of the Benchmark Index Interest Rate less the Discount
 Rate Adjustment, and the Discount Rate Minimum. The applicable term of the Benchmark Index Interest Rate is the same as the number
 of days remaining until the end of the Guarantee Period (or the assumed Guarantee Period, for the Projected Future Guarantee). If
 no Benchmark Index Interest Rate is available for such term, the nearest available term will be used. The Discount Rate Minimum is determined
 based on the number of months since the Effective Date.

Next the formula calculates the following formula ratio (r):

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then Account Value will be transferred to the Bond Portfolios associated with the current liability subject to the feature. If, at the time we make a transfer to the Bond Portfolios associated with the current liability, there is Account Value allocated to a Bond Portfolios not associated with the current liability, we will transfer all assets from that Bond Portfolios to the Bond Portfolios associated with the current liability.

The formula will transfer assets into the Transfer Account if r > C<sub>u</sub> and if transfers have not been suspended due to the feature. Assets in the elected Variable Options and Fixed Rate Options, if applicable, are transferred to the Transfer Account in accordance with the Transfer provisions of the Rider.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value, and there are assets in the Transfer Account, then the formula will transfer assets out of the Transfer Account and into the elected Variable Options.

The formula will transfer assets out of the Transfer Account if r < C<sub>l</sub> and B > 0.

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The transfer amount is calculated by the following formula:

T = {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If, following a transfer to the elected Variable Options, there are assets remaining in a Bond Portfolios not associated with the current liability, we will transfer all assets from that Bond Portfolios to the Bond Portfolios associated with the current liability.

**90% Cap Rule:** If, on any Valuation Day the Rider remains in effect, a transfer into the Transfer Account occurs which results in 90% of the Account Value being allocated to the Transfer Account, any transfers into the Transfer Account will be suspended even if the formula would otherwise dictate that a transfer into the Transfer Account should occur. Transfers out of the Transfer Account and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the Transfer Account occurs. Due to the performance of the Transfer Account and the elected Variable Options, the Account Value could be more than 90% invested in the Transfer Account.

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**APPENDIX P – FORMULA FOR HIGHEST DAILY GRO II**

------

Formula for elections of HD GRO II made on or after July 16, 2010, subject to state approval. The operation of the formula is the same as for elections of HD GRO II prior to July 16, 2010. The formula below provides additional information regarding the concept of the Projected Future Guarantee throughout the Transfer Calculation.

The following are the Terms and Definitions referenced in the Transfer Calculation Formula:

• AV
 is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of the elected Fixed Rate Options of the Annuity

• B
 is the total current value of the Transfer Account

• C <sub>l</sub> is the lower target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>t</sub> is the middle target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>u</sub> is the upper target value; it is established on the Effective Date and is not changed for the life of the guarantee

• T
 is the amount of a transfer into or out of the Transfer Account

• "Projected
 Future Guarantee" is an amount equal to the highest Account Value (adjusted for Withdrawals and additional Net Purchase Payments)
 within the current Benefit Year that would result in a new Guarantee Amount. For the Projected Future Guarantee, the assumed
 Guarantee Period begins on the current Valuation Day and ends10 years from the next anniversary of the Effective Date. We only
 calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend
 beyond the latest Annuity Date applicable to the Annuity.

The formula, which is set on the Effective Date and is not changed while the Rider is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each Guarantee Amount and for the Projected Future Guarantee, the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the Guarantee Amount at the end of the Guarantee Period. We call the greatest of these values the "current liability (L)".

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Where:

• G <sub>i</sub> is the value of the Guarantee Amount or the Projected Future Guarantee

• N <sub>i</sub> is the number of days until the end of the Guarantee Period

• d <sub>i</sub> is the discount rate associated with the number of days until the end of a Guarantee Period (or the assumed Guarantee Period, for the Projected Future
 Guarantee). The discount rate is determined by taking the greater of the Benchmark Index Interest Rate less the Discount
 Rate Adjustment, and the Discount Rate Minimum. The applicable term of the Benchmark Index Interest Rate is the same as the number
 of days remaining until the end of the Guarantee Period (or the assumed Guarantee Period, for the Projected Future Guarantee). If
 no Benchmark Index Interest Rate is available for such term, the nearest available term will be used. The Discount Rate Minimum is determined
 based on the number of months since the Effective Date.

Next the formula calculates the following formula ratio (r):

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then Account Value will be transferred to the Bond Portfolio associated with the current liability subject to the feature. If, at the time we make a transfer to the Bond Portfolio associated with the current liability, there is Account Value allocated to a Bond Portfolio not associated with the current liability, we will transfer all assets from that Bond Portfolio to the Bond Portfolio associated with the current liability.

The formula will transfer assets into the Transfer Account if r > C<sub>u</sub> and if transfers have not been suspended due to the feature. Assets in the elected Variable Options and Fixed Rate Options, if applicable, are transferred to the Transfer Account in accordance with the Transfer provisions of the Rider.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value, and there are assets in the Transfer Account, then the formula will transfer assets out of the Transfer Account and into the elected Variable Options.

The formula will transfer assets out of the Transfer Account if r < C<sub>l</sub> and B > 0.

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The transfer amount is calculated by the following formula:

T = {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If, following a transfer to the elected Variable Options, there are assets remaining in a Bond Portfolio not associated with the current liability, we will transfer all assets from that Bond Portfolio to the Bond Portfolio associated with the current liability.

**90% Cap Rule:** If, on any Valuation Day the Rider remains in effect, a transfer into the Transfer Account occurs which results in 90% of the Account Value being allocated to the Transfer Account, any transfers into the Transfer Account will be suspended even if the formula would otherwise dictate that a transfer into the Transfer Account should occur. Transfers out of the Transfer Account and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the Transfer Account occurs. Due to the performance of the Transfer Account and the elected Variable Options, the Account Value could be more than 90% invested in the Transfer Account.

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**Mailing**

------

This prospectus describes the important features of the Annuity and provides information about Fortitude Life Insurance & Annuity Company ("we," "our," "us," "FLIAC," or "the Company") and Fortitude Life Insurance & Annuity Company Variable Account B ("the Registered Separate Account").

We have filed with the Securities and Exchange Commission ("SEC") a Statement of Additional Information (SAI), dated May 1, 2026 that includes additional information about the Annuity and the Registered Separate Account, and the Company. The SAI is incorporated by reference into this prospectus. The SAI is available from us, without charge, upon request. To request a copy of the SAI, to ask about your Annuity, or to make other investor inquiries, please call 1-800-879-7012.

Reports and other information about the Contract, Registered Separate Account, and the Company are available on the SEC's website at <u>www.sec.gov</u>, and copies of reports and other information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.

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![](pr930img001.jpg)<br>Ten Exchange Place<br>Suite 2210<br>Jersey City, New Jersey 07302

Edgar Contract Identifier: <br>ASAP III: C000003474; C000267654<br>APEX II: C000003486; C000267651<br>XT6: C000003488; C000267649<br>ASL II: C000003487; C000267661 COREPROS

------

**FORTITUDE LIFE INSURANCE & ANNUITY COMPANY**<br>Fortitude Life Insurance & Annuity Company Variable Account B<br>A Fortitude Re Company<br>Ten Exchange Place, Suite 2210, Jersey City, NJ 07302

**OPTIMUM**<br>**OPTIMUM FOUR**<br>**OPTIMUM PLUS**<br>

**Flexible Premium Deferred Annuity**<br>**Prospectus Dated:** **May 1, 2026**

This prospectus describes three different flexible premium deferred annuities (the "Contracts" or "Annuities" or the "Contract" or "Annuity") offered by Fortitude Life Insurance & Annuity Company, formerly named Prudential Annuities Life Assurance Corporation ("we," "our," "us" or "the Company"), offered exclusively through LPL Financial Corporation. The Annuity provides for the potential accumulation of retirement savings through investment in the Contract's investment options during the Savings Stage and retirement income through annuitization during the Payout Period. The Contract is intended for retirement or other long-term investment purposes. This prospectus describes all material rights and obligations of Annuity Owners under the Annuity contracts. The Annuity is a complex investment that involves risks, including potential loss of principal. The Annuity is not a short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawals may reduce the level of various optional benefit guarantees and could result in taxes and tax penalties. In addition, premature withdrawals from a MVA Fixed Allocation will result in a Market Value Adjustment. **In extreme circumstances, the maximum potential loss resulting from a negative Market Value Adjustment is 100% of the amount** **invested in a MVA Fixed Allocation.**

This prospectus describes all the investment options, features, and benefits that we make available under the Annuity. **The availability of investment** **options, features and benefits described in this prospectus may vary depending on the broker-dealer through which the Contract is sold** **("financial intermediary variations").** We have identified all such financial intermediary variations that are known or reasonably available to us. Financial intermediary variations may be imposed by some broker-dealers without our knowledge. For example, your Financial Professional may not recommend a particular investment option or benefit to you because of a decision by the Financial Professional's broker-dealer not to offer that investment option or benefit to its customers. Taking into consideration the breadth of our distribution network, we are unable to obtain information about all financial intermediary variations without unreasonable effort or expense. **You should discuss with your Financial Professional any limitations,** **restrictions, or other variations related to the investment options, benefits or other features available to you through your Financial** **Professional.**

The types of investment options currently offered under the Annuity include variable investment options with underlying mutual funds ("Variable Options") and MVA Fixed Allocation Options that offer a fixed rate of interest for a set period of time called a "Guarantee Period." **See** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for additional** **information about each investment option.**

If you are receiving this prospectus, it is because you currently own the Annuity. The Annuity is no longer offered for new sales.

The Company's obligations under the Annuity are subject to its financial strength and claims-paying ability. In compliance with U.S. law, we deliver this prospectus to Annuity Owners that currently reside outside of the United States. In addition, we may not market or offer benefits, features, or enhancements to prospective or current Annuity Owners while outside of the United States.

Certain Annuities described in this prospectus provide a Credit which can be recaptured in certain circumstances also described in this prospectus. This Credit may be more than offset by fees and charges in these Annuities, which are also described in this prospectus. These fees and charges may be higher than other, similar products that do not offer a Credit.

These Annuities are NOT deposits or obligations of, or issued, guaranteed or endorsed by, any bank, are NOT insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency.

------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

------

Additional information about certain investment products, including variable annuities and market value adjusted annuities, has been prepared by the Securities and Exchange Commission's staff and is available at www.investor.gov.

FOR FURTHER INFORMATION CALL 1-800-879-7012 OR VISIT: WWW.PRUDENTIAL.COM/ANNUITIES

OPTIMUM

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**Table of Contents**

------

---

| | |
|:---|:---|
| [**GLOSSARY OF TERMS**.......................................................................................](#chapter_2_936) | [**1**](#chapter_2_936) |
| [**OVERVIEW OF THE CONTRACT**................................................................................](#chapter_3_936) | [**5**](#chapter_3_936) |
| [**KEY INFORMATION**.........................................................................................](#chapter_4_936) | [**6**](#chapter_4_936) |
| [**FEE TABLE**................................................................................................](#chapter_5_936) | [**14**](#chapter_5_936) |
| [**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT**..............................................................](#chapter_6_936) | [**19**](#chapter_6_936) |
| [**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT OPTIONS**..................](#chapter_7_936) | [**21**](#chapter_7_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHO IS FORTITUDE LIFE INSURANCE & ANNUITY COMPANY?....................................................](#chapter_7-sect1_2_936) | [21](#chapter_7-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT ARE THE SEPARATE ACCOUNTS?.....................................................................](#chapter_7-sect1_3_936) | [21](#chapter_7-sect1_3_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [INVESTMENT OPTIONS...................................................................................](#chapter_7-sect1_4_936) | [22](#chapter_7-sect1_4_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT IS THE LEGAL STRUCTURE OF THE PORTFOLIOS?.......................................................](#chapter_7-sect1_5_936) | [22](#chapter_7-sect1_5_936) |
| [**CHARGES AND ADJUSTMENTS**................................................................................](#chapter_8_936) | [**25**](#chapter_8_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FIXED RATE OPTION CHARGES AND ADJUSTMENTS...........................................................](#chapter_8-sect1_2_936) | [27](#chapter_8-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ANNUITY PAYMENT OPTION CHARGES......................................................................](#chapter_8-sect1_3_936) | [27](#chapter_8-sect1_3_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES...........................................................](#chapter_8-sect1_4_936) | [27](#chapter_8-sect1_4_936) |
| [**GENERAL DESCRIPTION OF CONTRACTS**.......................................................................](#chapter_9_936) | [**28**](#chapter_9_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS.............................................](#chapter_9-sect1_2_936) | [28](#chapter_9-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[HOW DO THE FIXED RATE OPTIONS WORK?.................................................................](#chapter_9-sect1_3_936) | [29](#chapter_9-sect1_3_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?...................................................](#chapter_9-sect1_4_936) | [29](#chapter_9-sect1_4_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?....................................................](#chapter_9-sect1_5_936) | [30](#chapter_9-sect1_5_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRANSFER AND REBLANACING PROGRAMS..................................................................](#chapter_9-sect1_6_936) | [30](#chapter_9-sect1_6_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?........................................................](#chapter_9-sect1_7_936) | [31](#chapter_9-sect1_7_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT IS THE BALANCED INVESTMENT PROGRAM?............................................................](#chapter_9-sect1_8_936) | [31](#chapter_9-sect1_8_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS...............................................](#chapter_9-sect1_9_936) | [32](#chapter_9-sect1_9_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS..............................](#chapter_9-sect1_10_936) | [33](#chapter_9-sect1_10_936) |
| [**ANNUITY PERIOD**...........................................................................................](#chapter_10_936) | [**35**](#chapter_10_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?................................................](#chapter_10-sect1_2_936) | [35](#chapter_10-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE ANNUITY PAYMENTS CALCULATED?...............................................................](#chapter_10-sect1_3_936) | [36](#chapter_10-sect1_3_936) |
| [**BENEFITS AVAILABLE UNDER THE CONTRACT**...................................................................](#chapter_11_936) | [**37**](#chapter_11_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL LIVING BENEFITS..............................................................................](#chapter_11-sect1_2_936) | [40](#chapter_11-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION PLUS II (GRO PLUS II)..........................................................](#chapter_11-sect1_3_936) | [41](#chapter_11-sect1_3_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY GUARANTEED RETURN OPTION II (HD GRO II)...................................................](#chapter_11-sect1_4_936) | [46](#chapter_11-sect1_4_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION PLUS (GRO PLUS)............................................................](#chapter_11-sect1_5_936) | [50](#chapter_11-sect1_5_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION (GRO)......................................................................](#chapter_11-sect1_6_936) | [55](#chapter_11-sect1_6_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION PLUS 2008 (GRO PLUS 2008)....................................................](#chapter_11-sect1_7_936) | [58](#chapter_11-sect1_7_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)......................................................](#chapter_11-sect1_8_936) | [63](#chapter_11-sect1_8_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB).......................................................](#chapter_11-sect1_9_936) | [68](#chapter_11-sect1_9_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED MINIMUM INCOME BENEFIT (GMIB).............................................................](#chapter_11-sect1_10_936) | [71](#chapter_11-sect1_10_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)..............................................................](#chapter_11-sect1_11_936) | [75](#chapter_11-sect1_11_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE).............................................](#chapter_11-sect1_12_936) | [80](#chapter_11-sect1_12_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT (HD5).........................................................](#achapter_11-sect1_13_936) | [84](#achapter_11-sect1_13_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (HD 7)......................................................](#chapter_11-sect1_14_936) | [92](#chapter_11-sect1_14_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (SHD7).............................................](#chapter_11-sect1_15_936) | [104](#chapter_11-sect1_15_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (HD 6 PLUS).................................................](#chapter_11-sect1_16_936) | [113](#chapter_11-sect1_16_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (SHD6 PLUS)........................................](#chapter_11-sect1_17_936) | [126](#chapter_11-sect1_17_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (HD 7 PLUS).................................................](#chapter_11-sect1_18_936) | [134](#chapter_11-sect1_18_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (SHD7 PLUS)........................................](#chapter_11-sect1_19_936) | [147](#chapter_11-sect1_19_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRIGGERS FOR THE PAYMENT OF THE DEATH BENEFIT........................................................](#chapter_11-sect1_20_936) | [156](#chapter_11-sect1_20_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [BASIC DEATH BENEFIT...................................................................................](#chapter_11-sect1_21_936) | [156](#chapter_11-sect1_21_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL DEATH BENEFITS..............................................................................](#chapter_11-sect1_22_936) | [157](#chapter_11-sect1_22_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PAYMENT OF DEATH BENEFITS............................................................................](#chapter_11-sect1_23_936) | [165](#chapter_11-sect1_23_936) |
| [**PURCHASES AND CONTRACT VALUE**...........................................................................](#chapter_12_936) | [**168**](#chapter_12_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIREMENTS FOR PURCHASING THE ANNUITY.............................................................](#chapter_12-sect1_2_936) | [168](#chapter_12-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?.......................................................](#chapter_12-sect1_3_936) | [170](#chapter_12-sect1_3_936) |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO I RECEIVE A LOYALTY CREDIT UNDER THE OPTIMUM AND OPTIMUM FOUR ANNUITIES?.......................](#chapter_12-sect1_4_936) | [170](#chapter_12-sect1_4_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE LOYALTY CREDITS APPLIED TO MY ACCOUNT VALUE UNDER THE OPTIMUM AND OPTIMUM FOUR ANNUITIES?...](#chapter_12-sect1_5_936) | [171](#chapter_12-sect1_5_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO I RECEIVE CREDITS UNDER THE OPTIMUM PLUS ANNUITY?..............................................](#chapter_12-sect1_6_936) | [171](#chapter_12-sect1_6_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE CREDITS APPLIED TO ACCOUNT VALUE UNDER THE OPTIMUM PLUS ANNUITY?............................](#chapter_12-sect1_7_936) | [171](#chapter_12-sect1_7_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ADDITIONAL PURCHASE PAYMENTS........................................................................](#chapter_12-sect1_8_936) | [173](#chapter_12-sect1_8_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT....................................................](#chapter_12-sect1_9_936) | [173](#chapter_12-sect1_9_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SALARY REDUCTION PROGRAMS..........................................................................](#chapter_12-sect1_10_936) | [173](#chapter_12-sect1_10_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW IS MY ACCOUNT VALUE DETERMINED?.................................................................](#chapter_12-sect1_11_936) | [173](#chapter_12-sect1_11_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[SURRENDER VALUE ....................................................................................](#chapter_12-sect1_12_936) | [174](#chapter_12-sect1_12_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [VALUING THE VARIABLE OPTIONS..........................................................................](#chapter_12-sect1_13_936) | [174](#chapter_12-sect1_13_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [VALUING THE FIXED ALLOCATIONS ........................................................................](#chapter_12-sect1_14_936) | [174](#chapter_12-sect1_14_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PROCESSING AND VALUING TRANSACTIONS ................................................................](#chapter_12-sect1_15_936) | [174](#chapter_12-sect1_15_936) |
| [**SURRENDERS AND WITHDRAWALS**............................................................................](#chapter_13_936) | [**176**](#chapter_13_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TYPES OF DISTRIBUTIONS AVAILABLE TO YOU ...............................................................](#chapter_13-sect1_2_936) | [176](#chapter_13-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NON-QUALIFIED ANNUITIES?.......................................](#chapter_13-sect1_3_936) | [176](#chapter_13-sect1_3_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CAN I WITHDRAW A PORTION OF MY ANNUITY?...............................................................](#chapter_13-sect1_4_936) | [176](#chapter_13-sect1_4_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[CHARGE FREE WITHDRAWAL AMOUNTS....................................................................](#chapter_13-sect1_5_936) | [177](#chapter_13-sect1_5_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CAN YOU CLOSE MY ACCOUNT AND INVOLUNTARILY REDEEM MY INVESTMENT....................................](#chapter_13-sect1_6_936) | [177](#chapter_13-sect1_6_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS..............................................................................](#chapter_13-sect1_7_936) | [177](#chapter_13-sect1_7_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t) AND 72(q) OF THE INTERNAL REVENUE CODE.....................](#chapter_13-sect1_8_936) | [178](#chapter_13-sect1_8_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIRED MINIMUM DISTRIBUTIONS.......................................................................](#chapter_13-sect1_9_936) | [178](#chapter_13-sect1_9_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SURRENDER VALUE.....................................................................................](#chapter_13-sect1_10_936) | [178](#chapter_13-sect1_10_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [MEDICALLY-RELATED SURRENDERS.......................................................................](#chapter_13-sect1_11_936) | [179](#chapter_13-sect1_11_936) |
| [**TAXES**...................................................................................................](#chapter_14_936) | [**180**](#chapter_14_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [NON-QUALIFIED ANNUITIES...............................................................................](#chapter_14-sect1_2_936) | [180](#chapter_14-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [QUALIFIED ANNUITIES...................................................................................](#chapter_14-sect1_3_936) | [184](#chapter_14-sect1_3_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ADDITIONAL CONSIDERATIONS............................................................................](#chapter_14-sect1_4_936) | [190](#chapter_14-sect1_4_936) |
| [**LEGAL PROCEEDINGS**......................................................................................](#chapter_15_936) | [**191**](#chapter_15_936) |
| [**FINANCIAL STATEMENTS**....................................................................................](#chapter_16_936) | [**192**](#chapter_16_936) |
| [**ADDITIONAL INFORMATION**...................................................................................](#chapter_17_936) | [**193**](#chapter_17_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW WILL I RECEIVE STATEMENTS AND REPORTS?...........................................................](#chapter_17-sect1_2_936) | [193](#chapter_17-sect1_2_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW TO CONTACT US...................................................................................](#chapter_17-sect1_3_936) | [193](#chapter_17-sect1_3_936) |
| [**APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT**.............................................](#chapter_18_936) | [**A-1**](#chapter_18_936) |
| [**APPENDIX B – ADDITIONAL INFORMATION ON ASSET ALLOCATION PROGRAMS**........................................](#chapter_19_936) | [**B-1**](#chapter_19_936) |
| [**APPENDIX C – FORMULA UNDER HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT**......................................](#chapter_20_936) | [**C-1**](#chapter_20_936) |
| [**APPENDIX D – ANNUITIES APPROVED FOR SALE BY THE NEW YORK STATE INSURANCE DEPARTMENT**.....................](#chapter_21_936) | [**D-1**](#chapter_21_936) |
| [**APPENDIX E – FORMULA UNDER GRO PLUS 2008**.................................................................](#chapter_22_936) | [**E-1**](#chapter_22_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [**APPENDIX F – FORMULA UNDER HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT AND SPOUSAL HIGHEST** **DAILY LIFETIME** <br>**SEVEN INCOME BENEFIT**.........................................................................](#chapter_23_936) | [**F-1**](#chapter_23_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [**APPENDIX G – FORMULA FOR HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT AND SPOUSAL HIGHEST DAILY** **LIFETIME** <br>**PLUS INCOME BENEFIT**..........................................................................](#chapter_24_936) | [**G-1**](#chapter_24_936) |
| [**APPENDIX H – SPECIAL CONTRACT PROVISIONS FOR ANNUITIES ISSUED IN CERTAIN STATES**............................](#chapter_25_936) | [**H-1**](#chapter_25_936) |
| [**APPENDIX I – FORMULA UNDER THE GUARANTEED RETURN OPTION PLUS BENEFIT**....................................](#chapter_26_936) | [**I-1**](#chapter_26_936) |
| [**APPENDIX J – FORMULA UNDER THE GUARANTEED RETURN OPTION BENEFIT**........................................](#chapter_27_936) | [**J-1**](#chapter_27_936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [**APPENDIX K – FORMULA FOR HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT AND SPOUSAL HIGHEST DAILY** **LIFETIME 6** <br>**PLUS INCOME BENEFIT**..........................................................................](#chapter_28_936) | [**K-1**](#chapter_28_936) |
| [**APPENDIX L – FORMULA FOR GRO PLUS II**......................................................................](#chapter_29_936) | [**L-1**](#chapter_29_936) |
| [**APPENDIX M – FORMULA FOR HIGHEST DAILY GRO**...............................................................](#chapter_30_936) | [**M-1**](#chapter_30_936) |
| [**APPENDIX N – FORMULA FOR HIGHEST DAILY GRO II**..............................................................](#chapter_31_936) | [**N-1**](#chapter_31_936) |

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**GLOSSARY OF TERMS**

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Many terms used within this Prospectus are described within the text where they appear. The description of those terms are not repeated in this Glossary of Terms.

**Account Value:** The value of each allocation to a Variable Option plus any Fixed Allocation prior to the Annuity Date, increased by any earnings, and/or less any losses, distributions and charges. The Account Value is calculated before we assess any applicable Contingent Deferred Sales Charge ("CDSC" or "surrender charge") and/or, unless the Account Value is being calculated on an annuity anniversary, any fee that is deducted from the Annuity annually in arrears. The Account Value is determined separately for each Variable Option and for each Fixed Allocation, and then totaled to determine the Account Value for your entire Annuity. The Account Value of each Market Value Adjustment Fixed Allocation on any day other than its Maturity Date may be calculated using a Market Value Adjustment. With respect to Optimum Plus, the Account Value includes any Credits we applied to your Purchase Payments that we are entitled to recapture under certain circumstances. With respect to Optimum and Optimum Four, the Account Value includes any Loyalty Credit we apply. With respect to Annuities with a Highest Daily Lifetime Five Income Benefit election, Account Value includes the value of any allocation to the Benefit Fixed Rate Account.

**Accumulation Period:** The period of time from the Issue Date through the last Valuation Day immediately preceding the Annuity Date.

**Adjusted Purchase Payments:** As used in the discussion of certain optional benefits in this prospectus and elsewhere, Adjusted Purchase Payments are Purchase Payments, increased by any Credits applied to your Account Value in relation to such Purchase Payments, and decreased by any charges deducted from such Purchase Payments.

**Annual Income Amount:** This is the annual amount of income you are eligible for life under the optional benefits.

**Annuities Service Center:** The place to which all requests and payments regarding an Annuity are to be sent. We may change the address of the Annuities Service Center at any time. Please see the section of this prospectus entitled "[<u>How to Contact Us</u>](#chapter_17-sect1_3_936)" for the Annuities Service Center address.

**Annuitization:** The application of Account Value to one of the available annuity options to begin receiving periodic payments for life (or joint lives), for a guaranteed minimum number of payments or for life with a guaranteed minimum number of payments.

**Annuity Date:** The date you choose for annuity payments to commence. Unless we agree otherwise, for Annuities issued on or after November 20, 2006, the Annuity Date must be no later than the first day of the calendar month coinciding with or next following the later of: (a) the oldest Owner's or Annuitant's 95<sup>th</sup> birthday and (b) the fifth anniversary of the Issue Date, whichever occurs first.

**Annuity Year:** A 12-month period commencing on the Issue Date of the Annuity and each successive 12-month period thereafter.

**Beneficiary Annuity:** If you are a beneficiary of an annuity that was owned by a decedent, subject to the requirements discussed in this Prospectus, you may transfer the proceeds of the decedent's annuity into one of the Annuities described in this prospectus and continue receiving the distributions that are required by the tax laws. This transfer option is only available for purchase of an IRA, Roth IRA, or a Non-qualified annuity.

**Benefit Fixed Rate Account:** A fixed investment option that is used only if you have elected the optional Highest Daily Lifetime Five Income Benefit. Amounts allocated to the Benefit Fixed Rate Account earn a fixed rate of interest, and are held within our general account. You may not allocate Purchase Payments to the Benefit Fixed Rate Account. Rather, Account Value is transferred to and from the Benefit Fixed Rate Account only under the pre-determined mathematical formula of the Highest Daily Lifetime Five Income Benefit.

**Charge Free Withdrawal:** The Charge Free Withdrawal amount is the amount that can be withdrawn from your Annuity each Annuity Year without the application of any CDSC.

**Code:** The Internal Revenue Code of 1986, as amended from time to time and the regulations promulgated thereunder.

**Combination 5% Roll-Up And HAV Death Benefit:** We offer an optional Death Benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing the greater of the Highest Anniversary Value Death Benefit and a 5% annual increase on Purchase Payments adjusted for withdrawals.

**Co-Annuitant:** The person shown on the contract data pages who becomes the Annuitant upon the death of the Annuitant before the Annuity Date. No Co-Annuitant may be designated if the Owner is a non-natural person.

**Contingent Annuitant:** The natural person named to become the Annuitant upon the death of Annuitant prior to the Annuity Date. A Contingent Annuitant may be named only in limited circumstances involving an Annuity issued to a Custodial Account or to a tax-qualified retirement plan.

**Contingent Deferred Sales Charge (CDSC):** This is a sales charge that may be deducted when you make a full or partial withdrawal under your Annuity. We refer to this as a "contingent" charge because it can be imposed only if you make a withdrawal. The charge is a percentage of each applicable Purchase Payment that is being withdrawn. The period during which a particular percentage applies is measured from the Issue Date of the Annuity. The amount and duration of the CDSC varies among the Optimum, Optimum Four and Optimum Plus. See the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" section of this prospectus for details on the CDSC for each Annuity. The CDSC is also referred to as a surrender charge in this prospectus.

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**Credit:** An amount we allocate to your Annuity's Account Value each time you make a Purchase Payment. The amount of the Credit is payable from our general account. The amount of the Credit depends on the cumulative amount of Purchase Payments you have made to your Annuity, payable as a percentage of each specific Purchase Payment.

**Custodial Account:** A trust or Custodial Account that qualifies as an individual retirement account as defined in Section 408(a) of the Code, including a Roth IRA that satisfies the definitions in Sections 408(a) and 408A of the Code.

**Enhanced Beneficiary Protection Death Benefit:** An optional Death Benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing amounts in addition to the basic Death Benefit that can be used to offset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. We no longer offer the Enhanced Beneficiary Protection Death Benefit.

**Excess Income:** All or a portion of a Lifetime Withdrawal that exceeds the Annual Income Amount for that benefit year is considered Excess Income ("Excess Income"). Each withdrawal of Excess Income proportionally reduces the Annual Income Amount for future benefit years.

**Fixed Allocation:** An investment option that offers a fixed rate of interest for a specified Guarantee Period during the Accumulation Period. Certain Fixed Allocations are subject to a Market Value Adjustment if you withdraw Account Value prior to the Fixed Allocation's maturity.

**Good Order:** An instruction received by us, utilizing such forms, signatures, and dating as we require, which is sufficiently complete and clear that we do not need to exercise any discretion to follow such instructions. In your Annuity contract, we use the term "In Writing" to refer to this general requirement.

**Guarantee Period:** A period of time during the Accumulation Period where we credit a fixed rate of interest on a Fixed Allocation.

**Guaranteed Minimum Income Benefit (GMIB):** An optional benefit that, for an additional cost, after a seven-year waiting period, guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on your total Purchase Payments and an annual increase of 5% on such Purchase Payments adjusted for withdrawals (called the "Protected Income Value"), regardless of the impact of Variable Option performance on your Account Value. We no longer offer GMIB.

**Guaranteed Minimum Withdrawal Benefit (GMWB):** An optional benefit that, for an additional cost, guarantees your ability to withdraw amounts over time equal to an initial principal value, regardless of the impact of Variable Option performance on your Account Value. We no longer offer GMWB.

**Guaranteed Return Option Plus (GRO Plus)/Guaranteed Return Option Plus 2008 (GRO Plus 2008)/Guaranteed Return Option (GRO)/Highest** **Daily Guaranteed Return Option (Highest Daily GRO)/ Guaranteed Return Option Plus II (GRO Plus II)/Highest Daily Guaranteed Return Option** **II (HD GRO II):** Each of GRO Plus, GRO Plus 2008, GRO, Highest Daily GRO, GRO Plus II, and HD GRO II is a separate optional benefit that, for an additional cost, guarantees a minimum Account Value at one or more future dates and that requires your participation in a program that may transfer your Account Value according to a predetermined mathematical formula. Each benefit has different features, so please consult the pertinent benefit description in the section of the prospectus entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11_936)". Certain of these benefits are no longer available for election.

**Highest Anniversary Value Death Benefit ("HAV"):** An optional Death Benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit and the Highest Anniversary Value, less proportional withdrawals. We no longer offer HAV.

**Highest Daily Lifetime Five Income Benefit:** An optional benefit that, for an additional cost, guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. We no longer offer Highest Daily Lifetime Five.

**Highest Daily Lifetime Seven Income Benefit:** An optional benefit for an additional charge that guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. Highest Daily Lifetime Seven is the same class of optional benefits as our Highest Daily Lifetime Five Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and how the lifetime withdrawals are calculated. We no longer offer Highest Daily Lifetime Seven.

**Highest Daily Lifetime 7 Plus Income Benefit:** An optional benefit that is available for an additional charge. The benefit guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. Highest Daily Lifetime 7 Plus is the same class of optional benefits as our Highest Daily Lifetime Seven Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and how the lifetime withdrawals are calculated. We no longer offer Highest Daily Lifetime 7 Plus.

**Highest Daily Lifetime 6 Plus Income Benefit:** An optional benefit that is available for an additional charge. The benefit guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. Highest Daily Lifetime 6 Plus is the same class of optional benefit as our Highest Daily Lifetime 7 Plus Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and how the lifetime withdrawals are calculated. We no longer offer Highest Daily Lifetime 6 Plus.

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**Highest Daily Value Death Benefit ("HDV"):** An optional benefit that, for an additional cost, provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit and the Highest Daily Value, less proportional withdrawals. We no longer offer HDV.

**Interim Value:** The value of the Market Value Adjustment Fixed Allocations on any date other than the Maturity Date. The Interim Value is equal to the initial value allocated to the Market Value Adjustment Fixed Allocation plus all interest credited to the Market Value Adjustment Fixed Allocation as of the date calculated, less any transfers or withdrawals from the Market Value Adjustment Fixed Allocation. The Interim Value does not include the effect of any Market Value Adjustment.

**Issue Date:** The effective date of your Annuity.

**Key Life:** Under the Beneficiary Continuation Option, or the Beneficiary Annuity, the person whose life expectancy is used to determine payments.

**Lifetime Five Income Benefit:** An optional benefit that, for an additional cost, guarantees your ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. We no longer offer Lifetime Five.

**Market Value Adjustment:** A Market Value Adjustment used in the determination of Account Value of a Market Value Adjustment Fixed Allocation on any day prior to the Maturity Date of such Market Value Adjustment Fixed Allocation.

**Maturity Date:** The last day of the Guarantee Period.

**MVA Fixed Allocation:** An investment option that offers a fixed rate of interest for a specified Guarantee Period during the accumulation period that is subject to a market value adjustment if you withdraw Account Value prior to the maturity of the Fixed Allocation. Your Annuity may include Fixed Allocations that are not subject to a market value adjustment, such as a benefit fixed rate account.

**Owner:** With an Annuity issued as an individual annuity contract, the Owner is either an eligible entity or individual named as having ownership rights in relation to the Annuity. With an Annuity issued as a certificate under a group annuity contract, the "Owner" refers to the person or entity who has the rights and benefits designated as to the "Participant" in the certificate.

**Payout Period:** The period starting on the Annuity Date and during which annuity payments are made.

**Portfolio:** Any underlying mutual fund which may be selected as an investment option by the Owner. The terms "Fund" and "Portfolio" are used interchangeably. Some of the Portfolios use the term "Fund" and others use the term "Portfolio" in their respective prospectuses.

**Purchase Payment:** A cash consideration in currency of the United States of America given to us in exchange for the rights, privileges, and benefits of the Annuity.

**Registered Separate Account:** Fortitude Life Insurance & Annuity Co Variable Account B, which holds the assets supporting the Variable Options. Assets held in the Registered Separate Account are kept separate from all of our other assets and may not be charged with liabilities arising out of any other business we may conduct. The Registered Separate Account may be referred to as the "Separate Account" in this prospectus and the Contract.

**Spousal Highest Daily Lifetime Seven Income Benefit:** An optional benefit that, for an additional charge, guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. The benefit is the spousal version of the Highest Daily Lifetime Seven Income Benefit and is the same class of optional benefits as our Spousal Highest Daily Lifetime Five Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and to how the lifetime withdrawals are calculated. We no longer offer Spousal Highest Daily Lifetime Seven.

**Spousal Highest Daily Lifetime 7 Plus Income Benefit:** An optional benefit that, for an additional charge, guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. The benefit is the spousal version of the Highest Daily Lifetime 7 Plus Income Benefit and is the same class of optional benefits as our Spousal Highest Daily Lifetime Seven Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and to how the lifetime withdrawals are calculated. We no longer offer Spousal Highest Daily Lifetime 7 Plus.

**Spousal Highest Daily Lifetime 6 Plus Income Benefit:** An optional benefit that, for an additional charge, guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. The benefit is the spousal version of the Highest Daily Lifetime 6 Plus Income Benefit and is the same class of optional benefit as our Spousal Highest Daily Lifetime 7 Plus Income Benefit, but differs (among other things) with respect to how the Protected Withdrawal Value is calculated and to how the lifetime withdrawals are calculated. We no longer offer Spousal Highest Daily Lifetime 6 Plus.

**Spousal Lifetime Five Income Benefit:** An optional benefit that, for an additional cost, guarantees until the later death of two Designated Lives (as defined in this prospectus) the ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these withdrawal amounts, regardless of the impact of Variable Option performance on your Account Value. We no longer offer Spousal Lifetime Five.

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**Surrender Value:** The value of your Annuity available upon surrender prior to the Annuity Date. It equals the Account Value as of the date we price the surrender minus any applicable CDSC, Annual Maintenance Fee, Tax Charge and the charge for any optional benefits and any additional amounts we applied to your Purchase Payments that we may be entitled to recapture under certain circumstances. The Surrender Value may be calculated using a Market Value Adjustment with respect to amounts in any Market Value Adjustment Fixed Allocation.

**Unit:** A measure used to calculate your Account Value in a Variable Option during the Accumulation Period.

**Unit Value:** Each Variable Option has a separate value for its Units (this is analogous to, but not the same as, the share price of a mutual fund).

**Valuation Day:** Every day the New York Stock Exchange is open for trading or any other day the Securities and Exchange Commission requires mutual funds or unit investment trusts to be valued, not including any day: (1) trading on the NYSE is restricted; (2) an emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or (3) the SEC, by order, permits the suspension or postponement for the protection of security holders.

**Variable Option:** A division of the Registered Separate Account. The Variable Option also may be referred to in this prospectus and the Annuity as a Variable Sub-account or Sub-account.

**"We", "our", "us", "FLIAC", or "the Company":** Fortitude Life Insurance & Annuity Company.

**"You" or "your":** the Owner(s) shown in the Annuity.

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**OVERVIEW OF THE CONTRACT**

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**Optimum**<br>**Optimum Four**<br>**Optimum Plus**

**The Annuity referenced in this prospectus and its applicable riders are no longer available for new sales.**

**Purpose of the Contract**

The Annuities described in this prospectus are long-term investments designed for long-term retirement purposes because they allow you to accumulate retirement savings and also offer annuity payment options when you are ready to begin receiving income. These Annuities are "flexible premium deferred annuity." It is called "flexible premium" because you have considerable flexibility in the timing and amount of premium payments. Generally, investors "defer" receiving annuity payments until after an Accumulation Period. These Annuities may be appropriate for investors accumulating retirement savings on a tax deferred basis and would seek guaranteed income through an annuity payment option.

**Phases of the Contract**

The Annuities feature two distinct phases - the Accumulation Period and the Payout Period. During the Accumulation Period your Account Value is allocated to one or more investment options. See "Investment Options" below. During the Payout Period (after Annuitization), you can elect to receive annuity payments (1) for life; (2) for life with a guaranteed minimum number of payments; (3) based on joint lives; or (4) for a guaranteed number of payments. We currently make annuity payments available on a fixed basis. After Annuitization, the Death Benefits and optional benefits described in this prospectus will no longer apply. We reserve the right to make available other annuity options. See the [<u>"Annuity Period"</u>](#chapter_10-sect1_1_936) section of this prospectus.

**Investment Options**

*Variable Options:* The Variable Options we make available each invest in an underlying Portfolio whose share price generally fluctuates each day. The Variable Options do not provide any level of protection against negative returns. You are at risk of losing principal and any earnings if you allocate funds to a Portfolio.

*Fixed Rate Options:* The Annuity offers two fixed interest rate options ("Fixed Rate Options"). The Market Value Adjustment Fixed Allocation provides a guaranteed annual interest rate for a term of 1-10 years (in most states) called the "Guarantee Period".

An investment in the Fixed Rate Options may be appropriate for investors who seek a fixed rate of return on either all or a portion of their Account Value and do not need access to their money before the end of the Guarantee Period. If you withdraw or transfer assets from a Market Value Adjustment Fixed Allocation more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose a significant amount of money due to a negative Market Value Adjustment. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period or before the entire principal amount plus earnings has been transferred from the Dollar Cost Averaging Fixed Rate Option, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals and Required Minimum Distributions), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees, and (vi) the payment of the basic death benefit.

**Additional information about the Investment Options is provided in** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **to the prospectus.**

**Contract Features**

*Credits:* Under the Optimum and Optimum Four Annuities, we apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth Annuity Year ("fifth Annuity Anniversary"). The amount of the Credit depends on the Issue Date of your Annuity.

*Death Benefits:* The Annuities also offer a basic Death Benefit that could protect your retirement savings if you die during a period of declining markets, depending on when you die. They also offer optional Death Benefits that provide enhanced levels of protection for your beneficiary(ies) for an additional charge.

*Living Benefits:* We offer optional benefits for an additional fee that guarantee your ability to take withdrawals for life as a percentage of an initial guaranteed benefit base, even after your Account Value falls to zero (unless it does so due to a withdrawal of Excess Income). We also offer optional benefits for an additional fee that guarantee your Account Value to a certain level after a period of years. As part of these benefits, you are required to invest only in certain permitted investment options. **For more information, see "**[**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**".**

*Withdrawals:* You can withdraw a limited amount of money from your Annuity on an annual basis without any charges.

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**KEY INFORMATION**

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| **Important Information You Should Consider About Optimum** | **Important Information You Should Consider About Optimum** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>*Surrender Charges:* If you withdraw money from the Contract within 8 years following your Contract Issue Date, you may be assessed a surrender charge. The maximum surrender charge is 7.5% of the premium payment, and a surrender charge may be assessed up to 8 years after the Issue Date of your Contract. If you make an early withdrawal, you could pay a surrender charge of up to $7,500 on a $100,000 withdrawal.<br>*Market Value Adjustments:* If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market Value Adjustment. For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 12 month Guarantee Period and later withdraw the entire amount before the 12 months have ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), (v) the deduction of fees, and (vi) the payment of the basic death benefit.<br>For more information on early withdrawal charges and Market Value Adjustments, please refer to the [<u>"Charges and</u> <u>Adjustments"</u>](#chapter_8-sect1_1_936) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.**<br>In addition to Market Value Adjustments and surrender charges, you may be charged for other transactions. Charges may be applied to transfers (if more than 20 in an Contract Year), requesting additional or duplicate reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) section of this prospectus. |

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|:---|:---|:---|:---|
| **Important Information You Should Consider About Optimum** | **Important Information You Should Consider About Optimum** | **Important Information You Should Consider About Optimum** | **Important Information You Should Consider About Optimum** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | **Base Contract Fees** | 0.650%<sup>\*</sup> | 1.277%<sup>\*</sup> |
|  Are there Ongoing Fees and Expenses? | **Portfolio Company fees and** **expenses** | 0.58%<sup>\*</sup> | 4.77%<sup>\*</sup> |
|  Are there Ongoing Fees and Expenses? | **Optional benefits available for an** **additional charge**<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 1.20%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of greater of Account Value and the Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of greater of Account Value and the Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of greater of Account Value and the Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br>**$1,871** | **Highest Annual Cost**<br>**$8,957** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and<br>expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of<br>optional benefits and Portfolio fees<br>and expenses<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. |

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|:---|:---|
| **Important Information You Should Consider About Optimum Four** | **Important Information You Should Consider About Optimum Four** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>If you withdraw money from the Contract within 4 years following your Contract Issue Date, you may be assessed a surrender charge. The maximum surrender charge is 8.5% of the premium payment, and a surrender charge may be assessed up to 4 years after the Issue Date of your Contract. If you make an early withdrawal, you could pay a surrender charge of up to $8,500 on a $100,000 withdrawal.<br>*Market Value Adjustments:* If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market Value Adjustment. For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 12 month Guarantee Period and later withdraw the entire amount before the 12 months have ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), (v) the deduction of fees (including Advisory Fees), and (vi) the payment of the basic death benefit.<br>For more information on early withdrawal charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.**<br>In addition to Market Value Adjustments and surrender charges, charges may be applied to transfers (if more than 20 in an Contract Year), requesting additional or duplicate reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) section of this prospectus. |

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|:---|:---|:---|:---|
| **Important Information You Should Consider About Optimum Four** | **Important Information You Should Consider About Optimum Four** | **Important Information You Should Consider About Optimum Four** | **Important Information You Should Consider About Optimum Four** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | **Base Contract Fees** | 1.650%<sup>\*</sup> | 1.677%<sup>\*</sup> |
|  Are there Ongoing Fees and Expenses? | **Portfolio Company fees and** **expenses** | 0.58%<sup>\*</sup> | 4.77%<sup>\*</sup> |
|  Are there Ongoing Fees and Expenses? | **Optional benefits available for an**<br>**additional charge**<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 2.00%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the greater of Account Value and the Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator benefit, the most expensive optional benefits with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the greater of Account Value and the Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator benefit, the most expensive optional benefits with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the greater of Account Value and the Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator benefit, the most expensive optional benefits with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br>**$2,280** | **Highest Annual Cost**<br>**$9,344** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and<br>expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of<br>optional benefits and Portfolio fees<br>and expenses<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. |

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|:---|:---|
| **Important Information You Should Consider About Optimum Plus** | **Important Information You Should Consider About Optimum Plus** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>If you withdraw money from the Contract within 10 years following your Contract Issue Date, you may be assessed a surrender charge. The maximum surrender charge is 9.0% of the premium payment, and a surrender charge may be assessed up to 10 years after the Issue Date of your Contract. If you make an early withdrawal, you could pay a surrender charge of up to $9,000 on a $100,000 withdrawal. Credits may also be recaptured if you take an Early Withdrawal.<br>*Market Value Adjustments:* If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market Value Adjustment. For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 12 month Guarantee Period and later withdraw the entire amount before the 12 months have ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), (v) the deduction of fees (including Advisory Fees), and (vi) the payment of the basic death benefit.<br>For more information on early withdrawal charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.**<br>In addition to Market Value Adjustments and surrender charges, charges may be applied to transfers (if more than 20 in a Contract Year), requesting additional or duplicate copies of reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) section of this prospectus. |

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| | | | |
|:---|:---|:---|:---|
| **Important Information You Should Consider About Optimum Plus** | **Important Information You Should Consider About Optimum Plus** | **Important Information You Should Consider About Optimum Plus** | **Important Information You Should Consider About Optimum Plus** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) for more information. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | **Base Contract Fees** | 0.677%<sup>\*</sup> in Contract<br> Years 11 and later | 1.677%<sup>\*</sup> in Contract<br> Years 1-10 |
|  Are there Ongoing Fees and Expenses? | **Portfolio Company fees and** **expenses** | 0.58%<sup>\*</sup> | 4.77%<sup>\*</sup> |
|  Are there Ongoing Fees and Expenses? | **Optional benefits available for an** **additional charge**<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 2.00%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the lease expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on the greater of Account Value and Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the lease expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on the greater of Account Value and Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup>Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_936) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for more information.**<br><sup>1</sup>Charge based on a percentage of net assets allocated to the Variable Options. This charge is the current charge for the Enhanced Beneficiary Protection Death Benefit, the lease expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on the greater of Account Value and Protected Withdrawal Value. This charge is the current charge for the Highest Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator, the most expensive optional benefit with an additional charge.<br>Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. <br>**This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br>**$2,280** | **Highest Annual Cost**<br>**$9,309** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and<br>expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of<br>optional benefits and Portfolio fees<br>and expenses<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936)sections of this prospectus. |

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| | |
|:---|:---|
| **Risks** | **Risks** |
|  Is there a Risk of Loss from Poor Performance? | **Yes.**<br>You can lose money by investing in the Contract. You can also lose value from Credits if they are recaptured by us.<br>For more information on the risk of loss from poor performance, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_936)" section of this prospectus |
|  Is this a Short-Term Investment? | **No.**<br>The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. The Contract is designed to provide benefits on a long-term basis. Because of the long-term nature of the Contract, you should consider whether the Contract is consistent with your financial situation and objectives.<br>Withdrawals may generally reduce the level of various optional benefit guarantees provided and may be subject to federal and state income taxes, as well as a 10% additional tax. If you withdraw or transfer assets from the MVA Fixed Allocation Options more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>For more information on the short-term investment risks, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_936)" section of this prospectus. |
|  What are the Risks Associated with the Investment Options? | An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the Investment Options you select. Each of the Investment Options available under the Contract, including the Variable Options and the Fixed Allocations, has its own unique risks. You should review the investment options before making an investment decision. The Fixed Allocations may be subject to a Market Value Adjustment, which can be negative, causing you to lose money.<br>For more information on the risks associated with investment options, please refer to the "[<u>Principal Risks of Investing in the</u> <u>Contract</u>](#chapter_6-sect1_1_936)" section of this prospectus. |
|  What are the Risks Related to the Insurance Company? | An investment in the Contract is subject to the risks related to the Company. Any obligations (including under any Fixed Allocation), guarantees, or benefits are subject to the claims-paying ability of the Company. More information about the Company, including its financial strength ratings, is available upon request. Such requests can be made toll-free at 1-800-879-7012.<br>For more information on the insurance company risks, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_936)" section of this prospectus. |
| **Restrictions** | **Restrictions** |
|  Are there Restrictions on the Investment Options? | &nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions that may limit the investment options that you may choose, and there are limitations on the transfer of Account Value among investment options.<br> You may make twenty (20) free transfers between investment options each Contract Year. After the twentieth transfer in each Contract Year, we will charge $10 for each additional transfer. This charge may be increased to $15 after 8 transfers in any Contract Year.<br> If you select an optional benefit, your selection of investment options may be limited.<br> We reserve the right to:<br> Remove or substitute Portfolios as investment options.<br> Close Variable Options to subsequent Purchase Payments on existing Annuities or Annuities purchased on or after specified dates,<br> Impose limitations on an investment professional's or investment advisor's ability to request financial transactions on your behalf,<br> Limit the number of transfers you may make or to impose a minimum transfer amount, and<br> Limit, suspend or reject any additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities.<br> Certain Investment Options may not be available through certain financial intermediaries. See the [<u>Cover Page</u>](#chapter_1-sect1_1_936) for additional information.<br>**For more information on investment and transfer restrictions, please refer to the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_936) **section,** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936)**, the** [**<u>"Principal Risks of Investing in the Contract"</u>**](#chapter_6-sect1_1_936) **section, the** [**<u>"General Description of Contracts"</u>**](#chapter_9-sect1_1_936) **section, the** [**<u>"Restrictions on Transfers Between Investment Options"</u>**](#chapter_9-sect1_9_936) **section and the** [**<u>"Financial Professional Permission to Forward</u>** **<u>Transaction Instructions"</u>**](#chapter_9-sect1_10_936) **section of this prospectus.** |

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| | |
|:---|:---|
| **Restrictions** | **Restrictions** |
|  Are there any Restrictions on Contract Benefits? | &nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions and limitations relating to benefits offered under the Contract. Except as otherwise provided, Contract benefits may not be modified or terminated by the Company.<br> You may be able to obtain optional benefits, which may require additional charges. If you elect to purchase one or more optional benefits, we will deduct an additional on a daily, quarterly or annual basis from your Account Value allocated to the Variable Option. The charge for each optional benefit is deducted in addition to the insurance charge due to the increased insurance risk associated with the optional benefits.<br> Any withdrawals that exceed limits specified by the terms of an optional benefit may affect the availability of the benefit by reducing the benefit by an amount greater than the value withdrawn, and/or could terminate the benefit.<br> Certain Contract Benefits may not be available through certain financial intermediaries. See the [<u>Cover Page</u>](#chapter_1-sect1_1_936) for additional information.<br>For more information on optional benefits under the Contract, please refer to the [<u>"Benefits Available Under the Contract"</u>](#chapter_11_936) section of this prospectus. |
| **Taxes** | **Taxes** |
|  What are the Contract's Tax Implications? | You should consult with a tax professional to determine the tax implications of an investment in and payments received under the Contract. There is no additional tax benefit if you purchase the Contract through a tax-qualified plan or individual retirement account (IRA). Withdrawals will be subject to ordinary income tax, and may be subject to a 10% additional tax for distributions taken prior to age 59½.<br>For more information on tax implications, please refer to the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section of this prospectus. |
| **Conflicts of Interest** | **Conflicts of Interest** |
|  How are Investment Professionals Compensated? | Investment professionals may receive compensation for selling the Contract to investors and may have a financial incentive to offer or recommend the Contract over another investment. This compensation is paid in the form of commissions, based on your investment in the Contract.<br>For more information on investment professional compensation, please refer to the Statement of Additional Information. |
|  Should I Exchange My Contract? | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you already own. You should only exchange your Contract if you determine after comparing the features, fees, and risks of both contracts, and any fees or penalties to terminate the existing Contract, that it is preferable to purchase the new contract, rather than continue to own your existing Contract. This Contract is no longer sold.<br>For more information on exchanges, please refer to the Statement of Additional Information. |

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**FEE TABLE**

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**The following tables describe the fees, expenses, and adjustments that you will pay when buying, owning, and surrendering or making** **withdrawals from an Investment Option or from the Annuity.**

**The first table describes the fees and expenses that you will pay at the time that you buy the Annuity, surrender or make withdrawals from the** **Annuity, transfer Account Value between investment options, or request duplicate reports. State premium taxes may also be deducted. These** **fees and charges are described in more detail within this prospectus in the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_936) **section.**

**For charges specific to contracts issued in New York State, please refer to** [**<u>Appendix D - Annuities Approved for Sale by the New York State</u>** **<u>Insurance Department.</u>**](#chapter_21-sect1_1_936)

---

| | |
|:---|:---|
|  **Transaction Expenses** | **Maximum** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Sales Charge Imposed on Purchases** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Deferred Sales Charge:** *(as a percentage of each Purchase Payment)*<sup>*1*</sup> | &nbsp;&nbsp;&nbsp;&nbsp; **Deferred Sales Charge:** *(as a percentage of each Purchase Payment)*<sup>*1*</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Optimum | 7.5% |
| &nbsp;&nbsp;&nbsp;&nbsp; Optimum Four | 8.5% |
| &nbsp;&nbsp;&nbsp;&nbsp; Optimum Plus | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; **Transfer Fee**<sup>2</sup> | $15.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Additional Copies of Reports<sup>3</sup>** | $50 |

---

1. The
 Contingent Deferred Sales Charges, if applicable, are assessed upon surrender or withdrawal. The charge is a percentage of each applicable
 Purchase Payment deducted
 upon surrender or withdrawal. The period during which a particular percentage applies is measured from the Issue Date of the Annuity. Purchase Payments
 are withdrawn on a "first-in, first-out" basis.

2. Currently,
 we deduct the fee after the 20 <sup>th</sup> transfer each Annuity Year. We will charge $10 for each transfer after the twentieth in each Annuity Year. This charge may
 be increased to $15 after 8 transfers in any Annuity Year.

3. We
 do not currently assess this fee. However, we reserve the right to charge up to $50 for each additional report (i.e. confirmation statement
 or quarterly statement)
 you request.

**The next table describes the adjustments, in addition to any transaction expenses, that apply if all or a portion of the Account Value is** **removed from an MVA Fixed Allocation before the expiration of a specified period.**

---

| | |
|:---|:---|
|  **Adjustments** | **Adjustments** |
| &nbsp;&nbsp;&nbsp;&nbsp; Market Value Adjustment Maximum Potential Loss (as a percentage of Unadjusted Account Value in the MVA Fixed Allocation)<sup>1</sup> | 100% |

---

1. The
 following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment:
 (i) partial withdrawals (including systematic
 withdrawals and Required Minimum Distributions), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled
 DCA transfers), and (v) the deduction of fees.

**The following Contingent Deferred Sales Charge percentages apply based on the year of the surrender or withdrawal:**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Yr. 1** | **Yr. 2** | **Yr. 3** | **Yr. 4** | **Yr. 5** | **Yr. 6** | **Yr. 7** | **Yr. 8** | **Yr. 9** | **Yr. 10** | **Yr. 11+** |
|  **Optimum** | 7.5% | 7.0% | 6.5% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% |  |  |  |
|  **Optimum Four** | 8.5% | 8.0% | 7.0% | 6.0% |  |  |  |  |  |  |  |
|  **Optimum Plus**\* | 9.0% | 9.0% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 1.0% |  |

---

\* For annuities issued before November 20, 2006, the schedule is as follows: Year 1: 9.0%; Year 2: 9.0%; Year 3: 8.5%; Year 4: 8.0%; Year 5: 7.0%; Year 6: 6.0%; Year 7: 5.0%; Year 8: 4.0%; Year 9: 3.0%; Year 10: 2.0%; Year 11+: 0.0%.

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**The next table describes the maximum fees and expenses that you will pay each year during the time that you own the Annuity (not including** **Portfolio fees and expenses). Your current fees and expenses may be less than the maximum.**

**If you choose to purchase an optional benefit, you will pay additional charges, as shown below.**

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| | |
|:---|:---|
|  **Annual Annuity Expenses** | **Maximum** |
|  **Administrative Expenses**<sup>1</sup><br>*(assessed annually on the Annuity's anniversary date or upon surrender)* | Lesser of $35 or 2% of Account Value<sup>2</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Base Contract Expenses<sup>3,</sup>**<sup>**4**</sup> <br>*(based on the average daily net assets of the Variable Options) (excluding Settlement Service Charge)*<br>Annuity:<br> Optimum<br> Optimum Four<br> Optimum Plus | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>1.25% in Annuity Years 1-8; 0.65% in Annuity Years 9+<br> 1.65%<br> 1.65% in Annuity Years 1-10; 0.65% in Annuity Years 11+ |
|  **Optional Benefit Fees and Charges** | **Optional Benefit Fees and Charges** |
|  **GRO PLUS II**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.60% |
|  **HIGHEST DAILY GRO II**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.60% |
|  **HIGHEST DAILY LIFETIME 6 PLUS (HD 6 PLUS)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 1.50% |
|  **HIGHEST DAILY LIFETIME 6 PLUS WITH LIFETIME INCOME** **ACCELERATOR (LIA)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 1.50% |
|  **GUARANTEED RETURN OPTION (GRO)/GRO PLUS**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.75% |
|  **GUARANTEED RETURN OPTION PLUS 2008 (GRO PLUS 2008)**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.75% |
|  **HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.75% |
|  **GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)**<br>**Maximum Charge** (based on the Variable Option net assets) | 1.00% |
|  **GUARANTEED MINIMUM INCOME BENEFIT (GMIB)**<br>**Maximum Charge** ****(based on the PIV) | 1.00% |
|  **LIFETIME FIVE INCOME BENEFIT**<br>**Maximum Charge** (based on the Variable Option net assets) | 1.50% |
|  **SPOUSAL LIFETIME FIVE INCOME BENEFIT**<br>**Maximum Charge** (based on the Variable Option net assets) | 1.50% |
|  **HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT**<br>**Maximum Charge** (based on the Variable Option net assets) | 1.50% |
|  **HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT**<br>**Maximum Charge** (based on the PWV) | 1.50% |
|  **HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY INCOME OPTION** **(BIO)**<br>**Maximum Charge** (based on the PWV) | 2.00% |
|  **HIGHEST DAILY LIFETIME SEVEN WITH LIFETIME INCOME** **ACCELERATOR (LIA)**<br>**Maximum Charge** (based on the PWV) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT**<br>**Maximum Charge** (based on the PWV) | 1.50% |
|  **SPOUSAL HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY** **INCOME OPTION (BIO)**<br>**Maximum Charge** (based on the PWV) | 2.00% |

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| | |
|:---|:---|
|  **Optional Benefit Fees and Charges** | **Optional Benefit Fees and Charges** |
|  **HIGHEST DAILY LIFETIME 7 PLUS**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 1.50% |
|  **HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY INCOME OPTION** **(BIO)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **HIGHEST DAILY LIFETIME 7 PLUS WITH LIFETIME INCOME** **ACCELERATOR (LIA)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 1.50% |
|  **SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY** **INCOME OPTION (BIO)**<br>**Maximum Charge** (based on the greater of Account Value and PWV) | 2.00% |
|  **ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.25% |
|  **HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.40% |
|  **COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.80% |
|  **HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**<br>**Maximum Charge** (based on the Variable Option net assets) | 0.50% |

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1. The
 Administrative Expense for the Beneficiary Continuation Option is the lesser of $30 or 2% of Account Value. For beneficiaries who elect
 the Beneficiary Continuation
 Option, the fee is only applicable if Account Value is less than $25,000 at the time the fee is assessed.

2. The
 Administrative Expense is referred to as "Annual Maintenance Fee" elsewhere in this Prospectus. The Administrative Expense
 is only applicable if Account Value
 is less than $100,000 for Optimum and Optimum Four. Fee may differ in certain States.

3. The
 Base Contract Expense does not apply if you are a beneficiary under the Beneficiary Continuation Option. The Settlement Service Charge
 only applies if your beneficiary
 elects the Beneficiary Continuation Option. Beneficiaries are assessed a Settlement Service Charge for Non-qualified annuities of 1.00%
 and for qualified
 annuities of 1.40% (based on the average daily net assets of the Variable Options). Please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_936) section in this prospectus
 for more information about the Settlement Service Charge.

4. The
 Base Contract Expense is referred to as the "insurance charge" elsewhere in this Prospectus. For Optimum and Optimum Plus,
 the Base Contract Expense includes
 a Distribution Charge of 0.60% and 1.00%, respectively. It is an annual charge assessed on a daily basis. The charge is assessed for a
 certain number of
 years against the daily net assets allocated to the Variable Options.

**The next item shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the** **time that you own the Annuity. Expenses shown may change over time and be higher or lower in the future. A complete list of Portfolios** **available under the Annuity, including their annual expenses, may be found at** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **of this prospectus.**

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| | | |
|:---|:---|:---|
|  **Annual Portfolio Expenses** | **Annual Portfolio Expenses** | **Annual Portfolio Expenses** |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | *<u>Minimum</u>* | *<u>Maximum</u>* |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.58% | 4.77% |

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**Examples**

**These Examples are intended to help you compare the cost of investing in the Variable Options with the cost of investing in other annuity** **contracts that offer variable options. These costs include Transaction Expenses, Annual Annuity Expenses, and Annual Portfolio Expenses.**

**The Example assumes all Account Value is allocated to the Variable Options. The Example does not reflect Market Value Adjustment. Your** **costs could differ from those shown below if you invest in the MVA Fixed Allocation.**

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**These Examples assume that you invest $100,000 in the Variable Options for the time periods indicated. These Examples also assume that** **your investment has a 5% return each year and assumes the most expensive combination of Annual Portfolio Expenses and optional benefits** **available for an additional charge. This includes Highest Daily Lifetime 7 Plus with LIA and Combo 5% Roll-up/Highest Anniversary Value** **Death Benefit. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED BEFORE NOVEMBER 20, 2006 2** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $18309 | $35811 | $51531 | $86483 | $14147 | $24289 | $33920 | $59084 |
|  If you annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** | **OPTIMUM PLUS - CONTRACTS ISSUED ON OR AFTER NOVEMBER 20, 2006 2** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $18309 | $35311 | $50531 | $85483 | $14147 | $23789 | $32920 | $58084 |
|  If you annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9309 | $27311 | $44531 | $84483 | $5147 | $15789 | $26920 | $57084 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **OPTIMUM FOUR** | **OPTIMUM FOUR** | **OPTIMUM FOUR** | **OPTIMUM FOUR** | **OPTIMUM FOUR** | **OPTIMUM FOUR** | **OPTIMUM FOUR** | **OPTIMUM FOUR** | **OPTIMUM FOUR** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $17844 | $34408 | $44681 | $84725 | $13682 | $22891 | $27084 | $57383 |
|  If you annuitize your Contract at the end of the applicable time period: | $9344 | $27408 | $44681 | $84725 | $5182 | $15891 | $27084 | $57383 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9344 | $27408 | $44681 | $84725 | $5182 | $15891 | $27084 | $57383 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **OPTIMUM** | **OPTIMUM** | **OPTIMUM** | **OPTIMUM** | **OPTIMUM** | **OPTIMUM** | **OPTIMUM** | **OPTIMUM** | **OPTIMUM** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $16457 | $32879 | $48177 | $81988 | $12242 | $21112 | $30095 | $52759 |
|  If you annuitize your Contract at the end of the applicable time period: | $8957 | $26379 | $43177 | $81988 | $4742 | $14612 | $25095 | $52759 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8957 | $26379 | $43177 | $81988 | $4742 | $14612 | $25095 | $52759 |

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**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT**

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The risks identified below are the principal risks of investing in the Annuity. The Annuity may be subject to additional risks other than those identified and described in this prospectus.

**Risk of Loss:** You could lose money by investing in the Annuity, including your principal investment. An investment in the Annuity is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

**Risks Associated with Variable Options.** You take all the investment risk for amounts allocated to one or more of the Variable Options, which invest in Portfolios. If the Variable Options you select increase in value, then your Account Value goes up; if they decrease in value, your Account Value goes down. How much your Account Value goes up or down depends on the performance of the Portfolios in which your Variable Options invest. We do not guarantee the investment results of any Portfolio. An investment in the Annuity is subject to the risk of poor investment performance, and the value of your investment can vary depending on the performance of the selected Portfolio(s), each of which has its own unique risks. You should review the Portfolios before making an investment decision. We reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates.

**Risks Associated with the MVA Fixed Allocation:** We determine the interest rates credited to the MVA Fixed Allocation in our sole discretion, subject to guaranteed minimums, and we may change the rates for new Guarantee Periods at any time. Any change in interest rates do not affect Guarantee Periods that began before the date of the change. There is a risk that the interest rates for new Guarantee Periods will be lower than the rates that were previously in effect. In addition, if you withdraw or transfer assets from a MVA Fixed Allocation more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a MVA Fixed Allocation as a result of a negative Market Value Adjustment. Generally, if yields are higher at the time of Market Value Adjustment application than they were at the beginning of the Guarantee Period, the Market Value Adjustment will be negative.

**Early Withdrawal Risk:** The Annuity is not a short-term investment vehicle and is not an appropriate investment for an investor who needs ready <br>access to cash. The Annuity is designed to provide benefits on a long-term basis. Because of the long-term nature of the Annuity, you should consider whether the Annuity is consistent with your financial situation and objectives. Withdrawals under the Annuity, including partial withdrawals and a full surrender, may be subject to negative Market Value Adjustments and negative tax consequences. If you have elected certain Optional Benefits, a withdrawal may reduce the amount of your Benefit on more than a dollar-for-dollar basis. While the Annuity provides a Death Benefit, the amount of that benefit is subject to investment gains and losses and is reduced for any withdrawals you take, including Advisory Fee deductions.

**Insurance Company Risk:** No company other than us has any legal responsibility to pay amounts that we owe under the Annuity, including amounts allocated to the Fixed Allocations, which are supported by our general account and are subject to our claims-paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities, such as the payment of salaries, rent and other ordinary business expenses. You should look to our financial strength for our claims-paying ability. We are also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect us and our ability to conduct business and process transactions. Although we have business continuity plans, it is possible that the plans may not operate as intended or required and that we may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

**Possible Adverse Tax Consequences:** The tax considerations associated with the Annuity vary and can be complicated. The tax considerations discussed in this prospectus are general in nature and describe only federal income tax law (not state, local, foreign or other federal tax laws). Before making a Purchase Payment or taking other action related to your Annuity, you should consult with a qualified tax advisor for complete information and advice. For example, distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. In addition, if you take a distribution prior to the taxpayer's age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain.

**Possible Fees on Access to Account Value:** We may apply fees if you access your Account Value during the Accumulation Period or surrender your Annuity. For example, in addition to possible tax consequences discussed above, you may incur fees for accessing your Account Value such as a Contingent Deferred Sales Charge, Annual Maintenance Fee, Tax Charge, and/or a charge for any optional benefits. In addition, we may recapture some or all of the Credits applied to your Annuity and assess a Market Value Adjustment for withdrawals from a Fixed Allocation.

**Credit Recapture:** In certain circumstances we may recapture any Credits applied to your Contract if you access your Account Value during the Accumulation Period or surrender your Annuity.

**Annuity Changes Risk:** We reserve the right to limit the number of transfers you may make or to impose a minimum transfer amount. We also reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates. We may limit, suspend or reject any additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with

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an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities. In addition, we may impose limitations on an investment professional's or investment advisor's ability to request financial transactions on your behalf.

**Cyber Security and Business Continuity Risks:** With the increasing use of technology and computer systems in general and, in particular, the Internet to conduct necessary business functions, the Company is susceptible to operational, information security and related risks. These risks, which are often collectively referred to as "cyber security" risks, may include deliberate or malicious attacks, as well as unintentional events and occurrences. These risks are heightened by our offering of increasingly complex products, such as those that feature automatic asset transfer or reallocation strategies, and by our employment of complex investment, trading and hedging programs. Cyber security is generally defined as the technology, operations and related protocol surrounding and protecting a user's computer hardware, network, systems and applications and the data transmitted and stored therewith. These measures ensure the reliability of a user's systems, as well as the security, availability, integrity, and confidentiality of data assets.

Deliberate cyber attacks can include, but are not limited to, gaining unauthorized access (including physical break-ins) to computer systems in order to misappropriate and/or disclose sensitive or confidential information; deleting, corrupting or modifying data; and causing operational disruptions. Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (in order to prevent access to computer networks). In addition to deliberate breaches engineered by external actors, cyber security risks can also result from the conduct of malicious, exploited or careless insiders, whose actions may result in the destruction, release or disclosure of confidential or proprietary information stored on an organization's systems.

The Company is also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect the Company and our ability to conduct business and process transactions. Although the Company has business continuity plans, it is possible that the plans may not operate as intended or required and that the Company may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

Cyber security events, disasters and similar events, whether deliberate or unintentional, that could impact the Company and Contract owners could arise not only in connection with our own administration of the Annuity, but also with entities operating the Annuity's Portfolios and with third-party service providers. Cyber security and other events affecting any of the entities involved with the offering and administration of the Annuity may cause significant disruptions in the business operations related to the Annuity. Potential impacts may include, but are not limited to, potential financial losses under the Annuity, your inability to conduct transactions under the Annuity and/or with respect to a Portfolio, an inability to calculate unit values with respect to the Annuity and/or the net asset value ("NAV") with respect to a Portfolio, and disclosures of your personal or confidential account information.

In addition to direct impacts to you, cyber security and other events described above may result in adverse impacts to the Company, including regulatory inquiries, regulatory proceedings, regulatory and/or legal and litigation costs, and reputational damage. Costs incurred by the Company may include reimbursement and other expenses, including the costs of litigation and litigation settlements and additional compliance costs. Considerable expenses also may be incurred by the Company in enhancing and upgrading computer systems and systems security following a cyber security failure or responding to a disaster or similar event. The rapid proliferation of technologies, as well as the increased sophistication and activities of organized crime, hackers, terrorists, and others continue to pose new and significant cyber security threats. In addition, the global spread of COVID-19 has caused the Company and its service providers to implement business continuity plans, including widespread use of work-from-home arrangements. Although the Company, our service providers, and the Portfolios offered under the Annuity may have established business continuity plans and risk management systems to mitigate risks, there can be no guarantee or assurance that such plans or systems will be effective, or that all risks that exist, or may develop in the future, have been completely anticipated and identified or can be protected against. Furthermore, the Company cannot control or assure the efficacy of the cyber security and business continuity plans and systems implemented by third-party service providers, the Portfolios, and the issuers in which the Portfolios invest.

The military invasion of Ukraine initiated by Russia in February 2022 and the resulting response by the United States and other countries have led to economic disruptions, as well as increased volatility and uncertainty in the financial markets. It is not possible to predict the ultimate duration and scope of the conflict, or the future impact on U.S. and global economies and financial markets.

**Artificial Intelligence Risk:** In addition to the cyber security risks described above, the development, adoption and use of AI, including generative artificial intelligence ("Generative AI"), by us and by third parties on whom we rely may increase existing operational risks or create new operational risks that we are not currently anticipating. AI technologies offer potential benefits in areas such as customer service personalization and process automation, and we expect to use AI and Generative AI to help deliver products and services and support critical functions. We also expect third parties on whom we rely to do the same. There are significant risks involved in developing and deploying AI, and there can be no assurance that its use will enhance our products or services or be beneficial to our business, including our efficiency or profitability. The risk that AI and Generative AI may be misused is increased by the relative newness of the technology, the speed at which it is being adopted, and the lack of laws, regulations or standards governing its use. Such misuse could expose the Company to legal or regulatory risk, damage customer relationships or cause reputational harm. Further, our ability to continue to develop and efficiently deploy AI technologies depends on access to specific third-party equipment and other physical infrastructure, such as processing hardware and network capacity, the availability and pricing of which is difficult to control, especially in a highly competitive environment. Our competitors may also adopt AI or Generative AI more quickly or more effectively than we do, which could cause competitive harm. Because the Generative AI technology is so new, some of the potential risks of Generative AI are currently unknowable.

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**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT** **OPTIONS**

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**WHO IS FORTITUDE LIFE INSURANCE & ANNUITY COMPANY?**

Annuities and Life Insurance are issued by Fortitude Life Insurance & Annuity Company ("FLIAC"), located at Ten Exchange Place, Suite 2210, Jersey City, NJ 07302. FLIAC is obligated to pay all amounts promised to investors under the Annuity, subject to its financial strength and claims-paying ability. Fortitude Re has retained The Prudential Insurance Company of America ("PICA") as an unaffiliated Third-Party Administrator. Variable Annuities are distributed by Prudential Annuities Distributors, Inc. ("PAD"), Shelton, CT (main office). PICA and PAD are Prudential Financial Inc. companies. Each company (FLIAC, PICA, PAD) is solely responsible for its own financial condition and contractual obligations.

Fortitude Re is the marketing name for FGH Parent, L.P. and its subsidiaries, including FLIAC. Each subsidiary is responsible for its own financial condition and contractual obligations.

Pursuant to the delivery obligations under Section 5 of the Securities Act of 1933 and Rule 159 thereunder, we deliver this prospectus to current contract owners that reside outside of the United States. In addition, we may not market or offer benefits, features or enhancements to prospective or current contract owners while outside of the United States.

**<u>Rule 12h-7</u>**

With respect to the offering of Market Value Adjusted options, the Company relies on the exemption provided by Rule 12h-7 under the Securities Exchange Act of 1934 from the requirement to file reports pursuant to Section 15(d) of that Act.

**<u>Claims of Creditors</u>**

To the extent permitted by law, no payment or value under this Annuity is subject to the claims of your creditors or those of any other Owner, any Annuitant, or any Beneficiary.

**<u>Deferral of Transactions</u>**

We may defer any annuity payment for a period not to exceed the lesser of 6 months or the period permitted by law. If we defer a distribution or transfer from any annuity payout for more than thirty days, we will pay interest as required by state law. We may defer any distribution from any Allocation Option or any transfer from Allocation Options for a period not to exceed seven calendar days from the date the transaction is affected.

**WHAT ARE THE SEPARATE ACCOUNTS?**

**Fortitude Life Insurance & Annuity Company Separate Account B**

During the Accumulation Period, the assets supporting obligations based on allocations to the Variable Options are held in Fortitude Life Insurance & Annuity Company Variable Account B (the "Registered Separate Account"). Income, gains and losses credited to, or charged against, the Registered Separate Account reflect the Registered Separate Account's own investment experience and not the investment experience of our other assets. The assets of the Registered Separate Account may not be used to pay any liabilities of ours other than those arising from the Annuity and other annuity contracts issued in connection with the Registered Separate Account.

The Registered Separate Account consists of multiple Variable Options. Each Variable Option invests only in a single Portfolio. The name of each Variable Option generally corresponds to the name of the Portfolio. Each Variable Option may have several different Unit Prices to reflect charges that are offered under annuities issued by us through the Registered Separate Account. The Registered Separate Account is registered with the SEC under the Investment Company Act of 1940 ("Investment Company Act") as a unit investment trust, which is a type of investment company. The SEC does not supervise investment policies, management or practices of the Registered Separate Account. We may offer new Variable Options, eliminate Variable Options, or combine Variable Options at our sole discretion. We may also close Variable Options to additional Purchase Payments on existing annuities or close Variable Options for annuities purchased on or after specified dates.

In addition to rights that we specifically reserve elsewhere in this prospectus, we reserve the right to perform any or all of the following:

• offer
 new Variable Options, eliminate Variable Options, substitute Variable Options or combine Variable Options;

• close
 Variable Options to subsequent Purchase Payments on existing Annuities or close Variable Options for Annuities purchased on or after
 specified dates;

• combine
 the Registered Separate Account with separate accounts;

• deregister
 the Registered Separate Account under the Investment Company Act of 1940;

• manage
 the Registered Separate Account as a management investment company under the Investment Company Act of 1940 or in any other
 form permitted by law;

• make
 changes required by any change in the federal securities laws, including, but not limited to, the Securities Act of 1933, the Securities Exchange Act of 1934,
 the Investment Company Act of 1940, or any other changes to the Securities and Exchange Commission's interpretation
 thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• establish
 a provision in the Annuity for federal income taxes if we determine, in our sole discretion, that we will incur a tax as the result of the operation of
 the Registered Separate Account;

• make
 any changes required by federal or state laws with respect to annuity contracts; and

• to
 the extent dictated by any underlying Portfolio, impose a redemption fee or restrict transfers within any Variable Option.

We will first notify you and receive any necessary SEC and/or state approval before making such a change. If an underlying Portfolio is liquidated, we will ask you to reallocate any amount in the liquidated fund. If you do not reallocate these amounts, we will reallocate such amounts only in accordance with SEC pronouncements and only after obtaining an order from the SEC, if required. If investment in the Portfolios or a particular Portfolio is no longer possible, or in our discretion becomes inappropriate for purposes of the Annuity, or for any other rationale in our sole judgment, we may substitute another Portfolio or investment Portfolios without your consent. The substituted Portfolio may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any required approval of the SEC and any applicable state insurance departments. In addition, we may close Portfolios to allocation of Purchase Payments or Account Value, or both, at any time in our sole discretion. We do not control the Portfolios, so we cannot guarantee that any of those Portfolios will always be available.

**INVESTMENT OPTIONS**

**VARIABLE OPTIONS**

Each Variable Option is a sub-account that invests exclusively in a single Portfolio. Account Value allocated to the Variable Option will vary based on the investment experience of the Portfolio in which the Variable Option invests. There is a risk of loss of the entire amount invested. **Please refer to** [**<u>"</u>**](#chapter_3_936)[**<u>Appendix A"</u>**](#chapter_18-sect1_1_936) **for certain information regarding each Portfolio, including (i) its name, (ii) its type (** **e.g** **., money market fund, bond fund,** **balanced fund, etc.), (iii) its investment advisor and any Sub-advisor, (iv) current expenses, and (v) performance.** There is no guarantee that any underlying Portfolio will meet its investment objective. Each Portfolio has issued a prospectus that contains more detailed information about the Portfolio. The prospectuses for the Portfolios can be found online at <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>. You can also request this information at no cost by calling 1- 800-879-7012.

**MARKET VALUE ADJUSTED FIXED ALLOCATION INVESTMENT**

We offer fixed investment options of different durations during the Accumulation Period. These "Fixed Allocations" earn a guaranteed fixed rate of interest for a specified period of time, called the "Guarantee Period." In most states, we offer Fixed Allocations with Guarantee Periods from 1 to 10 years. We may also offer special purpose Fixed Allocations for use with certain optional investment programs. We guarantee the fixed rate for the entire Guarantee Period. However, if you withdraw or transfer Account Value before the end of the Guarantee Period, we will adjust the value of your withdrawal or transfer based on a formula, called a "Market Value Adjustment". The Market Value Adjustment can either be positive or negative, depending on the rates that are currently being credited on Fixed Allocations. You may allocate Account Value to more than one Fixed Allocation at a time.

Fixed Allocations may not be available in all states. Availability of Fixed Allocations is subject to change and may differ by state and by the annuity <br>product you purchase. Please call us at 1-800-879-7012 to determine availability of Fixed Allocations in your state and for your annuity product.

Market Value Adjusted Fixed Allocation Investments are supported by our general account and are subject to our claims paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities.

The interest rate declared for a MVA Fixed Allocation will be no less than the minimum guaranteed interest rate. The minimum guaranteed interest rate that applies to you may vary depending on the state in which your Annuity was issued, but it will be shown on your Annuity specifications page and will never be less than 0% or the minimum rate required under state law or regulation; whichever is greater. We may, from time to time, declare new interest rates for new Purchase Payments that are higher than the minimum guaranteed interest rate. Any change in interest rates does not affect MVA Fixed Allocation that were in effect before the date of the change. At the time that we confirm the allocation of your Purchase Payment to an MVA Fixed Allocation, we will advise you of the interest rate in effect. To inquire as to the current rates, please contact our Annuity Service Center at 1-800-879-7012.

Each underlying Portfolio is registered as an open-end management investment company under the Investment Company Act. Shares of the underlying Portfolios are sold to separate accounts of life insurance companies offering variable annuity and variable life insurance products. The shares may also be sold directly to qualified pension and retirement plans.

**Voting Rights**

We are the legal Owner of the shares of the underlying Portfolios in which the Variable Options invest. However, under current SEC rules, you have voting rights in relation to Account Value allocated to the Variable Options. If an underlying Portfolio requests a vote of shareholders, we will vote our shares based on instructions received from Owners with Account Value allocated to that Variable Option. Owners have the right to vote an amount equal to the number of shares attributable to their Annuity. If we do not receive voting instructions in relation to certain shares, we will vote those shares in the same manner and proportion as the shares for which we have received instructions. This voting procedure is sometimes referred to as "mirror voting"

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because, as indicated in the immediately preceding sentence, we mirror the votes that are actually cast, rather than decide on our own how to vote. We will also "mirror vote" shares that are owned directly by us or an affiliate (excluding shares held in the separate account of an affiliated insurer). In addition, because all the shares of a given Portfolio held within the Registered Separate Account are legally owned by us, we intend to vote all of such shares when that underlying Portfolio seeks a vote of its shareholders. As such, all such shares will be counted towards whether there is a quorum at the underlying Portfolio's shareholder meeting and toward the ultimate outcome of the vote. Thus, under "mirror voting," it is possible that the votes of a small percentage of Owners who actually vote will determine the ultimate outcome.

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

We will furnish those Owners who have Account Value allocated to a Variable Option whose underlying Portfolio has requested a "proxy" vote with proxy materials and the necessary forms to provide us with their voting instructions. Generally, you will be asked to provide instructions for us to vote on matters such as changes in a fundamental investment strategy, adoption of a new investment advisory agreement, or matters relating to the structure of the underlying Portfolio that require a vote of shareholders. We reserve the right to change the voting procedures described above if applicable SEC rules change.

**Similar Funds**

The Portfolios are not publicly traded mutual funds. They are only available as investment options in variable annuity contracts and variable life insurance policies issued by insurance companies, or in some cases, to participants in certain qualified retirement plans. However, some of the Portfolios available as Variable Options under the Annuity are managed by the same advisor or Sub-advisor as a retail mutual fund of the same or similar name that the Portfolio may have been modeled after at its inception. Certain retail mutual funds may also have been modeled after a Portfolio. While the investment objective and policies of the retail mutual funds and the Portfolios may be substantially similar, the actual investments will differ to varying degrees. Differences in the performance of the funds can be expected, and in some cases could be substantial. You should not compare the performance of a publicly traded mutual fund with the performance of any similarly named Portfolio offered as a Variable Option.

**Material Conflicts**

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

1. changes
 in state insurance law;

2. changes
 in federal income tax law;

3. changes
 in the investment management of any Variable Options; or

4. differences
 between voting instructions given by variable life insurance policy owners and variable annuity contract Owners.

**Fees and Payments Received by Us**

As detailed below, we receive substantial payments from the underlying Portfolios and/or related entities, such as the Portfolios' advisors and subadvisors. Because these fees and payments are made to us, allocations you make to the underlying Portfolios benefit us financially. In selecting Portfolios available under the Annuity, we consider the payments that will be made to us. Prudential Annuities Distributors, Inc. receives Rule 12b-1 fees which compensate it for distribution and administrative services (including recordkeeping services and the mailing of prospectuses and reports to Owners invested in the Portfolios). These fees are paid by the underlying Portfolio out of each Portfolio's assets and are therefore borne by Owners.

We also receive administrative services payments from the Portfolios or the advisors of the underlying Portfolios or their affiliates, which are referred to as "revenue sharing" payments. The maximum combined 12b-1 fees and administrative services payments we receive with respect to a Portfolio are generally equal to an annual rate of 0.55% of the average assets allocated to the Portfolio under the Annuity (in certain cases, however, this amount may be equal to an annual rate of 0.60% of the average assets allocated to the Portfolio). We expect to make a profit on these fees and payments and consider them when selecting the Portfolios available under the Annuity.

In addition, an advisor or subadvisor of a Portfolio or a distributor of the Annuity (not the Portfolios) may also compensate us by providing reimbursement, defraying the costs of, or paying directly for, among other things, marketing and/or administrative services and/or other services they provide in connection with the Annuity. These services may include but are not limited to: sponsoring or co-sponsoring various promotional, educational or marketing meetings and seminars attended by distributors, wholesalers, and/or broker dealer firms' registered representatives, and creating marketing material discussing the Annuity, available options, and underlying Portfolios. The amounts paid depend on the nature of the meetings, the number of meetings attended by the advisor, subadvisor, or distributor, the number of participants and attendees at the meetings, the costs expected to be incurred, and the level of the advisor's, subadvisor's or distributor's participation. These payments or reimbursements may not be offered by all advisors,

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subadvisors, or distributors and the amounts of such payments may vary between and among each advisor, subadvisor, and distributor depending on their respective participation. We may also consider these payments and reimbursements when selecting the Portfolios available under the Annuity. For the annual period ended December 31, 2025, under the kind of agreements described in this paragraph, there were no payments received.

In addition to the payments that we receive from underlying Portfolios and/or their affiliates, those same Portfolios and/or their affiliates may make payments to us and/or other insurers affiliated with us related to the offering of investment options within variable annuity contracts or life insurance policies offered by our different business units.

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**CHARGES AND ADJUSTMENTS**

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The charges under each Annuity are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under each Annuity. They are also designed, in the aggregate, to compensate us for the risks of loss we assume. If, as we expect, the charges that we collect from the Annuities exceed our total costs in connection with the Annuities, we will earn a profit. Otherwise we will incur a loss. For example, we may make a profit on the insurance charge if, over time, the actual costs of providing the guaranteed insurance obligations under an Annuity are less than the amount we deduct for the insurance charge. To the extent we make a profit on the insurance charge, such profit may be used for any other corporate purpose, including payment of other expenses that we incur in promoting, distributing, issuing and administering an Annuity and to offset a portion of the costs associated with offering any Credits which are funded through our general account.

The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk, nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the Annuity. A portion of the proceeds that we receive from charges that apply to the Variable Options may include amounts based on market appreciation of the Variable Option values including appreciation on amounts that represent any Credits.

**Contingent Deferred Sales Charge (CDSC):** We do not deduct a sales charge from Purchase Payments you make to your Annuity. However, we may deduct a CDSC if you surrender your Annuity or when you make a partial withdrawal. The CDSC reimburses us for expenses related to sales and distribution of the Annuity, including commissions, marketing materials and other promotional expenses. The CDSC is calculated as a percentage of your Purchase Payment being surrendered or withdrawn during the applicable Annuity Year. For purposes of calculating the CDSC, we consider the year following the Issue Date of your Annuity as Year 1. The amount of the CDSC decreases over time, measured from the Issue Date of the Annuity. The CDSC percentages for each Annuity are shown below. If you purchase Optimum Plus and make a withdrawal that is subject to a CDSC, we may use part of that CDSC to recoup our costs of providing the Credit. However, we do not impose any CDSC on your withdrawal of a Credit amount.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Yr. 1 | Yr. 2 | Yr. 3 | Yr. 4 | Yr. 5 | Yr. 6 | Yr. 7 | Yr. 8 | Yr. 9 | Yr. 10 | Yr. 11+ |
|  **Optimum** | 7.5% | 7.0% | 6.5% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 0.0% |  |  |
|  **Optimum** **Four** | 8.5% | 8.0% | 7.0% | 6.0% | 0.0% |  |  |  |  |  |  |
|  **Optimum** **Plus**\* | 9.0% | 9.0% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% | 1.0% | 0.0% |

---

\* For annuities issued before November 20, 2006, the schedule is as follows: Year 1: 9.0%; Year 2: 9.0%; Year 3: 8.5%; Year 4: 8.0%; Year 5: 7.0%; Year 6: 6.0%; Year 7: 5.0%; Year 8: 4.0%; Year 9: 3.0%; Year 10: 2.0%; Year 11+: 0.0%.

Each year you may withdraw up to 10% of your Purchase Payments without the imposition of a CDSC. This Charge Free Withdrawal feature does not apply when fully surrendering your Annuity. We may also waive the CDSC under certain circumstances, such as for medically-related circumstances or taking required minimum distributions under a qualified contract.

With respect to a partial withdrawal, we calculate the CDSC by assuming that any available Charge Free Withdrawal amount is taken out first (see "[<u>Charge Free Withdrawal Amounts</u>](#chapter_13-sect1_5_936)"). If the Charge Free Withdrawal amount is not sufficient, we then assume that withdrawals are taken from Purchase Payments that have not been previously withdrawn, on a first-in, first-out basis, and subsequently from any other Account Value in the Annuity.

For purposes of calculating any applicable CDSC on a surrender, the Purchase Payments being withdrawn may be greater than your remaining Account Value or the amount of your withdrawal request. This is most likely to occur if you have made prior partial withdrawals or if your Account Value has declined in value due to negative Variable Option performance. In that scenario, we would determine the CDSC amount as the applicable percentage of the Purchase Payments being withdrawn, rather than as a percentage of the remaining Account Value or withdrawal request. Thus, the CDSC would be greater than if it were calculated as a percentage of remaining Account Value or withdrawal amount.

We may waive any applicable CDSC under certain circumstances including, certain medically-related circumstances or when taking a Minimum Distribution from an Annuity purchased as a "qualified" investment. Charge Free Withdrawals, Medically-Related Surrenders and Minimum Distributions are each explained more fully in the section entitled "[<u>Surrenders and Withdrawals</u>](#chapter_13-sect1_1_936)".

**Transfer Fee:** Currently, you may make 20 free transfers between investment options each Annuity Year. We currently charge $10.00 for each transfer after the 20<sup>th</sup> in each Annuity Year. This charge may be increased to $15 after 8 transfers in any Annuity Year. The fee will never be more than $15.00 for each transfer. We do not consider transfers made as part of a Dollar Cost Averaging, Automatic Rebalancing or asset allocation program when we count the 20 free transfers. All transfers made on the same day will be treated as one (1) transfer. Renewals or transfers of Account Value from a Fixed Allocation at the end of its Guarantee Period are not subject to the transfer fee and are not counted toward the 20 free transfers. Similarly, transfers made pursuant to a formula used with an optional benefit are not subject to the Transfer fee and are not counted toward the 20 free transfers. We may reduce the number of free transfers allowable each Annuity Year (subject to a minimum of eight) without charging a Transfer Fee unless you make use of

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electronic means to transmit your transfer requests. We may eliminate the Transfer Fee for transfer requests transmitted electronically or through other means that reduce our processing costs. If you are enrolled in any program that does not permit transfer requests to be transmitted electronically, the Transfer Fee will not be waived.

**Annual Maintenance Fee:** During the Accumulation Period we deduct an Annual Maintenance Fee. The Annual Maintenance Fee is $35.00 or 2% of your Account Value (including any amounts in Fixed Allocations), whichever is less. This fee will be deducted annually on the anniversary of the Issue Date of your Annuity or, if you surrender your Annuity during the Annuity Year, the fee is deducted at the time of surrender. The fee is taken out only from the Variable Options. With respect to Optimum and Optimum Four, currently, the Annual Maintenance Fee is only deducted if your Account Value is less than $100,000 on the anniversary of the Issue Date or at the time of surrender. With respect to Optimum Plus, we deduct the Annual Maintenance Fee regardless of Account Value. We do not impose the Annual Maintenance Fee upon Annuitization, the payment of a Death Benefit, or a Medically-Related Surrender. We may increase the Annual Maintenance Fee. However, any increase will only apply to Annuities issued after the date of the increase. For beneficiaries that elect the Beneficiary Continuation Option, the Annual Maintenance Fee is the lesser of $30 or 2% of Account Value. For a Non-qualified Beneficiary Continuation Option, the fee is only applicable if the Account Value is less than $25,000 at the time the fee is assessed.

**Tax Charge:** Some states, municipalities and other jurisdictions charge premium taxes or similar taxes on annuities that we are required to pay. The amount of tax will vary from jurisdiction to jurisdiction and is subject to change. We currently deduct the Tax Charge from the Account Value upon Annuitization. The Tax Charge is designed to approximate the taxes that we are required to pay and is assessed as a percentage of the Account Value. The Tax Charge currently ranges up to 3.5%. We reserve the right to deduct the Tax Charge from Purchase Payments when received or from Surrender Value upon surrender. "Surrender Value" refers to the Account Value (which includes the effect of any Market Value Adjustment) less any applicable CDSC, any applicable Tax Charge, any charges assessable as a deduction from the Account Value for any optional living or death benefits provided by rider or endorsement, and any Annual Maintenance Fee. We may also assess a charge equal to any Company Taxes or other taxes which may be imposed against the Separate Accounts.

In calculating our corporate income tax liability, we may derive certain corporate income tax benefits associated with the investment of company assets, including Separate Account assets, which are treated as company assets under applicable income tax law. These benefits reduce our overall corporate income tax liability. Under current law, such benefits include foreign tax credits and corporate dividends received deductions. We do not pass these tax benefits through to holders of the Separate Account annuity contracts because (i) the contract Owners are not the Owners of the assets generating these benefits under applicable income tax law and (ii) we do not currently include company income taxes in the Tax Charges you pay under the Annuity. We reserve the right to change these tax practices.

**Insurance Charge:** We deduct an insurance charge daily. The charge is based on the daily assets allocated to the Variable Options and is equal to the amount indicated under the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" section of this prospectus. The insurance charge is the combination of the Mortality & Expense Risk Charge and the Administration Charge. The insurance charge is intended to compensate us for providing the insurance benefits under each Annuity, including each Annuity's basic Death Benefit that may provide guaranteed benefits to your beneficiaries even if the Variable Option declines and the risk that persons we guarantee annuity payments to will live longer than our assumptions. The charge also compensates us for administrative costs associated with providing the Annuity benefits, including preparation of the contract and prospectus, confirmation statements, annual account statements and annual reports, legal and accounting fees as well as various related expenses. Finally, the charge compensates us for the risk that our assumptions about the mortality risks and expenses under each Annuity are incorrect and that we have agreed not to increase these charges over time despite our actual costs. We may increase the portion of the total insurance charge that is deducted for administrative costs; however, any increase will only apply to Annuities issued after the date of the increase.

The insurance charge is not deducted against assets allocated to a Fixed Allocation. However, for some of the same reasons that we deduct the insurance charge against Account Value allocated to the Variable Options, we also take into consideration mortality, expense, administration, profit and other factors in determining the interest rates we credit to Fixed Allocations, and therefore, we credit lower interest rates due to the existence of these factors than we otherwise would.

**Distribution Charge:** For Optimum and Optimum Plus, we deduct a Distribution Charge daily. The charge is based on the average assets allocated to the Variable Options and is equal to the amount indicated under "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" on an annual basis. The Distribution Charge is intended to compensate us for a portion of our acquisition expenses under the Annuity, including promotion and distribution of the Annuity and, with respect to Optimum Plus, the costs associated with offering Credits which are funded through our general account. The Distribution Charge is deducted against your Annuity's Account Value and any increases or decreases in your Account Value based on market fluctuations of the Variable Options will affect the charge. Please refer to the section entitled "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_15_936)" for more information about how the Units are impacted when the Distribution Charge decreases to 0.00%.

**Settlement Service Charge:** If your beneficiary takes the death benefit under a Beneficiary Continuation Option, we deduct a Settlement Service Charge, although the insurance charge no longer applies. The charge is assessed daily against the assets allocated to the Variable Option and is equal to an annual charge of 1.00% for Non-qualified Annuities and 1.40% for qualified Annuities.

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**Benefits Available Under the Contract:** For information about the benefits available under the Contract and their corresponding charges, please refer to the section titled "[<u>Benefits Available Under the Contract</u>](#chapter_11_936)" in this prospectus.

**Fees and Charges Incurred by the Portfolios:** We do not assess any charges directly against the Portfolios. However, each Portfolio pays charges, fees and expenses, which are deducted daily by each Portfolio before it provides us with the net asset value as of the close of business each day. **More** **detailed information about fees and charges can be found in** [**<u>"</u>**](#chapter_18-sect1_1_936)[**<u>Appendix A"</u>**](#chapter_18-sect1_1_936) **to this prospectus and the prospectuses for the Portfolios located** **at** **<u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>** **.**

**Charge for Additional Reports:** We send any statements and reports required by applicable law or regulation to you at your last known address of record. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

**Market Value Adjustment:** If you transfer or withdraw Account Value from an MVA Fixed Allocation before the end of its Guarantee Period, we will adjust the value of your investment based on a formula, called a "Market Value Adjustment" or "MVA". The Market Value Adjustment may be positive or negative, meaning it may increase or decrease your initial investment into the account, if you transfer or withdraw an MVA Fixed Allocation before the end of the Guarantee Period.

Generally, if yields are lower at the time of MVA application than they were at the beginning of the Guarantee period, the MVA will be positive. Generally, if yields are higher at the time of MVA application than they were at the beginning of the Guarantee period, the MVA will be negative.

You may request a quote of the impact an early distribution would have on your Account Value by contacting our Service Center at 1-800-879-7012. Values fluctuate daily and the actual Market Value Adjustment applied at the time a transaction is processed may be more or less than the values quoted at the time of your call. **Additional information about the calculation of the Market Value Adjustment, including the Market Value Adjustment** **formula and examples, can be found in the Statement of Additional Information.**

**Fixed Rate Option Charges and Adjustments:** No specific fee or expenses are deducted when determining the rate we credit to a Fixed Allocation. However, for some of the same reasons that we deduct the insurance charge against Account Value allocated to the Variable Options, we also consider mortality, expense, administration, profit and other factors in determining the interest rates we credit to Fixed Allocations. Any CDSC or Tax Charge applies to amounts that are taken from the Variable Options or the Fixed Allocations. A Market Value Adjustment may also apply to transfers, certain withdrawals, surrender or Annuitization from a Fixed Allocation.

**Annuity Payment Option Charges:** If you select a fixed payment option upon Annuitization, the amount of each fixed payment will depend on the Account Value of your Annuity when you elected to annuitize. There is no specific charge deducted from these payments; however, the amount of each annuity payment reflects assumptions about our insurance expenses. If you select a variable payment option that we may offer, then the amount of your benefits will reflect changes in the value of your Annuity and will be subject to charges that apply under the variable immediate annuity option. Also, a tax charge may apply (see "[<u>Tax Charge</u>](#chapter_2-sect1_1_980)"). Currently, we only offer fixed payment options.

**Exceptions/Reductions to Fees and Charges:** We may reduce or eliminate certain fees and charges or alter the manner in which the particular fee or charge is deducted. For example, we may reduce the amount of any CDSC or the length of time it applies, reduce or eliminate the amount of the Annual Maintenance Fee or reduce the portion of the total insurance charge that is deducted as an Administration Charge. We will not discriminate unfairly between Annuity purchasers if and when we reduce any fees and charges.

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**GENERAL DESCRIPTION OF CONTRACTS**

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**CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS**

In general, you may change the Owner, Annuitant and Beneficiary designations by sending us a request in Good Order which will be effective upon receipt at our Service Center. However, if the Annuity is held as a Beneficiary Annuity, the Owner may not be changed and you may not designate another Key Life upon which distributions are based. Upon an ownership change, including an assignment, any automated investment or withdrawal programs will be canceled. The new Owner must submit the applicable program enrollment if they wish to participate in such a program. Where allowed by law, such changes will be subject to our acceptance. Some of the changes we will not accept include, but are not limited to:

• a
 new Owner subsequent to the death of the Owner or the first of any joint Owners to die, except where a spouse Beneficiary has become the
 Owner as a result of an Owner's death;

• a
 new Annuitant subsequent to the Annuity Date;

• for
 "Non-qualified" investments, a new Annuitant prior to the Annuity Date if the Annuity is owned by an entity;

• a
 change in Beneficiary if the Owner had previously made the designation irrevocable;

• a
 new Owner or Annuitant that is a certain ownership type, including but not limited to corporations, partnerships, endowments, and grantor
 trusts with multiple grantors (if allowed by state law); and

• a
 new Annuitant for a contract issued to a grantor trust where the new Annuitant is not the grantor of the trust.

There are also restrictions on designation changes when you have elected certain optional benefits. See the "[<u>Benefits Available Under the</u> <u>Contract</u>](#chapter_11_936)" sections of this Prospectus for any such restrictions.

If you wish to change the Owner and/or Beneficiary under the Annuity, or to assign the Annuity, you must request it through our Annuities Service Center. Generally, any change of Owner and/or Beneficiary, or assignment of the Annuity, will take effect when accepted and recorded by us (unless an alternative rule is stipulated by applicable State law). We will allow changes of ownership and/or assignments only if the Annuity is held exclusively for the benefit of the designated Annuitant. We are not responsible for any transactions processed before a change of Owner and/or Beneficiary, and an assignment of the Annuity, is accepted and recorded by us. **We accept assignments of Non-qualified Annuities only. We assume no responsibility** **for the validity or tax consequences of any ownership.** 

**Unless prohibited by applicable State law, we reserve the right to refuse a proposed change of Owner and/or Beneficiary, and a proposed** **assignment of the Annuity.**

We will reject a proposed change where the proposed Owner, Annuitant, Beneficiary or assignee is any of the following:

• a
 company(ies) that issues or manages viatical or structured settlements;

• an
 institutional investment company;

• an
 Owner with no insurable relationship to the Annuitant or Contingent Annuitant (a "Stranger-Owned Annuity" or "STOA");
 or

• a
 change in designation(s) that does not comply with or that we cannot administer in compliance with Federal and/or state law.

**We will implement this right on a non-discriminatory basis, and to the extent allowed by State law, and we are not obligated to process your** **request within any particular timeframe.** For New York Annuities, a request to change the Owner, Annuitant, Contingent Annuitant, Beneficiary and contingent Beneficiary designations is effective when signed, and an assignment is effective upon our receipt. We assume no responsibility for the validity or tax consequences of any change of Owner and/or Beneficiary or any assignment of the Annuity, and may be required to make reports of ownership changes and/or assignments to the appropriate federal, state and/or local taxing authorities. You should consult with a qualified tax advisor for complete information and advice prior to any ownership change or assignment. Once an ownership change or assignment is processed, the tax reporting cannot be reversed.

**Death Benefit Suspension Upon Change of Owner or Annuitant.** If there is a change of Owner or Annuitant, the change may affect the amount of the Death Benefit. See the "[<u>Payment of Death Benefits</u>](#chapter_11-sect1_25_930ab)" section of this prospectus for additional details.

**Spousal Designations**

If an Annuity is co-owned by spouses, we will assume that the sole primary Beneficiary is the surviving spouse that was named as the co-Owner. Upon the death of either spousal Owner, the surviving spouse may elect to assume ownership of the Annuity instead of taking the Death Benefit payment. The Death Benefit that would have been payable will be the new Account Value of the Annuity as of the date of due proof of death and any required proof of a spousal relationship. As of the date the assumption is effective, the surviving spouse will have all the rights and benefits that would be available under the Annuity to a new purchaser of the same attained age. For purposes of determining any future Death Benefit for the beneficiary of the surviving spouse, the new Account Value will be considered as the initial Purchase Payment. No CDSC will apply to the new Account Value. However, any additional Purchase Payments applied after the date the assumption is effective will be subject to all provisions of the Annuity, including the CDSC when applicable.

Spousal assumption is also permitted, subject to our rules and regulatory approval, if the Annuity is held by a Custodial Account established to hold retirement assets for the benefit of the natural person Annuitant pursuant to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account") and, on the date of the Annuitant's death, the spouse of the Annuitant is (1) the Contingent Annuitant under the Annuity and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(2) the beneficiary of the Custodial Account. The ability to continue the Annuity in this manner will result in the Annuity no longer qualifying for tax deferral under the Code. However, such tax deferral should result from the ownership of the Annuity by the Custodial Account. Please consult your tax or legal advisor.

Note that any division of your Annuity due to divorce will be treated as a withdrawal. and the non-Owner spouse may then decide whether he or she would like to purchase a new Annuity, subject to the rules current at the time of purchase, with the withdrawn funds. Note that any division of your Annuity due to divorce will be treated as a withdrawal and CDSC may apply. If CDSC is applicable, it cannot be divided between the Owner and the non-Owner ex-spouse. The non-Owner ex-spouse may decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract Owners. Depending upon the method used for the division of the Annuity, the CDSC may be applied to the existing or new Annuity. Please consult with your tax advisor regarding your personal situation if you will be transferring or dividing your Annuity pursuant to a divorce. The non-Owner ex-spouse may decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract Owners.

The federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

**Contingent Annuitant**

Generally, if an Annuity is owned by an entity and the entity has named a Contingent Annuitant, the Contingent Annuitant will become the Annuitant upon the death of the Annuitant, and no Death Benefit is payable. Unless we agree otherwise, the Annuity is only eligible to have a Contingent Annuitant designation if the entity which owns the Annuity is (1) a plan described in Code Section 72(s)(5)(A)(i) (or any successor Code section thereto); (2) an entity described in Code Section 72(u)(1) (or any successor Code section thereto); or (3) a Custodial Account, as described in the above section.

Where the Annuity is held by a Custodial Account, the Contingent Annuitant will not automatically become the Annuitant upon the death of the Annuitant. Upon the death of the Annuitant, the Custodial Account will have the choice, subject to our rules, to either elect to receive the Death Benefit or elect to continue the Annuity. If the Custodial Account elects to receive the Death Benefit, the Account Value of the Annuity as of the date of due proof of death of the Annuitant will reflect the amount that would have been payable had a Death Benefit been paid. See the section entitled "[<u>Spousal Designations</u>](#chapter_9-sect1_2_981)" for more information about how the Annuity can be continued by a Custodial Account.

**HOW DO THE FIXED RATE OPTIONS WORK?**

The interest rate credited to a Fixed Allocation is the rate in effect when the Guarantee Period begins and does not change during the Guarantee Period. The rates are an effective annual rate of interest. We determine the interest rates for the various Guarantee Periods. At the time that we confirm your Fixed Allocation, we will advise you of the interest rate in effect and the date your Fixed Allocation matures. We may change the rates we credit new Fixed Allocations at any time. Any change in interest rate does not affect Fixed Allocations that were in effect before the date of the change. To inquire as to the current rates for Fixed Allocations, please call 1-800-879-7012.

A Guarantee Period for a Fixed Allocation begins:

• when
 all or part of a net Purchase Payment is allocated to that particular Guarantee Period;

• upon
 transfer of any of your Account Value to a Fixed Allocation for that particular Guarantee Period; or

• when
 you "renew" a Fixed Allocation by electing a new Guarantee Period.

To the extent permitted by law, we may establish different interest rates for Fixed Allocations offered to a class of Owners who choose to participate in various optional investment programs we make available. This may include, but is not limited to, Owners who elect to use Fixed Allocations under a dollar cost averaging program (see "[<u>Transfer and Rebalancing Programs - Dollar Cost Averaging Programs</u>](#chapter_9-sect1_6_936)") or a balanced investment program (see "[<u>What is the Balanced Investment Program?</u>](#chapter_9-sect1_8_936)"). The interest rate credited to Fixed Allocations offered to this class of purchasers may be different than those offered to other purchasers who choose the same Guarantee Period but who do not participate in an optional investment program. Any such program is at our sole discretion.

**HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?**

We do not have a specific formula for determining the fixed interest rates for Fixed Allocations. Generally, the interest rates we offer for Fixed Allocations will reflect the investment returns available on the types of investments we make to support our fixed rate guarantees. These investment types may include cash, debt securities guaranteed by the United States government and its agencies and instrumentalities, money market instruments, corporate debt obligations of different durations, private placements, asset-backed obligations and municipal bonds. In determining rates we also consider factors such as the length of the Guarantee Period for the Fixed Allocation, regulatory and tax requirements, liquidity of the markets for the type of investments we make, commissions, administrative and investment expenses, our insurance risks in relation to the Fixed Allocations, general economic trends and competition. Some of these considerations are similar to those we consider in determining the insurance charge that we deduct from Account Value allocated to the Variable Options.

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We will credit interest on a new Fixed Allocation in an existing Annuity at a rate not less than the rate we are then crediting to Fixed Allocations for the same Guarantee Period selected by new Annuity purchasers in the same class.

**WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?**

The "Maturity Date" for a Fixed Allocation is the last day of the Guarantee Period. Before the Maturity Date, you may choose to renew the Fixed Allocation for a new Guarantee Period of the same or different length or you may transfer all or part of that Fixed Allocation's Account Value to another Fixed Allocation or to one or more Variable Options. We will notify you before the end of the Guarantee Period about the fixed interest rates that we are currently crediting to all Fixed Allocations that are being offered. The rates being credited to Fixed Allocations may change before the Maturity Date. We will not charge a Market Value Adjustment if you choose to renew a Fixed Allocation on its Maturity Date or transfer the Account Value to one or more Variable Options.

If you do not specify how you want a Fixed Allocation to be allocated on its Maturity Date, we will then transfer the Account Value in the Fixed Allocation to the AST Government Money Market Variable Option. You can then elect to allocate the Account Value to any of the Variable Options or to a new Fixed Allocation.

**TRANSFER AND REBALANCING PROGRAMS**

**Dollar Cost Averaging Programs**

As discussed below, we offer Dollar Cost Averaging programs during the Accumulation Period. In general, Dollar Cost Averaging allows you to systematically transfer an amount periodically from one investment option to one or more other investment options. You can choose to transfer earnings only, principal plus earnings or a flat dollar amount. You may elect a Dollar Cost Averaging program that transfers amounts monthly, quarterly, semi-annually, or annually from Variable Options, or a program that transfers amounts monthly from the Fixed Allocations. By investing amounts on a regular basis instead of investing the total amount at one time, Dollar Cost Averaging may decrease the effect of Variable Option fluctuation on the investment of your Purchase Payment. This may result in a lower average cost of Units over time. However, there is no guarantee that Dollar Cost Averaging will result in a profit or protect against a loss in a declining market. We do not deduct a charge for participating in a Dollar Cost Averaging program.

You can Dollar Cost Average from Variable Options or the Fixed Allocations. Dollar Cost Averaging from Fixed Allocations is subject to a number of rules that include, but are not limited to the following:

• You
 may only use Fixed Allocations with Guarantee Periods of 1, 2 or 3 years.

• You
 may only Dollar Cost Average earnings or principal plus earnings. If transferring principal plus earnings, the program must be designed
 to last the entire Guarantee Period for the Fixed Allocation.

• Dollar
 Cost Averaging transfers from Fixed Allocations are not subject to a Market Value Adjustment.

**NOTE: When a Dollar Cost Averaging program is established from a Fixed Allocation, the fixed rate of interest we credit to your Account Value** **is applied to a declining balance due to the transfers of Account Value to the Variable Options. This will reduce the effective rate of return on** **the Fixed Allocation over the Guarantee Period.**

The Dollar Cost Averaging program is not available if you have elected an automatic rebalancing program or an asset allocation program. Dollar Cost Averaging from Fixed Allocations also is not available if you elect certain optional benefits.

We may offer Fixed Allocations with Guarantee Periods of 6 months or 12 months exclusively for use with a Dollar Cost Averaging program ("DCA Fixed Allocations"). DCA Fixed Allocations are designed to automatically transfer Account Value in either 6 or 12 payments under a Dollar Cost Averaging program. Dollar Cost Averaging transfers will be effected on the date the DCA Fixed Dollar Allocations is established and each month following until the entire principal amount plus earning is transferred. DCA Fixed Allocations may only be established with your initial Purchase Payment or additional Purchase Payments. You may not transfer existing Account Value to a DCA Fixed Allocation. We reserve the right to terminate offering these special purpose Fixed Allocations at any time.

Account Value allocated to the DCA Fixed Allocation will be transferred to the Variable Options you choose. If you terminate the Dollar Cost Averaging program before the entire principal amount plus earnings has been transferred to the Variable Option(s), you must transfer all remaining Account Value to any other investment option. Unless you provide alternate instructions at the time you terminate the Dollar Cost Averaging program, Account Value will be transferred to the AST Government Money Market Variable Option unless restricted due to benefit election. Transfers from Fixed Allocations as part of a Dollar Cost Averaging program are not subject to a Market Value Adjustment. However, a Market Value Adjustment will apply if you terminate the Dollar Cost Averaging program before the entire principal amount plus earnings has been transferred to the Variable Option(s).

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**Automatic Rebalancing Programs**

During the Accumulation Period, we offer Automatic Rebalancing among the Variable Options you choose. You can choose to have your Account Value rebalanced monthly, quarterly, semi-annually, or annually. On the appropriate date, the Variable Options you chose are rebalanced to the allocation percentages you requested. With Automatic Rebalancing, we transfer the appropriate amount from the "overweighted" Variable Options to the "underweighted" Variable Options to return your allocations to the percentages you request. For example, over time the performance of the Variable Options will differ, causing your percentage allocations to shift.

Any transfer to or from any Variable Option that is not part of your Automatic Rebalancing program, will be made; however, that Variable Option will not become part of your rebalancing program unless we receive instructions from you indicating that you would like such option to become part of the program.

There is no minimum Account Value required to enroll in Automatic Rebalancing. All rebalancing transfers as part of an Automatic Rebalancing program are not included when counting the number of transfers each year toward the maximum number of free transfers. We do not deduct a charge for participating in an Automatic Rebalancing program. Participation in the Automatic Rebalancing program may be restricted if you are enrolled in certain other optional programs. Variable Options that are part of a Systematic Withdrawal program or Dollar Cost Averaging program will be excluded from an Automatic Rebalancing program.

If you are participating in an optional living benefit (such as Highest Daily Lifetime 6 Plus) that makes transfers under a pre-determined mathematical formula, and you elected automatic rebalancing; you should be aware that: (a) the AST bond portfolio used as part of the pre-determined mathematical formula will not be included as part of automatic rebalancing and (b) the operation of the formula may result in the rebalancing not conforming to the percentage allocations that you specified originally as part of your Automatic Rebalancing Program.

**ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?**

Certain "static asset allocation programs" are provided by LPL Financial Corporation ("LPL"), the firm selling the Annuity. Initially, you may be required to enroll in an available asset allocation program if you purchase one of the Annuities. Additionally, certain optional benefits require your Account Value be maintained in a model in the asset allocation program. These programs are considered static because once you have selected a model portfolio, the Variable Options and the percentage of contract value allocated to each Variable Option cannot be changed without your consent and direction. The programs are available at no additional charge. Under these programs, the Variable Option for each asset class in each model portfolio is designated for you. Under the programs, the values in the Variable Options will be rebalanced periodically back to the indicated percentages for the applicable asset class within the model portfolio that you have selected. The programs are offered by LPL. We have not designed the models or the program, and we are not responsible for them. Our role is limited to administering the model you select. **For more information on the asset allocation programs see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_936)**.**

Asset allocation is a sophisticated method of diversification, which allocates assets among asset classes in order to manage investment risk and enhance returns over the long term. However, asset allocation does not guarantee a profit or protect against a loss. No personalized investment advice is provided in connection with the asset allocation programs and you should not rely on these programs as providing individualized investment recommendations to you. The asset allocation programs do not guarantee better investment results. LPL reserves the right to terminate or change the programs at any time. We reserve the right to change the way in which we administer the program you have selected with your LPL financial professional, and we reserve the right to terminate our administration of the programs. You should consult with your LPL financial professional before electing any asset allocation program.

**WHAT IS THE BALANCED INVESTMENT PROGRAM?**

We offer a balanced investment program where a portion of your Account Value is allocated to a Fixed Allocation and the remaining Account Value is allocated to the Variable Options that you select. When you enroll in the Balanced Investment Program, you choose the duration that you wish the program to last. This determines the duration of the Guarantee Period for the Fixed Allocation. Based on the fixed rate for the Guarantee Period chosen, we calculate the portion of your Account Value that must be allocated to the Fixed Allocation to grow to a specific "principal amount" (such as your initial Purchase Payment). We determine the amount based on the rates then in effect for the Guarantee Period you choose. If you continue the program until the end of the Guarantee Period and make no withdrawals or transfers, at the end of the Guarantee Period, the Fixed Allocation will have grown to equal the "principal amount". Withdrawals or transfers from the Fixed Allocation before the end of the Guarantee Period will terminate the program and may be subject to a Market Value Adjustment (which may be positive or negative). You can transfer the Account Value that is not allocated to the Fixed Allocation between any of the Variable Options available under your Annuity. Account Value you allocate to the Variable Options is subject to Variable Option fluctuations and may increase or decrease in value. We do not deduct a charge for participating in the Balanced Investment Program. This program is not available if your Annuity is held as a Beneficiary Annuity.

**Example**

Assume you invest $100,000. You choose a 10-year program and allocate a portion of your Account Value to a Fixed Allocation with a 10-year Guarantee Period. The rate for the 10-year Guarantee Period is 2.50%\*. Based on the fixed interest rate for the Guarantee Period chosen, the factor is 0.781198 for determining how much of your Account Value will be allocated to the Fixed Allocation. That means that $78,120 will be allocated to the Fixed Allocation

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and the remaining Account Value ($21,880) will be allocated to the Variable Options. Assuming that you do not make any withdrawals or transfers from the Fixed Allocation, it will grow to $100,000 at the end of the Guarantee Period. Of course we cannot predict the value of the remaining Account Value that was allocated to the Variable Options.

\* The rate in this example is hypothetical and may not reflect the current rate for Guarantee Periods of this duration.

**RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS**

During the Accumulation Period you may transfer Account Value between investment options subject to the restrictions outlined below. Transfers are not subject to taxation on any gain. You may not transfer Account Value to any DCA fixed Allocation. You may only allocate payments to DCA Fixed Allocations.

Currently, any transfer involving the ProFunds VP Variable Options must be received by us no later than 3:00 p.m. Eastern Time (or one hour prior to any announced closing of the applicable securities exchange) to be processed on the current Valuation Day. The "cut-off" time for such financial transactions involving a ProFunds VP Variable Option will be extended to 1/2 hour prior to any announced closing (generally, 3:30 p.m. Eastern Time) for transactions submitted electronically, including through our website (<u>www.prudential.com/annuities</u>)

Currently, we charge $10.00 for each transfer after the twentieth (20<sup>th</sup>) transfer in each Annuity Year. Transfers made as part of a Dollar Cost Averaging Program, Automatic Rebalancing or asset allocation program do not count toward the 20 free transfer limit. Renewals or transfers of Account Value from a Market Value Adjustment Fixed Allocation at the end of its Guarantee Period are not subject to the transfer charge. We may reduce the number of free transfers allowable each Annuity Year (subject to a minimum of eight) without charging a Transfer Fee. We may also increase the Transfer Fee that we charge to $15.00 for each transfer after the number of free transfers has been used up. We may eliminate the Transfer Fee for transfer requests transmitted electronically or through other means that reduce our processing costs. If enrolled in any program that does not permit transfer requests to be transmitted electronically, the Transfer Fee will not be waived.

Once you have made 20 transfers among the Variable Options during an Annuity Year, we will accept any additional transfer request during that year only if the request is submitted to us in writing with an original signature and otherwise is in Good Order. For purposes of this 20 transfer limit, we (i) do not view a facsimile transmission or other electronic transmission as a "writing", (ii) will treat multiple transfer requests submitted on the same Valuation Day as a single transfer, and (iii) do not count any transfer that solely involves Variable Options corresponding to any ProFund Portfolio and/or the AST Government Money Market Portfolio, or any transfer that involves one of our systematic programs, such as asset allocation and automated withdrawals.

Frequent transfers among Variable Options in response to short-term fluctuations in markets, sometimes called "market timing," can make it very difficult for a Portfolio manager to manage a Portfolio's investments. Frequent transfers may cause the Portfolio to hold more cash than otherwise necessary, disrupt management strategies, increase transaction costs, or affect performance. Each Annuity offers Variable Options designed for Owners who wish to engage in frequent transfers (i.e., one or more of the Variable Options corresponding to the ProFund Portfolios and the AST Government Money Market Portfolio), and we encourage Owners seeking frequent transfers to utilize those Variable Options.

In light of the risks posed to Owners and other investors by frequent transfers, we reserve the right to limit the number of transfers in any Annuity Year for all existing or new Owners and to take the other actions discussed below. We also reserve the right to limit the number of transfers in any Annuity Year or to refuse any transfer request for an Owner or certain Owners if: (a) we believe that excessive transfer activity (as we define it) or a specific transfer request or group of transfer requests may have a detrimental effect on Unit Values or the share prices of the Portfolios; or (b) we are informed by a Portfolio (e.g., by the Portfolio's portfolio manager) that the purchase or redemption of shares in the Portfolio must be restricted because the Portfolio believes the transfer activity to which such purchase and redemption relates would have a detrimental effect on the share prices of the affected Portfolio. Without limiting the above, the most likely scenario where either of the above could occur would be if the aggregate amount of a trade or trades represented a relatively large proportion of the total assets of a particular Portfolio. In furtherance of our general authority to restrict transfers as described above, and without limiting other actions we may take in the future, we have adopted the following specific restrictions:

• With
 respect to each Variable Option (other than the AST Government Money Market Variable Option, or a Variable Option corresponding to
 a ProFund Portfolio), we track amounts exceeding a certain dollar threshold that were transferred into the Variable Option. If you transfer
 such amount into a particular Variable Option, and within 30 calendar days thereafter transfer (the "Transfer Out") all or
 a portion of that
 amount into another Variable Option, then upon the Transfer Out, the former Variable Option becomes restricted (the "Restricted Variable Option").
 Specifically, we will not permit subsequent transfers into the Restricted Variable Option for 90 calendar days after the Transfer
 Out if the Restricted Variable Option invests in a non-international Portfolio, or 180 calendar days after the Transfer Out if the Restricted
 Variable Option invests in an international Portfolio. For purposes of this rule, we (i) do not count transfers made in connection with
 one of our systematic programs, such as asset allocation and automated withdrawals; (ii) do not count any transfer that solely involves
 Variable Options corresponding to any ProFund Portfolio and/or the AST Government Money Market Portfolio; and (iii) do not categorize
 as a transfer the first transfer that you make after the Issue Date, if you make that transfer within 30 calendar days after the Issue
 Date. Even if an amount becomes restricted under the foregoing rules, you are still free to redeem the amount from your Annuity at any
 time.

• We
 reserve the right to effect exchanges on a delayed basis for all contracts. That is, we may price an exchange involving the Variable Options
 on the Valuation Day subsequent to the Valuation Day on which the exchange request was received. Before implementing such a practice,
 we would issue a separate written notice to Owners that explains the practice in detail.

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If we deny one or more transfer requests under the foregoing rules, we will inform you or your financial professional promptly of the circumstances concerning the denial.

There are contract Owners of different variable annuity contracts that are funded through the same Separate Account that are not subject to the above-referenced transfer restrictions and, therefore, might make more numerous and frequent transfers than contract Owners who are subject to such limitations. Finally, there are contract Owners of other variable annuity contracts or variable life contracts that are issued by us as well as other insurance companies that have the same underlying mutual fund portfolios available to them. Since some contract Owners are not subject to the same transfer restrictions, unfavorable consequences associated with such frequent trading within the underlying mutual fund (e.g., greater portfolio turnover, higher transaction costs, or performance or tax issues) may affect all contract Owners. Similarly, while contracts managed by a financial professional or third party investment advisor are subject to the restrictions on transfers between investment options that are discussed above, if the advisor manages a number of contracts in the same fashion unfavorable consequences may be associated with management activity since it may involve the movement of a substantial portion of an underlying mutual fund's assets which may affect all contract Owners invested in the affected options. Apart from jurisdiction- specific and contract differences in transfer restrictions, we will apply these rules uniformly (including contracts managed by a financial professional or third party investment advisor), and will not waive a transfer restriction for any contract Owner.

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

The Portfolios have adopted their own policies and procedures with respect to excessive trading of their respective shares, and we reserve the right to enforce any such current or future policies and procedures. The prospectuses for the Portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Under SEC rules, we are required to: (1) enter into a written agreement with each Portfolio or its principal underwriter or its transfer agent that obligates us to provide to the Portfolio promptly upon request certain information about the trading activity of individual contract Owners (including an Annuity Owner's TIN number), and (2) execute instructions from the Portfolio to restrict or prohibit further purchases or transfers by specific contract Owners who violate the excessive trading policies established by the Portfolio. In addition, you should be aware that some Portfolios may receive "omnibus" purchase and redemption orders from other insurance companies or intermediaries such as retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual Owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Portfolios in their ability to apply their excessive trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Portfolios (and thus contract Owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Portfolios.

A Portfolio also may assess a short term trading fee (redemption fee) in connection with a transfer out of the Variable Option investing in that Portfolio that occurs within a certain number of days following the date of allocation to the Variable Option. Each Portfolio determines the amount of the short term trading fee and when the fee is imposed. The fee is retained by or paid to the Portfolio and is not retained by us. The fee will be deducted from your Account Value, to the extent allowed by law. At present, no Portfolio has adopted a short-term trading fee.

**FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS**

If you have provided the necessary authorization on the application for your Annuity, the individual who signed the application for your Annuity may forward instructions regarding the allocation of your Account Value, and request financial transactions involving Investment Options. We refer to this person as your "financial professional." You may have another person providing investment advisory services to you with respect to this Annuity and who you have separately authorized on the form we require to forward instructions to us regarding the allocation of your Account Value or certain financial transactions. Please be aware that if you authorize more than one person to provide investment instructions to us, we will follow all instructions received from authorized persons in the order in which we receive them. **If your financial professional or investment advisor has this authority, we deem** **that all such transactions that are directed by your financial professional or investment advisor, as applicable, with respect to your Annuity** **have been authorized by you.** You will receive a confirmation of any financial transaction involving the purchase or sale of Units of your Annuity. You must contact us immediately if and when you revoke such authority. We will not be responsible for acting on instructions from your financial professional or authorized investment advisor until we receive notification of the revocation of such person's authority. We may also suspend, cancel or limit these authorizations at any time. In addition, we may restrict the Investment Options available for transfers or allocation of Purchase Payments by such financial professional or investment advisor. We will notify you and your financial professional if we implement any such restrictions or prohibitions.

**Please Note:** Annuity contracts managed by your financial professional or investment advisor also are subject to the restrictions on transfers between Investment Options that are discussed in the section titled "[<u>Restrictions on Transfers Between Investment Options</u>](#chapter_9-sect1_9_936)." We may also require that your financial professional or investment advisor transmit all financial transactions using the electronic trading functionality available through our website (<u>www.prudential.com/annuities</u>). Limitations that we may impose on your financial professional or investment advisor under the agreement (e.g., a custodial agreement) do not apply to financial transactions requested by an Owner on his or her own behalf, except as otherwise described in this prospectus.

**It is your responsibility to arrange for the payment of the advisory fee charged by your investment advisor. Similarly, it is your responsibility** **to understand the advisory services provided by your investment advisor and the advisory fees charged for the services.**

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***<u>For certain Broker Dealers:</u>*** If instructed by your Broker Dealer, we may allow your financial professional to effectuate withdrawals on your behalf. In the event you do not wish that your financial professional has this authority, please contact us immediately.

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**ANNUITY PERIOD**

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We currently make available annuity options that provide fixed annuity payments. Your Annuity provides certain fixed annuity payment options. We do not guarantee to continue to make available any other option other than the fixed annuity payment options set forth in your Annuity. Fixed options provide the same amount with each payment. Please refer to the "[<u>Benefits Available Under the Contract</u>](#chapter_11_936)" section for a description of annuity options that are available when you elect one of the living benefits. You must annuitize your entire Account Value; partial Annuitizations are not allowed.

You have a right to choose your annuity start date, provided that it is no later than the first day of the calendar month next following the 95<sup>th</sup> birthday of the oldest of any Owner and Annuitant whichever occurs first ("Latest Annuity Date") and no earlier than the earliest permissible Annuity Date. If you do not request an earlier Annuity Date in writing, then your Annuity Date will be the Latest Annuity Date. You may choose one of the Annuity Options described below, and the frequency of annuity payments. Certain annuity options and/or periods certain may not be available, depending on the age of the Annuitant. For qualified annuities, the period certain option may be limited to 10 years or less depending on the circumstances. You may change your choices before the Annuity Date.

Certain of these annuity options may be available as "settlement options" to Beneficiaries who choose to receive the Death Benefit proceeds as a series of payments instead of a lump sum payment.

Please note, with respect to Optimum Plus, you may not annuitize within the first three Annuity Years and with respect to Optimum and Optimum Four, you may not annuitize within the first Annuity Year.

For Beneficiary Annuities, no annuity payments are available and all references to an Annuity Date are not applicable.

**<u>Option 1</u>**

**Payments for Life:** Under this option, income is payable periodically until the death of the "Key Life". The "Key Life" (as used in this section) is the person or persons upon whose life annuity payments are based. No additional annuity payments are made after the death of the Key Life. Since no minimum number of payments is guaranteed, this option offers the largest amount of periodic payments of the life contingent annuity options. *It is possible that only one payment will be payable if the death of the Key Life occurs before the date the second payment was due, and no other payments nor death benefits would be payable.* Under this option, you cannot make a partial or full surrender of the annuity.

**<u>Option 2</u>**

**Payments Based on Joint Lives:** Under this option, income is payable periodically during the joint lifetime of two key lives, and thereafter during the remaining lifetime of the survivor, ceasing with the last payment prior to the survivor's death. No minimum number of payments is guaranteed under this option. *It is possible that only one payment will be payable if the death of all the Key Lives occurs before the date the second payment was due, and no other payments or death benefits would be payable.* Under this option, you cannot make a partial or full surrender of the annuity.

**<u>Option 3</u>**

**Payments for Life with a Certain Period:** Under this option, income is payable until the death of the Key Life. However, if the Key Life dies before the end of the period selected (5, 10 or 15 years), the remaining payments are paid to the Beneficiary until the end of such period. Under this option, you cannot make a partial or full surrender of the annuity. If this Annuity is issued as a Qualified Annuity contract and annuity payments begin after age 92, then this Option will be modified to permit a period certain that will end no later than the life expectancy of the annuitant defined under the IRS Required Minimum Distribution tables.

**<u>Option 4</u>**

**Fixed Payments for a Certain Period:** Under this option, income is payable periodically for a specified number of years. If the payee dies before the end of the specified number of years, the remaining payments are paid to the Beneficiary until the end of such period. *Note that under this option, payments are not based on any assumptions of life expectancy. Therefore, that portion of the insurance charge assessed to cover the risk that key lives outlive our expectations provides no benefit to an Owner selecting this option.* Under this option, you cannot make a partial or full surrender of the annuity.

We may make different annuity and settlement options available in the future. We do not guarantee to continue to make available any other option other than the fixed annuity payment options set forth in your contract.

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**HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?**

Unless prohibited by law, we require that you elect either a life annuity or an annuity with a certain period of at least 5 years if any CDSC would apply were you to surrender your Annuity on the Annuity Date. Certain annuity payment options may not be available if your Annuity Date occurs during the period that a CDSC would apply.

You have a right to choose your Annuity Date provided it is no later than the maximum Annuity Date that may be required by law or under the terms of your Annuity.

For Annuities issued prior to November 20, 2006:

• if
 you do not provide us with your Annuity Date, a default date for the Annuity Date will be the first day of the calendar month following
 the later of the
 Annuitant's 85 <sup>th</sup> birthday or the fifth anniversary of our receipt of your request to purchase an Annuity; and

• unless
 you instruct us otherwise, the annuity payments, where allowed by law, will be calculated on a fixed basis under Option 3, Payments
 for Life with 10 years certain.

If you choose to defer the Annuity Date beyond the default date, the IRS may not consider your contract to be an annuity under the tax law. If that should occur, all gain in your Annuity at that time will become immediately taxable to you. Further, each subsequent year's increase in Account Value would be taxable in that year. By choosing to continue to defer after the default date, you will assume the risk that your Annuity will not be considered an annuity for federal income tax purposes.

For Annuities issued on or after November 20, 2006:

• Unless
 we agree otherwise, the Annuity Date you choose must be no later than the first day of the calendar month coinciding with or next following
 the later of the oldest Owner's or Annuitant's 95 <sup>th</sup> birthday, whichever occurs first, and the fifth anniversary of the Issue Date.

• If
 you do not provide us with your Annuity Date, the maximum date as described above will be the default date; and, unless you instruct us otherwise, we will
 pay you the annuity payments and the annuity payments, where allowed by law, will be calculated on a fixed basis under
 Option 3, Payments for Life with 10 years certain

Please note that annuitization essentially involves converting your Account Value to an annuity payment stream, the length of which depends on the terms of the applicable annuity option. Thus, once annuity payments begin, your death benefit is determined solely under the terms of the applicable annuity payment option, and you no longer participate in any optional living benefit (unless you have annuitized under that benefit).

**HOW ARE ANNUITY PAYMENTS CALCULATED?**

**Fixed Annuity Payments**

If you choose to receive fixed annuity payments, you will receive equal fixed-dollar payments throughout the period you select. The amount of the fixed payment will vary depending on the annuity payment option and payment frequency you select. Generally, the first annuity payment is determined by multiplying the Account Value, minus any state premium taxes that may apply, by the factor determined from our table of annuity rates. The table of annuity rates differs based on the type of annuity chosen and the frequency of payment selected. Our rates will not be less than our guaranteed minimum rates. These guaranteed minimum rates are derived from the 2000 Individual Annuity Mortality Table with an assumed interest rate of 3% per annum. Where required by law or regulation, such annuity table will have rates that do not differ according to the gender of the Key Life. Otherwise, the rates will differ according to the gender of the Key Life.

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**BENEFITS AVAILABLE UNDER THE CONTRACT**

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**The following table summarizes information about the benefits available under the Annuity. Certain Contract Benefits may not be available** **through certain financial intermediaries. See the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_936) **for additional information.**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or**<br>**Optional** | **Maximum Charge** | **Restrictions/Limitations** |
|  GRO PLUS II | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.60%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for** **Variable Option availability.** |
|  HIGHEST DAILY GRO II | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Option of your choice. | Optional | 0.60%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for** **Variable Option availability.** |
|  HIGHEST DAILY LIFETIME 6 PLUS (HD 6 PLUS)<sup>1</sup> | Guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 6 PLUS WITH LIFETIME INCOME ACCELERATOR (LIA)<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime 6 Plus Income Benefit | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  GUARANTEED RETURN OPTION (GRO)<sup>2</sup>/GRO PLUS<sup>1</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Option of your choice. | Optional | 0.75%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for** **Variable Option availability.** |
|  GUARANTEED RETURN OPTION PLUS 2008 (GRO PLUS 2008)<sup>1</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.75%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936)**for** **Variable Option availability.** |
|  HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)<sup>1</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.75%<br>(based on the Variable Option net assets) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for** **Variable Option availability.** |
|  GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)<sup>3</sup> | Guarantees your ability to withdraw amounts over time equal to an initial principal value, regardless of the impact of Variable Option performance. | Optional | 1.00%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or**<br>**Optional** | **Maximum Charge** | **Restrictions/Limitations**  |
|  GUARANTEED MINIMUM INCOME BENEFIT (GMIB)<sup>3</sup> | Guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on your total Purchase Payments after a seven-year waiting period. | Optional | 1.00%<br>(based on the PIV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Options availability.** |
|  LIFETIME FIVE INCOME BENEFIT<sup>1</sup> | Guarantees your ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. | Optional | 1.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  SPOUSAL LIFETIME FIVE INCOME BENEFIT<sup>1</sup> | Guarantees until the later death of two Designated Lives the ability to withdraw an annual amount equal to a percentage of an initial principal value called the Protected Withdrawal Value. | Optional | 1.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT<sup>1</sup> | Guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value. | Optional | 1.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT<sup>1</sup>  | Guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value | Optional | 1.50%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY INCOME OPTION (BIO)<sup>1</sup> | The benefit provides an optional death benefit feature in addition to the guarantee provided under the Highest Daily Lifetime Seven Income Benefit. | Optional | 2.00%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME SEVEN WITH LIFETIME INCOME ACCELERATOR (LIA)<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. | Optional | 2.00%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime Seven Income Benefit | Optional | 1.50%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME SEVEN WITH BENEFICIARY INCOME BENEFIT (BIO)<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime Seven with Beneficiary Income Benefit (BIO). | Optional | 2.00%<br>(based on the PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 7 PLUS<sup>1</sup> | Guarantees your ability to withdraw an annual amount equal to a percentage of a guaranteed benefit base called the Total Protected Withdrawal Value | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY INCOME OPTION (BIO)<sup>1</sup> | The benefit provides an optional death benefit feature in addition to the guarantee provided under the Highest Daily Lifetime Seven Plus Benefit. | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY LIFETIME 7 PLUS WITH LIFETIME INCOME ACCELERATOR (LIA)<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime 7 Plus Income Benefit | Optional | 1.50%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS WITH BENEFICIARY INCOME OPTION (BIO)<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime Seven Plus with Beneficiary Income Benefit (BIO). | Optional | 2.00%<br>(based on the greater of Account Value and PWV) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or**<br>**Optional** | **Maximum Charge** | **Restrictions/Limitations**  |
|  BASIC DEATH BENEFIT | Provides protection for your beneficiary(ies) by ensuring that they do not receive less than your Account Value. | Standard | None. | None. |
|  ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing amounts in addition to the basic Death Benefit that can be used to offset federal and state taxes payable on your Annuity at the time of your death. | Optional | 0.25%<br>(based on the Variable Option net assets) | None. |
|  HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit or the Highest Anniversary Value. | Optional | 0.40%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing the greater of the Highest Anniversary Value Death Benefit and a 5% annual increase on Purchase Payments adjusted for withdrawals. | Optional | 0.80%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")<sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit and the Highest Daily Value | Optional | 0.50%<br>(based on the Variable Option net assets) | You may not select certain Portfolios. **Please refer to** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for Variable** **Option availability.** |
|  ANNUITY REWARDS<sup>4</sup> | Provides an enhancement to the Death Benefit that captures any Variable Option gains since the Issue Date of your Annuity so that your beneficiary(ies) would not receive less than an Annuity's value as of the effective date of the benefit. | Optional | None. | None. |
|  DOLLAR COST AVERAGING | Allows you to systematically transfer a percentage amount out of an investment option and into any other variable investment option(s). | Standard | None. | Minimum allocation requirements. |
|  AUTOMATIC REBALANCING | You can direct us to automatically rebalance your assets to return to your original allocation percentage or to a subsequent allocation percentage you select. | Standard | None. | None. |

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1. These
 benefits are no longer available for new elections.

2. The
 Guaranteed Return Option benefit is no longer available for election. If you currently participate in this benefit, you may re-start the
 benefit on each anniversary of the Issue Date.

3. These
 benefits are no longer offered and must have been elected at the time that you purchased your Annuity.

4. This
 benefit may be referred to as "Prudential Annuities' Annuity Rewards" in certain documents.

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**OPTIONAL LIVING BENEFITS**

We offer different optional benefits, for an additional charge, that can provide retirement income protection for Owners while they are alive. Optional benefits are not available if your Annuity is held as a Beneficiary Annuity. Notwithstanding the additional protection provided under an optional Living Benefit, the additional cost has the impact of reducing net performance of the investment options. Each optional benefit offers a distinct type of guarantee, regardless of the performance of the Variable Options, that may be appropriate for you depending on the manner in which you intend to make use of your Annuity while you are alive. We reserve the right to cease offering any of the living benefits. Depending on which optional benefit you choose, you can have flexibility to invest in the Variable Options while:

• protecting
 a principal amount from decreases in value as of specified future dates due to investment performance;

• taking
 withdrawals with a guarantee that you will be able to withdraw not less than a guaranteed benefit base over time;

• guaranteeing
 a minimum amount of growth will be applied to your principal, if it is to be used as the basis for certain types of lifetime income
 payments or lifetime withdrawals; or

• providing
 spousal continuation of certain benefits.

The "living benefits" are as follows:

Guaranteed Return Option Plus II (GRO Plus II)<br>Highest Daily Guaranteed Return Option II (HD GRO II)<br>Guaranteed Return Option (GRO)<sup>1</sup><br>Guaranteed Return Option Plus (GRO Plus)<sup>1</sup><br>Guaranteed Return Option Plus 2008 (GRO Plus 2008)<sup>1</sup><br>Highest Daily Guaranteed Return Option (Highest Daily GRO)<sup>1</sup><br>Guaranteed Minimum Withdrawal Benefit (GMWB)<sup>1</sup><br>Guaranteed Minimum Income Benefit (GMIB)<sup>1</sup><br>Lifetime Five Income Benefit<sup>1</sup><br>Spousal Lifetime Five Income Benefit<sup>1</sup><br>Highest Daily Lifetime Five Income Benefit<sup>1</sup><br>Highest Daily Lifetime Seven Income Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime Seven Income Benefit<sup>1</sup><br>Highest Daily Lifetime Seven with Beneficiary Income Option Income Benefit<sup>1</sup><br>Highest Daily Lifetime Seven with Lifetime Income Accelerator Income Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime Seven with Beneficiary Income Option Income Benefit <sup>1</sup><br>Highest Daily Lifetime 7 Plus Income Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime 7 Plus Income Benefit<sup>1</sup><br>Highest Daily Lifetime 7 Plus with Beneficiary Income Option Benefit<sup>1</sup><br>Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator Benefit<sup>1</sup><br>Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option Benefit<sup>1</sup><br>Highest Daily Lifetime 6 Plus Income Benefit<sup>1</sup><br>Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator<sup>1</sup><br>Spousal Highest Daily Lifetime 6 Plus Income Benefit<sup>1</sup>

1. No
 longer available for new elections.

Here is a general description of each kind of living benefit that exists under this Annuity:

• **Guaranteed Minimum Accumulation Benefits.** The common characteristic of these benefits is that a specified amount of your annuity value
 is guaranteed at some point in the future. For example, under our Highest Daily GRO II benefit, we make an initial guarantee that your
 annuity value on the day you start the benefit will not be any less ten years later. If your annuity value is less on that date, we use
 our own funds to
 give you the difference. Because the guarantee inherent in the guaranteed minimum accumulation benefit does not take effect
 until a specified number of years into the future, you should elect such a benefit only if your investment time horizon is of at least that duration. Please
 note that these guaranteed minimum accumulation benefits require your participation in certain predetermined mathematical
 formulas that may transfer your Account Value between certain permitted Variable Options and a Bond portfolio (or Market Value
 Adjustment Fixed Allocations, for certain of the benefits). The portfolio restrictions and the use of each formula may reduce the likelihood
 that we will be required to make payments to you under the living benefits.

• **Guaranteed Minimum Income Benefit or ("GMIB").** As discussed elsewhere in this Prospectus, you have the right under your annuity to
 ask us to convert your accumulated annuity value into a series of annuity payments. Generally, the smaller the amount of your annuity value, the smaller
 the amount of your annuity payments. GMIB addresses this risk, by guaranteeing a certain amount of appreciation in the
 amount used to produce annuity payments. Thus, even if your annuity value goes down in value, GMIB guarantees that the amount we
 use to determine the amount of the annuity payments will go up in value by the prescribed amount. You should select GMIB only if you are
 prepared to delay your annuity payments for the required waiting period and if you anticipate needing annuity payments. This benefit is
 no longer available for new elections.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• **Guaranteed Minimum Withdrawal Benefit or ("GMWB").** This benefit is designed for someone who wants to access an annuity's value through
 withdrawals over time, rather than by annuitizing. This benefit guarantees that a specified amount will be available for withdrawal over
 time, even if the value of the annuity itself has declined. Please note that there is a maximum Annuity Date under your Annuity, by which
 date annuity payments must commence. This benefit is no longer available for new elections.

• **Lifetime Guaranteed Minimum Withdrawal Benefits.** These benefits also are designed for someone who wants to access an annuity's value
 through withdrawals over time, rather than by annuitizing. These benefits differ from GMWB, however, in that the withdrawal amounts
 are guaranteed for life (or until the second to die of spouses). The way that we establish the guaranteed amount that, in turn, determines
 the amount of the annual lifetime payments varies among these benefits. Under our Highest Daily Lifetime 6 Plus benefit, for example,
 the guaranteed amount generally is equal to your highest daily Account Value, appreciated at six percent annually. Please note that
 there is a maximum Annuity Date under your Annuity, by which date annuity payments must commence. Certain of these benefits are no
 longer available for new elections. Under any of the Guaranteed Lifetime Withdrawal Benefits (e.g., Highest Daily Lifetime 6 Plus), withdrawals
 in excess of the Annual Income Amount, called "Excess Income," will result in a permanent reduction in future guaranteed withdrawal
 amounts. If you purchased your contract in New York and wish to withdraw Excess Income but are uncertain how it will impact your
 future guaranteed withdrawal amounts, you may contact us prior to requesting the withdrawal to obtain a personalized, transaction-specific
 calculation showing the effect of taking the withdrawal.

**Finally, please note that certain of these benefits require your participation in a predetermined mathematical formula that may transfer your** **Account Value between certain permitted Variable Options and a Bond portfolio (or the general account, for one of the benefits). Although not** **guaranteed, the optional living benefit investment requirements and the applicable formula are designed to reduce the difference between** **your Account Value and our liability under the benefit. Minimizing such difference generally benefits us by decreasing the risk that we will use** **our own assets to make benefit payments to you. Though the investment requirements and formulas are designed to reduce risk, they do not** **guarantee any appreciation of your Account Value. In fact, they could mean that you miss appreciation opportunities in other investment** **options. We are not providing you with investment advice through the use of any of the formulas. In addition, the formulas do not constitute** **an investment strategy that we are recommending to you.**

In general, with respect to our lifetime guaranteed withdrawal benefits (e.g., Highest Daily Lifetime 6 Plus), please be aware that although a given withdrawal may qualify as a Charge Free Withdrawal for purposes of not incurring a CDSC, the amount of the withdrawal could exceed the Annual Income Amount under the benefit and thus be deemed "Excess Income" – thereby reducing your Annual Income Amount for future years.

**Please refer to the benefit descriptions that follow for a complete description of the terms, conditions and limitations of each optional benefit.** **Investment restrictions apply if you elect certain optional living benefits. See** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_936) **for a list of investment options available and** **permitted with each benefit. We reserve the right to terminate such benefit if you allocate funds into non-permitted Investment Options.** You should consult with your financial professional to determine if any of these optional benefits may be appropriate for you based on your financial needs. There are many factors to consider, but we note that among them you may want to evaluate the tax implications of these different approaches to meeting your needs, both between these benefits and in comparison to other potential solutions to your needs (e.g., comparing the tax implications of the withdrawal benefit and annuity payments and comparing annuity benefits with benefits of other products).

**Termination of Existing Benefits and Election of New Benefits**

If you currently own an Annuity with an optional living benefit that is terminable, you may terminate the benefit rider and elect one of the currently available benefits, subject to availability of the benefit at that time and our then current rules. There is currently no waiting period (you may elect a new benefit beginning on the next Valuation Day) to elect any living benefit once a living benefit is terminated provided that the benefit being elected is available for election post-issue. We reserve the right to waive, change and/or further limit availability and election frequencies in the future. Check with your financial professional regarding the availability of re-electing or electing a benefit and any waiting period. The benefit you re-elect or elect may be more expensive than the benefit you are terminating. **Note that once you terminate an existing benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active.** You should carefully consider whether terminating your existing benefit and electing a new benefit is appropriate for you. **There** **is no guarantee that any benefit will be available for election at a later date.**

Certain living benefits involve your participation in a predetermined mathematical formula that may transfer your Account Value between the Variable Options you have chosen and certain Bond portfolios of AST and/or our general account. The formulas may differ among the living benefits that employ a formula. Such different formulas may result in different transfers of Account Value over time.

The federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

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***GUARANTEED RETURN OPTION PLUS II (GRO Plus II)***

You can elect this benefit on the Issue Date of your Annuity, or at any time thereafter if available. In addition, you may cancel GRO Plus II and then re-elect the benefit beginning on the next Valuation Day if available, provided that your Account Value is allocated as required by the benefit and you otherwise meet our eligibility rules. If you cancel the benefit, you lose all guarantees that you had accumulated under the benefit. The initial guarantee under the newly-elected benefit will be based on your current Account Value at the time the new benefit becomes effective on your Annuity. GRO Plus II is not available if you participate in any other optional living benefit. However, GRO Plus II may be elected together with any optional death benefit, other than the Highest Daily Value Death Benefit. As detailed below under "Key Feature – Allocation of Account Value", your participation in this benefit among other things entails your participation in a program that, as dictated by a predetermined mathematical formula, may transfer your Account Value between your elected Variable Options and an AST Bond Portfolio.

Under GRO Plus II, we guarantee that the Account Value on the date that the benefit is added to your Annuity (adjusted for subsequent Purchase Payments and withdrawals as detailed below) will not be any less than that original value on the seventh anniversary of benefit election and each anniversary thereafter. We refer to this initial guarantee as the "base guarantee." In addition to the base guarantee, GRO Plus II offers the possibility of an enhanced guarantee. You may "manually" lock in an enhanced guarantee once per "benefit year" (i.e., a year beginning on the date you acquired the benefit and each anniversary thereafter) if your Account Value on that Valuation Day exceeds the amount of any outstanding base guarantee or enhanced guarantee. If you elect to manually lock-in an enhanced guarantee on an anniversary of the effective date of the benefit, that lock-in will not count toward the one elective manual lock-in you may make each benefit year. We guarantee that the Account Value locked-in by that enhanced guarantee will not be any less seven years later, and each anniversary of that date thereafter. In addition, you may elect an automatic enhanced guarantee feature under which, if your Account Value on a benefit anniversary exceeds the highest existing guarantee by 7% or more, we guarantee that such Account Value will not be any less seven benefit anniversaries later and each benefit anniversary thereafter. You may maintain only one enhanced guarantee in addition to your base guarantee. Thus, when a new enhanced guarantee is created, it cancels any existing enhanced guarantee. However, the fact that an enhanced guarantee was effected automatically on a benefit anniversary does not prevent you from "manually" locking-in an enhanced guarantee during the ensuing benefit year. Conversely, the fact that you "manually" locked in an enhanced guarantee does not preclude the possibility of an automatic enhanced guarantee on the subsequent benefit anniversary. Please note that upon creation of a new enhanced guarantee, an immediate transfer to an AST Bond Portfolio (which is used as part of this benefit) may occur depending on the discount rate (as described below) used to determine the present value of each of your guarantees. You may elect to terminate an enhanced guarantee without also terminating the base guarantee. If you do, any amounts held in the AST Bond Portfolio with respect to that enhanced guarantee will be transferred to your other Variable Options in accordance with your most recent allocation instructions (see below "Key Feature – Allocation of Account Value"). Amounts held in an AST Bond Portfolio with respect to the base guarantee will not be transferred as a result of the termination of an enhanced guarantee. You may not lock in an enhanced guarantee, either manually or through our optional automatic program, within seven years of the date by which annuity payments must commence under the terms of your Annuity (please see "[<u>How and When Do I Choose The Annuity Payment Option?</u>](#chapter_10-sect1_2_936)" for further information on your maximum Annuity Date). The inability to lock in an enhanced guarantee referenced in the immediately preceding sentence also applies to a new Owner who has acquired the Annuity from the original Owner.

In general, we refer to a date on which the Account Value is guaranteed to be present as the "Maturity Date". If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the AST Bond Portfolio used with this benefit and described below) in accordance with your most recent allocation instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST Bond Portfolio associated with the maturing guarantee to your other Variable Options on a proportional basis, unless your Account Value is being allocated according to an asset allocation program, in such case your Account Value will be transferred according to the program. The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Account Value, and the transfer of Account Value to support our future guarantees, the benefit may provide some protection from significant Variable Option losses. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

We increase both the base guarantee and any enhanced guarantee by the amount of each Purchase Payment (including any associated purchase Credits) made subsequent to the date that the guarantee was established. For example, if the effective date of the benefit was January 1, 2010 and the Account Value was $100,000 on that date, then a $30,000 Purchase Payment made on March 30, 2011 would increase the base guarantee amount to $130,000.

If you make a withdrawal (including any CDSC), we effect a proportional reduction to each existing guarantee amount. We calculate a proportional reduction by reducing each existing guarantee amount by the percentage represented by the ratio of the withdrawal amount (including any CDSC) to your Account Value immediately prior to the withdrawal.

If you make a withdrawal, we will deduct the withdrawal amount on a proportional basis from each of your Variable Options (including the AST Bond Portfolio used with this benefit).

Any partial withdrawal for payment of any third party investment advisory service will be treated as a withdrawal, and will reduce each guarantee amount proportionally, in the manner indicated above.

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**EXAMPLE**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2010

• The
 benefit is elected on December 1, 2010

• The
 Account Value on December 1, 2010 is $200,000, which results in a base guarantee of $200,000

• An
 enhanced guarantee amount of $300,000 is locked in on December 1, 2011

• The
 Account Value immediately prior to the withdrawal is equal to $300,000

• For
 purposes of simplifying these assumptions, we assume hypothetically that no CDSC is applicable (in general, a CDSC could be inapplicable
 based on the Charge Free Withdrawal provision, if the withdrawal was within the CDSC period)

If a withdrawal of $50,000 is taken on December 15, 2011, all guarantee amounts will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation (figures are rounded):**

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| | |
|:---|:---|
|  Withdrawal Amount | $50000 |
|  Divided by Account Value before withdrawal | $300000 |
|  Equals ratio | 16.67% |
|  All guarantees will be reduced by the above ratio (16.67%) |  |
|  Base guarantee amount | $166667 |
|  Enhanced guarantee amount | $250000 |

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**Key Feature – Allocation of Account Value**

We limit the Variable Options to which you may allocate Account Value if you elect GRO Plus II. For purposes of this benefit, we refer to those permitted investment options (other than the required Bond portfolios discussed below) as the "Permitted Variable Options."

GRO Plus II uses a predetermined mathematical formula to help manage your guarantees through all market cycles. Because the formula is made part of your Rider schedule supplement, the formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for newly-issued Annuities that elect or re-elect GRO Plus II and for existing Annuities that elect the benefit post-issue. This required formula helps us manage our financial exposure under GRO Plus II, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve the value of these assets, by transferring them to a more stable option (i.e., one or more specified bond portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond portfolios collectively as the "AST Bond portfolios". The formula also contemplates the transfer of Account Value from an AST Bond portfolio to the other Variable Options in certain other scenarios. **The formula is set forth in** [**<u>Appendix L</u>**](#chapter_29-sect1_1_936) **of this prospectus. It applies to both (a) GRO Plus II and (b) elections of HD GRO II made prior** **to July 16, 2010. A summary description of each AST Bond portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**.** You can find a copy of the AST bond portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

For purposes of operating the GRO Plus II formula, we have included within this Annuity several AST Bond portfolios. Each AST bond portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond portfolio whose underlying investments generally mature in 2020, an AST bond portfolio whose underlying investments generally mature in 2021, and so forth. As discussed below, the formula determines the appropriate AST Bond portfolio to which Account Value is transferred. We will introduce new AST Bond portfolios in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit (and the Highest Daily GRO benefits). If you have elected GRO Plus II, you may have Account Value allocated to an AST Bond portfolio only by operation of the predetermined mathematical formula, and thus you may not allocate Purchase Payments to or make transfers to or from such a Variable Option. Please see the prospectus for the Advanced Series Trust for more information about each AST bond portfolio used with this benefit.

Although we employ several AST Bond portfolios for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST Bond portfolio at one time. On any day a transfer into or out of the AST Bond portfolio is made the formula may dictate that a transfer out of one AST Bond portfolio be made into another AST Bond portfolio. Any transfer into an AST Bond portfolio will be directed to the AST Bond portfolio associated with the "current liability", as described below. As indicated, the AST Bond portfolios are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, in accordance with the formula applicable to you under the benefit, we determine which AST Bond portfolio your Account Value is transferred to, and under what circumstances a transfer is made. Please note that upon creation of a new enhanced guarantee, an immediate transfer to the AST Bond portfolio associated with the "current liability" may occur, depending on the discount rate (as described in the next paragraph) used to determine the present value of each of your guarantees. As such, a low discount rate could cause a transfer of Account Value into an AST Bond portfolio, despite the fact that your Account Value had increased.

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In general, the formula works as follows. On each Valuation Day, the formula automatically performs an analysis with respect to each guarantee that is outstanding. For each outstanding guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the AST Bond portfolio and to your Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the AST Bond portfolio, and divided by the amount held within the Permitted Variable Options, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST Bond portfolio, in the amount dictated by the formula (subject to the 90% cap discussed below). If the current liability, reduced by the amount held within the AST Bond portfolio, and divided by the amount within your other Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Account Value within the AST Bond portfolio into the Permitted Variable Options in the amount dictated by the formula.

The formula will not execute a transfer to the AST Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Bond portfolio ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Bond portfolio will be transferred. Additionally, future transfers into the AST Bond portfolio will not be made (regardless of the performance of the AST Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Bond portfolio. Once this transfer occurs out of the AST Bond portfolio, future amounts may be transferred to or from the AST Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the AST Bond portfolio and your allocations in the Permitted Variable Options you have elected, your Account Value could be more than 90% invested in the AST Bond portfolio. If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Bond portfolio at least until there is first a transfer out of the AST Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Bond portfolio (at least until there is first a transfer out of the AST Bond portfolio).

For example,

• March
 19, 2010 – a transfer is made to the AST Bond portfolio that results in the 90% cap being met and now $90,000 is allocated to the AST Bond portfolio
 and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2010 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Bond portfolio to the
 Permitted Variable Options since the cap went into effect on March 19, 2010.

• On
 March 20, 2010 (and at least until first a transfer is made out of the AST Bond portfolio under the formula) – the $10,000 payment
 is allocated to the
 Permitted Variable Options and on this date you have 82% in the AST Bond portfolio and 18% in the Permitted Variable Options
 (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST Bond portfolio).

• Once
 there is a transfer out of the AST Bond portfolio (of any amount), the formula will operate as described above, meaning that the formula
 could transfer amounts to or from the AST Bond portfolio if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into existence and be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Bond portfolio as dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees, as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST Bond portfolios. Therefore, at any given time, some, none, or most of your Account Value may be allocated to the AST Bond portfolios.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Bond portfolios pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST Bond portfolios;

• The
 discount rate used to determine the present value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

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Any amounts invested in the AST Bond portfolios will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the market recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected. The AST Bond portfolios are available only with these benefits, and you may not allocate Purchase Payments to or transfer Account Value to or from the AST Bond portfolios.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

GRO Plus II can be elected on the Issue Date of your Annuity, or on any Valuation Day thereafter, provided that your Account Value is allocated in a manner permitted with the benefit and that you otherwise meet our eligibility rules. You may elect GRO Plus II only if the oldest of the Owner and Annuitant is 84 or younger on the date of election (80 or younger, in New York). If you currently participate in a living benefit that may be cancelled, you may terminate that benefit at any time and elect GRO Plus II. However, you will lose all guarantees that you had accumulated under those benefits. The base guarantee under GRO Plus II will be based on your current Account Value at the time the new benefit becomes effective on your Annuity.

GRO Plus II will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, GRO Plus II will no longer provide any guarantees. The charge for the GRO Plus II benefit will no longer be deducted from your Account Value upon termination of the benefit.

If you wish, you may cancel the GRO Plus II benefit. You may also cancel an enhanced guarantee, but leave the base guarantee intact. Upon cancellation, you may elect any other currently available living benefit beginning on the next Valuation Day after you have cancelled the GRO Plus II benefit, provided that your Account Value is allocated in a manner permitted with the benefit and that you otherwise meet our eligibility rules. Upon cancellation of the GRO Plus II benefit, any Account Value allocated to the AST Bond portfolio used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis (i.e., in direct proportion to your current allocations). Upon your re-election of GRO Plus II, Account Value may be transferred between the AST Bond portfolios and the Permitted Variable Options according to the predetermined mathematical formula (see "Key Feature – Allocation of Account Value" above for more details). It is possible that over time the formula could transfer some, none, or most of the Account Value to the AST Bond portfolios under GRO Plus II. **You also** **should be aware that upon cancellation of the GRO Plus II benefit, you will lose all guarantees that you had accumulated under the benefit.** **Thus, the guarantees under any newly-elected benefit will be based on your current Account Value at benefit effectiveness. The benefit you** **elect or re-elect may be more expensive than the benefit you cancel. Once the GRO Plus II benefit is canceled you are not required to re-elect** **another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation** **of the GRO Plus II benefit provided that the benefit you are looking to elect is available on a post-issue basis.**

**There is no guarantee that any benefit will be available for election at a later date.**

**Special Considerations under GRO Plus II**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options. The Permitted Variable Options
 are those described in the Investment Restrictions section of this prospectus. No fixed interest rate allocations may be in effect as of the date that
 you elect to participate in the benefit.

• Transfers
 to and from your elected Variable Options and an AST Bond portfolio will not count toward the maximum number of free transfers
 allowable under the Annuity.

• Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST Bond portfolio.

• We
 currently limit the Variable Options to which you may allocate Account Value if you participate in this benefit. Moreover, if you are invested in prohibited
 investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options as a
 prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move Account Value to eligible investment
 options will not be counted in determining the number of free transfers during an Annuity Year.

• If
 you elect this benefit, and in connection with that election you are required to reallocate to different investment options permitted
 under this benefit,
 then on the Valuation Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted investment
 options and (ii) invest the proceeds of those sales in the permitted investment options that you have designated. During this reallocation
 process, your Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The
 protection afforded by the newly-elected benefit will not arise until the close of business on the following Valuation Day.

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**Charges under the Benefit**

The maximum charge for GRO Plus II is 0.60% of the daily net assets of the Variable Options (including any AST Bond portfolio). The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on a Maturity Date is less than the amount guaranteed and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

***HIGHEST DAILY GUARANTEED RETURN OPTION II (HD GRO II)***

You can elect this benefit on the Issue Date of your Annuity, or at any time thereafter if available. In addition, you may cancel HD GRO II and then re-elect the benefit beginning on the next Valuation Day if available, provided that your Account Value is allocated as required by the benefit and that you otherwise meet our eligibility rules. If you cancel the benefit, you lose all guarantees that you had accumulated under the benefit. The initial guarantee under the newly-elected benefit will be based on your current Account Value at the time the new benefit becomes effective on your Annuity. HD GRO II is not available if you participate in any other living benefit. However, HD GRO II may be elected together with any optional death benefit, other than the Highest Daily Value Death Benefit. As detailed below under "Key Feature – Allocation of Account Value", your participation in this benefit among other things entails your participation in a program that, as dictated by a predetermined mathematical formula, may transfer your Account Value between your elected Variable Options and an AST Bond Portfolio.

HD GRO II creates a series of separate guarantees, each of which is based on the highest Account Value attained on a day during the applicable time period. As each year of your participation in the benefit passes, we create a new guarantee. Each guarantee then remains in existence until the date on which it matures (unless the benefit terminates sooner). We refer to each date on which the specified Account Value is guaranteed as the "Maturity Date" for that guarantee. HD GRO II will not create a guarantee if the Maturity Date of that guarantee would extend beyond the date by which annuity payments must commence under the terms of your Annuity. This is true even with respect to a new Owner who has acquired the Annuity from the original Owner.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Account Value, and the transfer of Account Value to support our future guarantees, the benefit may provide some protection from significant Variable Option losses. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

The initial guarantee is created on the day that the HD GRO II benefit is added to your Annuity. We guarantee that your Account Value on the tenth anniversary of that day (we refer to each such anniversary as a "benefit anniversary") will not be less than your Account Value on the day that the HD GRO II benefit was added or re-added to your Annuity. Each benefit anniversary thereafter, we create a new guarantee. With respect to each such subsequent guarantee, we identify the highest Account Value that occurred between the date of that benefit anniversary and the date on which HD GRO II was added to your Annuity. We guarantee that your Account Value ten years after that benefit anniversary will be no less than the highest daily Account Value that occurred during that time period. The following example illustrates the time period over which we identify the highest daily Account Value for purposes of each subsequent guarantee under the benefit. If the date of benefit election were January 1, 2010, we would create a guarantee on January 1, 2014 based on the highest Account Value achieved between January 1, 2010 and January 1, 2014, and that guarantee would mature on January 1, 2024. As described below, we adjust each of the guarantee amounts for Purchase Payments and withdrawals.

If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the AST Bond Portfolio used with this benefit and described below) in accordance with your most recent allocations instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST Bond Portfolio associated with the maturing guarantee to your other Variable Options on a proportional basis, unless your Account Value is being allocated according to an asset allocation program, in such case your Account Value will be transferred according to the program.

We increase the amount of each guarantee that has not yet reached its Maturity Date, as well as the highest daily Account Value that we calculate to establish a guarantee, by the amount of each Purchase Payment (including any associated purchase Credits) made prior to the applicable Maturity Date. For example, if the effective date of the benefit was January 1, 2010, and there was an initial guaranteed amount that was set at $100,000 maturing January 1, 2020, and a second guaranteed amount that was set at $120,000 maturing January 1, 2021, then a $30,000 Purchase Payment made on March 30, 2011 would increase the guaranteed amounts to $130,000 and $150,000, respectively.

If you make a withdrawal (including any CDSC), we effect a proportional reduction to each existing guarantee amount. We calculate a proportional reduction by reducing each existing guarantee amount by the percentage represented by the ratio of the withdrawal amount (including any CDSC) to your Account Value immediately prior to the withdrawal.

If you make a withdrawal, we will deduct the withdrawal amount on a proportional basis from each of your Variable Options (including the AST Bond Portfolio used with this benefit).

Any partial withdrawal for payment of any third party investment advisory service will be treated as a withdrawal, and will reduce each guarantee amount proportionally, in the manner indicated above.

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**EXAMPLE**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2010

• The
 benefit is elected on December 1, 2010

• The
 Account Value on December 1, 2010 is $200,000, which results in an initial guarantee of $200,000

• An
 additional guarantee amount of $300,000 is locked in on December 1, 2011

• The
 Account Value immediately prior to the withdrawal is equal to $300,000

• For
 purposes of simplifying these assumptions, we assume hypothetically that no CDSC is applicable (in general, a CDSC could be inapplicable
 based on the Charge Free Withdrawal provision, if the withdrawal was within the CDSC period)

If a withdrawal of $50,000 is taken on December 15, 2011, all guarantee amounts will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation (figures are rounded):**

---

| | |
|:---|:---|
|  Withdrawal Amount | $50000 |
|  Divided by Account Value before withdrawal | $300000 |
|  Equals ratio | 16.67% |
|  All guarantees will be reduced by the above ratio (16.67%) |  |
|  Initial guarantee amount | $166667 |
|  Additional guarantee amount | $250000 |

---

**Key Feature – Allocation of Account Value**

We limit the Variable Options to which you may allocate Account Value if you elect HD GRO II. For purposes of this benefit, we refer to those permitted investment options (other than the AST bond portfolio used with this benefit) as the "Permitted Variable Options".

HD GRO II uses a predetermined mathematical formula to help manage your guarantees through all market cycles. The formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for existing Annuities that elect the benefit post-issue. This required formula helps us manage our financial exposure under HD GRO II, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve Account Value, by transferring it to a more stable option (i.e., one or more specified bond portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond portfolios collectively as the "AST Bond portfolios". The formula also contemplates the transfer of Account Value from an AST Bond portfolio to the other Variable Options. **The** **formula is set forth in** [**<u>Appendix N</u>**](#chapter_31-sect1_1_936) **of this prospectus. A summary description of each AST Bond portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**.** In addition, you can find a copy of the AST bond portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

For purposes of operating the HD GRO II formula, we have included within each Annuity several AST Bond portfolios. Each AST bond portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond portfolio whose underlying investments generally mature in 2020, an AST bond portfolio whose underlying investments generally mature in 2021, and so forth. As discussed below, the formula determines the appropriate AST Bond portfolio to which Account Value is transferred. We will introduce new AST Bond portfolios in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit. If you have elected HD GRO II, you may have Account Value allocated to an AST Bond portfolio only by operation of the formula, and thus you may not allocate Purchase Payments to or make transfers to or from an AST Bond portfolio.

Although we employ several AST Bond portfolios for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST Bond portfolio at one time. The formula determines the appropriate AST Bond portfolio to which Account Value is transferred. On any day a transfer into or out of the AST Bond portfolio is made the formula may dictate that a transfer out of one AST Bond portfolio be made into another AST Bond portfolio. Any transfer into an AST Bond portfolio will be directed to the AST Bond portfolio associated with the "current liability", as described below. As indicated, the formula and AST Bond portfolios are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, the applicable formula under the benefit determines which AST Bond portfolio your Account Value is transferred to, and under what circumstances a transfer is made.

In general, the formula works as follows. Under the formula, Account Value transfers between the "Permitted Variable Options" and an AST Bond portfolio when dictated. On each Valuation Day, including the effective date of the benefit, the pre-determined mathematical formula is used to compare your Account Value to an amount based on the guarantees provided under the benefit. The formula determines whether a transfer occurs based, among other things, on an identification of the outstanding guarantee that has the largest present value. Based on the formula, a determination is made as to whether any portion of your Account Value is to be transferred to or from the AST Bond portfolio. In identifying those guarantees, we consider each guarantee that already has been set (i.e., on a benefit anniversary), as well as an amount that we refer to as the "Projected Future Guarantee." The "Projected Future

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Guarantee" is an amount equal to the highest Account Value (adjusted for withdrawals, additional Purchase Payments, and any associated Credits as described in the section of the prospectus concerning HD GRO II) within the current benefit year that would result in a new guarantee. For the Projected Future Guarantee, the assumed Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the effective date of the benefit. As such, a Projected Future Guarantee could cause a transfer of Account Value into an AST Bond portfolio. We only calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend beyond the latest Annuity Date applicable to the Annuity. The amount that is transferred to and from the AST Bond portfolios pursuant to the formula depends upon the factors set forth in the seven bullet points below, some of which relate to the guarantee amount(s), including the Projected Future Guarantee.

For each outstanding guarantee and the Projected Future Guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the AST Bond portfolio and to your Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the AST Bond portfolio, and divided by the amount held within the Permitted Variable Options, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST Bond portfolio, in the amount dictated by the formula (subject to the 90% cap rule discussed below). If the current liability, reduced by the amount held within the AST Bond portfolio, and divided by the amount within the Permitted Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Account Value from the AST Bond portfolio into the Permitted Variable Options, in the amount dictated by the formula.

The formula will not execute a transfer to the AST Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Bond portfolio ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Bond portfolio will be transferred. Additionally, future transfers into the AST Bond portfolio will not be made (regardless of the performance of the AST Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Bond portfolio. Once this transfer occurs out of the AST Bond portfolio, future amounts may be transferred to or from the AST Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the AST Bond portfolio and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the AST Bond portfolio. If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Bond portfolio at least until there is first a transfer out of the AST Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Bond portfolio (at least until there is first a transfer out of the AST Bond portfolio).

For example,

• March
 17, 2011 – a transfer is made to the AST Bond portfolio that results in the 90% cap being met and now $90,000 is allocated to the AST Bond portfolio
 and $10,000 is allocated to the Permitted Variable Options.

• March
 18, 2011 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Bond portfolio to the
 Permitted Variable Options since the cap went into effect on March 17, 2011.

• On
 March 18, 2011 (and at least until first a transfer is made out of the AST Bond portfolio under the formula) – the $10,000 payment
 is allocated to the
 Permitted Variable Options and on this date you have 82% in the AST Bond portfolio and 18% in the Permitted Variable Options
 (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST Bond portfolio).

• Once
 there is a transfer out of the AST Bond portfolio (of any amount), the formula will operate as described above, meaning that the formula
 could transfer amounts to or from the AST Bond portfolio if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Bond portfolio as dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST Bond portfolios. Therefore, at any given time, some, none, or most of your Account Value may be allocated to the AST Bond portfolios.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Bond portfolios pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST Bond portfolios;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 discount rate used to determine the present value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the AST Bond portfolios will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the market recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

The AST Bond portfolios are available only with certain optional living benefits, and you may not allocate Purchase Payments to or transfer Account Value to or from the AST Bond portfolios.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

HD GRO II can be elected on the Issue Date of your Annuity, or on any Valuation Day thereafter, provided that your Account Value is allocated in a manner permitted with the benefit and you otherwise meet our eligibility requirements. You may elect HD GRO II only if the oldest of the Owner and Annuitant is 84 or younger on the date of election (80 or younger, in New York). If you currently participate in a living benefit that may be cancelled, you may terminate that benefit at any time and elect HD GRO II. However you will lose all guarantees that you had accumulated under the previous benefit. The initial guarantee under HD GRO II will be based on your current Account Value at the time the new benefit becomes effective on your Annuity.

HD GRO II will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, HD GRO II will no longer provide any guarantees. The charge for the HD GRO II benefit will no longer be deducted from your Account Value upon termination of the benefit.

If you wish, you may cancel the HD GRO II benefit. You may then elect any other currently available living benefit beginning on the next Valuation Day after you have cancelled the HD GRO II benefit, provided that your Account Value is allocated in the manner permitted with the benefit and you otherwise meet our eligibility requirements. Upon cancellation of the HD GRO II benefit, any Account Value allocated to the AST Bond portfolios used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis (i.e., in direct proportion to your current allocations). Upon your re-election of HD GRO II, Account Value may be transferred between the AST Bond portfolios and the other Variable Options according to the predetermined mathematical formula (see "Key Feature – Allocation of Account Value" section for more details). It is possible that over time the formula could transfer some, most, or none of the Account Value to the AST Bond portfolios under the newly-elected benefit. **You also should be aware that upon cancellation of the HD GRO II benefit, you will lose all guarantees** **that you had accumulated under the benefit. Thus, the guarantees under your newly-elected benefit will be based on your current Account** **Value at the time the new benefit becomes effective. The benefit you elect or re-elect may be more expensive than the benefit you cancel.**

**There is no guarantee that any benefit will be available for election at a later date.**

**Special Considerations under HD GRO II**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options. The Permitted Variable Options
 are those described in the Investment Restrictions section of the prospectus. No fixed interest rate allocations may be in effect as of
 the date that you elect to participate in the benefit.

• Transfers
 to and from your elected Variable Options and an AST Bond portfolio will not count toward the maximum number of free transfers
 allowable under the Annuity.

• Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST Bond portfolio.

• We
 currently limit the Variable Options to which you may allocate Account Value if you participate in this benefit. Moreover, if you are invested in prohibited
 investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options as a
 prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move Account Value to eligible investment
 options will not be counted in determining the number of free transfers during an Annuity Year.

• If
 you elect this benefit, and in connection with that election you are required to reallocate to different investment options permitted
 under this benefit,
 then on the Valuation Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted investment
 options and (ii) invest the proceeds of those sales in the permitted investment options that you have designated. During this reallocation
 process, your Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The
 newly-elected benefit will commence at the close of business on the following Valuation Day. The protection afforded by the newly-elected
 benefit will not arise until the close of business on the following Valuation Day.

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**Charges under the Benefit**

The maximum charge for HD GRO II is 0.60% of the daily net assets of the Variable Options (including any AST Bond portfolio). The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

***GUARANTEED RETURN OPTION PLUS (GRO Plus)***

**GRO Plus is no longer available for new elections.**

GRO Plus is an optional benefit that, after a seven-year period following commencement of the benefit (we refer to the end of that period and any applicable subsequent period as the "Maturity Date") and on each anniversary of the Maturity Date thereafter while the benefit remains in effect, guarantees your Account Value will not be less than your Account Value on the effective date of your benefit (called the "Protected Principal Value"). The benefit also offers you the opportunity to elect a second, enhanced guaranteed amount at a later date if your Account Value has increased, while preserving the guaranteed amount established on the effective date of your benefit. The enhanced guaranteed amount (called the "Enhanced Protected Principal Value") guarantees that, after a separate period following election of the enhanced guarantee and on each anniversary thereafter while this enhanced guarantee amount remains in effect, your Account Value will not be less than your Account Value on the effective date of your election of the enhanced guarantee. If the Maturity Date of any guarantee under GRO Plus is not a Valuation Day, and we are required to contribute an amount to your Account Value with respect to that maturing guarantee, we would contribute such an amount on the next Valuation Day.

The benefit monitors your Account Value daily and, if necessary, systematically transfers amounts between the Variable Options you choose and Market Value Adjustment Fixed Allocations used to support the Protected Principal Value(s). The benefit may be appropriate if you wish to protect a principal amount against poor Variable Option performance as of a specific date in the future. There is an additional charge if you elected the Guaranteed Return Option Plus benefit.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s) and on each anniversary of the Maturity Date(s) thereafter.

**Key Feature – Protected Principal Value/Enhanced Protected Principal Value**

The Guaranteed Return Option Plus offers a base guarantee as well as the option of electing an enhanced guarantee at a later date.

• **Base Guarantee:** Under
 the base guarantee, we guarantee that on the Maturity Date and on each anniversary of the Maturity Date thereafter
 that the benefit remains in effect, your Account Value will be no less than the Protected Principal Value. On the Maturity Date and
 on each anniversary after the Maturity Date that the benefit remains in effect, if your Account Value is below the Protected Principal Value, we will apply
 additional amounts to your Annuity from its general account to increase your Account Value to be equal to the Protected
 Principal Value. A subsequent Purchase Payment increases the amount of the base guarantee by the amount of the Purchase Payment
 (plus any Credits), and withdrawals reduce the base guarantee (as discussed below). Any amounts applied to your Account Value
 by us on the Maturity Date or any anniversary of the Maturity Date will first be applied to any Market Value Adjustment Fixed Allocations
 then required to support guarantees due on subsequent Maturity Dates. We will allocate the remainder to the Variable Options on
 a proportional basis, based on the Account Value in the Variable Options at that time.

• **Enhanced Guarantee:** On
 any anniversary following commencement of the benefit, you can establish an enhanced guarantee amount based
 on your current Account Value. Under the enhanced guarantee, we guarantee that at the end of the specified period following the election
 of the enhanced guarantee (also referred to as its "Maturity Date"), and on each anniversary of the Maturity Date thereafter
 that the enhanced
 guaranteed amount remains in effect, your Account Value will be no less than the Enhanced Protected Principal Value. **You** **can elect an enhanced guarantee more than once; however, a subsequent election supersedes the prior election of an enhanced** **guarantee. Election of an enhanced guarantee does not impact the base guarantee. In addition, you may elect an "auto step-up"** **feature that will automatically create an enhanced guarantee (or increase your enhanced guarantee, if previously elected) on** **each anniversary of the benefit (and create a new maturity period for the new enhanced guarantee) if the Account Value as of** **that anniversary exceeds the Protected Principal Value or Enhanced Protected Principal Value by 7% or more. You may also** **elect to terminate an enhanced guarantee. If you elect to terminate the enhanced guarantee any amounts held in the Market** **Value Adjustment Fixed Allocations for the enhanced guarantee will be liquidated, on the Valuation Day the request is** **processed, (which may result in a Market Value Adjustment), and such amounts will be transferred according to the rules** **described in "Termination of the Benefit/Enhanced Guarantee". Termination of an enhanced guarantee will not result in** **termination of the base guarantee.** If you have elected the enhanced guarantee, on the guarantee's Maturity Date and on each anniversary
 of the Maturity Date thereafter that the enhanced guarantee amount remains in effect, if your Account Value is below the Enhanced
 Protected Principal Value, we will apply additional amounts to your Annuity from its general account to increase your Account Value
 to be equal to the Enhanced Protected Principal Value.  Any amounts applied to your Account Value by us on the Maturity Date or any anniversary of
 the Maturity Date will first be applied to any Market Value Adjustment Fixed Allocations then required to support guarantees
 due on subsequent Maturity Dates. We will allocate the remainder to the Variable Options on a proportional basis, based on the
 Account Value in the Variable Options at that time.

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If our assumptions are correct and the operations relating to the administration of the benefit work properly, we do not expect that we will need to add additional amounts to your Annuity. *The Protected Principal Value is referred to as the "Base Guarantee" and the Enhanced Protected Principal Value is referred to as the "Step-up Guarantee" in the rider we issue for this benefit.*

**Withdrawals under your Annuity**

Withdrawals from your Annuity, while the benefit is in effect, will reduce the base guarantee under the benefit as well as any enhanced guarantee. Cumulative annual withdrawals up to 5% of the Protected Principal Value as of the effective date of the benefit (adjusted for any subsequent Purchase Payments and, with respect to Optimum Plus, any Credits applied to such Purchase Payments) will reduce the applicable guaranteed amount by the actual amount of the withdrawal (referred to as the "dollar-for-dollar limit"). If the amount withdrawn is greater than the dollar-for-dollar limit, the portion of the withdrawal equal to the dollar-for-dollar limit will be treated as described above, and the portion of the withdrawal in excess of the dollar-for-dollar limit will reduce the base guarantee and the enhanced guarantee proportionally, according to the formula as described in the rider for this benefit (see the examples of this calculation below). Withdrawals other than Systematic Withdrawals will be taken on a proportional basis from the Variable Options and any Market Value Adjustment Fixed Allocations. Withdrawals will be subject to all other provisions of your Annuity, including any Contingent Deferred Sales Charge and Market Value Adjustment (which may be positive or negative) that would apply.

Charges for other optional benefits under your Annuity that are deducted as an annual charge in arrears will not reduce the applicable guaranteed amount under the Guaranteed Return Option Plus benefit and any third party investment advisory service will be treated as withdrawals and will reduce the applicable guaranteed amount.

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GRO Plus benefit are October 13, 2004; 2.) an initial Purchase Payment of $250,000 (includes any Credits under Optimum Plus); 3.) a base guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GRO Plus or other fees and charges.

**Example 1. Dollar-For-Dollar Reduction**

A $10,000 withdrawal is taken on November 29, 2004 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Dollar-for-dollar Limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-For-Dollar and Proportional Reductions**

A second $10,000 withdrawal is taken on December 18, 2004 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 base guarantee amount is first reduced by the Remaining Limit (from $240,000 to $237,500);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

○ B
 is the Account Value less the Remaining Limit ($180,000 – $2,500, or $177,500).

The resulting base guarantee amount is: $237,500 × (1 – $7,500 / $177,500), or $227,464.79.

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the Dollar-For-Dollar Limit**

A $10,000 withdrawal is made on December 19, 2005 (second Annuity Year). The Remaining Limit has been reset to the dollar-for-dollar limit of $12,500. As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., reduced by $10,000, from $227,464.79 to $217,464.79).

• The
 Remaining Limit for the balance of the second Annuity Year is also reduced by the amount withdrawn (from $12,500 to $2,500).

**Key Feature – Allocation of Account Value**

GRO Plus uses a mathematical formula that we operate to help manage your guarantees through all market cycles. Each Valuation Day, the formula determines if any portion of your Account Value needs to be transferred into or out of the Market Value Adjustment Fixed Allocations, through reference to a "reallocation trigger". The formula does this by (a) first identifying each guarantee that is outstanding under GRO Plus (b) then discounting the value of each such guarantee to a present value, based on crediting rates associated with the Market Value Adjustment Fixed Allocations, then (c) identifying the largest of such present values. Then, the formula compares the largest present value to both the Account Value and the value of assets allocated to the Variable Options to determine whether a transfer into or out of the Market Value Adjustment Fixed Allocations is required. As detailed in the formula, if that largest present value exceeds the Account Value less a percentage of the Variable Option value, a transfer into the Market Value Adjustment Fixed

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Allocations will occur. Conversely, if the largest present value is less than the Account Value less a percentage of the Variable Option value, a transfer out of the Market Value Adjustment Fixed Allocations will occur. This required formula helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Market Value Adjustment Fixed Allocations). **The formula is set forth in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_936)**.**

If your Account Value is greater than or equal to the reallocation trigger, then:

• your
 Account Value in the Variable Options will remain allocated according to your most recent instructions; and

• if
 a portion of your Account Value is allocated to a Market Value Adjustment Fixed Allocation to support the applicable guaranteed amount, all or a portion
 of those amounts will be transferred from the Market Value Adjustment Fixed Allocation and re-allocated to the Variable Options
 according to any asset allocation programs (including an Automatic Rebalancing program) established on your Annuity or in the absence
 of such programs, on a proportional basis, based on the Account Values in such Variable Options at that time; and

• if
 all of your Account Value is allocated to a Market Value Adjustment Fixed Allocation, then all or a portion of that amount may be transferred
 from the Market Value Adjustment Fixed Allocation and re-allocated to the Variable Options, according to the following hierarchy:
 (i) first according to any asset allocation program that you may have in effect (ii) if no such program is in effect, then in accordance
 with any automatic rebalancing program that you may have in effect and (iii) if neither such program is in effect, then to the AST
 Government Money Market Variable Option; and

• a
 Market Value Adjustment will apply when we reallocate Account Value from a Market Value Adjustment Fixed Allocation to the Variable Options,
 which may result in a decrease or increase in your Account Value.

If your Account Value is less than the reallocation trigger, a portion of your Account Value in the Variable Options will be transferred from the Variable Options on a proportional basis according to your allocations to a new Market Value Adjustment Fixed Allocation(s) to support the applicable guaranteed amount. The new Market Value Adjustment Fixed Allocation(s) will have a Guarantee Period equal to the time remaining until the applicable Maturity Date(s). The Account Value allocated to the new Market Value Adjustment Fixed Allocation(s) will be credited with the fixed interest rate(s) then being credited to a new Market Value Adjustment Fixed Allocation(s) maturing on the applicable Maturity Date(s) (rounded to the next highest yearly duration). The Account Value will remain invested in each applicable Market Value Adjustment Fixed Allocation until the applicable Maturity Date unless, at an earlier date, your Account Value is greater than or equal to the reallocation trigger and, therefore, amounts can be transferred to the Variable Options while maintaining the guaranteed protection under the program (as described above).

At any given time, some, none, or all of your Account Value may be allocated to the Market Value Adjustment Fixed Allocations. With respect to any amounts held within the Market Value Adjustment Fixed Allocations, we can give no assurance how long the amounts will reside there or if such amounts will transfer out of the Market Value Adjustment Fixed Allocations. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Market Value Adjustment Fixed Allocations. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Market Value Adjustment Fixed Allocations, if dictated by the formula. The amount of such transfers will vary, as dictated by the formula, and will depend on the factors listed below. Market Value Adjustment will always be applicable on withdrawals and/or surrenders when allocated to the Market Value Adjusted Fixed Allocations.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Market Value Adjustment Fixed Allocations pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value (including any Market Value Adjustment) and your Protected Principal Value(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Variable Options;

• The
 amount invested in, and interest earned within, the Market Value Adjustment Fixed Allocations;

• The
 current crediting rates associated with Market Value Adjustment Fixed Allocations;

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the Market Value Adjustment Fixed Allocations will affect your ability to participate in a subsequent recovery within the Variable Options. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

While you are not notified when your Account Value reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Market Value Adjustment Fixed Allocations.

You may not allocate Purchase Payments to or transfer Account Value to or from the Market Value Adjustment Fixed Allocations.

Separate Fixed Allocations may be established in support of the Protected Principal Value and the Enhanced Protected Principal Value (if elected). There may also be circumstances when a Market Value Adjustment Fixed Allocation will be established only in support of the Protected Principal Value or the Enhanced Protected Principal Value. If you elect an enhanced guarantee, it is more likely that a portion of your Account Value may be allocated to Market Value Adjustment Fixed Allocations and will remain allocated for a longer period of time to support the Enhanced Protected Principal Value, even during a period of positive Variable Option performance and/or under circumstances where Market Value Adjustment Fixed Allocations would not be necessary to

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support the Protected Principal Value. Further, there may be circumstances where Market Value Adjustment Fixed Allocations in support of the Protected Principal Value or Enhanced Protected Principal Value are transferred to the Variable Options under the formula differently than each other because of the different guarantees they support.

You should be aware of the following potential ramifications of the formula:

• Transfers
 of your Account Value can be frequent, and under some scenarios may occur on a daily basis. As indicated, each such transfer may
 be subject to a Market Value Adjustment, which can be positive or negative. Thus, a Market Value Adjustment will directly increase or reduce your Account
 Value.

• As
 indicated, some or even all, of your Account Value may be maintained in the Market Value Adjustment Fixed Allocations. The greater the
 Account Value held in Market Value Adjustment Fixed Allocations, the larger (in dollar terms) the Market Value Adjustment upon any transfer
 of such Account Value to the Variable Options.

• Transfers
 under the formula do not impact your guarantees under GRO Plus that have already been locked-in.

**Election of the Benefit**

We no longer permit new elections of GRO Plus. If you currently participate in GRO Plus, your existing guarantees are unaffected by the fact that we no longer offer GRO Plus. **Please note that if you terminate a living benefit such as GRO Plus and elect a new living benefit, you lose the** **guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account** **Value as of the date the new benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the** **future.**

**Termination of the Benefit/Enhanced Guarantee**

You can elect to terminate the enhanced guarantee but maintain the protection provided by the base guarantee. You also can terminate the Guaranteed Return Option Plus benefit entirely, in which case you will lose any existing guarantees.

Upon termination of the benefit or of the enhanced guarantee, any amounts held in the Market Value Adjustment Fixed Allocations related to the guarantee(s) being terminated will be transferred as follows: (a) if only a portion of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options on a proportional basis, based on your Account Value in such Variable Options on the day of the transfer, unless we receive other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program (b) if your entire Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable Option corresponding to the AST Government Money Market Portfolio, unless we receive prior instructions from you. A Market Value Adjustment will apply (except that if the benefit has terminated automatically due to payment of a death benefit, whether a Market Value Adjustment applies depends solely on the terms of the death benefit – see the "[<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936)" section of this prospectus).

In general, you may cancel GRO Plus and then elect another living benefit that is available post issue, effective on any Valuation Day after your cancellation of GRO Plus. If you terminate GRO Plus, you will lose all guarantees under that benefit. Your election of another living benefit is subject to State and firm availability and our eligibility rules.

The benefit will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract); (b) as of the date Account Value is applied to begin annuity payments; or (c) upon full surrender of the Annuity. If you elect to terminate the benefit, the Guaranteed Return Option Plus will no longer provide any guarantees. The surviving spouse may elect the benefit at any time, subject to the limitations described above, after the death of the Annuity Owner. The surviving spouse's election will be effective on the Valuation Day that we receive the required documentation in Good Order at our home office, and the Account Value on that Valuation Day will be the Protected Principal Value.

**Special Considerations under the Guaranteed Return Option Plus**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Variable Options. No Market Value Adjustment Fixed
 Allocations may be in effect as of the date that you elect to participate in the benefit. However, the formula may transfer Account Value
 to Market Value Adjustment Fixed Allocations as of the effective date of the benefit under some circumstances.

• You
 cannot allocate any portion of Purchase Payments (including any Credits applied to such Purchase Payments under Optimum
 Plus) or transfer
 Account Value to or from a Market Value Adjustment Fixed Allocation while participating in the benefit; however, all or a portion of
 any Purchase Payments (including any Credits applied to such Purchase Payments under Optimum
 Plus) may be allocated by us to a Market
 Value Adjustment Fixed Allocation to support the amount guaranteed. You cannot participate in any dollar cost averaging program that
 transfers Account Value from a Market Value Adjustment Fixed Allocation to a Variable Option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Transfers
 from Market Value Adjustment Fixed Allocations made as a result of the formula under the benefit will be subject to the Market Value
 Adjustment formula under an Annuity; however, the 0.10% liquidity factor in the formula will not apply. A Market Value Adjustment may
 be either positive or negative. Transfer amounts will be taken from the most recently established Market Value Adjustment Fixed Allocation.

• Transfers
 from the Variable Options to Market Value Adjustment Fixed Allocations or from Market Value Adjustment Fixed Allocations to the
 Variable Options under the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• Any
 amounts applied to your Account Value by us on the Maturity Date or any anniversary of the Maturity Date will not be treated as "investment
 in the contract" for income tax purposes.

• Low
 interest rates may require allocation to Market Value Adjustment Fixed Allocations even when the current Account Value exceeds the guarantee.

• As
 the time remaining until the applicable Maturity Date gradually decreases the benefit will become increasingly sensitive to moves to Market
 Value Adjustment Fixed Allocations.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

**Charges under the Benefit**

The maximum charge for Guaranteed Return Option Plus is 0.75% annually of the daily net assets of the Variable Options. The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed; and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

If you elect the Enhanced Guarantee under the benefit, and on the date you elect to step-up, the charges under the benefit have changed for new purchases, your benefit may be subject to the new charge level. These charges will not exceed the maximum charges shown in the "[<u>Fee Table</u>](#chapter_5-sect1_1_936)" section of this prospectus.

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***GUARANTEED RETURN OPTION (GRO)***

**GRO is no longer available for new elections.**

GRO is an optional benefit that, after a seven-year period following commencement of the benefit (we refer to the end of that period as the "Maturity Date") guarantees your Account Value will not be less than your Account Value on the effective date of your benefit (called the "Protected Principal Value").

The benefit monitors your Account Value daily and, if necessary, systematically transfers amounts pursuant to a mathematical formula between the Variable Options you choose and the Market Value Adjustment Fixed Allocation used to support the Protected Principal Value. There is an additional charge if you elect the Guaranteed Return Option benefit.

The guarantee provided by the benefit exists only on the applicable Maturity Date. However, due to the ongoing monitoring of your Account Value and the transfer of Account Value between the Variable Options and the Market Value Adjustment Fixed Allocation to support our future guarantee, the benefit may provide some protection from significant Variable Option losses if you choose to surrender your Annuity or begin receiving annuity payments prior to a Maturity Date.

**Key Feature – Protected Principal Value**

Under the GRO benefit, we guarantee that on the Maturity Date, your Account Value will be no less than the Protected Principal Value. On the Maturity Date if your Account Value is below the Protected Principal Value, we will apply additional amounts to your Annuity from its general account to increase your Account Value to be equal to the Protected Principal Value. A subsequent Purchase Payment increases the amount of the Protected Principal Value by the amount of the Purchase Payment (plus any Credits), and withdrawals reduce the Protected Principal Value (as discussed below).

We will notify you of any amounts added to your Annuity under the benefit. If our assumptions are correct and the operations relating to the administration of the benefit work properly, we do not expect that we will need to add additional amounts to an Annuity. The Protected Principal Value is generally referred to as the "Guaranteed Amount" in the rider we issue for this benefit.

**Key Feature – Allocation of Account Value**

GRO uses a mathematical formula that we operate to help manage your guarantees through all market cycles. The formula weighs a number of factors, including the current Account Value, the value in the Variable Options, the value in the Market Value Adjustment Fixed Allocations, the Protected Principal Value, the expected value of the Market Value Adjustment Fixed Allocations used to support the guarantee, the time remaining until maturity, and the current crediting rates associated with the Market Value Adjustment Fixed Allocations. In essence, and as detailed in the formula, the formula will transfer Account Value into the Market Value Adjustment Fixed Allocations if needed to support an anticipated guarantee. **The formula is set forth in** [**<u>Appendix</u>** **<u>J</u>**](#chapter_27-sect1_1_936)**.** This required formula thus helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Market Value Adjustment Fixed Allocations).

Each Valuation Day, the formula determines if any portion of your Account Value needs to be transferred into or out of the Market Value Adjustment Fixed Allocations, through reference to a "reallocation trigger". At any given time, some, none, or all of your Account Value may be allocated to the Market Value Adjustment Fixed Allocations. If your entire Account Value is transferred to the Market Value Adjustment Fixed Allocations, the formula will not transfer amounts out of the Market Value Adjustment Fixed Allocations to the Variable Options and the entire Account Value would remain in the Market Value Adjustment Fixed Allocations. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Market Value Adjustment Fixed Allocations. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Market Value Adjustment Fixed Allocations, if dictated by the formula. The amount of any such transfers will vary, as dictated by the formula, and will depend on the factors listed below.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Market Value Adjustment Fixed Allocations pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value (including any Market Value Adjustment) and your Protected Principal Value(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Variable Options;

• The
 amount invested in, and interest earned within, the Market Value Adjustment Fixed Allocations;

• The
 current crediting rates associated with Market Value Adjustment Fixed Allocations;

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

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Any amounts invested in the Market Value Adjustment Fixed Allocations will affect your ability to participate in a subsequent recovery within the Variable Options. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

While you are not notified when your Account Value reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Market Value Adjustment Fixed Allocation.

You may not allocate Purchase Payments to or transfer Account Value to or from the Market Value Adjustment Fixed Allocations.

You should be aware of the following potential ramifications of the formula:

• A
 Market Value Adjustment will apply when we reallocate Account Value from the Market Value Adjustment Fixed Allocation to the Variable Options. Transfers
 of your Account Value can be frequent, and under some scenarios may occur on a daily basis. As indicated, each such transfer
 may be subject to a Market Value Adjustment, which can be positive or negative. Thus, a Market Value Adjustment will directly increase
 or reduce your Account Value.

• As
 indicated, some or even all, of your Account Value may be maintained in the Market Value Adjustment Fixed Allocations. The greater the
 Account Value held in Market Value Adjustment Fixed Allocations, the larger (in dollar terms) the Market Value Adjustment upon any transfer
 of such Account Value to the Variable Options.

• If
 your Account Value is less than the reallocation trigger, a portion of your Account Value in the Variable Options will be transferred
 from the Variable
 Options on a proportional basis according to your allocations to a new Market Value Adjustment Fixed Allocation(s) to support the
 applicable guaranteed amount. The new Market Value Adjustment Fixed Allocation(s) will have a Guarantee Period equal to the time remaining
 until the applicable Maturity Date(s). The Account Value allocated to the new Market Value Adjustment Fixed Allocation(s) will be credited
 with the fixed interest rate(s) then being credited to a new Market Value Adjustment Fixed Allocation(s) maturing on the applicable Maturity
 Date(s) (rounded to the next highest yearly duration). The Account Value will remain invested in each applicable Market Value Adjustment
 Fixed Allocation until the applicable Maturity Date unless, at an earlier date, your Account Value is greater than or equal to the reallocation
 trigger and, therefore, amounts can be transferred to the Variable Options while maintaining the guaranteed protection under the
 program (as described above).

• If
 your Account Value is greater than or equal to the reallocation trigger, and therefore a portion of the Account Value must be transferred from the Market Value
 Adjustment Fixed Allocations to the Variable Options, then those amounts will be transferred from the Market Value Adjustment
 Fixed Allocations and re-allocated to the Variable Options according to any asset allocation programs (including an Automatic Rebalancing
 program) established on your Annuity or in the absence of such programs, on a proportional basis, based on the Account Values
 in such Variable Options at that time. A Market Value Adjustment will apply upon a transfer out of the Market Value Adjustment Fixed
 Allocations, which may result in an increase or decrease in your Account Value.

Transfers under the formula do not impact your guarantees under GRO that have already been locked-in.

Withdrawals from your Annuity, while the benefit is in effect, will reduce the Protected Principal Value proportionally. The proportion will be equal to the proportionate reduction in the Account Value due to the withdrawal as of that date. Withdrawals will be taken on a proportional basis from the Variable Options and any Market Value Adjustment Fixed Allocations. Systematic Withdrawals will be taken on a proportional basis from the Variable Options and the Market Value Adjustment Fixed Allocations up to growth in the Market Value Adjustment Fixed Allocations and thereafter on a proportional basis solely from the Variable Options. The growth in the Market Value Adjustment Fixed Allocations at any point in time consists of the remaining earnings since the program of systematic withdrawal began. Withdrawals will be subject to all other provisions of your Annuity, including any Contingent Deferred Sales Charge and Market Value Adjustment that would apply.

**Election of the Benefit**

We no longer permit new elections of GRO. If you currently participate in GRO, your existing guarantees are unaffected by the fact that we no longer offer GRO. **Please note that if you terminate a living benefit such as GRO and elect a new living benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

**Restart of the Benefit**

Once each Annuity Year you may request to restart the Benefit. Such a request is an election by you to terminate the existing Benefit (and all guarantees under the benefit) and start a new one. Restarts only take effect on anniversaries of the Issue Date. To make such a request for a restart, you must notify us in advance in accordance with our administrative requirements. If we accept your request, we then terminate the existing Benefit as of that valuation period, if it is an anniversary of the Issue Date, or, if not, as of the next following anniversary of the Issue Date. The new Benefit starts at that time. The initial Protected Principal Value for the new Benefit is the Account Value as of the effective date of the new Benefit. Unless you tell us otherwise, the duration of the new Benefit will be the same as that for the existing Benefit. However, if we do not then make that duration available, you must elect from those we make available at that time. For those who elect to re-start the benefit, the charge will be assessed according to the current methodology prior to re-starting the benefit – see "Charges Under the Benefit".

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As part of terminating the existing Benefit, we transfer any amounts in Market Value Adjustment Fixed Allocations, subject to a Market Value Adjustment, to the Variable Options on a proportional basis. If your entire Account Value was then in Market Value Adjustment Fixed Allocations, you must first provide us instructions as to how to allocate the transferred Account Value among the Variable Options.

**Termination of the Benefit**

The Annuity Owner also can terminate the Guaranteed Return Option benefit. Upon termination, any amounts held in the Market Value Adjustment Fixed Allocations will be transferred as follows: (a) if only a portion of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options on a proportional basis based on the Account Values in such Variable Options on the day of the transfer, unless we receive at our office other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program (b) if your entire Account Value is in Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable Option corresponding to the AST Government Money Market Portfolio, unless we receive at our Office prior instructions from you. A Market Value Adjustment will apply (except that if the benefit has terminated automatically due to payment of a death benefit, whether a Market Value Adjustment applies depends solely on the terms of the death benefit – see the "[<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936)" section of this prospectus).

In general, you may cancel GRO and then elect another living benefit available post issue, effective on any Valuation Day after your cancellation of GRO. If you terminate GRO, you will lose all guarantees under that benefit. Your election of another living benefit is subject to State and firm availability and our eligibility rules.

The benefit will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract); (b) as of the date Account Value is applied to begin annuity payments; or (c) upon full surrender of your Annuity. If you elect to terminate the benefit, the Guaranteed Return Option will no longer provide any guarantees. If the surviving spouse assumes your Annuity, he/she may re-elect the benefit on any anniversary of the Issue Date of the Annuity or, if the deceased Owner had not previously elected the benefit, may elect the benefit at any time. The surviving spouse's election will be effective on the Valuation Day that we receive the required documentation in Good Order at our home office, and the Account Value on that Valuation Day will be the Protected Principal Value.

The charge for the Guaranteed Return Option benefit will no longer be deducted from your Account Value after the benefit has been terminated, although for those Annuities for which the GRO charge is deducted annually rather than daily (see Charges Under the Benefit), we will deduct the final annual charge upon termination of the benefit.

**Special Considerations under the Guaranteed Return Option.** This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Variable Options. The Market Value Adjustment
 Fixed Allocation must not have been in effect as of the date that you elected to participate in the benefit. However, the formula may
 transfer Account Value to the Market Value Adjustment Fixed Allocation as of the effective date of the benefit under some circumstances.

• Annuity
 Owners cannot allocate any portion of Purchase Payments (including any Credits applied to such Purchase Payments under Optimum
 Plus) or transfer Account Value to or from the Market Value Adjustment Fixed Allocation while participating in the benefit; however,
 all or a portion of any Purchase Payments (including any Credits applied to such Purchase Payments under Optimum
 Plus) may be allocated
 by us to the Market Value Adjustment Fixed Allocation to support the amount guaranteed. You cannot participate in any dollar cost
 averaging benefit that transfers Account Value from a Market Value Adjustment Fixed Allocation to a Variable Option.

• Transfers
 from the Market Value Adjustment Fixed Allocation made as a result of the formula under the benefit will be subject to the Market
 Value Adjustment formula under an Annuity; however, the 0.10% liquidity factor in the formula will not apply. A Market Value Adjustment
 may be either positive or negative. Transfer amounts will be taken from the most recently established Market Value Adjustment
 Fixed Allocation.

• Transfers
 from the Variable Options to the Market Value Adjustment Fixed Allocation or from the Market Value Adjustment Fixed Allocation to
 the Variable Options under the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• Any
 amounts applied to your Account Value by us on the Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• Any
 amounts that we add to your Annuity to support our guarantee under the benefit will be applied to the Variable Options on a proportional
 basis, after first transferring any amounts held in the Market Value Adjustment Fixed Allocations as follows: (a) if only a portion
 of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options
 on a proportional basis based on the Account Values in such Variable Options on the day of the transfer, unless we receive at our office
 other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative
 support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program
 and (b) if your entire Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable
 Option corresponding to the AST Government Money Market Portfolio, unless we receive at our Office prior instructions from you.

• Low
 interest rates may require allocation to the Market Value Adjustment Fixed Allocation even when the current Account Value exceeds the
 guarantee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• As
 the time remaining until the applicable Maturity Date gradually decreases the benefit will become increasingly sensitive to moves to the Market Value Adjustment
 Fixed Allocation.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

**Charges under the Benefit**

The maximum charge for Guaranteed Return Option is 0.75% annually of the daily net assets of the Variable Options. The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the maturity date is less than the amount guaranteed; and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

***GUARANTEED RETURN OPTION Plus 2008 (GRO Plus 2008)***

**GRO Plus 2008 is no longer available for new elections.**

Under GRO Plus 2008, we guarantee that the Account Value on the date that the benefit is added to your Annuity (adjusted for subsequent Purchase Payments and withdrawals as detailed below) will not be any less than that original value on the seventh anniversary of benefit election and each anniversary thereafter. We refer to this initial guarantee as the "base guarantee." In addition to the base guarantee, GRO Plus 2008 offers the possibility of an enhanced guarantee. You may lock in an enhanced guarantee once per "benefit year" (i.e., a year beginning on the date you acquired the benefit and each anniversary thereafter) if your Account Value on the Valuation Day exceeds the amount of any outstanding base guarantee or enhanced guarantee. We guarantee that the Account Value locked-in by that enhanced guarantee will not be any less seven years later, and each anniversary of that date thereafter. In addition, you may elect an automatic enhanced guarantee feature under which, if Account Value on a benefit anniversary exceeds the highest existing guarantee by 7% or more, we guarantee that such Account Value will not be any less seven benefit anniversaries later and each benefit anniversary thereafter. You may maintain only one enhanced guarantee in addition to your base guarantee. Thus, when a new enhanced guarantee is created, it cancels any existing enhanced guarantee. However, the fact that an enhanced guarantee was effected automatically on a benefit anniversary does not prevent you from "manually" locking-in an enhanced guarantee during the ensuing benefit year. Please note that upon creation of a new enhanced guarantee, an immediate transfer to an AST Bond portfolio (which is used as part of this benefit) may occur depending on the discount rate (as described below) used to determine the present value of each of your guarantees. You may elect to terminate an enhanced guarantee without also terminating the base guarantee. If you do, any amounts held in the AST Bond portfolio with respect to that enhanced guarantee will be transferred to your other Variable Options in accordance with your current allocation instructions. Amounts held in an AST Bond portfolio with respect to the base guarantee will not be transferred as a result of the termination of an enhanced guarantee. Please note that whenever an enhanced guarantee is created, we reserve the right to increase your charge for GRO Plus 2008 if we have increased the charge for new elections of the benefit generally. You may not lock in an enhanced guarantee, either manually or through our optional automatic program, within seven years of the date by which annuity payments must commence under the terms of your Annuity (please see "[<u>How and When Do I Choose The Annuity Payment Option?</u>](#chapter_10-sect1_2_936)" for further information on your maximum Annuity Date). The inability to lock in an enhanced guarantee referenced in the immediately preceding sentence also applies to a new Owner who has acquired the Annuity from the original Owner.

In general, we refer to a date on which the Account Value is guaranteed to be present as the "Maturity Date". If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the "Current AST Bond portfolio" described below) in accordance with your current allocations instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the Current AST Bond portfolio associated with the maturing guarantee to your other Variable Options, on a proportional basis. If the entire Account Value is invested in an AST Bond portfolio, we will allocate according to your current allocation instructions.

We increase both the base guarantee and any enhanced guarantee by the amount of each Purchase Payment (and associated Credits) made subsequent to the date that the guarantee was established. For example, if the effective date of the benefit was January 1, 2009 and the Account Value was $100,000 on that date, then a $30,000 Purchase Payment made on March 30, 2010 would increase the base guarantee amount to $130,000. As illustrated in the examples below, additional Purchase Payments also increase an amount we refer to as the "dollar-for-dollar corridor."

The dollar-for-dollar corridor is equal to 5% of the base guarantee amount (i.e., 5% of the Account Value at benefit election). Thereafter, the dollar-for-dollar corridor is adjusted only for subsequent Purchase Payments (i.e., 5% of the Purchase Payment is added to the corridor amount) and "excess withdrawals" (as described below). Thus, the creation of any enhanced guarantee has no impact on the dollar-for-dollar corridor. Each "benefit year", withdrawals that you make that are equal to or less than the dollar-for-dollar corridor reduce both the amount of the dollar-for-dollar corridor for that benefit year plus the base guarantee amount and the amount of any enhanced guarantee by the exact amount of the withdrawal. However, if you withdraw more than the dollar-for-dollar corridor in a given benefit year, we use the portion of the withdrawal that exceeded the dollar-for-dollar corridor to effect a proportional reduction to both the dollar-for-dollar corridor itself and each guarantee amount. We calculate a proportional reduction by (i)

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identifying the amount of the withdrawal that exceeded the dollar-for-dollar corridor (the "excess withdrawal") (ii) subtracting the dollar-for-dollar amount from the Account Value prior to the withdrawal (iii) dividing the excess withdrawal by the amount in (ii). We then use the resulting proportion to reduce each of the guaranteed amount and the dollar-for-dollar corridor itself. See examples of this calculation below.

Any partial withdrawals in payment of any third party investment advisory service will be treated as withdrawals, and will reduce each guarantee amount and the dollar-for-dollar corridor in the manner indicated above.

**EXAMPLES**

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GRO Plus 2008 benefit are October 13, 2008; 2.) an initial Purchase Payment of $250,000 (includes any Credits); 3.) a base guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GRO Plus 2008 or other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 29, 2008 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Dollar-for-dollar Limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 18, 2008 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 base guarantee amount is first reduced by the Remaining Limit (from $240,000 to $237,500);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

○ B
 is the Account Value less the Remaining Limit ($180,000 – $2,500, or $177,500).

The resulting base guarantee amount is: $237,500 × (1 – $7,500 / $177,500), or $227,464.79.

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year. The resulting dollar-for-dollar corridor for the next Annuity Year is calculated
 by multiplying the prior dollar-for-dollar corridor by the same ratio by which we reduce the Guarantee Amount above: $12,500
 × (1 – $7,500 / $177,500), or $11,971.83.

**Key Feature – Allocation of Account Value**

GRO Plus 2008 uses a mathematical formula to help manage your guarantees through all market cycles. Because the formula is made part of your schedule supplement, the formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval we do reserve the right to amend the formula for newly-issued Annuities that elect GRO Plus 2008 and for existing Annuities that elect the benefit in the future. This required formula helps us manage our financial exposure under GRO Plus 2008, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve the value of these assets, by transferring them to a more stable option (i.e., one or more specified bond portfolios of Advanced Series Trust). **We refer to these bond portfolios collectively as the "AST bond portfolios." The formula described in** **this section, and which is set forth in** [**<u>Appendix E</u>**](#chapter_22-sect1_1_936) **to this prospectus, applies to both (a) GRO Plus 2008 and (b) elections of HD GRO** **(including HD GRO with the 90% cap rule), where such an election was made prior to July 16, 2010. The formula applicable to elections of HD** **GRO (including HD GRO with the 90% cap rule), where such an election was made after July 16, 2010, is set forth in** [**<u>Appendix M</u>**](#chapter_30-sect1_1_936) **to this** **prospectus. The cap can be referred to as the "the 90% cap" OR "the 90% cap rule" OR "the 90% cap feature". A summary description of each** **AST Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**. You can find a copy of the AST Bond Portfolio prospectus by going to** **<u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>** **.**

Each AST bond portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond portfolio whose underlying investments generally mature in 2018, an AST bond portfolio whose underlying investments generally mature in 2019, and so forth. We will introduce new AST bond portfolios in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit (and the Highest Daily GRO benefit). If you have elected GRO Plus 2008, you may invest in an AST bond portfolio only by operation of the formula, and thus you may not allocate Purchase Payments to such a Portfolio. Please see this Prospectus and the prospectus for the Advanced Series Trust for more information about each AST bond portfolio used with this benefit.

Although we employ several AST bond portfolios for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST Bond portfolio at one time. In the description of the formula in the next paragraph, we refer to the AST Bond portfolio in which you are invested immediately prior to any potential asset transfer as the "Current AST Bond portfolio." The formula may dictate that a transfer out of the Current AST Bond portfolio be made, or alternatively may mandate a transfer into another AST Bond portfolio. Any transfer into an AST

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Bond portfolio will be directed to the AST Bond portfolio associated with the "current liability" (we refer to that Variable Option as the "Transfer AST Bond portfolio"). Note that if the Current AST Bond portfolio is associated with the current liability, then that Variable Option would be the Transfer AST Bond portfolio, and we would simply transfer additional assets into the Variable Option if such a transfer is dictated by the formula. As indicated, the AST bond portfolios are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, in accordance with the formula applicable to you under the benefit, we determine which AST bond portfolio your Account Value is transferred to, and under what circumstances a transfer is made. Please note that upon creation of a new enhanced guarantee, an immediate transfer to the Transfer AST Bond portfolio may occur, depending on the discount rate (as described in the next paragraph) used to determine the present value of each of your guarantees. As such, a low discount rate could cause a transfer of Account Value into an AST Bond portfolio, despite the fact that your Account Value had increased.

**In general, the formula works as follows (please see** [**<u>Appendix E</u>**](#chapter_22-sect1_1_936)**).** On each Valuation Day, the formula automatically performs an analysis with respect to each guarantee amount that is outstanding. For each outstanding guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing the rate determined by that index by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the Current AST Bond portfolio and to your Account Value held within the other Variable Options. If the current liability, reduced by the amount held within the Current AST Bond portfolio, and divided by the amount held within your other Variable Options, exceeds an upper target value (currently, 0.85), then the formula will make a transfer into the Transfer AST Bond portfolio, in the amount dictated by the formula. If the current liability, reduced by the amount held within the Current AST Bond portfolio, and divided by the amount within your other Variable Options, is less than a lower target value (currently, 0.79), then the formula will transfer Account Value within the Current AST Bond portfolio into the other Variable Options (other than the Transfer AST Bond portfolio), in the amount dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees, as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST Bond portfolios (the "Bond Portfolios"). Therefore, at any given time, some, none, or all of your Account Value may be allocated to the Bond Portfolios. If your entire Account Value is transferred to the Bond Portfolios, then based on the way the formula operates, the formula will not transfer amounts out of the Bond Portfolios to the Variable Options and the entire Account Value would remain in the Bond Portfolios. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Bond Portfolios. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Bond Portfolios, if dictated by the formula. The amounts of any such transfers will vary, as dictated by the formula, and will depend on the factors listed below.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond Portfolios pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Guarantee Amount(s);

• The
 amount of time until the maturity of your Guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the Bond Portfolios;

• The
 discount rate used to determine the present value of your Guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the Bond Portfolios will affect your ability to participate in a subsequent recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

The Bond Portfolios are available only with these benefits, and you may not allocate Purchase Payments and transfer Account Value to or from the Bond Portfolios.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

GRO Plus 2008 is no longer available for new elections. If you currently participate in GRO Plus 2008, your existing guarantees are unaffected by the fact that we no longer offer GRO Plus 2008.

You may cancel the GRO Plus 2008 benefit at any time. You also can cancel an enhanced guarantee, but leave the base guarantee intact. Upon cancellation of GRO Plus 2008, if only a portion of your Account Value is allocated to an AST Bond Portfolio, we will transfer any Account Value that is held in such AST Bond Portfolio to your elected Variable Options on a proportional basis based on the Account Values in such Variable Options at that time, unless you are participating in any asset allocation program or automatic rebalancing program for which we are providing administrative support or

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unless we receive at our Annuities Service Center other instructions from you at the time you elect to cancel this benefit. If you are participating in any asset allocation program or automatic rebalancing program, we will transfer any such Account Value in accordance with that program. If your entire Account Value is allocated to an AST Bond Portfolio, we will transfer your Account Value in accordance with your most recent allocation instructions, or, in the absence of such instructions, we will transfer the Account Value held in the AST Bond Portfolio to the money market portfolio.

GRO Plus 2008 will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, GRO Plus 2008 will no longer provide any guarantees. The charge for the GRO Plus 2008 benefit will no longer be deducted from your Account Value upon termination of the benefit.

If you wish, you may cancel the GRO Plus 2008 benefit. You may then elect any other currently available living benefit on any Valuation Day after you have cancelled the GRO Plus 2008 benefit, provided the request is received in Good Order (subject to state availability and in accordance with any applicable age requirements). Upon your election of another living benefit, Account Value may be transferred between the AST Bond Portfolios or, depending on the benefits selected, the AST Investment Grade Bond Portfolio and the Permitted Variable Options according to the formula. It is possible that over time the formula could transfer some, most, or none of the Account Value to the AST Bond Portfolios or, depending on the benefit selected, the AST Investment Grade Bond Portfolio under the newly-elected benefit. **You also should be aware that upon cancellation of the GRO Plus 2008** **benefit, you will lose all guarantees that you had accumulated under the benefit. Thus, the guarantees under any newly-elected benefit will be** **based on your current Account Value. The benefit you elect or re-elect may be more expensive than the benefit you cancel. Once the GRO** **Plus 2008 benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made** **on or after the first Valuation Day following the cancellation of the GRO Plus 2008 benefit provided that the benefit you are looking to elect is** **available on a post-issue basis.**

**Special Considerations under GRO Plus 2008**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the permitted Variable Options. No fixed interest rate
 allocations may be in effect as of the date that you elect to participate in the benefit.

• You
 cannot participate in any dollar cost averaging program
 that transfers Account Value from a fixed interest rate option to a Variable Option.

• Transfers
 between an AST Bond portfolio and your other Variable Options under the benefit will not count toward the maximum number of free
 transfers allowable under the Annuity.

• Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST Bond portfolio.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Moreover, if you are invested in prohibited
 investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options as a
 prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move Account Value to eligible investment
 options will not be counted in determining the number of free transfers during an Annuity Year.  If you elect this benefit,
 and in connection with that election you are required to reallocate to different investment options permitted under this benefit, then on the Valuation
 Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted investment options and (ii) invest
 the proceeds of those sales in permitted investment options that you have designated. During this reallocation process, your Account
 Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected benefit will
 commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected benefit will not arise until the close
 of business on the following Valuation Day.

**Charges under the Benefit**

The maximum charge for GRO Plus 2008 is 0.75% annually of the daily net assets of the Variable Options. The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on a Maturity Date is less than the amount guaranteed and (b) administration of the benefit. We reserve the right to increase this fee for newly-issued contracts or new elections of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

**OPTIONAL 90% CAP RULE UNDER GRO PLUS 2008**

If you currently own an Annuity and have elected the GRO Plus 2008 benefit, you can elect this optional feature, at no additional cost, which utilizes a mathematical formula. The predetermined mathematical formula is described below and will replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. This election may only be made once and may not be revoked once elected. **The mathematical formula appears in** [**<u>Appendix E</u>**](#chapter_22-sect1_1_936) **in this prospectus, and is described below.** Only the election of the 90%

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cap rule will prevent all of your Account Value from being allocated to an AST Bond portfolio. If all of your Account Value is currently allocated to an AST Bond portfolio, it will not transfer back to the Permitted Variable Options unless you elect this 90% cap rule. If you make additional Purchase Payments, they may result in a transfer of Account Value.

Although we employ several AST Bond portfolios for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST Bond portfolio at one time. In the description of the formula in the next paragraph, we refer to the AST Bond portfolio in which you are invested immediately prior to any potential asset transfer as the "Current AST Bond portfolio." The formula may dictate that a transfer out of the Current AST Bond portfolio be made, or alternatively may mandate a transfer into an AST Bond portfolio. Any transfer into an AST Bond portfolio will be directed to the AST Bond portfolio associated with the "current liability" (we refer to that Variable Option as the "Transfer AST Bond portfolio"). Note that if the Current AST Bond portfolio is associated with the current liability, then that Variable Option would be the Transfer AST Bond portfolio, and we would simply transfer additional assets into the Variable Option if dictated by the formula.

Under the formula, the formula will not execute a transfer to the Transfer AST Bond portfolio that results in more than 90% of your Account Value being allocated to the Transfer AST Bond portfolio ("90% cap rule"). Thus, on any Valuation Day, if the formula would require a transfer to the Transfer AST Bond portfolio that would result in more than 90% of the Account Value being allocated to the Transfer AST Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the Transfer AST Bond portfolio will be transferred. Additionally, future transfers into the Transfer AST Bond portfolio will not be made (regardless of the performance of the Transfer AST Bond portfolio and the Permitted Variable Options) at least until there is first a formula-initiated transfer out of the Transfer AST Bond portfolio. Once this transfer occurs out of the Transfer AST Bond portfolio, future amounts may be transferred to or from the Transfer AST Bond portfolio if dictated by the formula (subject to the 90% cap rule). At no time will the formula make a transfer to the Transfer AST Bond portfolio that results in greater than 90% of your Account Value being allocated to the Transfer AST Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the Transfer AST Bond portfolio and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Transfer AST Bond portfolio.

If you make additional Purchase Payments to your Annuity while the transfer restriction of the 90% cap rule is in effect, the formula will not transfer any of such additional Purchase Payments to the Transfer AST Bond portfolio at least until there is first a transfer out of the Transfer AST Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Transfer AST Bond portfolio, and the formula will still not transfer any of your Account Value to the Transfer AST Bond portfolio (at least until there is first a transfer out of the Transfer AST Bond portfolio).

For example,

• March
 19, 2010 – a transfer is made that results in the 90% cap rule being met and now $90,000 is allocated to the Transfer AST Bond portfolio
 and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2010 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Transfer AST Bond portfolio
 to the Permitted Variable Options since the cap went into effect on March 19, 2010.

• As
 of March 20, 2010 (and at least until first a transfer is made out of the Transfer AST Bond portfolio under the formula) the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the Transfer AST Bond portfolio and 18% in the Permitted
 Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the Transfer AST Bond
 portfolio).

• Once
 there is a transfer out of the Transfer AST Bond portfolio (of any amount), the formula will operate as described above, meaning that the formula could
 transfer amounts to or from the Transfer AST Bond portfolio if dictated by the formula (subject to the 90% cap rule).

If at the time you elect the 90% cap rule, more than 90% of your Account Value is allocated to an AST Bond portfolio used with the benefit, a transfer will be made from the AST Bond portfolio such that Account Value will be allocated 90% to the AST Bond portfolio and 10% will be allocated to your elected Variable Options. Amounts to be transferred from the AST Bond portfolio to your elected Variable Options will be transferred according to the following "hierarchy" (i.e., if a given item is inapplicable, we use the next instruction that is applicable): (a) the percentages dictated by any existing asset allocation program; or (b) the percentages dictated by any Automatic rebalancing program; or (c) on a proportional basis according to amounts currently held in your elected Variable Options; or (d) according to the currently-effective allocation instructions used for the allocation of subsequent Purchase Payments. It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amount of such additional transfer(s) will vary. If, on the date this feature is elected, 100% of your Account Value is allocated to the Transfer AST Bond portfolio, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options.

It is possible that an additional transfer to the Permitted Variable Options could occur on the following Valuation Day(s), and in some instances (based upon the formula) the additional transfer(s) could be large. Thereafter, your Account Value can be transferred between the Transfer AST Bond portfolio and your Permitted Variable Options as frequently as daily, based on what the formula prescribes.

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Once the transfer restriction of the 90% cap rule is triggered, future transfers into the Transfer AST Bond portfolio will not be made (regardless of the performance of the Transfer AST Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Transfer AST Bond portfolio. Once this transfer occurs out of the Transfer AST Bond portfolio, future amounts may be transferred to or from the Transfer AST Bond portfolio if dictated by the formula (subject to the 90% cap rule).

**Important Considerations When Electing this Feature:**

• At
 any given time, some, most or none of your Account Value may be allocated to the Transfer AST Bond portfolio.

• Please
 be aware that because of the way the 90% cap rule mathematical formula operates, it is possible that more than or less than 90% of
 your Account Value may be allocated to the Transfer AST Bond portfolio.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending on the performance of the Permitted Variable Options you select.

• Your
 election of the 90% cap rule will not result in your losing the guarantees you had accumulated under your existing GRO Plus 2008 benefit.

***HIGHEST DAILY GUARANTEED RETURN OPTION (HD GRO)***

**Highest Daily GRO is no longer available for new elections.**

Highest Daily GRO creates a series of separate guarantees, each of which is based on the highest Account Value attained on a day during the applicable time period. As each year of your participation in the benefit passes, we create a new guarantee. Each guarantee then remains in existence until the date on which it matures (unless the benefit terminates sooner). We refer to each date on which the specified Account Value is guaranteed as the "Maturity Date" for that guarantee. Highest Daily GRO will not create a guarantee if the Maturity Date of that guarantee would extend beyond the date by which annuity payments must commence under the terms of your Annuity. This is true even with respect to a new Owner who has acquired the Annuity from the original Owner.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Account Value, and the transfer of Account Value to support our future guarantees, the benefit may provide some protection from significant Variable Option losses if you choose to surrender your Annuity or begin receiving annuity payments prior to a Maturity Date. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

The initial guarantee is created on the day that the Highest Daily GRO benefit is added to your Annuity. We guarantee that your Account Value on the tenth anniversary of that day (we refer to each such anniversary as a "benefit anniversary") will not be less than your Account Value on the day that the Highest Daily GRO benefit was added to your Annuity. Each benefit anniversary thereafter, we create a new guarantee. With respect to each such subsequent guarantee, we identify the highest Account Value that occurred between the date of that benefit anniversary and the date on which Highest Daily GRO was added to your Annuity. We guarantee that your Account Value ten years after that benefit anniversary will be no less than the highest daily Account Value that occurred during that time period. The following example illustrates the time period over which we identify the highest daily Account Value for purposes of each subsequent guarantee under the benefit. If the date of benefit election were January 1, 2009, we would create a guarantee on January 1, 2012 based on the highest Account Value achieved between January 1, 2009 and January 1, 2012, and that guarantee would mature on January 1, 2022. As described below, we adjust each of the guarantee amounts for Purchase Payments and withdrawals.

In general, we refer to a date on which the Account Value is guaranteed to be present as the "Maturity Date". If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the "Current AST Bond portfolio" described below) in accordance with your current allocations instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST Bond portfolio associated with the maturing guarantee to your other Variable Options, on a proportional basis. If the entire Account Value is invested in the AST Bond portfolio, we will allocate according to your current allocation instructions.

We increase the amount of each guarantee that has not yet reached its Maturity Date, as well as the highest daily Account Value that we calculate to establish a guarantee, by the amount of each Purchase Payment (and associated Credits) made prior to the applicable Maturity Date. For example, if the effective date of the benefit was January 1, 2009, and there was an initial guaranteed amount that was set at $100,000 maturing January 1, 2019, and a second guaranteed amount that was set at $120,000 maturing January 1, 2020, then a $30,000 Purchase Payment made on March 30, 2010 would increase the guaranteed amounts to $130,000 and $150,000, respectively. As illustrated in the examples below, additional Purchase Payments also increase an amount we refer to as the "dollar-for-dollar corridor."

We reflect the effect of withdrawals by reference to an amount called the "dollar-for-dollar corridor." The dollar-for-dollar corridor is set initially to equal 5% of the initial guaranteed amount (i.e., 5% of the Account Value at benefit election). Each "benefit year" (i.e., a year that begins on the date of election of Highest Daily GRO and each anniversary thereafter), withdrawals that you make that are equal to or less than the dollar-for-dollar corridor reduce (i) the amount of the dollar-for-dollar corridor for that benefit year (ii) the amount of each outstanding guarantee amount, and (iii) the highest daily Account Value that we calculate to establish a guarantee, by the exact amount of the withdrawal. However, if you withdraw more than the dollar-for-dollar corridor in a

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given benefit year, we use the portion of the withdrawal that exceeded the dollar-for-dollar corridor to effect a proportional reduction to both the dollar-for-dollar corridor itself and each outstanding guaranteed amount, as well as the highest daily Account Value that we calculate to establish a guarantee. We calculate a proportional reduction by (i) identifying the amount of the withdrawal that exceeded the dollar-for-dollar corridor (the "excess withdrawal") (ii) subtracting the dollar-for-dollar amount from the Account Value prior to the withdrawal (iii) dividing the excess withdrawal by the amount in (ii). We then use the resulting proportion to reduce each of the guaranteed amount, the highest daily Account Value that we calculate to establish a guarantee, and the dollar-for-dollar corridor itself. See examples of this calculation below.

Any partial withdrawals in payment of any third party investment advisory service will be treated as withdrawals, and will reduce each applicable guaranteed amount and the dollar-for-dollar corridor in the manner indicated above.

**EXAMPLES**

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the Highest Daily GRO benefit are October 13, 2008; 2.) an initial Purchase Payment of $250,000 (includes any Credits); 3.) an initial guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for Highest Daily GRO or other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 29, 2008 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Dollar-for-dollar Limit:

• The
 initial guarantee amount is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 18, 2008 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• the
 initial guarantee amount is first reduced by the Remaining Limit (from $240,000 to $237,500);

• The
 result is then further reduced by the ratio of A to B, where:

— A is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

— B is the Account Value less the Remaining Limit ($180,000 – $2,500, or $177,500).

The resulting initial guarantee amount is: $237,500 × (1 – $7,500 / $177,500), or $227,464.79.

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

The resulting dollar-for-dollar corridor for the next Annuity Year is calculated by multiplying the prior dollar-for-dollar corridor by the same ratio by which we reduce the Guarantee Amount above: $12,500 × (1 – $7,500 / $177,500), or $11,971.83.

**Key Feature – Allocation of Account Value**

HD GRO uses a predetermined mathematical formula to help manage your guarantees through all market cycles. The formula applicable to you may not be altered once you elect the benefit. This required formula helps us manage our financial exposure under HD GRO, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve Account Value, by transferring it to a more stable option (i.e., one or more specified bond portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond portfolios collectively as the "AST Bond portfolios". The formula also contemplates the transfer of Account Value from an AST Bond portfolio to the other Variable Options. **The** **formula is set forth in** [**<u>Appendix M</u>**](#chapter_30-sect1_1_936) **of this prospectus. A summary description of each AST Bond portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**.** In addition, you can find a copy of the AST bond portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

For purposes of operating the HD GRO formula, we have included within each Annuity several AST Bond portfolios. Each AST bond portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond portfolio whose underlying investments generally mature in 2020, an AST bond portfolio whose underlying investments generally mature in 2021, and so forth. As discussed below, the formula determines the appropriate AST Bond portfolio to which Account Value is transferred. We will introduce new AST Bond portfolios in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit. If you have elected HD GRO, you may have Account Value allocated to an AST Bond portfolio only by operation of the formula, and thus you may not allocate Purchase Payments to or make transfers to or from an AST Bond portfolio.

Although we employ several AST Bond portfolios for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST Bond portfolio at one time. The formula determines the appropriate AST Bond portfolio to which Account Value is transferred. On any day a transfer into or out of the AST Bond portfolio is made, the formula may dictate that a transfer out of one AST Bond portfolio be made into another AST Bond portfolio. Any transfer into an AST Bond portfolio will be directed to the AST Bond portfolio associated with the "current

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liability", as described below. In the formula, we use the term "Transfer Account" to refer to the AST Bond portfolio to which a transfer would be made. As indicated, the formula and AST Bond portfolios are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, the formula applicable to you under the benefit determines which AST Bond portfolio your Account Value is transferred to, and under what circumstances a transfer is made.

In general, the formula works as follows. Under the formula, Account Value will transfer between the "Permitted Variable Options" and an AST Bond portfolio when dictated by the pre-determined mathematical formula. On each Valuation Day, including the effective date of the benefit, the pre-determined mathematical formula is used to compare your Account Value to an amount based on the guarantees provided under the benefit. The formula determines whether a transfer occurs based, among other things, on an identification of the outstanding guarantee that has the largest present value. Based on the formula, a determination is made as to whether any portion of your Account Value is to be transferred to or from the AST Bond portfolio. In identifying those guarantees, we consider each guarantee that already has been set (i.e., on a benefit anniversary), as well as an amount that we refer to as the "Projected Future Guarantee." The "Projected Future Guarantee" is an amount equal to the highest Account Value (adjusted for withdrawals, additional Purchase Payments, and any associated Credits as described in the section of the prospectus concerning HD GRO) within the current benefit year that would result in a new guarantee. For the Projected Future Guarantee, the assumed Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the effective date of the benefit. As such, a Projected Future Guarantee could cause a transfer of Account Value into an AST Bond portfolio. We only calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend beyond the latest Annuity Date applicable to the Annuity. The amount that is transferred to and from the AST Bond portfolios pursuant to the formula depends upon the factors set forth in the bullet points below, some of which relate to the guarantee amount(s), including the Projected Future Guarantee.

For each outstanding guarantee and the Projected Future Guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Account Value held within the AST Bond portfolio and to your Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the current AST Bond portfolio, and divided by the amount held within the Permitted Variable Options, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST Bond portfolio, in the amount dictated by the formula (subject to the 90% cap rule discussed below). If the current liability, reduced by the amount held within the AST Bond portfolio, and divided by the amount within the Permitted Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Account Value from the AST Bond portfolio into the Permitted Variable Options, in the amount dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Account Value and your guarantees as well as how long you have owned the benefit, and determines if any portion of your Account Value needs to be transferred into or out of the AST Bond portfolios. Where you have not elected the 90% cap rule, at any given time, some, none, or all of your Account Value may be allocated to an AST Bond portfolio. For such elections, if your entire Account Value is transferred to an AST Bond portfolio, then based on the way the formula operates, the formula will not transfer amounts out of the AST Bond portfolio and the entire Account Value would remain in the AST Bond portfolio. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money into or out of the AST Bond portfolio. Once the Purchase Payments are allocated to your Annuity, they also will be subject to the formula, which may result in immediate transfers to or from the AST Bond portfolios, if dictated by the formula. If you have elected the 90% cap rule discussed below, at any given time, some, none, or most of your Account Value may be allocated to the AST Bond portfolios.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Bond portfolios pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST Bond portfolios;

• The
 discount rate used to determine the present value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the AST Bond portfolios will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Account Value may be higher at the beginning of the market recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected. The AST Bond portfolios are available only with certain optional living benefits, and you may not allocate Purchase Payments to or transfer Account Value to or from the AST Bond portfolios.

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**Election/Cancellation of the Benefit**

We no longer permit new elections of Highest Daily GRO. If you currently participate in Highest Daily GRO, your existing guarantees are unaffected by the fact that we no longer offer Highest Daily GRO.

If you wish, you may cancel the Highest Daily GRO benefit. You may then elect any other currently available living benefit, which is available to be added post issue on any Valuation Day after you have cancelled the Highest Daily GRO benefit, provided the request is received in Good Order (subject to state availability and in accordance with any applicable age requirements). Upon cancellation of Highest Daily GRO, if only a portion of your Account Value is allocated to an AST Bond portfolio, we will transfer any Account Value that is held in such AST Bond portfolio to your elected Variable Options on a proportional basis based on the Account Values in such Variable Options at that time, unless you are participating in any asset allocation program or automatic rebalancing program for which we are providing administrative support or unless we receive at our Annuities Service Center other instructions from you at the time you elect to cancel this benefit. If you are participating in any asset allocation program or automatic rebalancing program, we will transfer any such Account Value in accordance with that program. If your entire Account Value is allocated to an AST Bond portfolio, we will transfer your Account Value in accordance with your most recent allocation instructions, or, in the absence of such instructions, we will transfer the Account Value held in the AST Bond Portfolio to the AST Government Money Market Portfolio. Upon your election of another living benefit, Account Value may be transferred between the AST Bond portfolios or, depending on the benefits selected, the AST Investment Grade Bond Portfolio, and the Permitted Variable Options according to a pre-determined mathematical formula used with that benefit. It is possible that over time the formula could transfer some, most, or none of the Account Value to the AST Bond portfolios or, depending on the benefits selected, the AST Investment Grade Bond Portfolio, under the newly-elected benefit. **You also should be aware that upon cancellation of the Highest Daily GRO benefit, you will lose all guarantees that you had** **accumulated under the benefit. Thus, the guarantees under your newly-elected benefit will be based on your current Account Value. The** **benefit you elect or re-elect may be more expensive than the benefit you cancel. Once the Highest Daily GRO benefit is canceled you are not** **required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day** **following the cancellation of the Highest Daily GRO benefit provided that the benefit you are looking to elect is available on a post-issue** **basis.**

Highest Daily GRO will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is continued by the surviving spouse; (b) as of the date Account Value is applied to begin annuity payments; (c) as of the anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the Annuity. If you elect to terminate the benefit, Highest Daily GRO will no longer provide any guarantees. The charge for the Highest Daily GRO benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Special Considerations under Highest Daily GRO**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Options. No fixed interest rate
 allocations may be in effect as of the date that you elect to participate in the benefit.

• You
 cannot participate in any dollar cost averaging program
 that transfers Account Value from a fixed interest rate option to a Variable Option.

• Transfers
 from the other Variable Options to an AST Bond portfolio or from an AST Bond portfolio to the other Variable Options under the benefit
 will not count toward the maximum number of free transfers allowable under the Annuity.

• Any
 amounts applied to your Account Value by us on a Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST Bond portfolio.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Moreover, if you are invested in prohibited
 investment options and seek to acquire the benefit, we will ask you to reallocate to permitted investment options as a
 prerequisite to acquiring the benefit. Should we prohibit access to any investment option, any transfers required to move Account Value to eligible investment
 options will not be counted in determining the number of free transfers during an Annuity Year. We may also require that
 you allocate your Account Value according to an asset allocation model.

• If
 you elect this benefit, and in connection with that election you are required to reallocate to different investment options permitted
 under this benefit,
 then on the Valuation Day on which we receive your request in Good Order, we will (i) sell Units of the non-permitted investment
 options and (ii) invest the proceeds of those sales in permitted investment options that you have designated. During this reallocation
 process, your Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The
 newly-elected benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not arise until the close of business on the following Valuation Day.

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**Charges under the Benefit**

The maximum charge for HD GRO is 0.60% annually of the daily net assets of the Variable Options (including each AST Bond portfolio). The charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed and (b) administration of the benefit. We reserve the right to increase this fee for newly-issued contracts or new elections of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

**OPTIONAL 90% CAP RULE FOR HIGHEST DAILY GRO**

If you currently own an Annuity and have elected the Highest Daily GRO benefit, you can elect this optional feature, at no additional cost, which utilizes a mathematical formula. The predetermined mathematical formula is described below and will replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. This election may only be made once and may not be revoked once elected. **The formula is set forth in** [**<u>Appendix M</u>**](#chapter_30-sect1_1_936) **of this prospectus, and is described below.** Only the election of the 90% cap rule will prevent all of your Account Value from being allocated to an AST Bond portfolio. If all of your Account Value is currently allocated to an AST Bond portfolio, it will not transfer back to the Permitted Variable Options unless you elect this 90% cap rule. If you make additional Purchase Payments, they may result in a transfer of Account Value.

As with the formula that does not include the 90% cap rule, the formula with the 90% cap rule determines whether a transfer occurs based, among other things, on an identification of the outstanding guarantee that has the largest present value. In identifying those guarantees, we consider each guarantee that already has been set (i.e., on a benefit anniversary), as well as the "Projected Future Guarantee" (as described above).

Although we employ several AST Bond portfolios for purposes of the benefit, the formula described in the next paragraph operates so that your Account Value may be allocated to only one AST Bond portfolio at one time. In the description of the formula in the next paragraph, we refer to the AST Bond portfolio in which you are invested immediately prior to any potential asset transfer as the "Current AST Bond portfolio." The formula may dictate that a transfer out of the Current AST Bond portfolio be made, or alternatively may mandate a transfer into an AST Bond portfolio. Any transfer into an AST Bond portfolio will be directed to the AST Bond portfolio associated with the "current liability" (we refer to that Variable Option as the "Transfer AST Bond portfolio"). Note that if the Current AST Bond portfolio is associated with the current liability, then that Variable Option would be the Transfer AST Bond portfolio, and we would simply transfer additional assets into the Variable Option if dictated by the formula.

Under the formula, the formula will not execute a transfer to the Transfer AST Bond portfolio that results in more than 90% of your Account Value being allocated to the Transfer AST Bond portfolio ("90% cap rule"). Thus, on any Valuation Day, if the formula would require a transfer to the Transfer AST Bond portfolio that would result in more than 90% of the Account Value being allocated to the Transfer AST Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the Transfer AST Bond portfolio will be transferred. Additionally, future transfers into the Transfer AST Bond portfolio will not be made (regardless of the performance of the Transfer AST Bond portfolio and the Permitted Variable Options) at least until there is first a formula-initiated transfer out of the Transfer AST Bond portfolio. Once this transfer occurs out of the Transfer AST Bond portfolio, future amounts may be transferred to or from the Transfer AST Bond portfolio if dictated by the formula (subject to the 90% cap rule). At no time will the formula make a transfer to the Transfer AST Bond portfolio that results in greater than 90% of your Account Value being allocated to the Transfer AST Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the Transfer AST Bond portfolio and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Transfer AST Bond portfolio.

If you make additional Purchase Payments to your Annuity while the transfer restriction of the 90% cap rule is in effect, the formula will not transfer any of such additional Purchase Payments to the Transfer AST Bond portfolio at least until there is first a transfer out of the Transfer AST Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Transfer AST Bond portfolio, and the formula will still not transfer any of your Account Value to the Transfer AST Bond portfolio (at least until there is first a transfer out of the Transfer AST Bond portfolio).

For example,

• March
 19, 2010 – a transfer is made that results in the 90% cap rule being met and now $90,000 is allocated to the Transfer AST Bond portfolio
 and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2010 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Transfer AST Bond portfolio
 to the Permitted Variable Options since the cap went into effect on March 19, 2010.

• As
 of March 20, 2010 (and at least until first a transfer is made out of the Transfer AST Bond portfolio under the formula) the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the Transfer AST Bond portfolio and 18% in the Permitted
 Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the Transfer AST Bond
 portfolio).

• Once
 there is a transfer out of the Transfer AST Bond portfolio (of any amount), the formula will operate as described above, meaning that the formula could
 transfer amounts to or from the Transfer AST Bond portfolio if dictated by the formula (subject to the 90% cap rule).

If at the time you elect the 90% cap rule, more than 90% of your Account Value is allocated to an AST Bond portfolio used with the benefit, a transfer will be made from the AST Bond portfolio such that Account Value will be allocated 90% to the AST Bond portfolio and 10% will be allocated to your elected Variable Options. Amounts to be transferred from the AST Bond portfolio to your elected Variable Options will be transferred according to the following

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"hierarchy" (i.e., if a given item is inapplicable, we use the next instruction that is applicable): (a) the percentages dictated by any existing asset allocation program; or (b) the percentages dictated by any automatic rebalancing program; or (c) on a proportional basis according to amounts currently held in your elected Variable Options; or (d) according to the currently-effective allocation instructions used for the allocation of subsequent Purchase Payments. It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amount of such additional transfer(s) will vary. If, on the date this feature is elected, 100% of your Account Value is allocated to the Transfer AST Bond portfolio, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options.

It is possible that an additional transfer to the Permitted Variable Options could occur the following Valuation Day(s), and in some instances (based upon the formula) the additional transfer(s) could be large. Thereafter, your Account Value can be transferred between the Transfer AST Bond portfolio and your Permitted Variable Options as frequently as daily, based on what the formula prescribes.

Once the transfer restriction of the 90% cap rule is triggered, future transfers into the Transfer AST Bond portfolio will not be made (regardless of the performance of the Transfer AST Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Transfer AST Bond portfolio. Once this transfer occurs out of the Transfer AST Bond portfolio, future amounts may be transferred to or from the Transfer AST Bond portfolio if dictated by the formula (subject to the 90% cap rule).

**Important Considerations When Electing this Feature:**

• At
 any given time, some, most or none of your Account Value may be allocated to the Transfer AST bond portfolio.

• Please
 be aware that because of the way the 90% cap rule mathematical formula operates, it is possible that more than or less than 90% of
 your Account Value may be allocated to the Transfer AST bond portfolio.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending on the performance of the Permitted Variable Options you select.

Your election of the 90% cap rule will not result in your losing the guarantees you had accumulated under your existing Highest Daily GRO benefit.

***GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)***

**The Guaranteed Minimum Withdrawal Benefit is no longer available for new elections.**

The Guaranteed Minimum Withdrawal Benefit guarantees your ability to withdraw amounts equal to an initial principal value (called the "Protected Value"), regardless of the impact of Variable Option performance on your Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option performance will not affect your ability to protect your principal. You are not required to make withdrawals as part of the benefit – the guarantee is not lost if you withdraw less than the maximum allowable amount of principal each year under the rules of the benefit. There is an additional charge if you elected the GMWB benefit; however, the charge may be waived under certain circumstances described below.

**Key Feature – Protected Value**

The Protected Value is the total amount that we guarantee will be available to you through withdrawals from your Annuity and/or benefit payments, regardless of the impact of Variable Option performance on your Account Value. The Protected Value is reduced with each withdrawal you make until the Protected Value is reduced to zero. When the Protected Value is reduced to zero due to your withdrawals, the GMWB benefit terminates. Additionally, the Protected Value is used to determine the maximum annual amount that you can withdraw from your Annuity, called the Protected Annual Withdrawal Amount, without triggering an adjustment in the Protected Value on a proportional basis. The Protected Value is referred to as the "Benefit Base" in the rider we issue for this benefit.

The Protected Value is determined as of the date you make your first withdrawal under your Annuity following your election of the GMWB benefit. The initial Protected Value is equal to the greater of (A) the Account Value on the date you elect the GMWB benefit, plus any additional Purchase Payments (plus any Credits applied to such Purchase Payments under Optimum Plus) before the date of your first withdrawal; or (B) the Account Value as of the date of the first withdrawal from your Annuity. The Protected Value may be enhanced by increases in your Account Value due to Variable Option performance during the period between your election of the GMWB benefit and the date of your first withdrawal.

• If
 you elect the GMWB benefit at the time you purchase your Annuity, the Account Value will be your initial Purchase Payment (plus any Credits
 applied to such Purchase Payments under Optimum
 Plus).

• If
 we offer the GMWB benefit to existing Annuity Owners, the Account Value on the anniversary of the Issue Date of your Annuity following your election of
 the GMWB benefit will be used to determine the initial Protected Value.

• If
 you make additional Purchase Payments after your first withdrawal, the Protected Value will be increased by the amount of the additional
 Purchase Payment (plus any Credits applied to such Purchase Payments under Optimum
 Plus).

You may elect to step-up your Protected Value if, due to positive Variable Option performance, your Account Value is greater than the Protected Value. You are eligible to step-up the Protected Value on or after the 5<sup>th</sup> anniversary following the first withdrawal under the GMWB benefit. The Protected Value can be stepped up again on or after the 5<sup>th</sup> anniversary following the preceding step-up. If you elect to step-up the Protected Value, you may do so during

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the 30-day period prior to your eligibility date or on any Valuation Day thereafter. If you elect to step-up the Protected Value under the benefit, and on the date you elect to step-up, the charges under the GMWB benefit have changed for new purchasers, your benefit may be subject to the new charge going forward.

Upon election of the step-up, we reset the Protected Value to be equal to the then current Account Value. For example, assume your initial Protected Value was $100,000 and you have made cumulative withdrawals of $40,000, reducing the Protected Value to $60,000. On the date you are eligible to step-up the Protected Value, your Account Value is equal to $75,000. You could elect to step-up the Protected Value to $75,000 on the date you are eligible. Upon election of the step-up, we also reset the Protected Annual Withdrawal Amount (discussed immediately below) to be equal to the greater of (A) the Protected Annual Withdrawal Amount immediately prior to the reset; and (B) 7% of the Protected Value immediately after the reset.

**Key Feature – Protected Annual Withdrawal Amount.**

The initial Protected Annual Withdrawal Amount is equal to 7% of the Protected Value. Under the GMWB benefit, if your cumulative withdrawals each Annuity Year are less than or equal to the Protected Annual Withdrawal Amount, your Protected Value will be reduced on a "dollar-for-dollar" basis (the Protected Value is reduced by the actual amount of the withdrawal, including any CDSC or Market Value Adjustment that may apply). Cumulative withdrawals in any Annuity Year that exceed the Protected Annual Withdrawal Amount trigger a proportional adjustment to both the Protected Value and the Protected Annual Withdrawal Amount, as described in the rider for this benefit (see the examples of this calculation below). The Protected Annual Withdrawal Amount is referred to as the "Maximum Annual Benefit" in the rider we issue for this benefit.

**The GMWB benefit does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed** **the Protected Annual Withdrawal Amount.** You are not required to withdraw all or any portion of the Protected Annual Withdrawal Amount each Annuity Year.

If, cumulatively, you withdraw an amount less than the Protected Annual Withdrawal Amount in any Annuity Year, you cannot carry-over the unused portion of the Protected Annual Withdrawal Amount to subsequent Annuity Years. However, because the Protected Value is only reduced by the actual amount of withdrawals you make under these circumstances, any unused Protected Annual Withdrawal Amount may extend the period of time until the remaining Protected Value is reduced to zero.

• Additional
 Purchase Payments will increase the Protected Annual Withdrawal Amount by 7% of the applicable Purchase Payment (and any
 Credits we apply to such Purchase Payments under Optimum
 Plus).

• If
 the Protected Annual Withdrawal Amount after an adjustment exceeds the Protected Value, the Protected Annual Withdrawal Amount will
 be set equal to the Protected Value.

The following examples of dollar-for-dollar and proportional reductions and the reset of the Maximum Annual Benefit assume that: 1.) the Issue Date and the effective date of the GMWB benefit are October 13, 2005; 2.) an initial Purchase Payment of $250,000 (includes any Credits in the case of Optimum Plus); 3.) a Protected Value of $250,000; and 4.) a Protected Annual Withdrawal Amount of $17,500 (7% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GMWB or any other fees and charges.

**Example 1. Dollar-For-Dollar Reduction**

A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Protected Annual Withdrawal Amount:

• The
 Protected Value is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining Protected Annual Withdrawal Amount for the balance of the first Annuity Year is also reduced by the amount withdrawn (from
 $17,500 to $7,500).

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**Example 2. Dollar-For-Dollar and Proportional Reductions**

A second $10,000 withdrawal is taken on December 13, 2005 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $220,000. As the amount withdrawn exceeds the remaining Protected Annual Withdrawal Amount of $7,500 from Example 1:

• The
 Protected Value is first reduced by the remaining Protected Annual Withdrawal Amount (from $240,000 to $232,500);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the remaining Protected Annual Withdrawal Amount ($10,000 – $7,500, or $2,500).

○ B
 is the Account Value less the remaining Protected Annual Withdrawal Amount ($220,000 – $7,500, or $212,500).

The resulting Protected Value is: $232,500 × (1 – $2,500 / $212,500), or $229,764.71.

• The
 Protected Annual Withdrawal Amount is also reduced by the ratio of A to B: The resulting Protected Annual Withdrawal Amount is: $17,500
 × (1 – $2,500 / $212,500), or $17,294.12;

• The
 remaining Protected Annual Withdrawal Amount is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the Maximum Annual Benefit**

A $10,000 withdrawal is made on October 13, 2006 (second Annuity Year). The remaining Protected Annual Withdrawal Amount has been reset to the Protected Annual Withdrawal Amount of $17,294.12 from Example 2. As the amount withdrawn is less than the remaining Protected Annual Withdrawal Amount:

• the
 Protected Value is reduced by the amount withdrawn (i.e., reduced by $10,000, from $229,764.71 to $219,764.71).

• the
 remaining Protected Annual Withdrawal Amount for the balance of the second Annuity Year is also reduced by the amount withdrawn (from
 $17,294.12 to $7,294.12).

**Benefits under GMWB**

• In
 addition to any withdrawals you make under the GMWB benefit, Variable Option performance may reduce your Account Value. If your Account
 Value is equal to zero, and you have not received all of your Protected Value in the form of withdrawals from your Annuity, we will continue
 to make payments equal to the remaining Protected Value in the form of fixed, periodic payments until the remainder of the Protected
 Value is paid, at which time the rider terminates. The fixed, periodic payments will each be equal to the Protected Annual Withdrawal
 Amount, except for the last payment which may be equal to the remaining Protected Value. We will determine the duration for which
 periodic payments will continue by dividing the Protected Value by the Protected Annual Withdrawal Amount. You will not have the right
 to make additional Purchase Payments or receive the remaining Protected Value in a lump sum. You can elect the frequency of payments,
 subject to our rules then in effect.

• If
 the death benefit under your Annuity becomes payable before you have received all of your Protected Value in the form of withdrawals from
 your Annuity, your Beneficiary has the option to elect to receive the remaining Protected Value as an alternate death benefit payout in lieu of the amount
 payable under any other death benefit provided under your Annuity. The remaining Protected Value will be payable in the
 form of fixed, periodic payments. Your beneficiary can elect the frequency of payments, subject to our rules then in effect. We will determine
 the duration for which periodic payments will continue by dividing the Protected Value by the Protected Annual Withdrawal Amount. **The Protected Value is not equal to the Account Value for purposes of the Annuity's other death benefit options. The** **GMWB benefit does not increase or decrease the amount otherwise payable under the Annuity's other death benefit options.** **Generally, the GMWB benefit would be of value to your Beneficiary only when the Protected Value at death exceeds any other** **amount available as a death benefit.** 

• If
 you elect to begin receiving annuity payments before you have received all of your Protected Value in the form of withdrawals from your Annuity, an additional
 annuity payment option will be available that makes fixed annuity payments for a certain period, determined by dividing
 the Protected Value by the Protected Annual Withdrawal Amount. If you elect to receive annuity payments calculated in this manner,
 the assumed interest rate used to calculate such payments will be 0%, which is less than the assumed interest rate on other annuity
 payment options we offer. This 0% assumed interest rate results in lower annuity payments than what would have been paid if the assumed
 interest rate was higher than 0%. **You can also elect to terminate the GMWB benefit and begin receiving annuity** **payments based on your then current Account Value (not the remaining Protected Value) under any of the available annuity** **payment options.** 

**Other Important Considerations**

• Withdrawals
 under the GMWB benefit are subject to all of the terms and conditions of your Annuity, including any CDSC and Market Value Adjustment
 that may apply.

• Withdrawals
 made while the GMWB benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under your
 Annuity.

• The
 GMWB benefit does not directly affect your Annuity's Account Value or Surrender Value, but any withdrawal will decrease the Account Value by the amount
 of the withdrawal. If you surrender your Annuity, you will receive the current Surrender Value, not the Protected Value.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the GMWB benefit. The GMWB
 benefit provides a guarantee that if your Account Value declines due to Variable Option performance, you will be able to receive your
 Protected Value in the form of periodic benefit payments.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year. The Basic Death Benefit will terminate if withdrawals taken under the GMWB benefit cause
 your Account Value to reduce to zero. Certain optional Death Benefits may terminate if withdrawals taken under the GMWB benefit cause
 your Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
 for more information.)

**Election of the Benefit**

The GMWB benefit is no longer available. If you currently participate in GMWB, your existing guarantees are unaffected by the fact that we no longer offer GMWB.

We reserve the right to restrict the maximum amount of Protected Value that may be covered under the GMWB benefit under this Annuity or any other annuities that you own that are issued by us.

**Termination of the Benefit**

The benefit terminates automatically when your Protected Value reaches zero based on your withdrawals. You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective. The benefit terminates upon your surrender of your Annuity, upon due proof of death (unless your surviving spouse elects to continue your Annuity and the GMWB benefit or your Beneficiary elects to receive the amounts payable under the GMWB benefit in lieu of the death benefit) or upon your election to begin receiving annuity payments.

The charge for the GMWB benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Please note that if you terminate a living benefit such as GMWB and elect a new living benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

**Charges under the Benefit**

The maximum charge for GMWB is 1.00% annually of the daily net assets of the Variable Options. The charge is deducted daily.

• If,
 during the seven years following the effective date of the benefit, you do not make any withdrawals, and also during the five years after the effective date
 of the benefit you make no Purchase Payment, we will thereafter waive the charge for GMWB. If you make a Purchase Payment
 after we have instituted that fee waiver (whether that Purchase Payment is directed to a Variable Option or to a Fixed Allocation), we
 will resume imposing the GMWB fee (without notifying you of the resumption of the charge). Withdrawals that you take after the fee waiver
 has been instituted will not result in the re-imposition of the GMWB charge.

• If
 you elect to step-up the Protected Value under the benefit, and on the date you elect to step-up, the charges under the benefit have changed
 for new purchasers, your benefit may be subject to the new charge level for the benefit.

**Additional Tax Considerations for Qualified Contracts/Arrangements**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your Annuity beginning after the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than 5% owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Protected Annual Withdrawal Amount, which will cause us to recalculate the Protected Value and the Protected Annual Withdrawal Amount, resulting in a lower amount payable in future Annuity Years. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more information about the applicable age and for further discussions on RMDs.

***GUARANTEED MINIMUM INCOME BENEFIT (GMIB)***

**The Guaranteed Minimum Income Benefit is no longer available for new elections.**

The Guaranteed Minimum Income Benefit is an optional benefit that, after a seven-year waiting period, guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on a guaranteed minimum value (called the "Protected Income Value") that increases after the waiting period begins, regardless of the impact of Variable Option performance on your Account Value. The benefit may be appropriate for you if you anticipate using your Annuity as a future source of periodic fixed income payments for the remainder of your life and wish to ensure that the basis upon which your income payments will be calculated will achieve at least a minimum amount despite fluctuations in Variable Option performance. There is an additional charge if you elected the GMIB benefit.

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**Key Feature – Protected Income Value**

The Protected Income Value is the minimum amount that we guarantee will be available (net of any applicable Tax Charge), after a waiting period of at least seven years, as a basis to begin receiving fixed annuity payments. The Protected Income Value is initially established on the effective date of the GMIB benefit and is equal to your Account Value on such date. Currently, since the GMIB benefit may only be elected at issue, the effective date is the Issue Date of your Annuity. The Protected Income Value is increased daily based on an annual growth rate of 5%, subject to the limitations described below. The Protected Income Value is referred to as the "Protected Value" in the rider we issue for this benefit. The 5% annual growth rate is referred to as the "Roll-Up Percentage" in the rider we issue for this benefit.

The Protected Income Value is subject to a limit of 200% (2X) of the sum of the Protected Income Value established on the effective date of the GMIB benefit, or the effective date of any step-up value, plus any additional Purchase Payments (and any Credit that is applied to such Purchase Payments in the case of Optimum Plus) made after the waiting period begins ("Maximum Protected Income Value"), minus the impact of any withdrawals (as described below in "Impact of Withdrawals on the Protected Income Value") you make from your Annuity after the waiting period begins.

• Subject
 to the maximum age/durational limits described immediately below, we will no longer increase the Protected Income Value by the 5%
 annual growth rate once you reach the Maximum Protected Income Value. However, we will increase the Protected Income Value by the
 amount of any additional Purchase Payments after you reach the Maximum Protected Income Value. Further, if you make withdrawals after
 you reach the Maximum Protected Income Value, we will reduce the Protected Income Value and the Maximum Protected Income Value
 by the proportional impact of the withdrawal on your Account Value.

• Subject
 to the Maximum Protected Income Value, we will no longer increase the Protected Income Value by the 5% annual growth rate after
 the later of the anniversary date on or immediately following the Annuitant's 80 <sup>th</sup> birthday or the 7 <sup>th</sup> anniversary of the later of the effective
 date of the GMIB benefit or the effective date of the most recent step-up. However, we will increase the Protected Income Value by
 the amount of any additional Purchase Payments (and any Credit that is applied to such Purchase Payments in the case of Optimum Plus).
 Further, if you make withdrawals after the Annuitant reaches the maximum age/duration limits, we will reduce the Protected Income Value
 and the Maximum Protected Income Value by the proportional impact of the withdrawal on your Account Value.

• Subject
 to the Maximum Protected Income Value, if you make an additional Purchase Payment, we will increase the Protected Income Value
 by the amount of the Purchase Payment (and any Credit that is applied to such Purchase Payment in the case of Optimum
 Plus) and will apply
 the 5% annual growth rate on the new amount from the date the Purchase Payment is applied.

• As
 described below, after the waiting period begins, cumulative withdrawals each Annuity Year that are up to 5% of the Protected Income Value
 on the prior anniversary of your Annuity will reduce the Protected Income Value by the amount of the withdrawal. Cumulative withdrawals
 each Annuity Year in excess of 5% of the Protected Income Value on the prior anniversary of your Annuity will reduce the Protected
 Income Value proportionately. All withdrawals after the Maximum Protected Income Value is reached will reduce the Protected Income
 Value proportionately. The 5% annual growth rate will be applied to the reduced Protected Income Value from the date of the withdrawal.

**Stepping-Up the Protected Income Value** **–** You may elect to "step-up" or "reset" your Protected Income Value if your Account Value is greater than the current Protected Income Value. Upon exercise of the step-up provision, your initial Protected Income Value will be reset equal to your current Account Value. From the date that you elect to step-up the Protected Income Value, we will apply the 5% annual growth rate to the stepped-up Protected Income Value, as described above. You can exercise the step-up provision twice while the GMIB benefit is in effect, and only while the Annuitant is less than age 76.

• A
 new seven-year waiting period will be established upon the effective date of your election to step-up the Protected Income Value. You cannot exercise your
 right to begin receiving annuity payments under the GMIB benefit until the end of the new waiting period. In light of this
 waiting period upon resets, it is not recommended that you reset your GMIB if the required beginning date under IRS minimum distribution
 requirements would commence during the 7 year waiting period. See " [<u>Taxes</u>](#chapter_14-sect1_1_936) "
  section in this prospectus for additional information
 on IRS requirements.

• The
 Maximum Protected Income Value will be reset as of the effective date of any step-up. The new Maximum Protected Income Value will
 be equal to 200% of the sum of the Protected Income Value as of the effective date of the step-up plus any subsequent Purchase Payments
 (and any Credit that is applied to such Purchase Payments in the case of Optimum Plus), minus the impact of any withdrawals after
 the date of the step-up.

• When
 determining the guaranteed annuity purchase rates for annuity payments under the GMIB benefit, we will apply such rates based on
 the number of years since the most recent step-up.

• If
 you elect to step-up the Protected Income Value under the benefit, and on the date you elect to step-up, the charges under the GMIB benefit
 have changed for new purchasers, your benefit may be subject to the new charge going forward.

• A
 step-up will increase the dollar-for-dollar limit on the anniversary of the Issue Date of the Annuity following such step-up.

*Impact of Withdrawals on the Protected Income Value* – Cumulative withdrawals each Annuity Year up to 5% of the Protected Income Value will reduce the Protected Income Value on a "dollar-for-dollar" basis (the Protected Income Value is reduced by the actual amount of the withdrawal). Cumulative withdrawals in any Annuity Year in excess of 5% of the Protected Income Value will reduce the Protected Income Value proportionately (see the examples of this calculation below). The 5% annual withdrawal amount is determined on each anniversary of the Issue Date (or on the Issue Date for the first Annuity Year) and applies to any withdrawals during the Annuity Year. This means that the amount available for withdrawals each Annuity Year on a "dollar-for-dollar" basis is adjusted on each Annuity anniversary to reflect changes in the Protected Income Value during the prior Annuity Year.

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The Maximum Protected Income Value is reduced by the same dollar-for-dollar amount as the Protected Income Value is reduced and the same proportional percentage as the Protected Income Value is reduced.

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GMIB benefit are October 13, 2005; 2.) an initial Purchase Payment of $250,000 (includes any Credits in the case of Optimum Plus); 3.) an initial Protected Income Value of $250,000; 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000); and 5.) a Maximum Protected Income Value of $500,000 (200% of the initial Protected Income Value). The values set forth here are purely hypothetical and do not reflect the charge for GMIB or any other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year). No prior withdrawals or step-ups have been taken. Immediately prior to the withdrawal, the Protected Income Value is $251,038.10 (the initial value accumulated for 31 days at an annual effective rate of 5%). As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 Protected Income Value is reduced by the amount withdrawn (i.e., by $10,000, from $251,038.10 to $241,038.10).

• The
 Maximum Protected Income Value is reduced by the amount withdrawn (i.e., by $10,000 from $500,000.00 to $490,000.00).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 13, 2005 (still within the first Annuity Year). Immediately before the withdrawal, the Account Value is $220,000, the Protected Income Value is $242,006.64 and the Maximum Protected Income Value is $490,000.00. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 Protected Income Value is first reduced by the Remaining Limit (from $242,006.64 to $239,506.64);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

○ B
 is the Account Value less the Remaining Limit ($220,000 – $2,500, or $217,500).

The resulting Protected Income Value is: $239,506.64 × (1 – $7,500 / $217,500), or $231,247.79.

• The
 Maximum Protected Income Value is reduced first by the same dollar amount as the Protected Income Value ($490,000.00 – $2,500 or
 $487,500.00) and by the same proportion as for the Protected Income Value ($487,500.00 × 0.9655 or $470,689.66).

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the dollar-for-dollar limit**

A $10,000 withdrawal is made on the first anniversary of the Issue Date, October 13, 2006 (second Annuity Year). Prior to the withdrawal, the Protected Income Value is $240,838.37 and the Maximum Protected Income Value is $470,689.66. The Remaining Limit is reset to 5% of the Protected Income Value amount, or $12,041.92. As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 Protected Income Value is reduced by the amount withdrawn (i.e., reduced by $10,000, from $240,838.37 to $230,838.37).

• The
 Maximum Protected Income Value is also reduced by the amount withdrawn (i.e., by $10,000 from $470,689.66, to $460,689.66).

• The
 Remaining Limit for the balance of the second Annuity Year is also reduced by the amount withdrawn (from $12,041.92 to $2,041.92).

**Key Feature – GMIB Annuity Payments**

You can elect to apply the Protected Income Value to one of the available GMIB Annuity Payment Options on any anniversary date following the initial waiting period, or any subsequent waiting period established upon your election to step-up the Protected Income Value. Once you have completed the waiting period, you will have a 30-day period each year, after the Annuity anniversary, during which you may elect to begin receiving annuity payments under one of the available GMIB Annuity Payment Options. You must elect one of the GMIB Annuity Payment Options by the anniversary of the Annuity's Issue Date on or immediately following the Annuitant's or your 95<sup>th</sup> birthday (whichever is sooner), except for Annuities used as a funding vehicle for an IRA, SEP IRA or 403(b), in which case you must elect one of the GMIB Annuity Payment Options by the anniversary of the Annuity's Issue Date on or immediately following the Annuitant's 92<sup>nd</sup> birthday.

Your Annuity or state law may require you to begin receiving annuity payments at an earlier date.

The amount of each GMIB Annuity Payment will be determined based on the age and, where permitted by law, sex of the Annuitant by applying the Protected Income Value (net of any applicable Tax Charge that may be due) to the GMIB Annuity Payment Option you choose. We use special annuity purchase rates to calculate the amount of each payment due under the GMIB Annuity Payment Options. These special rates for the GMIB Annuity Payment Options are calculated using an assumed interest rate factor that provides for lower growth in the value applied to produce annuity payments than if you elected an annuity payment option that is not part of the GMIB benefit. These special rates also are calculated using other factors such as

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"age setbacks" (use of an age lower than the Annuitant's actual age) that result in lower payments than would result if you elected an annuity payment option that is not part of the GMIB benefit. Use of an age setback entails a longer assumed life for the Annuitant which in turn results in lower annuity payments.

**On the date that you elect to begin receiving GMIB Annuity Payments, we guarantee that your payments will be calculated based on your** **Account Value and our then current annuity purchase rates if the payment amount calculated on this basis would be higher than it would be** **based on the Protected Income Value and the special GMIB annuity purchase rates.**

**GMIB Annuity Payment Option 1 – Payments for Life with a Certain Period**

Under this option, monthly annuity payments will be made until the death of the Annuitant. If the Annuitant dies before having received 120 monthly annuity payments, the remainder of the 120 monthly annuity payments will be made to the Beneficiary.

**GMIB Annuity Payment Option 2 – Payments for Joint Lives with a Certain Period**

Under this option, monthly annuity payments will be made until the death of both the Annuitant and the Joint Annuitant. If the Annuitant and the Joint Annuitant die before having received 120 monthly annuity payments, the remainder of the 120 monthly annuity payments will be made to the Beneficiary.

• If
 the Annuitant dies first, we will continue to make payments until the later of the death of the Joint Annuitant and the end of the period certain. However,
 if the Joint Annuitant is still receiving annuity payments following the end of the certain period, we will reduce the amount
 of each subsequent payment to 50% of the original payment amount.

• If
 the Joint Annuitant dies first, we will continue to make payments until the later of the death of the Annuitant and the end of the period certain.

You cannot withdraw your Account Value or the Protected Income Value under either GMIB Annuity Payment Option once annuity payments have begun. We may make other payout frequencies available, such as quarterly, semi-annually or annually.

**Other Important Considerations**

**You should note that GMIB is designed to provide a type of insurance that serves as a safety net only in the event your Account Value** **declines significantly due to negative investment performance. If your Account Value is not significantly affected by negative investment** **performance, it is unlikely that the purchase of the GMIB will result in your receiving larger annuity payments than if you had not purchased** **GMIB.** This is because the assumptions that we use in computing the GMIB, such as the annuity purchase rates, (which include assumptions as to age-setbacks and assumed interest rates), are more conservative than the assumptions that we use in computing annuity payout options outside of GMIB. Therefore, you may generate higher income payments if you were to annuitize a lower Account Value at the current annuity purchase rates, than if you were to annuitize under the GMIB with a higher Protected Value than your Account Value but, at the annuity purchase rates guaranteed under the GMIB. The GMIB benefit does not directly affect an Annuity's Account Value, Surrender Value or the amount payable under either the basic Death Benefit provision of the Annuity or any optional Death Benefit provision. If you surrender your Annuity, you will receive the current Surrender Value, not the Protected Income Value. The Protected Income Value is only applicable if you elect to begin receiving annuity payments under one of the GMIB annuity options after the waiting period.

• Each
 Annuity offers other annuity payment options that you can elect which do not impose an additional charge, but which do not offer to guarantee
 a minimum value on which to make annuity payments.

• Where
 allowed by law, we reserve the right to limit subsequent Purchase Payments if we determine, at our sole discretion, that based on the
 timing of your Purchase Payments and withdrawals, your Protected Income Value is increasing in ways we did not intend. In determining
 whether to limit Purchase Payments, we will look at Purchase Payments which are disproportionately larger than your initial Purchase
 Payment and other actions that may artificially increase the Protected Income Value.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. We reserve the right
 to transfer any Account
 Value in a prohibited investment option to an eligible investment option. Should we prohibit access to any investment option,
 any transfers required to move Account Value to eligible investment options will not be counted in determining the number of free transfers
 during an Annuity Year.  If you change the Annuitant after the effective date of the GMIB benefit, the period of time during which we will apply the
 5% annual growth rate may be changed based on the age of the new Annuitant. If the new Annuitant would not be eligible
 to elect the GMIB benefit based on his or her age at the time of the change, then the GMIB program will terminate.

• Annuity
 payments made under the GMIB benefit are subject to the same tax treatment as any other annuity payment.

• At
 the time you elect to begin receiving annuity payments under the GMIB benefit or under any other annuity payment option we make available,
 the protection provided by an Annuity's basic Death Benefit or any optional Death Benefit provision you elected will no longer apply.

**Election of the Benefit**

The GMIB benefit is no longer available. If you currently participate in GMIB, your existing guarantees are unaffected by the fact that we no longer offer GMIB.

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**Termination of the Benefit**

The GMIB benefit cannot be terminated by the Owner once elected. The GMIB benefit automatically terminates as of the date your Annuity is fully surrendered, on the date the Death Benefit is payable to your Beneficiary (unless your surviving spouse elects to continue your Annuity), or on the date that your Account Value is transferred to begin making annuity payments. The GMIB benefit may also be terminated if you designate a new Annuitant who would not be eligible to elect the GMIB benefit based on his or her age at the time of the change.

Upon termination of the GMIB benefit we will deduct the charge from your Account Value for the portion of the Annuity Year since the prior anniversary of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

**Charges under the Benefit**

The maximum charge for GMIB is 1.00% per year of the average Protected Income Value for the period the charge applies. Because the charge is calculated based on the average Protected Income Value, it does not increase or decrease based on changes to the Annuity's Account Value due to Variable Option performance. The dollar amount you pay each year will increase in any year the Protected Income Value increases, and it will decrease in any year the Protected Income Value decreases due to withdrawal, irrespective of whether your Account Value increases or decreases.

The charge is deducted annually in arrears each Annuity Year on the anniversary of the Issue Date of an Annuity. We deduct the amount of the charge on a proportional basis from the Account Value allocated to the Variable Options and the Fixed Allocations. No Market Value Adjustment will apply to Account Value deducted from a Fixed Allocation. If you surrender your Annuity, begin receiving annuity payments under the GMIB benefit or any other annuity payment option we make available during an Annuity Year, or the GMIB benefit terminates, we will deduct the charge for the portion of the Annuity Year since the prior anniversary of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

No charge applies after the Annuity Date.

***LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)***

**The Lifetime Five Income Benefit is no longer available for new elections.**

**Lifetime Five could have been elected only where the Annuitant and the Owner were the same person or, if the Annuity Owner is an entity,** **where there was only one Annuitant. The Annuitant must have been at least 45 years old when the benefit is elected. The Lifetime Five Income** **Benefit was not available if you elected any other optional living benefit. As long as your Lifetime Five Income Benefit is in effect, you must** **allocate your Account Value in accordance with the then permitted and available option(s) with this benefit.**

The benefit guarantees your ability to withdraw amounts equal to a percentage of an initial principal value (called the "Protected Withdrawal Value"), regardless of the impact of Variable Option performance on your Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. There are two options – one is designed to provide an annual withdrawal amount for life (the "Life Income Benefit") and the other is designed to provide a greater annual withdrawal amount as long as there is Protected Withdrawal Value (adjusted as described below) (the "Withdrawal Benefit"). If there is no Protected Withdrawal Value, the withdrawal benefit will be zero. You do not choose between these two options; each option will continue to be available as long as your Annuity has an Account Value and the Lifetime Five is in effect. Certain benefits under Lifetime Five may remain in effect even if the Account Value of your Annuity is zero. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to determine the amount of each annual payment under the Life Income Benefit and the Withdrawal Benefit. The initial Protected Withdrawal Value is determined as of the date you make your first withdrawal under your Annuity following your election of Lifetime Five. The initial Protected Withdrawal Value is equal to the greatest of (A) the Account Value on the date you elect Lifetime Five, plus any additional Purchase Payments, as applicable, each growing at 5% per year from the date of your election of the benefit, or application of the Purchase Payment to your Annuity, until the date of your first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier (B) the Account Value on the date of the first withdrawal from your Annuity, prior to the withdrawal, and (C) the highest Account Value on each Annuity anniversary, plus subsequent Purchase Payments prior to the first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier. With respect to (A) and (C) above, after the 10<sup>th</sup> anniversary of the benefit effective date, each value is increased by the amount of any subsequent Purchase Payments. With respect to Optimum Plus, Credits are added to Purchase Payments for purposes of calculating the Protected Withdrawal Value, the Annual Income Amount and the Annual Withdrawal Amount (see below for a description of Annual Income Amount and Annual Withdrawal Amount).

• If
 you elected the Lifetime Five benefit at the time you purchased your Annuity, the Account Value would have been your initial Purchase Payment.

• If
 you make additional Purchase Payments after your first withdrawal, the Protected Withdrawal Value will be increased by the amount of each
 additional Purchase Payment.

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The Protected Withdrawal Value is reduced each time a withdrawal is made on a dollar-for-dollar basis up to the Annual Withdrawal Amount, per Annuity Year, of the Protected Withdrawal Value and on the greater of a dollar-for-dollar basis or on a proportional basis for withdrawals in an Annuity Year in excess of that amount until the Protected Withdrawal Value is reduced to zero. At that point the Annual Withdrawal Amount will be zero until such time (if any) as the Annuity reflects a Protected Withdrawal Value (for example, due to a step-up or additional Purchase Payments being made into the Annuity).

**Step-Up of the Protected Withdrawal Value**

You may elect to step-up your Protected Withdrawal Value if, due to positive Variable Option performance, your Account Value is greater than the Protected Withdrawal Value.

If you elected the Lifetime Five benefit on or after March 20, 2006:

• You
 are eligible to step-up the Protected Withdrawal Value on or after the 1 <sup>st</sup> anniversary of the first withdrawal under the Lifetime Five benefit

• The
 Protected Withdrawal Value can be stepped up again on or after the 1 <sup>st</sup> anniversary of the preceding step-up.

If you elected the Lifetime Five benefit prior to March 20, 2006 and that original election remains in effect:

• You
 are eligible to step-up the Protected Withdrawal Value on or after the 5 <sup>th</sup> anniversary of the first withdrawal under the Lifetime Five benefit

• The
 Protected Withdrawal Value can be stepped up again on or after the 5 <sup>th</sup> anniversary of the preceding step-up.

In either scenario (i.e., elections before or after March 20, 2006) if you elect to step-up the Protected Withdrawal Value under the benefit, and on the date you elect to step-up, the charges under the Lifetime Five benefit have changed for new purchasers, your benefit may be subject to the new charge at the time of step-up. Upon election of the step-up, we increase the Protected Withdrawal Value to be equal to the then current Account Value. For example, assume your initial Protected Withdrawal Value was $100,000 and you have made cumulative withdrawals of $40,000, reducing the Protected Withdrawal Value to $60,000. On the date you are eligible to step-up the Protected Withdrawal Value, your Account Value is equal to $75,000. You could elect to step-up the Protected Withdrawal Value to $75,000 on the date you are eligible. If your current Annual Income Amount and Annual Withdrawal Amount are less than they would be if we did not reflect the step-up in Protected Withdrawal Value, then we will increase these amounts to reflect the step-up as described below.

An optional automatic step-up ("Auto Step-Up") feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force.

If you elected the Lifetime Five benefit on or after March 20, 2006 and have also elected the Auto Step-Up feature:

• the
 first Auto Step-Up opportunity will occur on the 1 <sup>st</sup> Annuity Anniversary that is at least one year after the later of (1) the date of the first withdrawal
 under the Lifetime Five benefit or (2) the most recent step-up

• your
 Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by any amount

• if
 at the time of the first Auto Step-Up opportunity, 5% of the Account Value is not greater than the Annual Income Amount, an Auto Step-Up
 opportunity will occur on each successive Annuity Anniversary until a step-up occurs

• once
 a step-up occurs, the next Auto Step-Up opportunity will occur on the 1 <sup>st</sup> Annuity Anniversary that is at least one year after the most recent
 step-up

If you elected the Lifetime Five benefit prior to March 20, 2006 and have also elected the Auto Step-Up feature:

• the
 first Auto Step-Up opportunity will occur on the Annuity Anniversary that is at least 5 years after the later of (1) the date of the first withdrawal under
 the Lifetime Five benefit or (2) the most recent step-up

• your
 Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by 5% or more

• if
 at the time of the first Auto Step-Up opportunity, 5% of the Account Value does not exceed the Annual Income Amount by 5% or more, an
 Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs

• once
 a step-up occurs, the next Auto Step-Up opportunity will occur on the Annuity Anniversary that is at least 5 years after the most recent
 step-up

In either scenario (i.e., elections before or after March 20, 2006), if on the date that we implement an Auto Step-Up to your Protected Withdrawal Value, the charge for Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Protected Withdrawal Value even if you elect the Auto Step-Up feature.

**Key Feature – Annual Income Amount under the Life Income Benefit**

The initial Annual Income Amount is equal to 5% of the initial Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active. Under the Lifetime Five benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in

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subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. A withdrawal can be considered Excess Income under the Life Income Benefit even though it does not exceed the Annual Withdrawal Amount under the Withdrawal Benefit. When you elect a step-up (or an auto step-up is effected), your Annual Income Amount increases to equal 5% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity Year, if such amount is greater than your Annual Income Amount. Your Annual Income Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 5% of any additional Purchase Payments (and any associated Credit with respect to Optimum Plus). Any increase will be added to your Annual Income Amount beginning on the day that the step-up is effective or the Purchase Payment is made. A determination of whether you have exceeded your Annual Income Amount is made at the time of each withdrawal; therefore a subsequent increase in the Annual Income Amount will not offset the effect of a withdrawal that exceeded the Annual Income Amount at the time the withdrawal was made.

**Key Feature – Annual Withdrawal Amount under the Withdrawal Benefit**

The initial Annual Withdrawal Amount is equal to 7% of the initial Protected Withdrawal Value. Under the Lifetime Five benefit, if your cumulative withdrawals each Annuity Year are less than or equal to the Annual Withdrawal Amount, your Protected Withdrawal Value will be reduced on a dollar-for-dollar basis. If your cumulative withdrawals are in excess of the Annual Withdrawal Amount ("Excess Withdrawal"), your Annual Withdrawal Amount will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Withdrawal to the Account Value immediately prior to such withdrawal (see the examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. When you elect a step-up (or an auto step-up is effected), your Annual Withdrawal Amount increases to equal 7% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity Year, if such amount is greater than your Annual Withdrawal Amount. Your Annual Withdrawal Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 7% of any additional Purchase Payments (and any associated Credit with respect to Optimum Plus). A determination of whether you have exceeded your Annual Withdrawal Amount is made at the time of each withdrawal; therefore, a subsequent increase in the Annual Withdrawal Amount will not offset the effect of a withdrawal that exceeded the Annual Withdrawal Amount at the time the withdrawal was made.

The Lifetime Five benefit does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed the Annual Income Amount and the Annual Withdrawal Amount. You are not required to withdraw all or any portion of the Annual Withdrawal Amount or Annual Income Amount in each Annuity Year.

• If,
 cumulatively, you withdraw an amount less than the Annual Withdrawal Amount under the Withdrawal Benefit in any Annuity Year, you cannot
 carry-over the unused portion of the Annual Withdrawal Amount to subsequent Annuity Years. However, because the Protected Withdrawal
 Value is only reduced by the actual amount of withdrawals you make under these circumstances, any unused Annual Withdrawal
 Amount may extend the period of time until the remaining Protected Withdrawal Value is reduced to zero.

• If,
 cumulatively, you withdraw an amount less than the Annual Income Amount under the Life Income Benefit in any Annuity Year, you cannot
 carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years. However, because the Protected Withdrawal
 Value is only reduced by the actual amount of withdrawals you make under these circumstances, any unused Annual Income Amount
 may extend the period of time until the remaining Protected Withdrawal Value is reduced to zero.

**Examples of Withdrawal**

The following examples of dollar-for-dollar and proportional reductions of the Protected Withdrawal Value, Annual Withdrawal Amount and Annual Income Amount assume: 1.) the Issue Date and the Effective Date of the Lifetime Five benefit are February 1, 2005; 2.) an initial Purchase Payment of $250,000; 3.) the Account Value on February 1, 2006 is equal to $265,000; and 4.) the first withdrawal occurs on March 1, 2006 when the Account Value is equal to $263,000;. The values set forth here are purely hypothetical, and do not reflect the charge for Lifetime Five or any other fees and charges.

The initial Protected Withdrawal Value is calculated as the greatest of (a), (b) and (c):

a. Purchase
 payment accumulated at 5% per year from February 1, 2005 until March 1, 2006 (393 days) = $250,000 × 1.05 <sup>^(393/365)</sup> = $263,484.33

b. Account
 Value on March 1, 2006 (the date of the first withdrawal) = $263,000

c. Account
 Value on February 1, 2006 (the first Annuity Anniversary) = $265,000

Therefore, the initial Protected Withdrawal Value is equal to $265,000. The Annual Withdrawal Amount is equal to $18,550 under the Withdrawal Benefit (7% of $265,000). The Annual Income Amount is equal to $13,250 under the Life Income Benefit (5% of $265,000).

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**Example 1. Dollar-For-Dollar reduction**

If $10,000 was withdrawn (less than both the Annual Income Amount and the Annual Withdrawal Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Withdrawal Amount for current Annuity Year = $18,550 – $10,000 = $8,550 Annual Withdrawal Amount for future Annuity Years
 remains at $18,550

• Remaining
 Annual Income Amount for current Annuity Year = $13,250 – $10,000 = $3,250

• Annual
 Income Amount for future Annuity Years remains at $13,250

• Protected
 Withdrawal Value is reduced by $10,000 from $265,000 to $255,000

**Example 2. Dollar-For-Dollar and Proportional Reductions**

1. If
 $15,000 was withdrawn (more than the Annual Income Amount but less than the Annual Withdrawal Amount) on March 1, 2006, then the following
 values would result:

○ Remaining
 Annual Withdrawal Amount for current Annuity Year = $18,550 – $15,000 = $3,550

○ Annual
 Withdrawal Amount for future Annuity Years remains at $18,550

○ Remaining
 Annual Income Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Income Amount ($15,000 – $13,250 = $1,750) reduces Annual Income Amount for future Annuity Years.

○ Reduction
 to Annual Income Amount = Excess Income/ Account Value before Excess Income × Annual Income Amount = $1,750/($263,000
 – $13,250) × $13,250 = $93. Annual Income Amount for future Annuity Years = $13,250 – $93 = $13,157

○ Protected
 Withdrawal Value is reduced by $15,000 from $265,000 to $250,000

2. If
 $25,000 was withdrawn (more than both the Annual Income Amount and the Annual Withdrawal Amount) on March 1, 2006, then the following
 values would result:

○ Remaining
 Annual Withdrawal Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Withdrawal Amount ($25,000 – $18,550 = $6,450) reduces Annual Withdrawal Amount for future Annuity Years.

○ Reduction
 to Annual Withdrawal Amount = Excess Withdrawal/Account Value before Excess Withdrawal × Annual Withdrawal Amount
 = $6,450/($263,000–$18,550) × $18,550 = $489

Annual Withdrawal Amount for future Annuity Years = $18,550 – $489 = $18,061

○ Remaining
 Annual Income Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Income Amount ($25,000 – $13,250 = $11,750) reduces Annual Income Amount for future Annuity Years.

○ Reduction
 to Annual Income Amount = Excess Income/ Account Value before Excess Income × Annual Income Amount = $11,750/($263,000–$13,250)
 × $13,250 = $623

Annual Income Amount for future Annuity Years = $13,250 – $623 = $12,627

○ Protected
 Withdrawal Value is first reduced by the Annual Withdrawal Amount ($18,550) from $265,000 to $246,450. It is further reduced
 by the greater of a dollar-for-dollar reduction or a proportional reduction. Dollar-for-dollar reduction = $25,000 – $18,550 = $6,450

○ Proportional
 reduction = Excess Withdrawal/Account Value before Excess Withdrawal × Protected Withdrawal Value = $6,450/($263,000–$18,550)
 × $246,450 = $6,503 Protected Withdrawal Value = $246,450 – max {$6,450, $6,503} = $239,947

**Example 3. Step-up of the Protected Withdrawal Value**

If the Annual Income Amount ($13,250) is withdrawn each year starting on March 1, 2006 for a period of 5 years, the Protected Withdrawal Value on March 1, 2011 would be reduced to $198,750 {$265,000 - ($13,250 × 5)}. If a step-up is elected on March 1, 2011, then the following values would result:

• Protected
 Withdrawal Value = Account Value on March 1, 2011 = $240,000.

• Annual
 Income Amount is equal to the greater of the current Annual Income Amount or 5% of the stepped-up Protected Withdrawal Value. Current
 Annual Income Amount is $13,250. 5% of the stepped-up Protected Withdrawal Value is 5% of $240,000, which is $12,000. Therefore,
 the Annual Income Amount remains $13,250.

• Annual
 Withdrawal Amount is equal to the greater of the current Annual Withdrawal Amount or 7% of the stepped up Protected Withdrawal Value.
 Current Annual Withdrawal Amount is $18,550. 7% of the stepped-up Protected Withdrawal Value is 7% of $240,000, which is $16,800.
 Therefore the Annual Withdrawal Amount remains $18,550.

**Benefits under the Lifetime Five Benefit**

• If
 your Account Value is equal to zero, and the cumulative withdrawals in the current Annuity Year are greater than the Annual Withdrawal Amount, the Lifetime
 Five benefit will terminate. To the extent that your Account Value was reduced to zero as a result of cumulative withdrawals
 that are equal to or less than the Annual Income Amount and amounts are still payable under both the Life Income Benefit

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and the Withdrawal Benefit, you will be given the choice of receiving the payments under the Life Income Benefit or under the Withdrawal Benefit. Thus, in that scenario, the remaining amounts under the Life Income Benefit and the Withdrawal Benefit would be payable even though your Account Value was reduced to zero. Once you make this election we will make an additional payment for that Annuity Year equal to either the remaining Annual Income Amount or Annual Withdrawal Amount for the Annuity Year, if any, depending on the option you choose. In subsequent Annuity Years we make payments that equal either the Annual Income Amount or the Annual Withdrawal Amount as described in this Prospectus. You will not be able to change the option after your election and no further Purchase Payments will be accepted under your Annuity. If you do not make an election, we will pay you annually under the Life Income Benefit. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount but less than or equal to the Annual Withdrawal Amount and amounts are still payable under the Withdrawal Benefit, you will receive the payments under the Withdrawal Benefit. In the year of a withdrawal that reduced your Account Value to zero, we will make an additional payment to equal any remaining Annual Withdrawal Amount and make payments equal to the Annual Withdrawal Amount in each subsequent year (until the Protected Withdrawal Value is depleted). Once your Account Value equals zero no further Purchase Payments will be accepted under your Annuity.

• If
 annuity payments are to begin under the terms of your Annuity or if you decide to begin receiving annuity payments and there is any Annual
 Income Amount due in subsequent Annuity Years or any remaining Protected Withdrawal Value, you can elect one of the following three
 options:

a. apply
 your Account Value to any annuity option available; or

b. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We make such annuity payments until the Annuitant's death; or

c. request
 that, as of the date annuity payments are to begin, we pay out any remaining Protected Withdrawal Value as annuity payments.
 Each year such annuity payments will equal the Annual Withdrawal Amount or the remaining Protected Withdrawal Value if
 less. We make such annuity payments until the earlier of the Annuitant's death or the date the Protected Withdrawal Value is depleted.

We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a single life fixed annuity
 with five payments certain using the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity.
 The amount that will be applied to provide such annuity payments will be the greater of:

a. the
 present value of future Annual Income Amount payments. Such present value will be calculated using the greater of the single life
 fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

b. the
 Account Value.

• If
 no withdrawal was ever taken, we will determine a Protected Withdrawal Value and calculate an Annual Income Amount and an Annual Withdrawal
 Amount as if you made your first withdrawal on the date the annuity payments are to begin.

**Other Important Considerations**

• Withdrawals
 under the Lifetime Five benefit are subject to all of the terms and conditions of your Annuity, including any applicable CDSC.

• Withdrawals
 made while the Lifetime Five benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under
 your Annuity. The Lifetime Five benefit does not directly affect your Annuity's Account Value or Surrender Value, but any withdrawal will decrease the
 Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity, you will receive
 the current Surrender Value, not the Protected Withdrawal Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Lifetime Five benefit. The
 Lifetime Five benefit provides a guarantee that if your Account Value declines due to Variable Option performance, you will be able to receive your Protected
 Withdrawal Value or Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the benefit. If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated
 under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted requirements. Subsequent
 to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments may be subject to the
 new investment limitations.

• You
 will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any
 lifetime income payments.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 Basic Death Benefit will terminate if withdrawals taken under the Lifetime Five benefit cause your Account Value to reduce to zero. Certain
 optional Death Benefits may terminate if withdrawals taken under the Lifetime Five benefit cause your Account Value to reduce to zero.
 (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
 for more information.)

• If
 you are taking your entire Annual Income Amount or Annual Withdrawal Amount through the Systematic Withdrawal program, you must take
 that withdrawal as a gross withdrawal, not a net withdrawal.

**Election of the Benefit**

We no longer permit elections of Lifetime Five. If you wish, you may cancel the Lifetime Five benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Lifetime Five benefit provided, the request is received in Good Order (subject to state availability and in accordance with any applicable age requirements). Once the Lifetime Five benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Lifetime Five benefit provided that the benefit you are looking to elect is available on a post-issue basis. **If you cancel Lifetime Five, you lose all guarantees under the** **benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. Any** **such benefit may be more expensive.**

**Charges under the Benefit**

The maximum charge for Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. The charge is deducted daily.

**Termination of the Benefit**

The benefit terminates automatically when your Protected Withdrawal Value and Annual Income Amount equal zero. You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective. The benefit terminates upon your surrender of your Annuity, upon the death of the Annuitant, upon a change in ownership of your Annuity that changes the tax identification number of the Owner, upon change in the Annuitant or upon your election to begin receiving annuity payments. While you may terminate your benefit at any time, we may not terminate the benefit other than in the circumstances listed above.

The charge for the Lifetime Five benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Additional Tax Considerations**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your Annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Withdrawal Amount and the Annual Income Amount, which will cause us to increase the Annual Income Amount and the Annual Withdrawal Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. Any such payments will reduce your Protected Withdrawal Value..

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here.

***SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE)***

**The Spousal Lifetime Five benefit is no longer available for new elections.**

Spousal Lifetime Five must have been elected based on two Designated Lives, as described below. Each Designated Life must have been at least 55 years old when the benefit was elected. The Spousal Lifetime Five benefit was not available if you elected any other optional living benefit or optional death benefit. As long as your Spousal Lifetime Five Income Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available option(s) with this benefit.

The benefit guarantees until the later death of two natural persons that are each other's spouses at the time of election of Spousal Lifetime Five (the "Designated Lives", each a "Designated Life") the ability to withdraw an annual amount ("Spousal Life Income Benefit") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The Spousal Life Income Benefit may remain in effect even if the Account Value of the Annuity is zero. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Life Income Benefit after the death of the first. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable

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amount each year under the rules of the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under the Spousal Lifetime Income Benefit when and if your Account Value is reduced to zero (unless the benefit has terminated).

**Key Feature – Initial Protected Withdrawal Value**

The Protected Withdrawal Value is used to determine the amount of each annual payment under the Spousal Life Income Benefit. The initial Protected Withdrawal Value is determined as of the date you make your first withdrawal under the Annuity following your election of Spousal Lifetime Five. The initial Protected Withdrawal Value is equal to the greatest of (A) the Account Value on the date you elect Spousal Lifetime Five, plus any additional Purchase Payments as applicable, each growing at 5% per year from the date of your election of the benefit, or application of the Purchase Payment to your Annuity, until the date of your first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier (B) the Account Value on the date of the first withdrawal from your Annuity, prior to the withdrawal, and (C) the highest Account Value on each Annuity anniversary, plus subsequent Purchase Payments prior to the first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier. With respect to (A) and (C) above, after the 10<sup>th</sup> anniversary of the benefit effective date, each value is increased by the amount of any subsequent Purchase Payments. With respect to Optimum Plus, Credits are added to Purchase Payments for purposes of calculating the Protected Withdrawal Value and the Annual Income Amount (see below for a description of Annual Income Amount).

• For
 existing Owners who are electing the Spousal Lifetime Five benefit, the Account Value on the date of your election of the Spousal Lifetime
 Five program will be used to determine the initial Protected Withdrawal Value.

**Key Feature – Annual Income Amount under the Spousal Life Income Benefit**

The initial Annual Income Amount is equal to 5% of the initial Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active. Under the Spousal Lifetime Five benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount under the Spousal Life Income Benefit in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. The Spousal Lifetime Five benefit does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed the Annual Income Amount.

**Step-Up of Annual Income Amount**

You may elect to step-up your Annual Income Amount if, due to positive Variable Option performance, 5% of your Account Value is greater than the Annual Income Amount. You are eligible to step-up the Annual Income Amount on or after the 1<sup>st</sup> anniversary of the first withdrawal under the Spousal Lifetime Five benefit. The Annual Income Amount can be stepped up again on or after the 1<sup>st</sup> anniversary of the preceding step-up. If you elect to step-up the Annual Income Amount under the benefit, and on the date you elect to step-up, the charges under the Spousal Lifetime Five benefit have changed for new purchasers, your benefit may be subject to the new charge at the time of such step-up. When you elect a step-up, your Annual Income Amount increases to equal 5% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity Year. Your Annual Income Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 5% of any additional Purchase Payments (plus any Credit with respect to Optimum Plus). Any increase will be added to your Annual Income Amount beginning on the day that the step-up is effective or the Purchase Payment is made. A determination of whether you have exceeded your Annual Income Amount is made at the time of each withdrawal; therefore a subsequent increase in the Annual Income Amount will not offset the effect of a withdrawal that exceeded the Annual Income Amount at the time the withdrawal was made.

An optional automatic step-up ("Auto Step-Up") feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force. If you elect this feature, the first Auto Step-Up opportunity will occur on the 1<sup>st</sup> Annuity Anniversary that is at least one year after the later of (1) the date of the first withdrawal under the Spousal Lifetime Five benefit or (2) the most recent step-up. At this time, your Annual Income Amount will be stepped-up if 5% of your Account Value is greater than the Annual Income Amount by any amount. If 5% of the Account Value does not exceed the Annual Income Amount, then an Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs. Once a step-up occurs, the next Auto Step-Up opportunity will occur on the 1<sup>st</sup> Annuity Anniversary that is at least 1 year after the most recent step-up. If, on the date that we implement an Auto Step-Up to your Annual Income Amount, the charge for Spousal Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Annual Income Amount even if you elect the Auto Step-Up feature.

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**Examples of Withdrawals and Step-Up**

The following examples of dollar-for-dollar and proportional reductions and the step-up of the Annual Income Amount assume:

1. the
 Issue Date and the Effective Date of the Spousal Lifetime Five benefit are February 1, 2005;

2. an
 initial Purchase Payment of $250,000;

3. the
 Account Value on February 1, 2006 is equal to $265,000;

4. the
 first withdrawal occurs on March 1, 2006 when the Account Value is equal to $263,000; and

5. the
 Account Value on February 1, 2010 is equal to $280,000.

The values set forth here are purely hypothetical, and do not reflect the charge for the Spousal Lifetime Five or any other fees and charges.

The initial Protected Withdrawal Value is calculated as the greatest of (a), (b) and (c):

a. Purchase
 payment accumulated at 5% per year from February 1, 2005 until March 1, 2006 (393 days) = $250,000 × 1.05 <sup>^(393/365)</sup> = $263,484.33

b. Account
 Value on March 1, 2006 (the date of the first withdrawal) = $263,000

c. Account
 Value on February 1, 2006 (the first Annuity Anniversary) = $265,000

Therefore, the initial Protected Withdrawal Value is equal to $265,000. The Annual Income Amount is equal to $13,250 under the Spousal Life Income Benefit (5% of $265,000).

**Example 1. Dollar-For-Dollar Reduction**

If $10,000 was withdrawn (less than the Annual Income Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Income Amount for current Annuity Year = $13,250 – $10,000 = $3,250

• Annual
 Income Amount for future Annuity Years remains at $13,250

**Example 2. Dollar-For-Dollar and Proportional Reductions**

1. If
 $15,000 was withdrawn (more than the Annual Income Amount) on March 1, 2006, then the following values would result:

○ Remaining
 Annual Income Amount for current Annuity Year = $0

○ Excess
 of withdrawal over the Annual Income Amount ($15,000 – $13,250 = $1,750) reduces Annual Income Amount for future Annuity
 Years.

○ Reduction
 to Annual Income Amount = Excess Income/ Account Value before Excess Income × Annual Income Amount = $1,750 / ($263,000
 – $13,250) × $13,250 = $93

○ Annual
 Income Amount for future Annuity Years = $13,250 – $93 = $13,157

**Example 3. Step-Up of the Annual Income Amount**

If a step-up of the Annual Income Amount is requested on February 1, 2010 or the Auto Step-Up feature was elected, the step-up would occur because 5% of the Account Value, which is $14,000 (5% of $280,000), is greater than the Annual Income Amount of $13,250. The new Annual Income Amount will be equal to $14,000.

**Benefits Under the Spousal Lifetime Five Benefit**

To the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Annual Income Amount and amounts are still payable under the Spousal Life Income Benefit, we will make an additional payment for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year, if any. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this Prospectus. No further Purchase Payments will be accepted under your Annuity. We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the second Designated Life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount, the Spousal Life Income Benefit terminates and no additional payments will be made.

• If
 annuity payments are to begin under the terms of your Annuity or if you decide to begin receiving annuity payments and there is any Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

a. apply
 your Account Value to any annuity option available; or

b. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life.

We must receive your request in a form acceptable to us at our office.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with five payments certain using the same basis that is used to calculate the greater of the annuity rates
 then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such annuity
 payments will be the greater of:

a. the
 present value of future Annual Income Amount payments. Such present value will be calculated using the same basis that is used
 to calculate the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity;
 and

b. the
 Account Value.

• If
 no withdrawal was ever taken, we will determine an initial Protected Withdrawal Value and calculate an Annual Income Amount as if you made your first withdrawal
 on the date the annuity payments are to begin.

**Other Important Considerations**

• Withdrawals
 under the Spousal Lifetime Five benefit are subject to all of the terms and conditions of the Annuity, including any CDSC.

• Withdrawals
 made while the Spousal Lifetime Five benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals
 under the Annuity. The Spousal Lifetime Five benefit does not directly affect the Annuity's Account Value or Surrender Value, but
 any withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity,
 you will receive the current Surrender Value, not the Protected Withdrawal Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Lifetime Five benefit.
 The Spousal Lifetime Five benefit provides a guarantee that if your Account Value declines due to Variable Option performance, you
 will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the benefit. If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated
 under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted requirements. Subsequent
 to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments may be subject to the
 new investment limitations.

• There
 may be circumstances where you will continue to be charged the full amount for the Spousal Lifetime Five benefit even when the benefit
 is only providing a guarantee of income based on one life with no survivorship.

• In
 order for the Surviving Designated Life to continue the Spousal Lifetime Five benefit upon the death of an Owner, the Designated Life must elect to assume
 ownership of the Annuity under the spousal continuation option. When the Annuity is owned by a Custodial Account, in
 order for Spousal Lifetime Five to be continued after the death of the first Designated Life (the Annuitant), the Custodial Account must elect to continue
 the Annuity and the second Designated Life (the Contingent Annuitant) will be named as the new Annuitant. See " [<u>Spousal Designations</u>](#chapter_9-sect1_2_981) "
 and " [<u>Spousal Countinuation of Annuity</u>](#chapter_2-sect1_1_981) "
 in the " [<u>Payment of Death Benefits</u>](#chapter_11-sect1_23_936) "
 section of this prospectus.

• You
 will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any
 lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Spousal Lifetime Five benefit cause your Account Value to reduce to zero. Certain optional
 Death Benefits may terminate if withdrawals taken under the Spousal Lifetime Five benefit cause your Account Value
 to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
  for more information.)

**Election of and Designations under the Benefit**

We no longer permit elections of Spousal Lifetime Five – whether for those who currently participate in Spousal Lifetime Five or for those who are buying an Annuity for the first time. If you wish, you may cancel the Spousal Lifetime Five benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Spousal Lifetime Five benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Once the Spousal Lifetime Five benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Spousal Lifetime Five benefit provided that the benefit you are looking to elect is available on a post-issue basis. If you cancel the benefit, you lose all guarantees under the benefit, and your guarantee under any new benefit you elect will be based on your Account Value at that time. Any such new benefit may be more expensive.

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Spousal Lifetime Five could only be elected based on two Designated Lives. Designated Lives must be natural persons who are each other's spouses at the time of election of the benefit. Spousal Lifetime Five only could be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The Owner/Annuitant
 and the beneficiary each must be at least 55 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must each be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Both the Annuitant and the Contingent Annuitant each must
 be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows:

a. if
 one Owner dies and the surviving spousal Owner assumes the Annuity or

b. if
 the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary
 designations under this benefit. If the Designated Lives divorce, however, the Spousal Lifetime Five benefit may not be divided
 as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new
 Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from
 the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds to purchase
 a new Annuity, subject to the rules that are current at the time of purchase.

**Charges under the Benefit**

The maximum charge for Spousal Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. The charge is deducted daily.

**Termination of the Benefit**

The benefit terminates automatically when your Annual Income Amount equals zero. The benefit also terminates upon your surrender of the Annuity, upon the first Designated Life to die if the Annuity is not continued, upon the second Designated Life to die or upon your election to begin receiving annuity payments. You may terminate the benefit at any time by notifying us. **Please note that if you terminate a living benefit such as Spousal** **Lifetime Five and elect a new living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base** **any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. We reserve the right to waive,** **change and/or further limit the election frequency in the future.**

The charge for the Spousal Lifetime Five benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Additional Tax Considerations**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or an employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your Annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than 5 percent owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. Any such payments will reduce your Protected Withdrawal Value.

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here.

***HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT (HD5)***

**The Highest Daily Lifetime Five benefit is no longer available for new elections.**

**Except for Annuities issued in the state of Florida, effective September 14, 2012, we no longer accept additional Purchase Payments for** **Annuities with the Highest Daily Lifetime Five benefit. For Annuities issued in Florida, this restriction does not apply and you may continue to** **make additional Purchase Payments at this time.**

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The income benefit under Highest Daily Lifetime Five is based on a single "designated life" who is at least 55 years old on the date that the benefit was acquired. The Highest Daily Lifetime Five Benefit was not available if you elected any other optional living benefit, although you may elect any optional death benefit (other than the Highest Daily Value Death Benefit). Any DCA program that transfers Account Value from a Fixed Allocation is also not available as Fixed Allocations are not permitted with the benefit. As long as your Highest Daily Lifetime Five Benefit is in effect, you must allocate your Account Value in accordance with the then-permitted and available investment option(s) with this benefit.

The benefit guarantees that until the death of the single designated life the ability to withdraw an annual amount (the "Total Annual Income Amount") equal to a percentage of an initial principal value (the "Total Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our pre-determined mathematical formula in order to participate in Highest Daily Lifetime Five. **In** [**<u>Appendix C</u>**](#chapter_20-sect1_1_936) **to this Prospectus, we set forth the formula under which we make the asset transfers.** Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

As discussed below, a key component of Highest Daily Lifetime Five is the Total Protected Withdrawal Value, which is an amount that is distinct from Account Value. Because each of the Total Protected Withdrawal Value and Total Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for Account Value to fall to zero, even though the Total Annual Income Amount remains. You are guaranteed to be able to withdraw the Total Annual Income Amount for the rest of your life, provided that you have not made "excess withdrawals." Excess withdrawals, as discussed below, will reduce your Total Annual Income Amount. Thus, you could experience a scenario in which your Account Value was zero, and, due to your excess withdrawals, your Total Annual Income Amount also was reduced to zero. In that scenario, no further amount would be payable under Highest Daily Lifetime Five.

**Key Feature – Total Protected Withdrawal Value**

The Total Protected Withdrawal Value is used to determine the amount of the annual payments under Highest Daily Lifetime Five. The Total Protected Withdrawal Value is equal to the greater of the Protected Withdrawal Value and any Enhanced Protected Withdrawal Value that may exist. We describe how we determine Enhanced Protected Withdrawal Value, and when we begin to calculate it, below. If you do not meet the conditions described below for obtaining Enhanced Protected Withdrawal Value then Total Protected Withdrawal Value is simply equal to Protected Withdrawal Value.

The Protected Withdrawal Value initially is equal to the Account Value on the date that you elect Highest Daily Lifetime Five. On each Valuation Day thereafter, until the earlier of the first withdrawal or ten years after the date of your election of the benefit, we recalculate the Protected Withdrawal Value. Specifically, on each such Valuation Day (the "Current Valuation Day"), the Protected Withdrawal Value is equal to the greater of:

• the
 Protected Withdrawal Value for the immediately preceding Valuation Day (the "Prior Valuation Day"), appreciated at the daily equivalent of 5%
 annually during the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive
 Valuation Days, but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount
 of any Purchase Payment (including any associated Credit) made on the Current Valuation Day; and

• the
 Account Value.

If you have not made a withdrawal prior to the tenth anniversary of the date you elected Highest Daily Lifetime Five (which we refer to as the "Tenth Anniversary"), we will continue to calculate a Protected Withdrawal Value. On or after the Tenth Anniversary and up until the date of the first withdrawal, your Protected Withdrawal Value is equal to the greater of the Protected Withdrawal Value on the Tenth Anniversary or your Account Value.

The Enhanced Protected Withdrawal Value is only calculated if you do not take a withdrawal prior to the Tenth Anniversary. Thus, if you do take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive Enhanced Protected Withdrawal Value. If so, then on or after the Tenth Anniversary up until the date of the first withdrawal, the Enhanced Protected Withdrawal Value is equal to the sum of:

a. 200%
 of the Account Value on the date you elected Highest Daily Lifetime Five;

b. 200%
 of all Purchase Payments (and any associated Credits) made during the one-year period after the date you elected Highest Daily
 Lifetime Five; and

c. 100%
 of all Purchase Payments (and any associated Credits) made more than one year after the date you elected Highest Daily Lifetime
 Five, but prior to the date of your first withdrawal.

We cease these daily calculations of the Protected Withdrawal Value and Enhanced Protected Withdrawal Value (and therefore, the Total Protected Withdrawal Value) when you make your first withdrawal. However, as discussed below, subsequent Purchase Payments (and any associated Credits) will increase the Total Annual Income Amount, while "excess" withdrawals (as described below) may decrease the Total Annual Income Amount.

**Key Feature – Total Annual Income Amount under the Highest Daily Lifetime Five Benefit**

The initial Total Annual Income Amount is equal to 5% of the Total Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active and does not reduce in subsequent Annuity Years, as described below. For purposes of the mathematical formula described below, we also calculate a Highest Daily Annual Income Amount, which is initially equal to 5% of the Protected Withdrawal Value.

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Under the Highest Daily Lifetime Five benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Total Annual Income Amount, they will not reduce your Total Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Total Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Total Annual Income Amount ("Excess Income"), your Total Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply.

Any Purchase Payment that you make will increase the then-existing Total Annual Income Amount and Highest Daily Annual Income Amount by an amount equal to 5% of the Purchase Payment (including the amount of any associated Credits). If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Except for Annuities issued in the state of Florida, effective September 14, 2012, we no longer accept additional Purchase Payments to Annuities with the Highest Daily Lifetime Five benefit. For Annuities issued in Florida, this restriction does not apply and you may continue to make additional Purchase Payments at this time.

An automatic step-up feature ("Highest Quarterly Auto Step-Up") is included as part of this benefit. As detailed in this paragraph, the Highest Quarterly Auto Step-Up feature can result in a larger Total Annual Income Amount if your Account Value increases subsequent to your first withdrawal. We begin examining the Account Value for purposes of this feature starting with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on the Valuation Days corresponding to the end of each quarter that (i) is based on your Annuity Year, rather than a calendar year; (ii) is subsequent to the first withdrawal; and (iii) falls within the immediately preceding Annuity Year. If the end of any such quarter falls on a holiday or a weekend, we use the next Valuation Day. We multiply each of those quarterly Account Values by 5%, adjust each such quarterly value for subsequent withdrawals and Purchase Payments, and then select the highest of those values. If the highest of those values exceeds the existing Total Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Total Annual Income Amount intact. In later years, (i.e., after the first Annuity Anniversary after the first withdrawal) we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values on the end of the four immediately preceding quarters. If, on the date that we implement a Highest Quarterly Auto Step-Up to your Total Annual Income Amount, the charge for Highest Daily Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Five upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

The Highest Daily Lifetime Five benefit does not affect your ability to make withdrawals under your annuity, or limit your ability to request withdrawals that exceed the Total Annual Income Amount. Under Highest Daily Lifetime Five, if your cumulative withdrawals in an Annuity Year are less than or equal to the Total Annual Income Amount, they will not reduce your Total Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Total Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Total Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Total Annual Income Amount to subsequent Annuity Years.

Examples of dollar-for-dollar and proportional reductions, and the Highest Quarterly Auto Step-Up are set forth below. The values depicted here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Five benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2006

• The
 Highest Daily Lifetime Five benefit is elected on March 5, 2007.

**Dollar-For-Dollar Reductions**

On May 2, 2007, the Total Protected Withdrawal Value is $120,000, resulting in a Total Annual Income Amount of $6,000 (5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Total Annual Income Amount for that Annuity Year (up to and including December 1, 2007) is $3,500. This is the result of a dollar-for-dollar reduction of the Total Annual Income Amount – $6,000 less $2,500 = $3,500.

**Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on August 6, 2007 and the Account Value at the time of this withdrawal is $110,000. The first $3,500 of this withdrawal reduces the Total Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount – $1,500 – reduces the Total Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Total Annual Income Amount).

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**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before withdrawal | $110000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $106500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $106500.00 |
|  Ratio | 1.41% |
|  Total Annual Income Amount | $6000.00 |
|  Less ratio of 1.41% | $84.51 |
|  Total Annual Income Amount for future Annuity Years | $5915.49 |

---

**Highest Quarterly Auto Step-Up**

On each Contract Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Contract Anniversary) of the highest quarterly value since your first Lifetime Withdrawal (or last Contract Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest quarterly Unadjusted Account Value of $238, 0000, the highest quarterly Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous quarterly Unadjusted Account Value of $239, 0000, the highest quarterly Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Benefits under the Highest Daily Lifetime Five Benefit**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Total Annual Income Amount
 and amounts are still payable under Highest Daily Lifetime Five, we will make an additional payment, if any, for that
 Annuity Year equal to the remaining Total Annual Income Amount for the Annuity Year. Thus, in that scenario, the remaining Total Annual
 Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make

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payments that equal the Total Annual Income Amount as described in this section. We will make payments until the death of the single designated life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value to zero are more than the Total Annual Income Amount, the Highest Daily Lifetime Five benefit terminates, and no additional payments will be made.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is a Total Annual Income Amount
 due in subsequent Annuity Years, you can elect one of the following two options:

a. apply
 your Account Value to any Annuity option available; or

b. request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Total Annual Income Amount.
 We will make payments until the death of the single designated life.

We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single
 life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your
 Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

a. the
 present value of the future Total Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

b. the
 Account Value.

• If
 no withdrawal was ever taken, we will calculate the Total Annual Income Amount as if you made your first withdrawal on the date the annuity
 payments are to begin.

• Please
 note that if your Annuity has a maximum Annuity Date requirement, payments that we make under this benefit as of that date will be
 treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime Five benefit are subject to all of the terms and conditions of the Annuity, including any CDSC.

• Withdrawals
 made while the Highest Daily Lifetime Five Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals
 under the Annuity. The Highest Daily Lifetime Five Benefit does not directly affect the Account Value or Surrender Value, but any
 withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity
 you will receive the current Surrender Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime Five
 benefit. The Highest Daily Lifetime Five benefit provides a guarantee that if your Account Value declines due to Variable Option performance,
 you will be able to receive your Total Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Options.
 However, the mathematical formula component of the benefit as described below may transfer Account Value to the Benefit Fixed
 Rate Account as of the effective date of the benefit in some circumstances.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from a Fixed Allocation if you elect this benefit.

• Transfers
 to and from the Variable Options and the Benefit Fixed Rate Account triggered by the formula component of the benefit will not count
 toward the maximum number of free transfers allowable under an Annuity.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the Highest Daily Lifetime Five benefit. If, subsequent to your election of the benefit, we change our requirements for how
 Account Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted
 requirements. Subsequent to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments
 may be subject to the new investment limitations.

• The
 maximum charge for Highest Daily Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. This charge is in addition
 to any other fees under the annuity. You will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin
 taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals
 and/or if you never receive any lifetime income payments. Also, the cost to us of providing the benefit is a factor, among many,
 that we consider when determining the interest rate credited under the Benefit Fixed Rate Account, and therefore, we credit lower interest
 rates due to this factor than we otherwise would.

• The
 basic Death Benefit will terminate if withdrawals taken under the Highest Daily Lifetime Five benefit cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under the Highest Daily Lifetime Five benefit cause your
 Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
  for more information.)

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**Election of and Designations under the Benefit**

Highest Daily Lifetime Five is no longer available for new elections. For Highest Daily Lifetime Five, there must have been either a single Owner who is the same as the Annuitant, or if the Annuity is entity-owned, there must have been a single natural person Annuitant. In either case, the Annuitant must have been at least 55 years old.

Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Five. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Five, except if (a) the new Owner has the same taxpayer identification number as the previous Owner (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

We no longer permit elections of Highest Daily Lifetime Five. If you wish, you may cancel the Highest Daily Lifetime Five benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Highest Daily Lifetime Five benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Upon cancellation of the Highest Daily Lifetime Five benefit, any Account Value allocated to the Benefit Fixed Rate Account used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis. **Once the Highest Daily Lifetime Five benefit is canceled** **you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation** **Day following the cancellation of the Highest Daily Lifetime Five benefit provided that the benefit you are looking to elect is available on a** **post-issue basis. If you cancel the benefit, you lose all guarantees under the benefit, and your guarantee under any new benefit you elect will** **be based on your Account Value at that time. Any such new benefit may be more expensive.**

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election will apply as described above. The benefit terminates: (i) upon your termination of the benefit (ii) upon your surrender of the Annuity (iii) upon your election to begin receiving annuity payments (iv) upon the death of the Annuitant (v) if both the Account Value and Total Annual Income Amount equal zero or (vi) if you fail to meet our requirements for issuing the benefit. If you terminate the benefit, you will lose the Protected Withdrawal Value, Annual Income Amount, as well as any Enhanced Protected Withdrawal Value and Return of Principal Guarantees.

Upon termination of Highest Daily Lifetime Five, we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the Benefit Fixed Rate Account (as defined below) to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). Upon termination, we may limit or prohibit investment in the Fixed Allocations.

**Return of Principal Guarantee**

If you have not made a withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

(a) your Account Value on the day that you elected Highest Daily Lifetime Five; and<br>(b) the sum of each Purchase Payment you made (including any Credits with respect to Optimum Plus) during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options and the Benefit Fixed Rate Account (described below), in the same proportion that each such investment option bears to your total Account Value, immediately prior to the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Total Protected Withdrawal Value, your death benefit, or the amount of any other or optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. This potential addition to Account Value is available only if you have elected Highest Daily Lifetime Five and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee.

**Mathematical Formula Component of Highest Daily Lifetime Five**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you have elected Highest Daily Lifetime Five. For purposes of this benefit, we refer to those permitted Variable Options as the "Permitted Variable Options". As a requirement of participating in Highest Daily Lifetime Five, we require that you participate in our mathematical formula under which we may transfer Account Value between the Permitted Variable Options and a fixed interest rate account that is part of our general account (the "Benefit Fixed Rate Account"). This required formula helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Benefit Fixed Rate Account). We determine whether to make a transfer, and the amount of any transfer, under a non-discretionary formula, discussed below. The Benefit Fixed Rate Account is available only with this benefit, and thus you may not allocate Purchase Payments to or transfer Account Value to or from the Benefit Fixed Rate Account. The interest rate that

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we pay with respect to the Benefit Fixed Rate Account is reduced by an amount that corresponds generally to the charge that we assess against your variable Variable Options for Highest Daily Lifetime Five. The Benefit Fixed Rate Account is not subject to the Investment Company Act of 1940 or the Securities Act of 1933.

Under the formula component of Highest Daily Lifetime Five, we monitor your Account Value daily and, if necessary, systematically transfer amounts between the Permitted Variable Options you have chosen and the Benefit Fixed Rate Account. **Any transfer would be made in accordance with the** **formula, which is set forth in the schedule supplement to the endorsement for this benefit** **(and also appears in** [**<u>Appendix C</u>**](#chapter_20-sect1_1_936) **to this** **prospectus)**. Speaking generally, the formula, which we apply each Valuation Day, operates as follows. The formula starts by identifying your Protected Withdrawal Value for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) Highest Daily Annual Income Amount. Then, using our actuarial tables, we produce an estimate of the total amount we would target in our allocation model, based on the projected Highest Daily Annual Income Amount each year for the rest of your life. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected Annual Income Amount (and thus your Target Value) would take into account any automatic step-up that was scheduled to occur according to the step-up formula described above. Next, the formula subtracts from the Target Value the amount held within the Benefit Fixed Rate Account on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the Benefit Fixed Rate Account, is called the "Target Ratio" or "r". If the Target Ratio exceeds a certain percentage (currently 83%) it means essentially that too much Target Value is not offset by assets within the Benefit Fixed Rate Account, and therefore we will transfer an amount from your Permitted Variable Options to the Benefit Fixed Rate Account. Conversely, if the Target Ratio falls below a certain percentage (currently 77%), then a transfer from the Benefit Fixed Rate Account to the Permitted Variable Options would occur. Note that the formula is calculated with reference to the Highest Daily Annual Income Amount, rather than with reference to the Annual Income Amount. If you select the mathematical formula, see the discussion regarding the 90% cap.

As you can glean from the formula, poor investment performance of your Account Value may result in a transfer of a portion of your variable Account Value to the Benefit Fixed Rate Account, because such poor investment performance will tend to increase the Target Ratio. Moreover, "flat" investment returns of your Account Value over a period of time also could result in the transfer of your Account Value to the Benefit Fixed Rate Account. Because the amount allocated to the Benefit Fixed Rate Account and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the Benefit Fixed Rate Account so that the Target Ratio meets a target, which currently is equal to 80%. Once elected, the ratios we use will be fixed.

While you are not notified when the formula dictates a transfer, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Benefit Fixed Rate Account. The formula is designed primarily to mitigate the financial risks that we incur in providing the guarantee under Highest Daily Lifetime Five.

Depending on the results of the formula calculation we may, on any day:

• Not
 make any transfer between the Permitted Variable Options and the Benefit Fixed Rate Account; or

• If
 a portion of your Account Value was previously allocated to the Benefit Fixed Rate Account, transfer all or a portion of those amounts
 to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional
 basis (i.e., in the same proportion as the current balances in your Variable Options). Amounts taken out of the Benefit Fixed Rate
 Account will be withdrawn for this purpose on a last-in, first-out basis (an amount renewed into a new Guarantee Period under the Benefit
 Fixed Rate Account will be deemed a new investment for purposes of this last-in, first-out rule); or

• Transfer
 all or a portion of your Account Value in the Permitted Variable Options on a proportional basis to the Benefit Fixed Rate Account. The
 interest that you earn on such transferred amount will be equal to the annual rate that we have set for that day, and we will credit the daily equivalent
 of that annual interest until the earlier of one year from the date of the transfer or the date that such amount in the Benefit Fixed
 Rate Account is transferred back to the Permitted Variable Options.

Therefore, at any given time, some, none, or all of your Account Value may be allocated to the Benefit Fixed Rate Account. If your entire Account Value is transferred to the Benefit Fixed Rate Account, then based on the way the formula operates, the formula will not transfer amounts out of the Benefit Fixed Rate Account to the Permitted Variable Options and the entire Account Value would remain in the Benefit Rate Fixed Account. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Benefit Fixed Rate Account. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Benefit Fixed Rate Account, if dictated by the formula. The amounts of any such transfer will vary, as dictated by the formula, and will depend on the factors listed below.

Prior to the first withdrawal, the primary driver of transfers to the Benefit Fixed Rate Account is the difference between your Account Value and your Total Protected Withdrawal Value. If none of your Account Value is allocated to the Benefit Fixed Rate Account, then over time the formula permits an increasing difference between the Account Value and the Total Protected Withdrawal Value before a transfer to the Benefit Fixed Rate Account occurs. Therefore, as time goes on, while none of your Account Value is allocated to the Benefit Fixed Rate Account, the smaller the difference between the Total Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the Benefit Fixed Rate Account.

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Each market cycle is unique, therefore the performance of your Variable Options and the Benefit Fixed Rate Account, and their impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Benefit Fixed Rate Account pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Total Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime Five has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Benefit Fixed Rate Account;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the Benefit Fixed Rate Account and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the Benefit Fixed Rate Account or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the Benefit Fixed Rate Account. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the Benefit Fixed Rate Account and it has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the Benefit Fixed Rate Account and it has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Benefit Fixed Rate Account even if the performance of your Permitted Variable Options is positive.

Any Account Value in the Benefit Fixed Rate Account will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the Benefit Fixed Rate Account.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than 5 percent owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Total Annual Income Amount, which will cause us to increase the Total Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity that are greater than such amounts. Please note that any withdrawal you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you to lose the ability to receive Enhanced Protected Withdrawal Value and an amount under the Return of Principal Guarantee.

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here. However, we do note that if you participate in Highest Daily Lifetime Five through a Non-qualified annuity, and your annuity has received Enhanced Protected Withdrawal Value and/or an additional amount under the Return of Principal Guarantee, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

**Optional 90% Cap Rule for the Formula Under Highest Daily Lifetime Five.**

If you currently own an Annuity and have elected the Highest Daily Lifetime Five Income Benefit, you can elect this feature which utilizes a mathematical formula. The formula is described below and will (if you elect it) replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. There is no cost to adding this feature to your Annuity. This election may only be made once and may not be revoked once elected. This feature is available subject to state approval. **The formula is found in** [**<u>Appendix C</u>**](#chapter_20-sect1_1_936)**.** Only the election of the 90% cap will prevent all of your Account Value from being allocated to the Benefit Fixed Rate Account. If all of your Account Value is currently allocated to the Benefit Fixed Rate Account, it will not transfer back to the Permitted Variable Options unless you elect the 90% cap rule. If you make additional Purchase Payments, they may or may not result in a transfer to or from the Benefit Fixed Rate Account.

Under the formula, the formula will not execute a transfer to the Benefit Fixed Rate Account that results in more than 90% of your Account Value being allocated to the Benefit Fixed Rate Account ("90% cap" or "90% cap rule"). Thus, on any Valuation Day, if the formula would require a transfer into the Benefit Fixed Rate Account that would result in more than 90% of the Account Value being allocated to the Benefit Fixed Rate Account, only the amount that results in exactly 90% of the Account Value being allocated to the Benefit Fixed Rate Account will be transferred. Additionally, future transfers into the Benefit Fixed Rate Account will not be made (regardless of the performance of the Benefit Fixed Rate Account and the Permitted Variable Options) at least until there is first a transfer out of the Benefit Fixed Rate Account. Once this transfer occurs out of the Benefit Fixed Rate Account, future amounts may be transferred to or from the Benefit Fixed Rate Account if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the Benefit Fixed Rate Account that results in greater than 90% of your Account Value being allocated to the Benefit Fixed Rate Account. However, it is possible that, due to the investment performance of your allocations in the Benefit Fixed Rate Account and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Benefit Fixed Rate Account.

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If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the Benefit Fixed Rate Account at least until there is first a transfer out of the Benefit Fixed Rate Account, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Benefit Fixed Rate Account, and the formula will still not transfer any of your Account Value to the Benefit Fixed Rate Account (at least until there is first a transfer out of the Benefit Fixed Rate Account). For example:

• March
 19, 2009 – a transfer is made to the Benefit Fixed Rate Account that results in the 90% cap being met and now $90,000 is allocated
 to the Benefit Fixed Rate Account and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Benefit Fixed Rate Account
 to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• As
 of March 20, 2009 (and at least until first a transfer is made out of the Benefit Fixed Rate Account under the formula) - the $10,000 payment is allocated
 to the Permitted Variable Options and now you have 82% in the Benefit Fixed Rate Account and 18% in the Permitted
 Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the Benefit Fixed Rate
 Account).

• Once
 there is a transfer out of the Benefit Fixed Rate Account (of any amount), the formula will operate as described above, meaning that the
 formula could transfer amounts to or from the Benefit Fixed Rate Account if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into existence and may be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the Benefit Fixed Rate Account as dictated by the formula. Once you elect this feature, the transfer formula described above will be the formula for your Annuity.

In the event that more than ninety percent (90%) of your Account Value is allocated to the Benefit Fixed Rate Account and you have elected this feature, up to ten percent (10%) of your Account Value currently allocated to the Benefit Fixed Rate Account will be transferred to your Permitted Variable Options, such that after the transfer, 90% of your Account Value on the date of the transfer is in the Benefit Fixed Rate Account. The transfer to the Permitted Variable Options will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e., in the same proportion as the current balances in your variable investment options). Amounts taken out of the Benefit Fixed Rate Account will be withdrawn for this purpose on a last-in, first-out basis (an amount renewed into a new Guarantee Period under the Benefit Fixed Rate Account will be deemed a new investment for purposes of this last-in, first-out rule).

Once the 90% cap rule is met, future transfers into the Benefit Fixed Rate Account will not be made (regardless of the performance of the Benefit Fixed Rate Account and the Permitted Variable Options) at least until there is a first transfer out of the Benefit Fixed Rate Account. Once this transfer occurs out of the Benefit Fixed Rate Account, future amounts may be transferred to or from the Benefit Fixed Rate Account if dictated by the formula. **Please be** **aware that after the initial transfer out of the Benefit Fixed Rate Account upon election of the 90% cap, there is no assurance that future** **transfers out will occur, or the amount of such future transfers, as a result of the election of the 90% cap. These transfers will be determined** **by the mathematical formula and depend on a number of factors unique to your Annuity.**

Important Considerations When Electing the Formula:

• At
 any given time, some, most or none of your Account Value may be allocated to the Benefit Fixed Rate Account.

• Please
 be aware that because of the way the 90% cap formula operates, it is possible that more than or less than 90% of your Account Value
 may be allocated to the Benefit Fixed Rate Account.

• Because
 the charge for Highest Daily Lifetime Five is based on the daily net assets of the Variable Options, that charge will be deducted from
 all assets transferred into the Permitted Variable Options.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending of the performance of the Permitted Variable Options you select.

***HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (HD7)***

**Effective September 14, 2012, Highest Daily Lifetime Seven is no longer available for new elections and we no longer accept additional** **Purchase Payments for Annuities with the Highest Daily Lifetime Seven benefit.**

The income benefit under Highest Daily Lifetime Seven currently is based on a single "designated life" who is at least 55 years old on the date that the benefit is acquired. The Highest Daily Lifetime Seven Benefit was not available if you elected any other optional living benefit, although you may have elected any optional death benefit other than the Highest Daily Value death benefit. As long as your Highest Daily Lifetime Seven Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed** **description of the permitted investment options, see the "**[**<u>Appendix A - Investment Restrictions</u>**](#chapter_18-sect1_1_936)**" section of this prospectus.** We no longer permit new elections of Highest Daily Lifetime Seven.

Highest Daily Lifetime Seven guarantees until the death of the single designated life the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You

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are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our predetermined mathematical formula in order to participate in Highest Daily Lifetime Seven. **In** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936) **to this prospectus, we set forth the formula under which we make the asset transfers**. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

As discussed below, a key component of Highest Daily Lifetime Seven is the Protected Withdrawal Value. Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life, provided that you have not made "excess withdrawals." Excess withdrawals, as discussed below, will reduce your Annual Income Amount. Thus, you could experience a scenario in which your Account Value was zero, and, due to your excess withdrawals, your Annual Income Amount also was reduced to zero. In that scenario, no further amount would be payable under Highest Daily Lifetime Seven.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter, until the earlier of the tenth anniversary of benefit election (the "Tenth Anniversary Date") or the date of the first withdrawal, the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter, until the earlier of the first withdrawal or the Tenth Anniversary Date, we recalculate the Periodic Value. We stop determining the Periodic Value upon the earlier of your first withdrawal after the effective date of the benefit or the Tenth Anniversary Date. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any adjusted
 Purchase Payment made on the Current Valuation Day; and

2. the
 Account Value.

If you make a withdrawal prior to the Tenth Anniversary Date, the Protected Withdrawal Value on the date of the withdrawal is equal to the greatest of:

1. the
 Account Value; or

2. the
 Periodic Value on the date of the withdrawal.

If you have not made a withdrawal on or before the Tenth Anniversary Date, your Protected Withdrawal Value subsequent to the Tenth Anniversary Date is equal to the greatest of:

1. the
 Account Value; or

2. the
 Periodic Value on the Tenth Anniversary Date, increased for subsequent Adjusted Purchase Payments; or

3. the
 sum of:

a. 200%
 of the Account Value on the effective date of the benefit;

b. 200%
 of all Adjusted Purchase Payments made within one year after the effective date of the benefit; and

c. all
 Adjusted Purchase Payments made after one year following the effective date of the benefit up to the date of the first withdrawal.

On and after the date of your first withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first withdrawal (as described below), and is increased if you qualify for a step-up (as described below). Irrespective of these calculations, your Protected Withdrawal Value will always be at least equal to your Account Value.

**Key Feature – Annual Income Amount under the Highest Daily Lifetime Seven Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active and does not reduce in subsequent Annuity Years, as described below. The percentage depends on the age of the Annuitant on the date of the first withdrawal after election of the benefit. The percentages are: 5% for ages 74 and younger, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older.

Under the Highest Daily Lifetime Seven benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

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Any Purchase Payment that you make will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credits) based on the age of the Annuitant at the time of the first withdrawal (the percentages are: 5% for ages 74 and younger, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime Seven benefit.

An automatic step-up feature ("Highest Quarterly Auto Step-Up") is included as part of this benefit. As detailed in this paragraph, the Highest Quarterly Auto Step-Up feature can result in a larger Annual Income Amount if your Account Value increases subsequent to your first withdrawal. We begin examining the Account Value for purposes of the Highest Quarterly Step-Up starting with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on the Valuation Days corresponding to the end of each quarter that (i) is based on your Annuity Year, rather than a calendar year; (ii) is subsequent to the first withdrawal; and (iii) falls within the immediately preceding Annuity Year. If the end of any such quarter falls on a holiday or a weekend, we use the next Valuation Day. Having identified each of those quarter-end Account Values, we then multiply each such value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are 5% for ages 74 and younger, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older. Thus, we multiply each quarterly value by the applicable percentage, adjust each such quarterly value for subsequent withdrawals and Purchase Payments, and then select the highest of those values. If the highest of those values exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. In later years, (i.e., after the first Annuity Anniversary after the first withdrawal) we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values on the end of the four immediately preceding quarters. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest quarterly value upon which your step-up was based. If, on the date that we implement a Highest Quarterly Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime Seven has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Seven upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

The Highest Daily Lifetime Seven benefit does not affect your ability to make withdrawals under your Annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime Seven, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Examples of dollar-for-dollar and proportional reductions, and the Highest Quarterly Auto Step-Up are set forth below. The values depicted here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Seven benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2007

• The
 Highest Daily Lifetime Seven benefit is elected on March 5, 2008

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime Seven benefit.

**Dollar-for-dollar reductions**

On May 2, 2008, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the Annuitant is younger than 75 at the time of the 1<sup>st</sup> withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2008) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount – $6,000 less $2,500 = $3,500.

**Proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on August 6, 2008 and the Account Value at the time of this withdrawal is $110,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount – $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

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**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before withdrawal | $110000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $106500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $106500.00 |
|  Ratio | 1.41% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.41% | $84.51 |
|  Annual Income Amount for future Annuity Years | $5915.49 |

---

**Highest Quarterly Auto Step-Up**

On each Contract Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Contract Anniversary) of the highest quarterly value since your first Lifetime Withdrawal (or last Contract Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest quarterly Unadjusted Account Value of $238, 0000, the highest quarterly Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous quarterly Unadjusted Account Value of $239, 0000, the highest quarterly Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Benefits Under The Highest Daily Lifetime Seven Benefit**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Annual Income Amount or
 as a result of the fee that we assess for Highest Daily Lifetime Seven, and amounts are still payable under Highest Daily
 Lifetime Seven, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the
 Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Account Value was reduced
 to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will
 make payments until the death of the single designated life. To the extent that cumulative withdrawals in the current Annuity Year that

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reduced your Account Value to zero are more than the Annual Income Amount, the Highest Daily Lifetime Seven benefit terminates, and no additional payments will be made. However, if a withdrawal in the latter scenario was taken to meet required minimum distribution requirements under the Annuity, then the benefit will not terminate, and we will continue to pay the Annual Income Amount in the form of a fixed annuity.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is a Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

a. apply
 your Account Value to any Annuity option available; or

b. request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.
 We will make payments until the death of the single designated life.

We must receive your request in a form acceptable to us at our office.

In the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

a. the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

b. the
 Account Value.

• If
 no withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first withdrawal on the date the annuity payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime Seven benefit are subject to all of the terms and conditions of the Annuity, including any CDSC
 that may apply. Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Charge Free
 Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.
 However, we may impose a CDSC on the portion of a withdrawal that is deemed Excess Income.

• Withdrawals
 made while the Highest Daily Lifetime Seven Benefit is in effect will be treated, for tax purposes, in the same way as any other
 withdrawals under the Annuity. The Highest Daily Lifetime Seven Benefit does not directly affect the Account Value or Surrender Value,
 but any withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your
 Annuity you will receive the current Surrender Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime Seven
 benefit. The Highest Daily Lifetime Seven benefit provides a guarantee that if your Account Value declines due to Variable Option performance,
 you will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio (see description below)
 if you elect this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936) **.** You can find a copy
 of the AST Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

• Transfers
 to and from the elected Variable Options and an AST Investment Grade Bond portfolio triggered by the mathematical formula component
 of the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Highest Daily Lifetime Seven benefit. If, subsequent to your election of the benefit, we change our requirements for how Account
 Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly adopted
 requirements. Subject to any change in requirements, transfer of Account Value and allocation of additional Purchase Payments may
 be subject to new investment limitations.

• The
 maximum charge for Highest Daily Lifetime Seven is 1.50% annually of the Protected Withdrawal Value. We deduct this fee at the end
 of each quarter, where each such quarter is part of a year that begins on the effective date of the benefit or an anniversary thereafter. Thus, on each such
 quarter-end (or the next Valuation Day, if the quarter-end is not a Valuation Day), we deduct 0.375% of the Protected Withdrawal
 Value at the end of the quarter. We deduct the fee on a proportional basis from each of your Variable Options including the

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AST Investment Grade Bond portfolio. Since this fee is based on the Protected Withdrawal Value the fee for Highest Daily Lifetime Seven may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described above. You will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Highest Daily Lifetime Seven benefit cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under the Highest Daily Lifetime Seven benefit cause your
 Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
  for more information.)

**Election of and Designations under the Benefit**

**We no longer permit new elections of Highest Daily Lifetime Seven.**

For Highest Daily Lifetime Seven, there must have been either a single Owner who was the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must have been at least 55 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Seven. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Seven, except if (a) the new Owner has the same taxpayer identification number as the previous Owner (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

If you wish, you may cancel any Highest Daily Lifetime Seven benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Highest Daily Lifetime Seven benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Upon cancellation of any Highest Daily Lifetime Seven benefit, any Account Value allocated to the AST Investment Grade Bond portfolio used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis. You should be aware that upon termination of Highest Daily Lifetime Seven, you will lose the Protected Withdrawal Value (including the Tenth Anniversary Date Guarantee), Annual Income Amount, and the Return of Principal Guarantee that you had accumulated under the benefit. Thus, the initial guarantees under any newly-elected benefit will be based on your current Account Value at the time you elect a new benefit. **Once the Highest Daily Lifetime Seven benefit is canceled you are not required to re-elect another optional living benefit** **and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Highest Daily Lifetime** **Seven benefit provided that the benefit you are looking to elect is available on a post-issue basis. If you cancel the benefit, you lose all** **guarantees under the benefit, and your guarantee under any new benefit you elect will be based on your Account Value at that time. Any such** **new benefit may be more expensive.**

**Return of Principal Guarantee**

If you have not made a withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

a. your
 Account Value on the day that you elected Highest Daily Lifetime Seven; and

b. the
 sum of each Purchase Payment you made (including any Credits) during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the Bond portfolio used with this benefit), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. This potential addition to Account Value is available only if you have elected Highest Daily Lifetime Seven and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election will apply as described above. The benefit terminates: (i) upon your termination of the benefit (ii) upon your surrender of the Annuity (iii) upon your election to begin receiving annuity payments (although if you have elected to the Annual Income Amount in the form of Annuity payments, we will continue to pay the Annual Income Amount) (iv) upon the death of the Annuitant (v) if both the Account Value and Annual Income Amount equal zero or (vi) if you cease to meet our requirements for issuing the benefit (see Election of and Designations under the Benefit).

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Upon termination of Highest Daily Lifetime Seven other than upon the death of the Annuitant, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond portfolio to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

**Mathematical Formula Component of Highest Daily Lifetime Seven**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you have elected Highest Daily Lifetime Seven. For purposes of the benefit, we refer to those permitted Variable Options as the "Permitted Variable Options". As a requirement of participating in Highest Daily Lifetime Seven, we require that you participate in our specialized program, under which we may transfer Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the "AST Investment Grade Bond portfolio"). We determine whether to make a transfer, and the amount of any transfer, under a non-discretionary formula, discussed below. The AST Investment Grade Bond portfolio is available only with this benefit, and thus you may not allocate Purchase Payments to the AST Investment Grade Bond portfolio. Under the formula component of Highest Daily Lifetime Seven, we monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio. **Any transfer would be made in accordance** **with a formula, which is set forth in** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936) **to this prospectus.**

Speaking generally, the formula, which we apply each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. Note that we use 5% in the formula, irrespective of the Annuitant's attained age. Then we produce an estimate of the total amount we would target in our allocation model, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments, and any excess withdrawals. Next, the formula subtracts from the Target Value the amount held within the AST Investment Grade Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the AST Investment Grade Bond portfolio, is called the "Target Ratio" or "r". If the Target Ratio exceeds a certain percentage (currently 83%), it means essentially that too much Target Value is not offset by assets within the AST Investment Grade Bond portfolio, and therefore we will transfer an amount from your Permitted Variable Options to the AST Investment Grade Bond portfolio. Conversely, if the Target Ratio falls below a certain percentage (currently 77%), then a transfer from the AST Investment Grade Bond portfolio to the Permitted Variable Options would occur.

If you elect the formula (90% Cap Rule), see discussion regarding that feature.

As you can glean from the formula, poor investment performance of your Account Value may result in a transfer of a portion of your variable Account Value to the AST Investment Grade Bond portfolio because such poor investment performance will tend to increase the Target Ratio. Moreover, "flat" investment returns of your Account Value over a period of time also could result in the transfer of your Account Value from the Permitted Variable Options to the AST Investment Grade Bond portfolio. Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the AST Investment Grade Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. Once you elect Highest Daily Lifetime Seven, the ratios we use will be fixed. For newly-issued Annuities that elect Highest Daily Lifetime Seven and existing Annuities that elect Highest Daily Lifetime Seven, however, we reserve the right, subject to any required regulatory approval, to change the ratios.

While you are not notified when your Annuity reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the AST Investment Grade Bond portfolio. The formula by which the reallocation triggers operate is designed primarily to mitigate the financial risks that we incur in providing the guarantee under Highest Daily Lifetime Seven.

Depending on the results of the calculation relative to the reallocation triggers, we may, on any day:

• Not
 make any transfer between the Permitted Variable Options and the AST Investment Grade Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the AST Investment Grade Bond portfolio, transfer all or a portion of those amounts to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on
 a proportional basis (i.e., in the same proportion as the current balances in your Variable Options); or

• Transfer
 all or a portion of your Account Value in the Permitted Variable Options on a proportional basis to the AST Investment Grade Bond
 portfolio.

Therefore, at any given time, some, none, or all of your Account Value may be allocated to the AST Investment Grade Bond portfolio. If your entire Account Value is transferred to the AST Investment Grade Bond portfolio, then based on the way the formula operates, the formula will not transfer amounts out of the AST Investment Grade Bond portfolio to the Permitted Variable Options and the entire Account Value would remain in the AST Investment Grade Bond portfolio. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the AST Investment

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Grade Bond portfolio. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the AST Investment Grade Bond portfolios, if dictated by the formula. The amounts of any such transfers will vary as dictated by the formula, and will depend on the factors listed below.

Prior to the first withdrawal, the primary driver of transfers to the AST Investment Grade Bond portfolio is difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the AST Investment Grade Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the AST Investment Grade Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the AST Investment Grade Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the AST Investment Grade Bond portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Investment Grade Bond portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime Seven has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the AST Investment Grade Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the AST Investment Grade Bond portfolio or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the AST Investment Grade Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the AST Investment Grade Bond portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the AST Investment Grade Bond portfolio, if dictated by the formula.

Any Account Value in the AST Investment Grade Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the AST Investment Grade Bond portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. Please note that any withdrawal you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above under "Key Feature – Protected Withdrawal Value".

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here.

However, we do note that if you participate in Highest Daily Lifetime Seven through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

**Highest Daily Lifetime Seven with Beneficiary Income Option**

**Effective September 14, 2012, Highest Daily Lifetime Seven with Beneficiary Income Option is no longer available for new elections and we no** **longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime Seven with Beneficiary Income Option.**

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There is an optional death benefit feature under this benefit, the amount of which is linked to your Annual Income Amount. We refer to this optional death benefit as the Beneficiary Income Option or ("BIO"). Highest Daily Lifetime Seven was available without also selecting the Beneficiary Income Option death benefit. We no longer permit elections of the Highest Daily Lifetime Seven with Beneficiary Income Option benefit. If you terminate your Highest Daily Lifetime Seven with BIO benefit to elect any other available living benefit, you will lose the guarantees that you had accumulated under your Highest Daily Lifetime Seven with BIO Benefit and will begin new guarantees under the newly elected benefit.

If you have elected this death benefit, you may not elect any other optional benefit. You may have elected the Beneficiary Income Option death benefit so long as the Annuitant is no older than age 75 at the time of election. For purposes of this optional death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Highest Daily Lifetime Seven itself. If you choose the Highest Daily Lifetime Seven with BIO, the maximum charge is 2.00% of the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the Protected Withdrawal Value at the end of the quarter. We deduct the fee pro rata from each of the Variable Options including the AST Investment Grade Bond portfolio and from the DCA Fixed Rate Option (if applicable). Because the fee for this benefit is based on the Protected Withdrawal Value, the fee for Highest Daily Lifetime Seven with the Beneficiary Income Option may be greater than it would have been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

Upon a death that triggers payment of a death benefit under the Annuity, we identify the following amounts: (a) the amount of the basic death benefit under the Annuity, (b) the Protected Withdrawal Value and (c) the Annual Income Amount. If there were no withdrawals prior to the date of death, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death, and we calculate the Annual Income Amount as if there were a withdrawal on the date of death. If there were withdrawals prior to the date of death, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

If there is one beneficiary, he/she must choose to receive either the basic death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of periodic payments of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Thus, each beneficiary can choose to take his/her portion of either (a) the basic death benefit or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified Annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option death benefit, each beneficiary's share of the death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year payout
 period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal
 Value).

The pro-rated portion of the Annual Income Amount, equal to $3,750 annually (i.e., the first beneficiary's 75% share multiplied by $5000), is then paid each year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e., the first beneficiary's 75% share of the $100,000 Protected Withdrawal Value).

The second beneficiary would receive 25% of the basic death benefit amount (or $12,500). If you elect to terminate Highest Daily Lifetime Seven with Beneficiary Income Option, both Highest Daily Lifetime Seven and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Highest Daily Lifetime Seven with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election and Designations under the Benefit" section, above.

**Highest Daily Lifetime Seven with Lifetime Income Accelerator**

**Effective September 14, 2012, Highest Daily Lifetime Seven with Lifetime Income Accelerator is no longer available for new elections and we** **no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime Seven with Lifetime Income Accelerator.**

There is another version of Highest Daily Lifetime Seven that we call Highest Daily Lifetime Seven with Lifetime Income Accelerator ("Highest Daily Lifetime Seven with LIA"). We no longer permit new elections of Highest Daily Lifetime Seven with LIA. If you have elected this benefit, you may not elect any other optional benefit. The income benefit under Highest Daily Lifetime Seven with LIA was based on a single "designated life" who was between the ages of 55 and 75 on the date that the benefit was elected.

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If you terminate your Highest Daily Lifetime Seven Benefit with LIA to elect any other available living benefit, you will lose the guarantees that you had accumulated under your Highest Daily Lifetime Seven Benefit with LIA and will begin the new guarantees under the newly elected benefit based on the Account Value as of the date the new benefit becomes active.

Highest Daily Lifetime Seven with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care. You should seek professional advice to determine your financial needs for long-term care.

Highest Daily Lifetime Seven with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. The maximum charge for Highest Daily Lifetime Seven with LIA is 2.00% annually of the Protected Withdrawal Value. Thus, on each such quarter-end (or the next Valuation Day, if the quarter-end is not a Valuation Day), we deduct 0.50% of the Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of your Variable Options including the AST Investment Grade Bond portfolio. Since this fee is based on the protected withdrawal value, the fee for Highest Daily Lifetime Seven with LIA may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

If this benefit was elected within an Annuity held as a 403 (b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403 (b) plan itself.

You could have chosen Highest Daily Lifetime Seven without also electing LIA, however you may not have elected LIA without Highest Daily Lifetime Seven. All terms and conditions of Highest Daily Lifetime Seven apply to this version of the benefit, except as described herein.

**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months, from the benefit effective date, and an elimination period of 120 days, from the date of notification that one or both of the requirements described immediately below have been met, apply before you can become eligible for the LIA Amount. Assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, either or both of the following requirements ("LIA conditions") must be met. It is not necessary to meet both conditions:

1. The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to law or any
 state licensed facility
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical limitations
 which prohibit daily living in a non-institutional setting.

2. The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

a. Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

b. Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

c. Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

d. Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

e. Transferring:
 Moving into or out of a bed, chair or wheelchair.

f. Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described in this prospectus under the Highest Daily Lifetime Seven Benefit.

Additionally, we will reassess your eligibility on an annual basis although your LIA benefit for the year that immediately precedes our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuities Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under the Highest Daily Lifetime Seven Benefit" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

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You should also keep in mind that, at the time you are experiencing the LIA conditions that would qualify you for the LIA Amount, you may also be experiencing other disabilities that could impede your ability to conduct your affairs. You may wish to consult with a legal advisor to determine whether you should authorize a fiduciary who could notify us if you meet the LIA conditions and apply for the benefit.

**LIA amount at the First Withdrawal.** If your first withdrawal subsequent to election of Highest Daily Lifetime Seven with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA amount after the First Withdrawal.** If you become eligible for the LIA Amount after you have taken your first withdrawal, the available LIA amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount, however the available LIA amount in the current Annuity Year is reduced by any withdrawals that have been taken in the current Annuity Year. Cumulative withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year.

**Withdrawals in Excess of the LIA amount.** If your cumulative withdrawals in an Annuity Year are in excess of the LIA Amount when you are eligible ("Excess Withdrawal"), your LIA Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Withdrawal. Reductions include the actual amount of the withdrawal, including any CDSC that may apply. Withdrawals of any amount up to and including the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Excess Withdrawals will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA amount (when eligible) but in excess of the Charge Free Withdrawal amount available under this Annuity will not incur a CDSC.

Withdrawals are not required. However, subsequent to the first withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, we will increase your LIA Amount by double the amount we add to your Annual Income Amount.

**Step Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments.** If your Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount, or as a result of the fee that we assess for Highest Daily Lifetime Seven with LIA, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. Thus, in that scenario, the remaining LIA Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section for more information. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". To the extent that cumulative withdrawals in the current Annuity Year that reduce your Account Value to zero are more than the LIA Amount (except in the case of required minimum distributions), Highest Daily Lifetime Seven with LIA terminates, and no additional payments are permitted.

**Annuity Options.** In addition to the Highest Daily Lifetime Seven Annuity Options described above, after the 10<sup>th</sup> benefit anniversary you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make payments equal to the LIA Amount. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section for more information. If you would receive a greater payment by applying your Account Value to receive payments for life under your Annuity, we will pay the greater amount. Prior to the 10<sup>th</sup> benefit anniversary this option is not available.

We will continue to make payments until the death of the Designated Life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun.

If you elected Highest Daily Lifetime Seven with LIA, and never meet the eligibility requirements you will not receive any additional payments based on the LIA Amount.

**Optional 90% Cap Rule for Formula for Highest Daily Lifetime Seven**

If you currently own an Annuity and have elected the Highest Daily Lifetime Seven Income Benefit (including Highest Daily Lifetime Seven with Beneficiary Income Option and Highest Daily Lifetime Seven with Lifetime Income Accelerator) or Spousal Highest Daily Lifetime Seven Income Benefit (including Spousal Highest Daily Lifetime Seven with Beneficiary Income Option), you can elect this feature (subject to state approval) which utilizes a mathematical formula. The formula is described below and will replace the "Transfer Calculation" portion of the mathematical formula currently used in connection with your benefit on a prospective basis. There is no cost to adding this feature to your Annuity. This election may only be made once and may not be revoked once elected. **The mathematical formula is found in** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936)**.** Only the election of the 90% cap will prevent all of your Account Value from being allocated to the AST Investment Grade Bond portfolio. If all of your Account Value is currently allocated to the AST Investment Grade Bond portfolio, it will not transfer back to the Permitted Variable Options unless you elect the 90% cap rule. If you make additional Purchase Payments, they may or may not result in a transfer to or from the AST Investment Grade Bond portfolio.

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Under the formula, the formula will not execute a transfer to the AST Investment Grade Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio ("90% cap" or "90% cap Rule"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Investment Grade Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio will be transferred. Additionally, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Investment Grade Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the AST Investment Grade Bond portfolio and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the AST Investment Grade Bond portfolio.

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Investment Grade Bond portfolio at least until there is first a transfer out of the AST Investment Grade Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Investment Grade Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Investment Grade Bond portfolio (at least until there is first a transfer out of the AST Investment Grade Bond portfolio). For example,

• March
 19, 2009 – a transfer is made that results in the 90%  cap being met and now $90,000 is allocated to the AST Investment Grade Bond portfolio and
 $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Investment Grade Bond
 portfolio to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• As
 of March 20, 2009 (and at least until first a transfer is made out of the AST Investment Grade Bond portfolio under the formula) –
 the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the AST Investment Grade Bond portfolio and 18%
 in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the AST
 Investment Grade Bond portfolio).

• Once
 there is a transfer out of the AST Investment Grade Bond portfolio (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into existence and may be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio as dictated by the formula. **Once you elect this feature, the transfer formula** **described above and set forth in** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936) **will be the formula for your Annuity.**

In the event that more than ninety percent (90%) of your Account Value is allocated to the AST Investment Grade Bond portfolio and you have elected this feature, up to ten percent (10%) of your Account Value currently allocated to the AST Investment Grade Bond portfolio will be transferred to your Permitted Variable Options, such that after the transfer, 90% of your Account Value on the date of the transfer is in the AST Investment Grade Bond portfolio. The transfer to the Permitted Variable Options will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e., in the same proportion as the current balances in your Variable Options). It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amounts of such additional transfer(s) will vary. If on the date this feature is elected 100% of your Account Value is allocated to the AST Investment Grade Bond portfolio, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options. **While there are no assurances that future transfers will occur, it is possible that an additional** **transfer(s) to the Permitted Variable Options could occur following the Valuation Day(s), and in some instances (based on the formula) the** **additional transfer(s) could be large.**

Once the 90% cap rule is met, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap).

Important Consideration When Electing the Formula:

• At
 any given time, some, most or none of your Account Value may be allocated to the AST Investment Grade Bond portfolio.

• Please
 be aware that because of the way the 90% cap formula operates, it is possible that more than or less than 90% of your Account Value
 may be allocated to the AST Investment Grade Bond portfolio.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending of the performance of the Permitted Variable Options you select.

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***SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT (SHD7)***

**Effective September 14, 2012, Spousal Highest Daily Lifetime Seven is no longer available for new elections and we no longer accept** **additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime Seven benefit.**

Spousal Highest Daily Lifetime Seven is the spousal version of Highest Daily Lifetime Seven. We no longer permit new elections of Spousal Highest Daily Lifetime. Seven Spousal Highest Daily Lifetime Seven must have been elected based on two Designated Lives, as described below. Each Designated Life must have been at least 59½ years old when the benefit was elected. Spousal Highest Daily Lifetime Seven was not available if you elected any other optional living benefit or optional death benefit. As long as your Spousal Highest Daily Lifetime Seven Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed description** **of permitted investment options, see the "**[**<u>Appendix A - Investment Restrictions</u>**](#chapter_18-sect1_1_936)**" section of this prospectus.**

The benefit that guarantees until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "Designated Lives", and each, a "Designated Life") the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Highest Daily Lifetime Seven benefit after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our pre-determined mathematical formula in order to participate in Spousal Highest Daily Lifetime Seven. **In** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936) **to this prospectus, we set forth the formula under which we make the asset transfers.** Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

As discussed below, a key component of Spousal Highest Daily Lifetime Seven is the Protected Withdrawal Value. Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains. You are guaranteed to be able to withdraw the Annual Income Amount until the death of the second Designated Life, provided that there have not been "excess withdrawals." Excess withdrawals, as discussed below, will reduce your Annual Income Amount. Thus, you could experience a scenario in which your Account Value was zero, and, due to your excess withdrawals, your Annual Income Amount also was reduced to zero. In that scenario, no further amount would be payable under Spousal Highest Daily Lifetime Seven.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter, until the earlier of the tenth anniversary of benefit election (the "Tenth Anniversary Date") or the date of the first withdrawal, the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter, until the earlier of the first withdrawal or the Tenth Anniversary Date, we recalculate the Periodic Value. We stop determining the Periodic Value upon the earlier of your first withdrawal after the effective date of the benefit or the Tenth Anniversary Date. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any adjusted
 Purchase Payment made on the Current Valuation Day; and

2. the
 Account Value.

If you make a withdrawal prior to the Tenth Anniversary Date, the Protected Withdrawal Value on the date of the withdrawal is equal to the greatest of:

a. the
 Account Value; or

b. the
 Periodic Value on the date of the withdrawal.

If you have not made a withdrawal on or before the Tenth Anniversary Date, your Protected Withdrawal Value subsequent to the Tenth Anniversary Date is equal to the greatest of:

1. the
 Account Value; or

2. the
 Periodic Value on the Tenth Anniversary Date, increased for subsequent Adjusted Purchase Payments; or

3. the
 sum of:

a. 200%
 of the Account Value on the effective date of the benefit;

b. 200%
 of all Adjusted Purchase Payments made within one year after the effective date of the benefit; and

c. all
 Adjusted Purchase Payments made after one year following the effective date of the benefit up to the date of the first withdrawal.

On and after the date of your first withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first withdrawal (as described below), and is increased if you qualify for a step-up (as described below). Irrespective of these calculations, your Protected Withdrawal Value will always be at least equal to your Account Value.

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**Key Feature – Annual Income Amount under the Spousal Highest Daily Lifetime Seven Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active and does not reduce in subsequent Annuity Years, as described below. The percentage depends on the age of the youngest Designated Life on the date of the first withdrawal after election of the benefit. The percentages are: 5% for ages 79 and younger, 6% for ages 80 to 84, 7% for ages 85 to 89, and 8% for ages 90 and older. We use the age of the youngest Designated Life even if that Designated Life is no longer a participant under the Annuity due to death or divorce.

Under the Spousal Highest Daily Lifetime Seven benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Any Purchase Payment that you make will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credits) based on the age of the Annuitant at the time of the first withdrawal (the percentages are: 5% for ages 79 and younger, 6% for ages 80-84, 7% for ages 85-89, and 8% for ages 90 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime Seven benefit.

An automatic step-up feature ("Highest Quarterly Auto Step-Up") is included as part of this benefit. As detailed in this paragraph, the Highest Quarterly Auto Step-Up feature can result in a larger Annual Income Amount if your Account Value increases subsequent to your first withdrawal. We begin examining the Account Value for purposes of the Highest Quarterly Step-Up starting with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on the Valuation Days corresponding to the end of each quarter that (i) is based on your Annuity Year, rather than a calendar year; (ii) is subsequent to the first withdrawal; and (iii) falls within the immediately preceding Annuity Year. If the end of any such quarter falls on a holiday or a weekend, we use the next Valuation Day. Having identified each of those quarter-end Account Values, we then multiply each such value by a percentage that varies based on the age of the youngest Designated Life on the Annuity Anniversary as of which the step-up would occur. The percentages are 5% for ages 79 and younger, 6% for ages 80-84, 7% for ages 85-89, and 8% for ages 90 and older. Thus, we multiply each quarterly value by the applicable percentage, adjust each such quarterly value for subsequent withdrawals and Purchase Payments, and then select the highest of those values. If the highest of those values exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. In later years, (i.e., after the first Annuity Anniversary after the first withdrawal) we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values on the end of the four immediately preceding quarters. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest quarterly value upon which your step-up was based. If, on the date that we implement a Highest Quarterly Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime Seven has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime Seven upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

The Spousal Highest Daily Lifetime Seven benefit does not affect your ability to make withdrawals under your annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime Seven, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Examples of dollar-for-dollar and proportional reductions, and the Highest Quarterly Auto Step-Up are set forth below. The values depicted here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime Seven benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2007

• The
 Spousal Highest Daily Lifetime Seven benefit is elected on March 5, 2008.

• The
 youngest Designated Life was 70 years old when he/she elected the Spousal Highest Daily Lifetime Seven benefit.

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**Dollar-for-dollar reductions**

On May 2, 2008, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the youngest Designated Life is younger than 80 at the time of the 1<sup>st</sup> withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2008) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount – $6,000 less $2,500 = $3,500.

**Proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on August 6, 2008 and the Account Value at the time of this withdrawal is $110,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount – $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before withdrawal | $110000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $106500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $106500.00 |
|  Ratio | 1.41% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.41% | $84.51 |
|  Annual Income Amount for future Annuity Years | $5915.49 |

---

**Highest Quarterly Auto Step-Up**

On each Contract Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Contract Anniversary) of the highest quarterly value since your first Lifetime Withdrawal (or last Contract Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest quarterly Unadjusted Account Value of $238, 0000, the highest quarterly Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Contract Year.

• The
 Contract Anniversary is July 1.

• The
 AIA for this Contract Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Contract Year.

• The
 highest quarterly Unadjusted Account Value for this Contract Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

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On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest quarterly Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous quarterly Unadjusted Account Value of $239, 0000, the highest quarterly Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest quarterly Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Benefits Under The Spousal Highest Daily Lifetime Seven Benefit**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Annual Income Amount or
 as a result of the fee that we assess for Spousal Highest Daily Lifetime Seven, and amounts are still payable under Spousal
 Highest Daily Lifetime Seven, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income
 Amount for the Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Account
 Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in
 this section. We will make payments until the death of the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value
 to zero are more than the Annual Income Amount, the Spousal Highest Daily Lifetime Seven benefit terminates, and no additional payments
 will be made. However, if a withdrawal in the latter scenario was taken to meet required minimum distribution requirements under
 the Annuity, then the benefit will not terminate, and we will continue to pay the Annual Income Amount in the form of a fixed annuity.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is a Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

a. apply
 your Account Value to any Annuity option available; or

b. request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.

We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the second Designated Life. If, due to death of a Designated Life or divorce prior to Annuitization, only a single Designated Life remains, then Annuity payments will be made as a life annuity for the lifetime of the Designated Life.

We must receive your request in a form acceptable to us at our office.

In the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor or single (as applicable) life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

a. the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the joint and
 survivor or single (as applicable) life fixed annuity rates then currently available or the joint and survivor or single (as applicable) life fixed annuity
 rates guaranteed in your Annuity; and

b. the
 Account Value.

• If
 no withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first withdrawal on the date the annuity payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the older of the Owner
 or Annuitant's 95 <sup>th</sup> birthday, will be treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime Seven benefit are subject to all of the terms and conditions of the Annuity, including any
 CDSC that may apply. Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Charge
 Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of
 that withdrawal. However, we may impose a CDSC on the portion of a withdrawal that is deemed Excess Income.

• Withdrawals
 made while the Spousal Highest Daily Lifetime Seven Benefit is in effect will be treated, for tax purposes, in the same way as any
 other withdrawals under the Annuity. The Spousal Highest Daily Lifetime Seven Benefit does not directly affect the Account Value or Surrender
 Value, but any withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender
 your Annuity you will receive the current Surrender Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Highest Daily Lifetime
 Seven benefit. The Spousal Highest Daily Lifetime Seven benefit provides a guarantee that if your Account Value declines due to Variable
 Option performance, you will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio (as described below)
 if you elect this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936) . You can find a copy of
 the AST Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

• Transfers
 to and from the elected Variable Options and the AST Investment Grade Bond portfolio triggered by the mathematical formula component
 of the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Spousal Highest Daily Lifetime Seven benefit. If, subsequent to your election of the benefit, we change our requirements for how
 Account Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly
 adopted requirements. Subject to any change in requirements, transfer of Account Value and allocation of additional Purchase Payments
 may be subject to new investment limitations.

• The
 maximum charge for Spousal Highest Daily Lifetime Seven is 1.50% of the Protected Withdrawal Value. We deduct this fee at the end of
 each quarter, where each such quarter is part of a year that begins on the effective date of the benefit or an anniversary thereafter. Thus, on each such
 quarter-end (or the next Valuation Day, if the quarter-end is not a Valuation Day), we deduct 0.375% of the Protected Withdrawal
 Value at the end of the quarter. We deduct the fee on a proportional basis from each of your Variable Options including the AST
 Investment Grade Bond portfolio. Since this fee is based on the Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime
 Seven may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the
 current Account Value, we will reduce the Account Value to zero, and continue the benefit as described above. You will begin paying the
 charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund
 the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Spousal Highest Daily Lifetime Seven benefit cause your Account Value
 to reduce to zero. Certain optional Death Benefits may terminate if withdrawals taken under the Spousal Highest Daily Lifetime Seven
 benefit cause your Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
 for more information.)

**Election of and Designations under the Benefit**

We no longer permit new elections of Spousal Highest Daily Lifetime Seven Elections of Spousal Highest Daily Lifetime Seven must have been based on two Designated Lives. Designated Lives must be natural persons who are each other's spouses at the time of election of the benefit. Spousal Highest Daily Lifetime Seven could only be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The Owner/Annuitant
 and the beneficiary each must be at least 59½ years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must each be at least 59½ years old at the time of election;
 or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Both the Annuitant and the Contingent Annuitant each must
 be at least 59½ years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary designations under this benefit. If the Designated Lives divorce, however, the Spousal Highest Daily Lifetime Seven benefit may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

If you wish, you may cancel any Spousal Highest Daily Lifetime Seven benefit. You may then elect any other available living benefit on any Valuation Day after you have cancelled the Spousal Highest Daily Lifetime Seven benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Upon cancellation of any Spousal Highest Daily Lifetime Seven benefit, any Account Value allocated to the AST Investment Grade Bond portfolio used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instruction or in absence of such instruction, on a proportional basis. You should be aware that upon termination of Spousal Highest Daily Lifetime Seven, you will lose the Protected Withdrawal Value (including the Tenth Anniversary Date Guarantee), Annual Income Amount, and the Return of Principal Guarantee that you had accumulated under the benefit. Thus, the initial guarantees under any newly-elected benefit will be based on your current Account Value. **Once the Spousal Highest Daily Lifetime Seven benefit is cancelled you are not required to re-elect another optional** 

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**living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Spousal** **Highest Daily Lifetime Seven benefit provided that the benefit you are looking to elect is available on a post-issue basis. Any such new benefit** **may be more expensive.**

**Return of Principal Guarantee**

If you have not made a withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

a. your
 Account Value on the day that you elected Spousal Highest Daily Lifetime Seven; and

b. the
 sum of each Purchase Payment you made (including any Credits) during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the Bond Portfolio used with this benefit), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. This potential addition to Account Value is available only if you have elected Spousal Highest Daily Lifetime Seven and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election will apply as described above. The benefit terminates: (i) if upon the death of the first Designated Life, the surviving Designated Life opts to take the death benefit under the Annuity (thus, the benefit does not terminate solely because of the death of the first Designated Life) (ii) upon the death of the second Designated Life, (iii) upon your termination of the benefit (although if you have elected to take annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount) (iv) upon your surrender of the Annuity (v) upon your election to begin receiving annuity payments (vi) if both the Account Value and Annual Income Amount equal zero or (vii) if you cease to meet our requirements for issuing the benefit (see Election of and Designations under the Benefit).

Upon termination of Spousal Highest Daily Lifetime Seven other than upon death of a Designated Life, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond portfolio (as defined below) to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

**Mathematical Formula Component of Spousal Highest Daily Lifetime Seven**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you have elected Spousal Highest Daily Lifetime Seven. For purposes of the benefit, we refer to those permitted Variable Options as the "Permitted Variable Options". As a requirement of participating in Spousal Highest Daily Lifetime Seven, we require that you participate in our specialized program, under which we may transfer Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the "AST Investment Grade Bond portfolio"). We determine whether to make a transfer, and the amount of any transfer, under a non-discretionary formula, discussed below. The AST Investment Grade Bond portfolio is available only with this benefit, and thus you may not allocate Purchase Payments to the AST Investment Grade Bond portfolio. Under the formula component of Spousal Highest Daily Lifetime Seven, we monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio. **Any transfer would be made in** **accordance with a formula, which is set forth in** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936) **to this prospectus.**

Speaking generally, the formula, which we apply each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. Note that we use 5% in the formula, irrespective of the Annuitant's attained age. Then we produce an estimate of the total amount we would target in our allocation model, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments, and any excess withdrawals. Next, the formula subtracts from the Target Value the amount held within the AST Investment Grade Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the AST Investment Grade Bond portfolio, is called the "Target Ratio" or "r". If the Target Ratio exceeds a certain percentage (currently 83%), it means essentially that too much Target Value is not offset by assets within the AST Investment Grade Bond portfolio, and therefore we will transfer an amount from your Permitted Variable Options to the AST Investment Grade Bond portfolio. Conversely, if the Target Ratio falls below a certain percentage (currently 77%), then a transfer from the AST Investment Grade Bond portfolio to the Permitted Variable Options would occur.

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If you elect the formula (90% Cap Rule), see discussion regarding that feature.

As you can glean from the formula, poor investment performance of your Account Value may result in a transfer of a portion of your variable Account Value to the AST Investment Grade Bond portfolio because such poor investment performance will tend to increase the Target Ratio. Moreover, "flat" investment returns of your Account Value over a period of time also could result in the transfer of your Account Value from the Permitted Variable Options to the AST Investment Grade Bond portfolio. Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the AST Investment Grade Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. Once you elect Spousal Highest Daily Lifetime Seven, the ratios we use will be fixed. For newly-issued Annuities that elect Spousal Highest Daily Lifetime Seven and existing Annuities that elect Spousal Highest Daily Lifetime Seven, however, we reserve the right, subject to any required regulatory approval, to change the ratios.

While you are not notified when your Annuity reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the AST Investment Grade Bond portfolio. The formula by which the reallocation triggers operate is designed primarily to mitigate the financial risks that we incur in providing the guarantee under Spousal Highest Daily Lifetime Seven.

Depending on the results of the calculation relative to the reallocation triggers, we may, on any day:

• Not
 make any transfer between the Permitted Variable Options and the AST Investment Grade Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the AST Investment Grade Bond portfolio, transfer all or a portion of those amounts to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on
 a proportional basis (i.e., in the same proportion as the current balances in your Variable Options); or

• Transfer
 all or a portion of your Account Value in the Permitted Variable Options on a proportional basis to the AST Investment Grade Bond
 portfolio.

Therefore, at any given time, some, none, or all of your Account Value may be allocated to the AST Investment Grade Bond portfolio. If your entire Account Value is transferred to the AST Investment Grade Bond portfolio, then based on the way the formula operates, the formula will not transfer amounts out of the AST Investment Grade Bond portfolio to the Permitted Variable Options and the entire Account Value would remain in the AST Investment Grade Bond portfolio. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the AST Investment Grade Bond portfolio. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the AST Investment Grade Bond portfolios, if dictated by the formula. The amounts of any such transfers will vary as dictated by the formula, and will depend on the factors listed below.

Prior to the first withdrawal, the primary driver of transfers to the AST Investment Grade Bond portfolio is difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the AST Investment Grade Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the AST Investment Grade Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the AST Investment Grade Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the AST Investment Grade Bond portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Investment Grade Bond portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Spousal Highest Daily Lifetime Seven has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the AST Investment Grade Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the AST Investment Grade Bond portfolio or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the AST Investment Grade Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the AST Investment Grade Bond portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the AST Investment Grade Bond portfolio, if dictated by the formula.

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Any Account Value in the AST Investment Grade Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the AST Investment Grade Bond portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. **Please note** **that any withdrawal you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you** **to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above under "Key Feature – Protected** **Withdrawal Value".**

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Spousal Highest Daily Lifetime Seven through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

**Spousal Highest Daily Lifetime Seven with Beneficiary Income Option**

**Effective September 14, 2012, Spousal Highest Daily Lifetime Seven with Beneficiary Income Option is no longer available for new elections** **and we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime Seven with Beneficiary Income** **Option.**

There was an optional death benefit feature under this benefit, the amount of which is linked to your Annual Income Amount. You may have chosen Spousal Highest Daily Lifetime Seven without also selecting the Beneficiary Income Option death benefit ("BIO"). We no longer permit elections of Spousal Highest Daily Lifetime Seven with BIO. If you terminate your Spousal Highest Daily Lifetime Seven benefit with BIO to elect any other available living benefit, you will lose all guarantees under the Spousal Highest Daily Lifetime Seven benefit with BIO, and will begin new guarantees under the newly elected benefit based on the Account Value as of the date the new benefit becomes active.

If you elected the Beneficiary Income Option death benefit, you may not elect any other optional benefit. You could elect the Beneficiary Income Option death benefit so long as each Designated Life was no older than age 75 at the time of election. This death benefit is not transferable in the event of a divorce, nor may the benefit be split in accordance with any divorce proceedings or similar instrument of separation. If you choose the Spousal Highest Daily Lifetime Seven with BIO, the maximum charge is 2.00% of the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the Protected Withdrawal Value at the end of the quarter. We deduct the fee pro rata from each of the Variable Options including the AST Investment Grade Bond portfolio and from the DCA Fixed Rate Option (if applicable). Since this fee is based on the Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime Seven with BIO may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

For purposes of the Beneficiary Income Option death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Spousal Highest Daily Lifetime Seven itself. Upon the first death of a Designated Life, no amount is payable under the Beneficiary Income Option death benefit. Upon the second death of a Designated Life, we identify the following amounts: (a) the amount of the base death benefit under the Annuity (b) the Protected Withdrawal Value and (c) the Annual Income Amount. If there were no withdrawals prior to the date of death, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death, and we calculate the Annual Income Amount as if there were a withdrawal on the date of death. If there were withdrawals prior to the date of death, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

If there is one beneficiary, he/she must choose to receive either the base death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of annual payment of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Thus, each beneficiary can choose to take his/her portion of either (a) the basic death benefit or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified Annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option death benefit, each beneficiary's share of the

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death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year Payout
 Period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal
 Value).

The pro-rated portion of the Annual Income Amount equal to $3,750 (i.e., the first beneficiary's 75% share multiplied by $5,000) is then paid each year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e., the first beneficiary's 75% share of the $100,000 Protected Withdrawal Value).

The second beneficiary would receive 25% of the basic death benefit amount (or $12,500).

If you elect to terminate Spousal Highest Daily Lifetime Seven with Beneficiary Income Option, both Spousal Highest Daily Lifetime Seven and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Spousal Highest Daily Lifetime Seven with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election of and Designations under the Benefit" section.

**Optional 90% Cap Rule for Spousal Highest Daily Lifetime Seven**

If you currently own an Annuity and have elected Spousal Highest Daily Lifetime Seven Income Benefit (including Spousal Highest Daily Lifetime Seven with Beneficiary Income Option), you can elect this feature which utilizes a mathematical formula. The formula is described below and will replace the "Transfer Calculation" portion of the formula currently used in connection with your benefit on a prospective basis. There is no cost to adding this feature to your Annuity. This election may only be made once and may not be revoked once elected. **The formula is found in** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936) **of this prospectus.** Only the election of the 90% cap will prevent all of your Account Value from being allocated to the AST Investment Grade Bond portfolio. If all of your Account Value is currently allocated to the AST Investment Grade Bond portfolio, it will not transfer back to the Permitted Variable Options unless you elect the 90% Cap rule. If you make additional Purchase Payments, they may or may not result in a transfer to or from the AST Investment Grade Bond portfolio.

Under the formula, the formula will not execute a transfer to the AST Investment Grade Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio ("90% cap" or "90% Cap Rule"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Investment Grade Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio will be transferred. Additionally, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Investment Grade Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio. **However, it is possible** **that, due to the investment performance of your allocations in the AST Investment Grade Bond portfolio and your allocations in the Permitted** **Variable Options you have selected, your Account Value could be more than 90% invested in the AST Investment Grade Bond portfolio.**

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Investment Grade Bond portfolio at least until there is first a transfer out of the AST Investment Grade Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Investment Grade Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Investment Grade Bond portfolio (at least until there is first a transfer out of the AST Investment Grade Bond portfolio). For example,

• March
 19, 2009 – a transfer is made that results in the 90% cap being met and now $90,000 is allocated to the AST Investment Grade Bond
 portfolio and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Investment Grade Bond
 portfolio to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• As
 of March 20, 2009 (and at least until first a transfer is made out of the AST Investment Grade Bond portfolio under the formula) –
 the $10,000 payment
 is allocated to the Permitted Variable Options and now you have 82% in the AST Investment Grade Bond portfolio and 18%
 in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 is allocated to the AST
 Investment Grade Bond portfolio).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Once
 there is a transfer out of the AST Investment Grade Bond portfolio (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into existence and may be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio as dictated by the formula. **Once you elect this feature, the transfer formula** **described above and set forth in** [**<u>Appendix F</u>**](#chapter_23-sect1_1_936) **will be the formula for your Annuity.**

In the event that more than ninety percent (90%) of your Account Value is allocated to the AST Investment Grade Bond portfolio and you have elected this feature, up to ten percent (10%) of your Account Value currently allocated to the AST Investment Grade Bond portfolio will be transferred to your Permitted Variable Options, such that after the transfer, 90% of your Account Value on the date of the transfer is in the AST Investment Grade Bond portfolio. The transfer to the Permitted Variable Options will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e., in the same proportion as the current balances in your Variable Options). It is possible that additional transfers might occur after this initial transfer if dictated by the formula. The amounts of such additional transfer(s) will vary. If on the date this feature is elected 100% of your Account Value is allocated to the AST Investment Grade Bond portfolio, a transfer of an amount equal to 10% of your Account Value will be made to your Permitted Variable Options. **While there are no assurances that future transfers will occur, it is possible that an additional** **transfer(s) to the Permitted Variable Options could occur following the Valuation Day(s), and in some instances (based on the formula) the** **additional transfer(s) could be large.**

Once the 90% cap rule is met, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap).

Important Considerations When Electing The Formula:

• At
 any given time, some, most or none of your Account Value may be allocated to the AST Investment Grade Bond portfolio.

• Please
 be aware that because of the way the 90% cap formula operates, it is possible that more than or less than 90% of your Account Value
 may be allocated to the AST Investment Grade Bond portfolio.

• If
 this feature is elected, any Account Value transferred to the Permitted Variable Options is subject to the investment performance of those
 Variable Options. Your Account Value can go up or down depending of the performance of the Permitted Variable Options you select.

**HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (HD 6 Plus)**

**Effective September 14, 2012, Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept additional** **Purchase Payments for Annuities with the Highest Daily Lifetime 6 Plus benefit.**

We offered a benefit that guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life ("Lifetime Withdrawals"), provided that you have not made withdrawals of Excess Income that have resulted in your Account Value being reduced to zero. We also permit you to make a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime Withdrawals under the benefit. Highest Daily Lifetime 6 Plus may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime 6 Plus is the mathematical formula we employ that may periodically transfer your Account Value to and from the AST Investment Grade Bond portfolio. See the section below entitled "How Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond portfolio." Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

The income benefit under Highest Daily Lifetime 6 Plus currently is based on a single "designated life" who is at least 45 years old on the date that the benefit is acquired. The Highest Daily Lifetime 6 Plus Benefit is not available if you elect any other optional living benefit or the Highest Daily Value death benefit. As long as your Highest Daily Lifetime 6 Plus Benefit is in effect, you must allocate your Account Value in accordance with the permitted Variable Options and other investment option(s) available with this benefit. **For a more detailed description of the permitted investment options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**.**

Highest Daily Lifetime 6 Plus also provides for a Death Benefit generally equal to three times your Annual Income Amount. The Death Benefit is not payable if your Account Value is reduced to zero as a result of withdrawals or if annuity payments are being made at the time of the decedent's death. See Death Benefit Component of Highest Daily Lifetime 6 Plus, below.

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**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take** **withdrawals of Excess Income that bring your Account Value to zero, your Annual Income Amount would also fall to zero, and the benefit** **would terminate. In that scenario, no further amount, including the Death Benefit described below, would be payable under the Highest Daily** **Lifetime 6 Plus benefit.**

Currently, if you elect Highest Daily Lifetime 6 Plus and subsequently terminate the benefit, you may elect another living benefit, subject to our current rules. See "Election of and Designations under the Benefit" below and "Termination of Existing Benefits and Election of New Benefits" for details. Please note that if you terminate Highest Daily Lifetime 6 Plus and elect another living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 6% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated purchase Credits) made on the Current Valuation Day (the Periodic Value is proportionally reduced
 for any Non-Lifetime Withdrawal); and

2. the
 Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) below (proportionally reduced for any Non-Lifetime Withdrawals):

a. 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of the Account Value on the effective date of the benefit including any
 Purchase Payments (including any associated purchase Credits) made on that day;

b. 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of all Purchase Payments (including any associated purchase Credits)
 made within one year following the effective date of the benefit; and

c. all
 Purchase Payments (including any associated purchase Credits) made after one year following the effective date of the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals (see below).

**Key Feature – Annual Income Amount under the Highest Daily Lifetime 6 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½ – 79, and 6% for ages 80 or older. Under the Highest Daily Lifetime 6 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). If you take withdrawals of Excess Income, only the portion of the Lifetime Withdrawal that exceeds the remaining Annual Income Amount will proportionally reduce your Protected Withdrawal Value and Annual Income Amount in future years. Reductions are based on the actual amount of the withdrawal, including any Contingent Deferred Sales Charge (CDSC) that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Charge Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

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You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime 6 Plus and subsequent to the first Lifetime Withdrawal will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated purchase Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½ – 79 and 6% for ages 80 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 6 Plus benefit.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime 6 Plus. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½-79, and 6% for ages 80 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime 6 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime 6 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

If you are engaged in a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

The Highest Daily Lifetime 6 Plus benefit does not affect your ability to take withdrawals under your Annuity, or limit your ability to take withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime 6 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime 6 Plus benefit or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 6 Plus benefit.

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**Example of dollar-for-dollar reductions**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 59½ and 79 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

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| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

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**Example of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

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On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime 6 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_10_936)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Highest Daily Lifetime 6 Plus benefit. You must tell us if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Highest Daily Lifetime 6 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce: the Protected Withdrawal Value; the Periodic Value guarantees on the tenth and twentieth anniversaries of the benefit effective date (described above); and the Death Benefit (described below). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 6 Plus benefit

• No
 previous withdrawals have been taken under the Highest Daily Lifetime 6 Plus benefit

On October 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, and the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Highest Daily Lifetime 6 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

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| | |
|:---|:---|
|  Withdrawal amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |

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**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amounts will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution amount is greater than the Annual Income Amount. Unless designated as a Non-Lifetime

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Withdrawal, required minimum distributions are considered Lifetime Withdrawals. If you take a withdrawal in an Annuity Year in which your required minimum distribution for that year is not greater than the Annual Income Amount, and the amount of the withdrawal exceeds the Annual Income Amount for that year, we will treat the withdrawal as a withdrawal of Excess Income. Such a withdrawal of Excess Income will reduce the Annual Income Amount available in future years. If the required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered a withdrawal of Excess Income. In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar by dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as a withdrawal of Excess Income.

In any year in which the requirement to take required minimum distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a required minimum distribution if not for the suspension as eligible for treatment as described herein.

**Example – Required Minimum Distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000: ($3,000 + ($6,000 – $5,000) = $4,000).

If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all of the guarantees associated with the Highest Daily Lifetime 6 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you stop taking withdrawals in the current Annuity Year and choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000), without being treated as a withdrawal of Excess Income is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

**Death Benefit Component of Highest Daily Lifetime 6 Plus**

If you elect Highest Daily Lifetime 6 Plus, we include a death benefit (Death Benefit), at no additional cost that is linked to the Annual Income Amount under the benefit. If a death benefit is triggered and you currently own Highest Daily Lifetime 6 Plus, then your Death Benefit will be equal to the greatest of:

• the
 basic death benefit under the Annuity; and

• the
 amount of any optional death benefit you may have elected and remains in effect; and

• (a)
 if no Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount that would have been determined on the date
 of death if a Lifetime Withdrawal had occurred on that date, or (b) if a Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount
 as of our receipt of due proof of death. Under this component of the Death Benefit, we will not recapture the amount
 of any purchase Credit applied to an Annuity granted within 12 months prior to death.

**Please note that the Death Benefit under Highest Daily Lifetime 6 Plus is not payable if your Account Value is reduced to zero as a result of** **withdrawals or if annuity payments are being made at the time of the decedent's death. This Death Benefit may not be available in all States.**

**Benefits Under Highest Daily Lifetime 6 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are less than or equal to
 the Annual Income Amount, and amounts are still payable under Highest Daily Lifetime 6 Plus, we will make an additional payment,
 if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario, the remaining
 Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we
 make payments that equal the Annual Income Amount as described in this section. We will make payments until the death of the single
 designated life. If this occurs, you will not be permitted to make additional Purchase Payments to your Annuity. To the extent that cumulative
 withdrawals in the Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount, the Highest
 Daily Lifetime 6 Plus benefit terminates, and no additional payments will be made. However, if a withdrawal in the latter scenario was
 taken to satisfy a required minimum distribution (as described above) under the Annuity, then the benefit will not terminate, and we

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will continue to pay the Annual Income Amount in subsequent Annuity Years until the death of the designated life. Please note if your Account Value is reduced to zero as result of withdrawals, the Death Benefit (described above under "Death Benefit Component of Highest Daily Lifetime 6 Plus") will also be reduced to zero and the Death Benefit will not be payable.

• Please
 note that if your Account Value is reduced to zero, all subsequent payments will be treated as annuity payments. Further, payments
 that we make under this benefit after the first day of the calendar month coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be
 treated as annuity payments.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

1. apply
 your Account Value to any annuity option available; or

2. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single designated life. We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single
 life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your
 Annuity. The amount that will be applied to provide such annuity payments will be the greater of:

1. the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

2. the
 Account Value.

If no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin.

**Please note that a Death Benefit (as described above) is not payable if annuity payments are being made at the time of the decedent's death.**

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime 6 Plus benefit are subject to all of the terms and conditions of the Annuity, including any applicable
 CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount. If you have an active Systematic
 Withdrawal program running at the time you elect this benefit, the first Systematic Withdrawal that processes after your election
 of the benefit will be deemed a Lifetime Withdrawal.

• Withdrawals
 made while the Highest Daily Lifetime 6 Plus Benefit is in effect will be treated, for tax purposes, in the same way as any other
 withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable Options
 (including the AST Investment Grade Bond portfolio).

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime 6
 Plus benefit. The Highest Daily Lifetime 6 Plus benefit provides a guarantee that if your Account Value is reduced to zero (subject to
 our rules regarding
 time and amount of withdrawals), you will be able to receive your Annual Income Amount in the form of withdrawals.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio. **A summary** **description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936) . You
 can find a copy of the AST Investment Grade Bond
 Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>. <br> Transfers
 to and from the Variable Options and the AST Investment Grade Bond portfolio triggered by the Highest Daily Lifetime 6 Plus mathematical
 formula will not count toward the maximum number of free transfers allowable under an Annuity.

• Upon
 inception of the benefit and to maintain the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options.
 If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated under the benefit,
 the new requirements will apply only to new elections of the benefit, and we will not compel you to reallocate your Account Value in
 accordance with our newly adopted requirements. However, you may be required to reallocate due to the merger of a Portfolio or the closing
 of a Portfolio. At the time of any change in requirements, and as applicable only to new elections of the benefit, transfer of Account Value and allocation
 of additional Purchase Payments may be subject to new investment limitations.

• If
 you elect this benefit and in connection with that election, you are required to reallocate to different Variable Options, then on the Valuation Day we
 receive your request in Good Order, we will (i) sell Units of the non-permitted investment options and (ii) invest the proceeds
 of those sales in the Variable Options that you have designated. During this reallocation process, your Account Value allocated to
 the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected benefit will commence at the close of business
 on the following Valuation Day. Thus, the protection afforded by the newly-elected benefit will not arise until the close of business
 on the following Valuation Day.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 Basic Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime 6 Plus cause your Account Value to reduce to zero.
 Certain optional Death Benefits may terminate if withdrawals taken under Highest Daily Lifetime 6 Plus cause your Account Value to reduce
 to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
  for more information.)

• The
 maximum charge for Highest Daily Lifetime 6 Plus is 1.50% annually of the greater of the Account Value and Protected Withdrawal Value.
 We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis 0.375% of the greater
 of the prior Valuation Day's Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on
 a proportional basis
 from each of your Variable Options, including the AST Investment Grade Bond portfolio. Since this fee is based on the greater
 of the Account Value and Protected Withdrawal Value, the fee for Highest Daily Lifetime 6 Plus may be greater than it would have been,
 had it been based on the Account Value alone. You will begin paying the charge for this benefit as of the effective date of the benefit,
 even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never
 to take any withdrawals and/or if you never receive any lifetime income payments. The following example is hypothetical and is for illustrative
 purposes only.

Assume a benefit effective date of September 1, 2009 (which means that quarterly benefit anniversaries are: December 1, March 1, June 1, and September 1). Assume the Protected Withdrawal Value as of November 30, 2009 (prior Valuation Day's Protected Withdrawal Value) = $200,000.00 and the Account Value as of November 30, 2009 (prior Valuation Day's Account Value) = $195,000.00. The first benefit charge date would be December 1, 2009 and the benefit charge amount would be $750.00 ($200,000 ×.375%).

If the deduction of the charge would result in the Account Value falling below the lesser of $500 or 5% of the sum of the Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Account Value to fall below the Account Value Floor. If the entire Account Value is less than the Account Value Floor when we would deduct a charge for the benefit, then no charge will be assessed for that benefit quarter. If a charge for the Highest Daily Lifetime 6 Plus benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Account Value to zero, withdrawals may reduce the Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit and the Death Benefit (described above) will not be payable.

**Election of and Designations under the Benefit**

For Highest Daily Lifetime 6 Plus, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must be at least 45 years old.

Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime 6 Plus. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime 6 Plus, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

Highest Daily Lifetime 6 Plus can be elected at the time that you purchase your Annuity or after the Issue Date, subject to availability, and our eligibility rules and restrictions. If you elect Highest Daily Lifetime 6 Plus and terminate it, you can re-elect it or elect any other living benefit, subject to our current rules and availability. Additionally, if you currently own an Annuity with a living benefit that is terminable, you may terminate your existing benefit rider and elect any available benefits subject to our current rules. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#chapter_2-sect1_1_982)" in the prospectus for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect a new living** **benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit** **on your Account Value as of the date the new benefit becomes active.** You and your financial professional should carefully consider whether terminating your existing benefit and electing a new benefit is appropriate for you. We reserve the right to waive, change and/or further limit the election frequency in the future.

**Termination of the Benefit**

You may terminate Highest Daily Lifetime 6 Plus at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates: (i) upon your termination of the benefit, (ii) upon your surrender of the Annuity, (iii) upon your election to begin receiving annuity payments (although if you have elected to receive the Annual Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount), (iv) upon our receipt of due proof of the death of the Annuitant (except insofar as paying the Death Benefit associated with this benefit), (v) if both the Account Value and Annual Income Amount equal zero, or (vi) if you cease to meet our requirements as described in "Election of and Designations under the Benefit" above.

Upon termination of Highest Daily Lifetime 6 Plus other than upon the death of the Annuitant or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Account Value falling below the Account Value Floor. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program or Automatic Rebalancing Program for which we are providing administrative support, transfer all amounts held in the AST Investment Grade

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Bond portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond portfolio, the Account Value in the Variable Options is zero, we will transfer such amounts according to your most recent allocation instructions.

If a surviving spouse elects to continue the Annuity, the Highest Daily Lifetime 6 Plus benefit terminates. The spouse may elect the benefit subject to the restrictions discussed above.

**How Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond** **Portfolio**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you elect Highest Daily Lifetime 6 Plus. For purposes of this benefit, we refer to those permitted investment options as the "Permitted Variable Options". Because these restrictions and the use of the predetermined mathematical formula lessen the risk that your Account Value will be reduced to zero while you are still alive, they also reduce the likelihood that we will make any lifetime income payments under this benefit. They may also limit your upside potential for growth.

An integral part of Highest Daily Lifetime 6 Plus (including Highest Daily Lifetime 6 Plus with LIA and Spousal Highest Daily Lifetime 6 Plus) is the predetermined mathematical formula used to transfer Account Value between the Permitted Variable Options and the Bond portfolio. This predetermined mathematical formula ("formula") runs each Valuation Day that the benefit is in effect on your Annuity and, as a result, transfers of Account Value between the Permitted Variable Options and the Bond portfolio can occur on any Valuation Day subject to the conditions described below. Only the predetermined mathematical formula can transfer Account Value to and from the Bond portfolio, and thus you may not allocate Purchase Payments to or make transfers to or from the Bond portfolio. We are not providing you with investment advice through the use of the formula. The formula by which the transfer operates is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under Highest Daily Lifetime 6 Plus. The formula is not forward looking and contains no predictive or projective component with respect to the markets, the Account Value or the Protected Withdrawal Value. The formula is described below.

Generally, the formula, which is applied each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. This amount may be different than the actual Annual Income Amount currently guaranteed under your benefit. Then it produces an estimate of the total amount targeted in the formula, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a Lifetime Withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments (including any associated Purchase Credits), and any withdrawals of Excess Income. Next, the formula subtracts from the Target Value the amount held within the Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the Bond portfolio, is called the "Target Ratio" or "r". If, on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on such third Valuation Day, make a transfer from the Permitted Variable Options in which you are invested (subject to the 90% cap discussed below) to the Bond portfolio. Once a transfer is made, the Target Ratio must again be greater than 83% but less than or equal to 84.5% for three consecutive Valuation Days before a subsequent transfer to the Bond portfolio will occur. If, however, on any Valuation Day, the Target Ratio is above 84.5%, the formula will make a transfer from the Permitted Variable Options (subject to the 90% cap) to the Bond portfolio (as described above). If the Target Ratio falls below 78% on any Valuation Day, then a transfer from the Bond portfolio to the Permitted Variable Options will occur.

The formula will not execute a transfer to the Bond portfolio that results in more than 90% of your Account Value being allocated to the Bond portfolio ("90% cap") on that Valuation Day. Thus, on any Valuation Day, if the formula would require a transfer to the Bond portfolio that would result in more than 90% of the Account Value being allocated to the Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the Bond portfolio will be transferred. Additionally, future transfers into the Bond portfolio will not be made (regardless of the performance of the Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Bond portfolio. Once this transfer occurs out of the Bond portfolio, future amounts may be transferred to or from the Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the Bond portfolio that results in greater than 90% of your Account Value being allocated to the Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the Bond portfolio and your allocations in the Permitted Variable Options you have selected, your Account Value could be more than 90% invested in the Bond portfolio.

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If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the Bond portfolio at least until there is first a transfer out of the Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the Bond portfolio, and the formula will still not transfer any of your Account Value to the Bond portfolio (at least until there is first a transfer out of the Bond portfolio). For example,

• September
 4, 2012 – a transfer is made to the Bond portfolio that results in the 90% cap being met and now $90,000 is allocated to the Bond
 portfolio and $10,000 is allocated to the Permitted Variable Options.

• September
 5, 2012 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Bond portfolio to the Permitted
 Variable Options since the cap went into effect on September 4, 2012.

• On
 September 5, 2012 – (and at least until first a transfer is made out of the Bond portfolio under the formula) – the $10,000
 payment is allocated
 to the Permitted Variable Options and on this date you have 82% in the Bond portfolio and 18% in the Permitted Variable Options
 (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the Bond portfolio).

• Once
 there is a transfer out of the Bond portfolio (of any amount), the formula will operate as described above, meaning that the formula could
 transfer amounts to or from the Bond portfolio if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the Bond portfolio as dictated by the formula.

Under the formula, investment performance of your Account Value that is negative, flat, or even moderately positive may result in a transfer of a portion of your Account Value in the Permitted Variable Options to the Bond portfolio because such investment performance will tend to increase the Target Ratio. In deciding how much to transfer, we use another formula, which essentially seeks to reallocate amounts held in the Permitted Variable Options and the Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. The further the Target Ratio is from 80% when a transfer is occurring under the formula, the greater the transfer amount will be. Once you elect Highest Daily Lifetime 6 Plus, the values we use to compare to the Target Ratio will be fixed. For newly-issued Annuities that elect Highest Daily Lifetime 6 Plus and existing Annuities that elect Highest Daily Lifetime 6 Plus in the future, however, we reserve the right to change such values.

Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, if there is money allocated to the Bond portfolio, we will perform an additional monthly calculation to determine whether or not a transfer will be made from the Bond portfolio to the Permitted Variable Options. This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after the transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

The amount of the transfer will be equal to the lesser of:

a. The
 total value of all your Account Value in the Bond portfolio, or

b. An
 amount equal to 5% of your total Account Value.

While you are not notified when your Annuity reaches a transfer trigger under the formula, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Bond portfolio. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

• Not
 make any transfer between the Permitted Variable Options and the Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the Bond portfolio, transfer all or a portion of those amounts to the Permitted Variable Options
 (as described above); or

• Transfer
 a portion of your Account Value in the Permitted Variable Options.

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the Bond portfolio is the difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the Bond portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond portfolio pursuant 119 to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime 6 Plus has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

At any given time, some, most or none of your Account Value will be allocated to the Bond portfolio, as dictated by the formula.

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Because the amount allocated to the Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the Bond portfolio or to the Permitted Variable Options, the greater the impact performance of that Variable Option has on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Bond portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the Bond portfolio, if dictated by the formula and subject to the 90% cap rule described above.

Any Account Value in the Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the Bond portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts.

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime 6 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note all Non-Lifetime Withdrawal provisions will apply.

**HIGHEST DAILY LIFETIME 6 PLUS WITH LIFETIME INCOME ACCELERATOR**

**Effective September 14, 2012, Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is no longer available for new elections and we** **no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator.**

We offer another version of Highest Daily Lifetime 6 Plus that we call Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator ("Highest Daily Lifetime 6 Plus with LIA"). Highest Daily Lifetime 6 Plus with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. This version is only being offered in those jurisdictions where we have received regulatory approval. Highest Daily Lifetime 6 Plus with LIA is not available in New York and certain other states/jurisdictions. You may choose Highest Daily Lifetime 6 Plus with or without also electing LIA, however you may not elect LIA without Highest Daily Lifetime 6 Plus and you must elect the LIA benefit at the time you elect Highest Daily Lifetime 6 Plus. If you elect Highest Daily Lifetime 6 Plus without LIA and would like to add the feature later, you must terminate the Highest Daily Lifetime 6 Plus benefit and elect the Highest Daily Lifetime 6 Plus with LIA (subject to availability and benefit re-election provisions). Please note that if you terminate Highest Daily Lifetime 6 Plus and elect the Highest Daily Lifetime 6 Plus with LIA you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. Highest Daily Lifetime 6 Plus with LIA is offered as an alternative to other lifetime withdrawal options. If you elect this benefit, it may not be combined with any other optional living benefit or the Highest Daily Value death benefit. As long as your Highest Daily Lifetime 6 Plus with LIA benefit is in effect, you must allocate your Account Value in accordance with the permitted and available investment option(s) with this benefit. The income benefit under Highest Daily Lifetime 6 Plus with LIA currently is based on a single "designated life" who is between the ages of 45 and 75 on the date that the benefit is elected and received in Good Order. All terms and conditions of Highest Daily Lifetime 6 Plus apply to this version of the benefit, except as described herein.

Highest Daily Lifetime 6 Plus with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care. You should seek professional advice to determine your financial needs for long-term care.

If you elect the Highest Daily Lifetime 6 Plus with LIA, the maximum charge is 2.00% annually of the greater of the Account Value and Protected Withdrawal Value. We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis

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from each of your Variable Options, including the AST Investment Grade Bond portfolio. Since this fee is based on the greater of the Account Value and Protected Withdrawal Value, the fee for Highest Daily Lifetime 6 Plus with LIA may be greater than it would have been, had it been based on the Account Value alone. The following example is hypothetical and is for illustrative purposes only.

Assume a benefit effective date of September 1, 2009 (which means that quarterly benefit anniversaries are: December 1, March 1, June 1, and September 1). Assume the Protected Withdrawal Value as of November 30, 2009 (prior Valuation Day's Protected Withdrawal Value) = $200,000.00 and the Account Value as of November 30, 2009 (prior Valuation Day's Account Value) = $195,000.00. The first benefit charge date would be December 1, 2009 and the benefit charge amount would be $1,000.00 ($200,000 ×.50%)

If the deduction of the charge would result in the Account Value falling below the lesser of $500 or 5% of the sum of the Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Account Value to fall below the Account Value Floor. If the entire Account Value is less than the Account Value Floor when we would deduct a charge for the benefit, then no charge will be assessed for that benefit quarter. If a charge for the Highest Daily Lifetime 6 Plus with LIA benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Account Value to zero, withdrawals may reduce the Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit and the Death Benefit (described below) will not be payable.

If this benefit is being elected on an Annuity held as a 403(b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403(b) plan itself.

**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months from the benefit effective date, and an elimination period of 120 days from the date of notification that one or both of the requirements described immediately below have been met, apply before you can become eligible for the LIA Amount. The 120 day elimination period begins on the date that we receive notification from you of your eligibility for the LIA Amount. Thus, assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, at least one of the following requirements ("LIA conditions") must be met.

1. The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to law or any
 state licensed facility
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical limitations
 which prohibit daily living in a non-institutional setting.

2. The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

a. Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

b. Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

c. Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

d. Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

e. Transferring:
 Moving into or out of a bed, chair or wheelchair.

f. Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us in writing when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. The designated life must be available for any assessment or reassessment pursuant to our administrative process requirements. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described above under the Highest Daily Lifetime 6 Plus benefit.

Additionally, once eligibility is determined, we will reassess your eligibility on an annual basis although your LIA benefit for the year that immediately precedes our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuities Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under the Highest Daily Lifetime 6 Plus Benefit" would apply. There is no

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limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

**LIA Amount at the first Lifetime Withdrawal.** If your first Lifetime Withdrawal subsequent to election of Highest Daily Lifetime 6 Plus with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA Amount after the first Lifetime Withdrawal.** If you become eligible for the LIA Amount after you have taken your first Lifetime Withdrawal, the available LIA amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount, however the available LIA amount in the current Annuity Year is reduced by any Lifetime Withdrawals that have been taken in the current Annuity Year. Cumulative Lifetime Withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year. If you have an active Systematic Withdrawal program running at the time you elect this benefit, the first Systematic Withdrawal that processes after your election of the LIA benefit will be deemed a Lifetime Withdrawal.

**Withdrawals In Excess of the LIA Amount.** If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the LIA Amount when you are eligible ("Excess Withdrawal"), your LIA Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Withdrawal. Reductions include the actual amount of the withdrawal, including any CDSC that may apply. Withdrawals of any amount (excluding the Non-Lifetime Withdrawal) up to and including the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Excess Withdrawals will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA Amount (when eligible) but in excess of the Charge Free Withdrawal amount available under this Annuity will not incur a CDSC.

**Withdrawals are not required.** However, subsequent to the first Lifetime Withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, the Annual Income Amount is increased by an amount obtained by applying the applicable percentage (4% for ages 45 – less than 59½; 5% for ages 59½-79; and 6% for ages 80 and older) to the Purchase Payment (including any associated purchase Credits). The applicable percentage is based on the attained age of the designated life on the date of the first Lifetime Withdrawal after the benefit effective date. The LIA Amount is increased by double the Annual Income Amount, if eligibility for LIA has been met. The Protected Withdrawal Value is increased by the amount of each Purchase Payment (including any associated purchase Credits).

If the Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount (or, if eligible for LIA, the LIA Amount) is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount (or, if eligible for LIA, the LIA Amount) in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Step-Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments**. If your Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount when you are eligible, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in that scenario, the remaining LIA Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section for more information. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". **To the extent that cumulative withdrawals in the current Annuity Year that reduce your Account Value to zero are more than the LIA** **Amount (except in the case of required minimum distributions), Highest Daily Lifetime 6 Plus with LIA terminates, and no additional payments** **are permitted. A Death Benefit under Highest Daily Lifetime 6 Plus with LIA is not payable if guarantee payments are being made at the time of** **the decedent's death.**

**Annuity Options.** In addition to the Highest Daily Lifetime 6 Plus annuity options described above, after the tenth anniversary of the benefit effective date ("Tenth Anniversary"), you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make payments equal to the LIA Amount. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section for more information. If you would receive a greater payment by applying your Account Value to receive payments for life under your Annuity, we will pay the greater amount. Annuitization prior to the Tenth Anniversary will forfeit any present or future LIA amounts. We will continue to make payments until the death of the designated life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun. A Death Benefit is not payable if annuity payments are being made at the time of the decedent's death.

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If you elect Highest Daily Lifetime 6 Plus with LIA, and never meet the eligibility requirements you will not receive any additional payments based on the LIA Amount.

**Death Benefit Component of Highest Daily Lifetime 6 Plus with LIA.** The provisions of the Death Benefit Component of Highest Daily Lifetime 6 Plus (see above for information about the Death Benefit) also apply to Highest Daily Lifetime Plus with LIA. Please note that with respect to Highest Daily Lifetime 6 Plus with LIA, we use the Annual Income Amount for purposes of the Death Benefit Calculations, not the LIA Amount.

**SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (SHD6 Plus)**

**Effective September 14, 2012, Spousal Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept** **additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 6 Plus benefit.**

Spousal Highest Daily Lifetime 6 Plus is the spousal version of Highest Daily Lifetime 6 Plus. Spousal Highest Daily Lifetime 6 Plus must have been elected based on two designated lives, as described below. The youngest designated life must be at least 50 years old and the oldest designated life must be at least 55 years old when the benefit is elected. Spousal Highest Daily Lifetime 6 Plus is not available if you elect any other optional benefit. As long as your Spousal Highest Daily Lifetime 6 Plus Benefit is in effect, you must allocate your Account Value in accordance with the permitted Variable Options and other investment option(s) available with this benefit. **For a more detailed description of permitted investment options, see** [**<u>Appendix</u>** **<u>A</u>**](#chapter_18-sect1_1_936)**.**

We offer a benefit that guarantees until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "designated lives", and each, a "designated life") the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives ("Lifetime Withdrawals") provided you have not made withdrawals of Excess Income that have resulted in your Account Value being reduced to zero. We also permit a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime Withdrawals under the benefit. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Highest Daily Lifetime 6 Plus benefit after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Spousal Highest Daily Lifetime 6 Plus is the mathematical formula we employ that may periodically transfer your Account Value to and from the AST Investment Grade Bond portfolio. See the section above entitled "[<u>How</u> <u>Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond portfolio</u>](#chapter_2-sect1_1_983)." Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

Spousal Highest Daily Lifetime 6 Plus also provides for a Death Benefit generally equal to three times your Annual Income Amount. The Death Benefit, however, is not payable if your Account Value is reduced to zero as a result of withdrawals or if annuity payments are being made at the time of the decedent's death. See Death Benefit Component of Spousal Highest Daily Lifetime 6 Plus, below.

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take** **withdrawals of Excess Income that bring your Account Value to zero, your Annual Income Amount would also fall to zero, and the benefit** **would terminate. In that scenario, no further amount, including the Death Benefit described below, would be payable under Spousal Highest** **Daily Lifetime 6 Plus.**

Currently, if you elect Spousal Highest Daily Lifetime 6 Plus and subsequently terminate the benefit, you may elect another living benefit, subject to our current rules. See "Election of and Designations under the Benefit" below and "Termination of Existing Benefits and Election of New Benefits" for details. Please note that if you terminate Spousal Highest Daily Lifetime 6 Plus and elect another benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

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The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 6% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated purchase Credits) made on the Current Valuation Day (the Periodic Value is proportionally reduced
 for any Non-Lifetime Withdrawal); and

2. the
 Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup> or 20<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) (proportionally reduced for any Non-Lifetime Withdrawal):

a. 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of the Account Value on the effective date of the benefit including any
 Purchase Payments (including any associated purchase Credits) made on that day;

b. 200%
 (on the 10 <sup>th</sup> anniversary) or 400% (on the 20 <sup>th</sup> anniversary) of all Purchase Payments (including any associated purchase Credits)
 made within one year following the effective date of the benefit; and

c. all
 Purchase Payments (including any associated purchase Credits) made after one year following the effective date of the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated purchase Credits) and reduced for subsequent Lifetime Withdrawals (see below).

**Key Feature – Annual Income Amount under the Spousal Highest Daily Lifetime 6 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the youngest designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older. We use the age of the youngest designated life even if that designated life is no longer a participant under the Annuity due to death or divorce. Under the Spousal Highest Daily Lifetime 6 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). If you take withdrawals of Excess Income, only the portion of the Lifetime Withdrawal that exceeds the remaining Annual Income Amount will proportionally reduce your Protected Withdrawal Value and Annual Income Amount in future years. Reductions are based on the actual amount of the withdrawal, including any CDSC that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Charge Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime 6 Plus and subsequent to the first Lifetime Withdrawal will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated purchase Credits) based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older, and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, Spousal Highest Daily Lifetime 6 Plus is no longer available for new elections and we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 6 Plus benefit.

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**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the youngest designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime 6 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime 6 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

If you are engaged in a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

The Spousal Highest Daily Lifetime 6 Plus benefit does not affect your ability to take withdrawals under your Annuity, or limit your ability to take withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime 6 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime 6 Plus benefit or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 younger designated life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 6 Plus benefit

**Example of dollar-for-dollar reductions.**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the youngest designated life is between the ages of 65 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

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**Here is the calculation:**

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| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

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**Example of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime 6 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_10_936)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit. You must tell us if your withdrawal

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is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Spousal Highest Daily Lifetime 6 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value; the Periodic Value guarantees on the tenth and twentieth anniversaries of the benefit effective date (described above); and the Death Benefit (described below). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the time of the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2009

• The
 Account Value at benefit election was $105,000

• The
 younger designated life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 6 Plus benefit

• No
 previous withdrawals have been taken under the Spousal Highest Daily Lifetime 6 Plus benefit

On October 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000 and the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

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| | |
|:---|:---|
|  Withdrawal amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |

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**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amounts will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution amount is greater than the Annual Income Amount. Unless designated as a Non-Lifetime Withdrawal, required minimum distributions are considered Lifetime Withdrawals. If you take a withdrawal in an Annuity Year in which your required minimum distribution for that year is not greater than the Annual Income Amount, and the amount of the withdrawal exceeds the Annual Income Amount for that year, we will treat the withdrawal as a withdrawal of Excess Income. Such a withdrawal of Excess Income will reduce the Annual Income Amount available in future years. If the required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered a withdrawal of Excess Income. In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar-for-dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as a withdrawal of Excess Income.

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In any year in which the requirement to take required minimum distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a required minimum distribution if not for the suspension as eligible for treatment as described herein.

**Example – Required Minimum Distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000. ($3,000 + ($6,000 – $5,000) = $4,000).

If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you stop taking withdrawals in the current Annuity Year and choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000) without being treated as a withdrawal of Excess Income is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

**Death Benefit Component of Spousal Highest Daily Lifetime 6 Plus**

If you elect Spousal Highest Daily Lifetime 6 Plus, we include a death benefit (Death Benefit), at no additional cost, that is linked to the Annual Income Amount under the benefit. If a death benefit is triggered and you currently own Spousal Highest Daily Lifetime 6 Plus benefit, then your Death Benefit will be equal to the greatest of:

• the
 basic death benefit under the Annuity; and

• the
 amount of any optional death benefit you may have elected and remains in effect; and

• a)
 if no Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount that would have been determined on the date
 of death if a Lifetime Withdrawal had occurred on that date or (b) if a Lifetime Withdrawal had been taken prior to death, 300% of the Annual Income Amount
 as of our receipt of due proof of death. Under this component of the Death Benefit, we will not recapture the amount
 of any purchase Credit applied to an Annuity granted within 12 months prior to death.

Upon the death of the first of the spousal designated lives, if a Death Benefit, as described above, would otherwise be payable, and the surviving designated life chooses to continue the Annuity, the Account Value will be adjusted, as of the date we receive due proof of death, to equal the amount of that Death Benefit if paid out in a lump sum, and the Spousal Highest Daily Lifetime 6 Plus benefit remains in force. Upon the death of the second Spousal designated life, the Death Benefit described above will be payable and the Spousal Highest Daily Lifetime 6 Plus rider will terminate as of the date we receive due proof of death.

**Please note that the Death Benefit under Spousal Highest Daily Lifetime 6 Plus is not payable if your Account Value is reduced to zero as a** **result of withdrawals or if annuity payments are being made at the time of the decedent's death. This Death Benefit may not be available in all** **States.**

**Benefits Under Spousal Highest Daily Lifetime 6 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are less than or equal to
 the Annual Income Amount, and amounts are still payable under Spousal Highest Daily Lifetime 6 Plus, we will make an additional
 payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario, the
 remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years
 we make payments that equal the Annual Income Amount as described in this section. We will make payments until the death of the first
 of the designated lives to die, and will continue to make payments until the death of the second designated life. If this were to occur, you are not permitted
 to make additional Purchase Payments to your Annuity. To the extent that cumulative withdrawals in the Annuity Year
 that reduced your Account Value to zero are more than the Annual Income Amount, the Spousal Highest Daily Lifetime 6 Plus benefit terminates,
 and no additional payments will be made. However, if a withdrawal in the latter scenario was taken to satisfy a required minimum
 distribution (as described above) under the Annuity then the benefit will not terminate, and we will continue to pay the Annual

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Income Amount in subsequent Annuity Years until the death of the second designated life. Please note that if your Account Value is reduced to zero as a result of withdrawals, the Death Benefit (described above) will also be reduced to zero and the Death Benefit will not be payable.

• Please
 note that if your Account Value is reduced to zero, all subsequent payments will be treated as annuity payments. Further, payments
 that we make under this benefit after the first day of the calendar month coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be
 treated as annuity payments.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

a. apply
 your Account Value to any annuity option available; or

b. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the designated lives to die, and will continue to make payments until the death of the
 second designated life. If, due to death of a designated life or divorce prior to Annuitization, only a single designated life remains, then annuity payments
 will be made as a life annuity for the lifetime of the designated life. We must receive your request in a form acceptable
 to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available
 or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such annuity payments will be the greater
 of:

a. the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the joint and
 survivor or single (as applicable) life fixed annuity rates then currently available or the joint and survivor or single (as applicable) life fixed annuity
 rates guaranteed in your Annuity; and

b. the
 Account Value.

If no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin.

**Please note that the Death Benefit (described above) is not payable if annuity payments are being made at the time of the decedent's death.**

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime 6 Plus benefit are subject to all of the terms and conditions of the Annuity, including any
 applicable CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount. If you have an active
 Systematic Withdrawal program running at the time you elect this benefit, the first Systematic Withdrawal that processes after your election
 of the benefit will be deemed a Lifetime Withdrawal.

• Withdrawals
 made while the Spousal Highest Daily Lifetime 6 Plus benefit is in effect will be treated, for tax purposes, in the same way as any
 other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable Options
 (including the AST Investment Grade Bond portfolio).

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Highest Daily Lifetime
 6 Plus benefit. The Spousal Highest Daily Lifetime 6 Plus benefit provides a guarantee that if your Account Value is reduced to zero
 (subject to program rules regarding the timing and amount of withdrawals), you will be able to receive your Annual Income Amount in the
 form of withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio. **A summary** **description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936) **.** You can find a copy of the AST Investment Grade Bond
 Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

• Transfers
 to and from the elected Variable Options and the AST Investment Grade Bond portfolio triggered by the Spousal Highest Daily Lifetime
 6 Plus mathematical formula will not count toward the maximum number of free transfers allowable under an Annuity.

• Upon
 inception of the benefit and to maintain the benefit, 100% of your Account Value must be allocated to the Permitted Variable Options.
 If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated under the benefit,
 the new requirement will apply only to new elections of the benefit, and we will not compel you to reallocate your Account Value in accordance
 with our newly adopted requirements. However, you may be required to reallocate due to the merger of a Portfolio or the closing
 of a Portfolio. At the time of any change in requirements, and as applicable only to new elections of the benefit, transfers of Account
 Value and allocation of additional Purchase Payments may be subject to new investment limitations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you elect this benefit and in connection with that election, you are required to reallocate to different Variable Options, then on the Valuation Day we
 receive your request in Good Order, we will (i) sell Units of the non-permitted investment options and (ii) invest the proceeds
 of those sales in the Variable Options that you have designated. During this reallocation process, your Account Value allocated to
 the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected benefit will commence at the close of business
 on the following Valuation Day. Thus, the protection afforded by the newly-elected benefit will not arise until the close of business
 on the following Valuation Day.

• The
 Basic Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime 6 Plus cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under Spousal Highest Daily Lifetime 6 Plus cause your
 Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
  for more information.)

• The
 maximum charge for Spousal Highest Daily Lifetime 6 Plus is 1.50% annually of the greater of the Account Value and Protected Withdrawal
 Value. We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis, 0.375%
 of the greater of the prior Valuation Day's Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct
 the fee on a proportional
 basis from each of your Variable Options, including the AST Investment Grade Bond portfolio. Since this fee is based on
 the greater of the Account Value and Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime 6 Plus may be greater than
 it would have been, had it been based on the Account Value alone. You will begin paying the charge for this benefit as of the effective date of the benefit,
 even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you
 choose never to take any withdrawals and/or if you never receive any lifetime income payments. The following example is hypothetical
 and is for illustrative purposes only.

Assume a benefit effective date of September 1, 2009 (which means that quarterly benefit anniversaries are: December 1, March 1, June 1, and September 1). Assume the Protected Withdrawal Value as of November 30, 2009 (prior Valuation Day's Protected Withdrawal Value) = $200,000.00 and the Account Value as of November 30, 2009 (prior Valuation Day's Account Value) = $195,000.00. The first benefit charge date would be December 1, 2009 and the benefit charge amount would be $750.00 ($200,000 ×.375%)

If the deduction of the charge would result in the Account Value falling below the lesser of $500 or 5% of the sum of the Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Account Value to fall below the Account Value Floor. If the entire Account Value is less than the Account Value Floor when we would deduct a charge for the benefit, then no charge will be assessed for that benefit quarter. If a charge for the Spousal Highest Daily Lifetime 6 Plus benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Account Value to zero, withdrawals may reduce the Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit and the Death Benefit (described above) will not be payable.

**Election of and Designations under the Benefit**

Spousal Highest Daily Lifetime 6 Plus can only be elected based on two designated lives. Designated lives must be natural persons who are each other's spouses at the time of election of the benefit. Currently, Spousal Highest Daily Lifetime 6 Plus only may be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The youngest Owner/Annuitant
 and the beneficiary must be at least 50 years old and the oldest must be at least 55 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. The youngest Owner must be at least 50 years old and the oldest Owner
 must be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. The youngest of the Annuitant and the Contingent Annuitant
 must be at least 50 years old and the oldest must be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows:

a. if
 one Owner dies and the surviving spousal Owner assumes the Annuity, or

b. if
 the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary
 designations under this benefit. If the Designated Lives divorce, however, the Spousal Highest Daily Lifetime 6 Plus benefit
 may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity
 appoint a new designated life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a
 withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds
 to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime 6 Plus can be elected at the time that you purchase your Annuity or after the Issue Date, subject to availability, and our eligibility rules and restrictions. If you elect Spousal Highest Daily Lifetime 6 Plus and terminate it, you can re-elect it, subject to our current rules and availability. Additionally, if you currently own an Annuity with a living benefit that is terminable, you may terminate your existing benefit rider and elect any

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available benefits subject to our current rules. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#chapter_2-sect1_1_982)" in the prospectus for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect a new living benefit, you** **lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your** **Account Value as of the date the new benefit becomes active.** You and your financial professional should carefully consider whether terminating your existing benefit and electing a new benefit is appropriate for you. We reserve the right to waive, change and/or further limit the election frequency in the future.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates: (i) if upon the death of the first designated life, the surviving designated life opts to take the death benefit under the Annuity (thus, the benefit does not terminate solely because of the death of the first designated life), (ii) upon the death of the second designated life (except as may be needed to pay the Death Benefit associated with this benefit), (iii) upon your termination of the benefit, (iv) upon your surrender of the Annuity, (v) upon your election to begin receiving annuity payments (although if you have elected to take annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount), (vi) if both the Account Value and Annual Income Amount equal zero, or (vii) if you cease to meet our requirements as described in "Election of and Designations under the Benefit".

Upon termination of Spousal Highest Daily Lifetime 6 Plus other than upon death of a designated life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Account Value falling below the Account Value Floor. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program, or Automatic Rebalancing Program for which we are providing administrative support, transfer all amounts held in the AST Investment Grade Bond portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If prior to the transfer from the AST Investment Grade Bond portfolio the Account Value in the Variable Options is zero, we will transfer such amounts according to your most recent allocation instructions.

**How Spousal Highest Daily Lifetime 6 Plus Transfers Account Value between Your Permitted Variable Options and the AST Investment Grade** **Bond portfolio.** See "[<u>How Highest Daily Lifetime 6 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment</u> <u>Grade Bond portfolio</u>](#chapter_2-sect1_1_983)" above for information regarding this component of the benefit.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts.

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Spousal Highest Daily Lifetime 6 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-lifetime Withdrawal, please note all Non-Lifetime Withdrawal provisions will apply.

***HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (HD7 Plus)***

**Effective September 14, 2012, Highest Daily Lifetime 7 Plus is no longer available for new elections and we no longer accept additional** **Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus benefit.**

Highest Daily Lifetime 7 Plus is no longer offered for new elections. If you elected Highest Daily Lifetime 7 Plus and subsequently terminate the benefit, you may elect any available living benefit, subject to our current rules. See "Election of and Designations under the Benefit" and "Termination of Existing Benefits and Election of New Benefits" below for details. Please note that if you terminate Highest Daily Lifetime 7 Plus and elect another available living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. The income benefit under Highest Daily Lifetime 7 Plus is based on a single "designated life" who is at least 45 years old on the date that the benefit was elected. The Highest Daily Lifetime 7 Plus Benefit was not available if you elected any

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other optional living benefit, although you may elect any optional death benefit other than the Highest Daily Value death benefit. As long as your Highest Daily Lifetime 7 Plus Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed description of the permitted investment options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**.**

Highest Daily Lifetime 7 Plus guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life ("Lifetime Withdrawals"), provided that you have not made "excess withdrawals" that have resulted in your Account Value being reduced to zero. We also permit you to make a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime Withdrawals under the benefit. Highest Daily Lifetime 7 Plus may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our pre-determined mathematical formula in order to participate in Highest Daily Lifetime 7 Plus. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take an excess withdrawal that brings your Account Value to zero, it is possible that your Annual Income Amount could also fall to zero. In that scenario, no further amount would be payable under the Highest Daily Lifetime 7 Plus benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any adjusted
 Purchase Payment made on the Current Valuation Day (the Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal);
 and

2. the
 Account Value.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) below (proportionally reduced for any Non-Lifetime Withdrawals):

a. 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of the Account Value on the effective
 date of the benefit;

b. 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of all Adjusted Purchase Payments
 made within one year following the effective date of the benefit; and

c. all
 Adjusted Purchase Payments made after one year following the effective date of the benefit.

If you elected Highest Daily Lifetime 7 Plus with Beneficiary Income Option ("BIO") (see below), we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the Tenth Anniversary of the effective date of the benefit ("Tenth Anniversary"). This means that under the Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date.

On and after the date of your first Lifetime Withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first Lifetime Withdrawal (as described below), and may be increased if you qualify for a step-up (as described below).

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**Return of Principal Guarantee**

If you have not made a Lifetime Withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

a. your
 Account Value on the day that you elected Highest Daily Lifetime 7 Plus proportionally reduced for any Non-Lifetime Withdrawal;
 and

b. the
 sum of each Purchase Payment proportionally reduced for any subsequent Non-Lifetime Withdrawal (including the amount of any
 associated Credits) you made during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the AST Investment Grade Bond portfolio), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. Because the amount is added to Account Value, it will also be subject to each charge under your Annuity based on Account Value. This potential addition to Account Value is available only if you have elected Highest Daily Lifetime 7 Plus and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal (other than a Non-Lifetime Withdrawal) prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee. The Return of Principal Guarantee is referred to as the Guaranteed Minimum Account Value Credit in the benefit rider.

**Key Feature – Annual Income Amount under the Highest Daily Lifetime 7 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 45 – less than 59½, 5% for ages 59½-74, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older.

Under the Highest Daily Lifetime 7 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions are based on the actual amount of the withdrawal, including any CDSC that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Charge Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime 7 Plus will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 45 – less than 59½, 5% for ages 59½-74, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus benefit.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime 7 Plus. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the

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step-up would occur. The percentages are: 4% for ages 45 – less than 59½, 5% for ages 59½-74, 6% for ages 75-79, 7% for ages 80-84, and 8% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Account Values that occurred on Valuation Days during the year. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime 7 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime 7 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

If you establish a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

The Highest Daily Lifetime 7 Plus benefit does not affect your ability to make withdrawals under your Annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime 7 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime 7 Plus benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 7 Plus benefit.

**Example of dollar-for-dollar reductions**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the Annuitant is between the ages of 59½ and 74 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

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**Example of highest daily auto step-up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime 7 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_10_936)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Highest Daily Lifetime 7 Plus benefit. You must tell us if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Highest Daily Lifetime 7 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value and the Return of Principal guarantee. It will also proportionally reduce the Periodic Value guarantees on the tenth, twentieth and twenty-fifth anniversaries of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

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**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 7 Plus benefit.

• No
 previous withdrawals have been taken under the Highest Daily Lifetime 7 Plus benefit.

On May 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, the 10<sup>th</sup> benefit year Return of Principal guarantee is $105,000, the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, the 25<sup>th</sup> benefit year minimum Periodic Value guarantee is $630,000 and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on May 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Highest Daily Lifetime 7 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal Amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Return of Principal | $91875 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |
|  25<sup>th</sup> benefit year Minimum Periodic Value | $551250 |

---

**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amount will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution is greater than the Annual Income Amount. Any withdrawal you take that exceeds the Annual Income Amount in Annuity Years that your required minimum distribution amount is not greater than the Annual Income Amount will be treated as an Excess Withdrawal under the benefit. If your required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered an excess withdrawal. In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar by dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as an excess withdrawal.

**Example – required minimum distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000. ($3,000 + ($6,000 – $5,000) = $4,000).

If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all of the guarantees associated with the Highest Daily Lifetime 7 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you

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choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000), without being treated as an Excess Withdrawal is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

**Benefits Under Highest Daily Lifetime 7 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are less than or equal to
 the Annual Income Amount or as a result of the fee that we assess for Highest Daily Lifetime 7 Plus, and amounts are still payable
 under Highest Daily Lifetime 7 Plus, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual
 Income Amount for the Annuity Year. If you have not begun taking Lifetime Withdrawals and your Account Value is reduced to zero as
 a result of the fee we assess for Highest Daily Lifetime 7 Plus, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal
 on the date the Account Value was reduced to zero and Lifetime Withdrawals will begin on the next Annuity anniversary.
 If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in these scenarios, the
 remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years
 we make payments that equal the Annual Income Amount as described in this section. We will make payments until the death of the single
 designated life. To the extent that cumulative withdrawals in the Annuity Year that reduced your Account Value to zero are more than
 the Annual Income Amount, the Highest Daily Lifetime 7 Plus benefit terminates, and no additional payments will be made. However, if
 a withdrawal in the latter scenario was taken to satisfy a required minimum distribution under the Annuity, then the benefit will not terminate, and we
 will continue to pay the Annual Income Amount in subsequent Annuity Years until the death of the Designated Life.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

a. apply
 your Account Value to any Annuity option available; or

b. request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single Designated Life. We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a single
 life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your
 Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

a. the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

b. the
 Account Value.

• If
 no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity
 payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the annuitant's 95 <sup>th</sup> birthday will be treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime 7 Plus benefit are subject to all of the terms and conditions of the Annuity, including any applicable
 CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount.

• Withdrawals
 made while the Highest Daily Lifetime 7 Plus Benefit is in effect will be treated, for tax purposes, in the same way as any other
 withdrawals under the Annuity.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Highest Daily Lifetime 7
 Plus benefit. The Highest Daily Lifetime 7 Plus benefit provides a guarantee that if your Account Value is reduced to zero (subject to
 our rules regarding
 time and amount of withdrawals), you will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio (see description below)
 if you elect this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936) **.** You can find a copy
 of the AST Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Transfers
 to and from the elected Variable Options and the AST Investment Grade Bond portfolio triggered by the Highest Daily Lifetime 7 Plus
 mathematical formula will not count toward the maximum number of free transfers allowable under an Annuity.

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Highest Daily Lifetime 7 Plus benefit. If, subsequent to your election of the benefit, we change our requirements for how Account
 Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly adopted
 requirements. Subject to any change in requirements, transfer of Account Value and allocation of additional Purchase Payments may
 be subject to new investment limitations.

• The
 maximum charge for Highest Daily Lifetime 7 Plus is 1.50% annually of the greater of Account Value and the Protected Withdrawal Value
 (PWV). We deduct this fee on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the
 next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.375% of the greater of the prior day's Account Value or the prior
 day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Variable
 Options including the AST Investment Grade Bond portfolio, and from the DCA Fixed Rate Option (if applicable). Since this fee is based
 on the greater of the Account Value or the Protected Withdrawal Value, the fee for Highest Daily Lifetime 7 Plus may be greater than
 it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the Account Value at the benefit quarter,
 we will charge the remainder of the Account Value for the benefit and continue the benefit as described above. You will begin paying
 the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income
 payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime 7 Plus cause your Account Value to reduce to zero.
 Certain optional Death Benefits may terminate if withdrawals taken under Highest Daily Lifetime 7 Plus cause your Account Value to reduce
 to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
 for more information.)

**Election of and Designations under the Benefit**

We no longer permit new elections of Highest Daily Lifetime 7 Plus. For Highest Daily Lifetime 7 Plus, there must have been either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must have been a single natural person Annuitant. In either case, the Annuitant must have been at least 45 years old.

Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime 7 Plus. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime 7 Plus, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

**Please note that if you terminate a living benefit such as Highest Daily Lifetime 7 Plus and elect a new living benefit, you lose the guarantees** **that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the** **date the new benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

**Termination of the Benefit**

You may terminate Highest Daily Lifetime 7 Plus at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates:

(i) upon your termination of the benefit, (ii) upon your surrender of the Annuity, (iii) upon your election to begin receiving annuity payments (although if you have elected to receive the Annual Income Amount in the form of Annuity payments, we will continue to pay the Annual Income Amount), (iv) upon our receipt of due proof of the death of the Annuitant, (v) if both the Account Value and Annual Income Amount equal zero, or (vi) if you cease to meet our requirements as described in "Election of and Designations under the Benefit".

Upon termination of Highest Daily Lifetime 7 Plus other than upon the death of the Annuitant, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond portfolio to your Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

If a surviving spouse elects to continue the Annuity, the Highest Daily Lifetime 7 Plus benefit terminates. The spouse may elect the benefit subject to the restrictions discussed above.

**How Highest Daily Lifetime 7 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond** **Portfolio**

As indicated above, we limit the Variable Options to which you may allocate Account Value if you elect Highest Daily Lifetime 7 Plus. For purposes of this benefit, we refer to those permitted investment options as the "Permitted Variable Options".

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An integral part of Highest Daily Lifetime 7 Plus is the predetermined mathematical formula used to transfer Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the "AST Investment Grade Bond portfolio"). The AST Investment Grade Bond portfolio is available only with this benefit, and thus you may not allocate Purchase Payments to or make transfers to or from the AST Investment Grade Bond portfolio. The formula monitors your Account Value daily and, if dictated by the formula, systematically transfers amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio. **The formula is set forth in** [**<u>Appendix G</u>**](#chapter_24-sect1_1_936)**.**

Speaking generally, the formula, which is applied each Valuation Day, operates as follows. The formula starts by identifying an income basis for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. Note that 5% is used in the formula, irrespective of the Annuitant's attained age. Then it produces an estimate of the total amount targeted in our allocation model, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments (and associated purchase Credits), and any excess withdrawals. Next, the formula subtracts from the Target Value the amount held within the AST Investment Grade Bond portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the AST Investment Grade Bond portfolio, is called the "Target Ratio" or "r". If, on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on such third Valuation Day, make a transfer from the Permitted Variable Options in which you are invested (subject to the 90% cap rule) to the AST Investment Grade Bond portfolio. Once a transfer is made, the three consecutive Valuation Days begin again. If, however, on any Valuation Day, the Target Ratio is above 84.5%, it will make a transfer from the Permitted Variable Options (subject to the 90% cap) to the AST Investment Grade Bond portfolio (as described above). If the Target Ratio falls below 78% on any Valuation Day, then a transfer from the AST Investment Grade Bond portfolio to the Permitted Variable Options will occur.

The formula will not execute a transfer to the AST Investment Grade Bond portfolio that results in more than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST Investment Grade Bond portfolio that would result in more than 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio, only the amount that results in exactly 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio will be transferred. Additionally, future transfers into the AST Investment Grade Bond portfolio will not be made (regardless of the performance of the AST Investment Grade Bond portfolio and the Permitted Variable Options) at least until there is first a transfer out of the AST Investment Grade Bond portfolio. Once this transfer occurs out of the AST Investment Grade Bond portfolio, future amounts may be transferred to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST Investment Grade Bond portfolio that results in greater than 90% of your Account Value being allocated to the AST Investment Grade Bond portfolio. However, it is possible that, due to the investment performance of your allocations in the AST Investment Grade Bond portfolio and your allocations in the permitted Variable Options you have selected, your Account Value could be more than 90% invested in the AST Investment Grade Bond portfolio.

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST Investment Grade Bond portfolio at least until there is first a transfer out of the AST Investment Grade Bond portfolio, regardless of how much of your Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Account Value is allocated to the AST Investment Grade Bond portfolio, and the formula will still not transfer any of your Account Value to the AST Investment Grade Bond portfolio (at least until there is first a transfer out of the AST Investment Grade Bond portfolio). For example,

• March
 19, 2009 – a transfer is made to the AST Investment Grade Bond portfolio that results in the 90% cap being met and now $90,000 is
 allocated to the AST Investment Grade Bond portfolio and $10,000 is allocated to the Permitted Variable Options.

• March
 20, 2009 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST Investment Grade Bond
 portfolio to the Permitted Variable Options since the cap went into effect on March 19, 2009.

• On
 March 20, 2009 (and at least until first a transfer is made out of the AST Investment Grade Bond portfolio under the formula) –
 the $10,000 payment
 is allocated to the Permitted Variable Options and on this date you have 82% in the AST Investment Grade Bond portfolio
 and 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST
 Investment Grade Bond portfolio).

• Once
 there is a transfer out of the AST Investment Grade Bond portfolio (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST Investment Grade Bond portfolio if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into existence and be removed multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST Investment Grade Bond portfolio as dictated by the formula.

As you can glean from the formula, poor or flat investment performance of your Account Value may result in a transfer of a portion of your Account Value in the Permitted Variable Options to the AST Investment Grade Bond portfolio because such poor investment performance will tend to increase the Target Ratio. Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. In deciding how much to transfer, we use another formula, which essentially seeks to re-balance amounts held in the Permitted Variable Options and the AST Investment Grade Bond portfolio so that the Target Ratio meets a target, which currently is equal to 80%. Once you elect Highest Daily Lifetime 7 Plus, the values we use to compare to the Target Ratio will be fixed.

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Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, a transfer may be made from the AST Investment Grade Bond portfolio to the Permitted Variable Options. Any such transfer will be based on your existing allocation instructions or (in the absence of such existing instructions) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after the transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

The amount of the transfer will be equal to the lesser of:

a. The
 total value of all your Account Value in the AST Investment Grade Bond portfolio, or

b. An
 amount equal to 5% of your total Account Value.

While you are not notified when your Annuity reaches a transfer trigger under the formula, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the AST Investment Grade Bond portfolio. The formula by which the transfer operates is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under Highest Daily Lifetime 7 Plus. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

• Not
 make any transfer between the Permitted Variable Options and the AST Investment Grade Bond portfolio; or

• If
 a portion of your Account Value was previously allocated to the AST Investment Grade Bond portfolio, transfer all or a portion of those amounts to the Permitted
 Variable Options, based on your existing allocation instructions or (in the absence of such existing instructions) on
 a proportional basis (i.e., in the same proportion as the current balances in your Variable Options); or

• Transfer
 a portion of your Account Value in the Permitted Variable Options on a proportional basis to the AST Investment Grade Bond portfolio.

At any given time, some, most or none of your Account Value will be allocated to the AST Investment Grade Bond portfolio, as dictated by the formula.

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the AST Investment Grade Bond portfolio is difference between your Account Value and your Protected Withdrawal Value. If none of your Account Value is allocated to the AST Investment Grade Bond portfolio, then over time the formula permits an increasing difference between the Account Value and the Protected Withdrawal Value before a transfer to the AST Investment Grade Bond portfolio occurs. Therefore, as time goes on, while none of your Account Value is allocated to the AST Investment Grade Bond portfolio, the smaller the difference between the Protected Withdrawal Value and the Account Value, the more the Account Value can decrease prior to a transfer to the AST Investment Grade Bond portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST Investment Grade Bond portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime 7 Plus has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the AST Investment Grade Bond portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect) and;

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Because the amount allocated to the AST Investment Grade Bond portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the AST Investment Grade Bond portfolio or to the Permitted Variable Options, the greater the impact performance of those investments have on your Account Value and thus the greater the impact on whether (and how much) your Account Value is transferred to or from the AST Investment Grade Bond portfolio. It is possible, under the formula, that if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Account Value is allocated to the AST Investment Grade Bond portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the AST Investment Grade Bond portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the AST Investment Grade Bond portfolio, if dictated by the formula and subject to the 90% cap rule.

Any Account Value in the AST Investment Grade Bond portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the AST Investment Grade Bond portfolio.

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**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts. Please note that any withdrawal (except the Non-Lifetime Withdrawal) you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above under "Key Feature – Protected Withdrawal Value".

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime 7 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note all Non-lifetime Withdrawal provisions will apply.

**Highest Daily Lifetime 7 Plus with Beneficiary Income Option**

**Effective September 14, 2012, Highest Daily Lifetime 7 Plus with Beneficiary Income Option is no longer available for new elections and we no** **longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus with Beneficiary Income Option.**

We previously offered an optional death benefit feature under Highest Daily Lifetime 7 Plus, the amount of which is linked to your Annual Income Amount. We refer to this optional death benefit as the Beneficiary Income Option or BIO. Highest Daily Lifetime 7 Plus with BIO is no longer available for new elections. Please note that if you terminate Highest Daily Lifetime 7 Plus with BIO and elect any other available living benefit you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. As long as your Highest Daily Lifetime 7 Plus with Beneficiary Income Option is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. This benefit could be elected, provided that all Owners and beneficiaries are natural persons or an agent acting for a natural person.

If you elected this death benefit, you could not elect any other optional benefit. You could have elected the Beneficiary Income Option death benefit so long as the Annuitant was no older than age 75 at the time of election and met the Highest Daily Lifetime 7 Plus age requirements. For purposes of this optional death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Highest Daily Lifetime 7 Plus itself. However, we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the Tenth Anniversary Date. This means that under the Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date. If you choose the Highest Daily Lifetime 7 Plus with BIO, the maximum charge is 2.00% of the greater of Account Value and the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the greater of the prior day's Account Value or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Variable Options including the AST Investment Grade Bond portfolio, and from the DCA Fixed Rate Option (if applicable). Because the fee for this benefit is based on the greater of the Account Value or the Protected Withdrawal Value, the fee for Highest Daily Lifetime 7 Plus with the Beneficiary Income Option may be greater than it would have been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero and, continue the benefit as described below.

Upon a death that triggers payment of a death benefit under the Annuity, we identify the following amounts: (a) the amount of the basic death benefit under the Annuity, (b) the Protected Withdrawal Value, and (c) the Annual Income Amount. If there were no Lifetime Withdrawals prior to the date of death, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death, and we calculate the Annual Income Amount as if there were a withdrawal on the date of death. If there were Lifetime Withdrawals prior to the date of death, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

If there is one beneficiary, he/she must choose to receive either the basic death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of periodic payments of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Each beneficiary can choose to take his/her portion of either (a) the basic death benefit, or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified Annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option death benefit, each beneficiary's share of the

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death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year Payout
 Period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal
 Value). The pro-rated portion of the Annual Income Amount, equal to $3,750 annually (i.e., the first beneficiary's 75% share multiplied
 by $5,000), is then paid each year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e.,
 the first beneficiary's 75% share of the $100,000 Protected Withdrawal Value). The second beneficiary would receive 25% of the basic
 death benefit amount (or $12,500).

If you elect to terminate Highest Daily Lifetime 7 Plus with Beneficiary Income Option, both Highest Daily Lifetime 7 Plus and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Highest Daily Lifetime 7 Plus with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election of and Designations under the Benefit" section above.

**Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator**

**Effective September 14, 2012, Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator is no longer available for new elections and we** **no longer accept additional Purchase Payments for Annuities with the Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator.**

In the past, we offered a version of Highest Daily Lifetime 7 Plus called Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator ("Highest Daily Lifetime 7 Plus with LIA"). You could choose Highest Daily Lifetime 7 Plus with or without also electing LIA, however you could not elect LIA without Highest Daily Lifetime 7 Plus and you could elect the LIA benefit at the time you elect Highest Daily Lifetime 7 Plus. Please note that if you terminate Highest Daily Lifetime 7 Plus with LIA and elect any other available living benefit you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. If you elected this benefit, you may not have elected any other optional benefit. As long as your Highest Daily Lifetime 7 Plus with LIA benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. The income benefit under Highest Daily Lifetime 7 Plus with LIA was based on a single "designated life" who was between the ages of 45 and 75 on the date that the benefit is elected. All terms and conditions of Highest Daily Lifetime 7 Plus apply to this version of the benefit, except as described herein.

Highest Daily Lifetime 7 Plus with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care. You should seek professional advice to determine your financial needs for long-term care.

Highest Daily Lifetime 7 Plus with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. If you choose the Highest Daily Lifetime 7 Plus with LIA, the maximum charge is 2.00% of the greater of Account Value and the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the greater of the prior day's Account Value, or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Sub accounts including the AST Investment Grade Bond Sub account, and the DCA Fixed Rate Option (if applicable). Since this fee is based on the greater of Account Value or the Protected Withdrawal Value, the fee for Highest Daily Lifetime 7 Plus with LIA may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

If this benefit is being elected on an Annuity held as a 403(b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403(b) plan itself.

**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months from the benefit effective date, and an elimination period of 120 days from the date of notification that one or both of the requirements described immediately below have been met, apply before you can become eligible for the LIA Amount. Assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, at least one of the following requirements ("LIA conditions") must be met.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1. The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to law or any
 state licensed facility
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical limitations
 which prohibit daily living in a non-institutional setting.

2. The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

a. Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

b. Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

c. Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

d. Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

e. Transferring:
 Moving into or out of a bed, chair or wheelchair.

f. Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described above under the Highest Daily Lifetime 7 Plus benefit.

Additionally, once eligibility is determined, we will reassess your eligibility on an annual basis although your LIA benefit for the year that immediately precedes our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuities Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under the Highest Daily Lifetime 7 Plus Benefit" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

**LIA amount at the first Lifetime Withdrawal.** If your first Lifetime Withdrawal subsequent to election of Highest Daily Lifetime 7 Plus with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA amount after the first Lifetime Withdrawal.** If you become eligible for the LIA Amount after you have taken your first Lifetime Withdrawal, the available LIA amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount, however the available LIA amount in the current Annuity Year is reduced by any Lifetime Withdrawals that have been taken in the current Annuity Year. Cumulative Lifetime Withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year.

**Withdrawals In Excess of the LIA amount.** If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the LIA Amount when you are eligible ("Excess Withdrawal"), your LIA Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Withdrawal. Reductions include the actual amount of the withdrawal, including any CDSC that may apply. Withdrawals of any amount (excluding the Non-Lifetime Withdrawal) up to and including the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Excess Withdrawals will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA amount (when eligible) but in excess of the Charge Free Withdrawal amount available under this Annuity will not incur a CDSC.

Withdrawals are not required. However, subsequent to the first Lifetime Withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, we will increase your LIA Amount by double the amount we add to your Annual Income Amount.

**Step Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments.** If your Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount when you are eligible, or as a result of the fee that we assess for Highest Daily Lifetime 7 Plus with LIA, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. If you have not begun taking Lifetime Withdrawals and your Account Value is reduced to zero as a result of the fee we assess for Highest Daily Lifetime 7 Plus with LIA, we will calculate the Annual Income Amount and any

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LIA amount if you are eligible, as if you made your first Lifetime Withdrawal on the date the Account Value was reduced to zero and Lifetime Withdrawals will begin on the next Annuity Anniversary. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in these scenarios, the remaining LIA Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section for more information. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". To the extent that cumulative withdrawals in the current Annuity Year that reduce your Account Value to zero are more than the LIA Amount (except in the case of required minimum distributions), Highest Daily Lifetime 7 Plus with LIA terminates, and no additional payments are permitted.

**Annuity Options.** In addition to the Highest Daily Lifetime 7 Plus Annuity Options described above, after the 10<sup>th</sup> Anniversary you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make payments equal to the LIA Amount. The portion of such payments equal to the Annual Income Amount will be treated as an Annuity Payment for tax purposes. The excess above the Annual Income Amount will be treated as a nonperiodic withdrawal. Please see the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section for more information. If you would receive a greater payment by applying your Account Value to receive payments for life under your Annuity, we will pay the greater amount. Annuitization prior to the Tenth Anniversary will forfeit any present or future LIA amounts. We will continue to make payments until the death of the Designated Life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun.

If you elected Highest Daily Lifetime 7 Plus with LIA, and never meet the eligibility requirements you will not receive any additional payments based on the LIA Amount.

***SPOUSAL HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (SHD7 Plus)***

**Effective September 14, 2012, Spousal Highest Daily Lifetime 7 Plus is no longer available for new elections and we no longer accept** **additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 7 Plus benefit.**

Spousal Highest Daily Lifetime 7 Plus is the spousal version of Highest Daily Lifetime 7 Plus. If you elected Spousal Highest Daily Lifetime 7 Plus and subsequently terminate the benefit, you may elect another available living benefit, subject to our current rules. See "[<u>Termination of Existing Benefits and</u> <u>Election New Benefits</u>](#chapter_2-sect1_1_982)". Please note that if you terminate Spousal Highest Daily Lifetime 7 Plus and elect another benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. Spousal Highest Daily Lifetime 7 Plus could have been elected based on two Designated Lives, as described below. The youngest Designated Life must have been at least 50 years old and the oldest Designated Life must have been at least 55 years old when the benefit was elected. Spousal Highest Daily Lifetime 7 Plus is not available if you elected any other optional benefit. As long as your Spousal Highest Daily Lifetime 7 Plus Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit. **For a more detailed description of permitted investment options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936)**.**

We previously offered a benefit that guarantees until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "Designated Lives", and each, a "Designated Life") the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the Designated Lives ("Lifetime Withdrawals") provided you have not made "excess withdrawals" that have resulted in your Account Value being reduced to zero. We also permit a one-time Non-Lifetime Withdrawal from your Annuity prior to taking Lifetime Withdrawals under the benefit. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Highest Daily Lifetime 7 Plus benefit after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. As discussed below, we require that you participate in our predetermined mathematical formula in order to participate in Spousal Highest Daily Lifetime 7 Plus. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated). Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Account Value falls to zero, if you take an excess withdrawal that brings your Account Value to zero, it is possible that your Annual Income Amount could also fall to zero. In that scenario, no further amount would be payable under Spousal Highest Daily Lifetime 7 Plus.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

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The "Periodic Value" initially is equal to the Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 7% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any adjusted
 Purchase Payment made on the Current Valuation Day (the Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal);
 and

2. the
 Account Value.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 10<sup>th</sup>, 20<sup>th</sup>, or 25<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) (proportionally reduced for any Non-Lifetime Withdrawal):

a. 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of the Account Value on the effective
 date of the benefit;

b. 200%
 (on the 10 <sup>th</sup> anniversary), 400% (on the 20 <sup>th</sup> anniversary) or 600% (on the 25 <sup>th</sup> anniversary) of all Adjusted Purchase Payments
 made within one year following the effective date of the benefit; and

c. All
 Adjusted Purchase Payments made after one year following the effective date of the benefit.

If you elect Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option ("BIO") (see below), we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the Tenth Anniversary of the effective date of the benefit ("Tenth Anniversary"). This means that under the Spousal Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date.

On and after the date of your first Lifetime Withdrawal, your Protected Withdrawal Value is increased by the amount of any subsequent Purchase Payments, is reduced by withdrawals, including your first Lifetime Withdrawal (as described below), and may be increased if you qualify for a step-up (as described below).

**Return of Principal Guarantee**

If you have not made a Lifetime Withdrawal before the Tenth Anniversary, we will increase your Account Value on that Tenth Anniversary (or the next Valuation Day, if that anniversary is not a Valuation Day), if the requirements set forth in this paragraph are met. On the Tenth Anniversary, we add:

a. your
 Account Value on the day that you elected Spousal Highest Daily Lifetime 7 Plus proportionally reduced for any Non-Lifetime Withdrawal;
 and

b. the
 sum of each Purchase Payment proportionally reduced for any subsequent Non-Lifetime Withdrawal (including the amount of any
 associated Credits) you made during the one-year period after you elected the benefit.

If the sum of (a) and (b) is greater than your Account Value on the Tenth Anniversary, we increase your Account Value to equal the sum of (a) and (b), by contributing funds from our general account. If the sum of (a) and (b) is less than or equal to your Account Value on the Tenth Anniversary, we make no such adjustment. The amount that we add to your Account Value under this provision will be allocated to each of your Variable Options (including the AST Investment Grade Bond Portfolio used with this benefit), in the same proportion that each such Variable Option bears to your total Account Value, immediately before the application of the amount. Any such amount will not be considered a Purchase Payment when calculating your Protected Withdrawal Value, your death benefit, or the amount of any optional benefit that you may have selected, and therefore will have no direct impact on any such values at the time we add this amount. Because the amount is added to your Account Value, it will also be subject to each charge under your Annuity based on Account Value. This potential addition to Account Value is available only if you have elected Spousal Highest Daily Lifetime 7 Plus and if you meet the conditions set forth in this paragraph. Thus, if you take a withdrawal, including a required minimum distribution, (other than a Non-Lifetime Withdrawal) prior to the Tenth Anniversary, you are not eligible to receive the Return of Principal Guarantee. The Return of Principal Guarantee is referred to as the Guaranteed Minimum Account Value Credit in the benefit rider.

**Key Feature – Annual Income Amount under the Spousal Highest Daily Lifetime 7 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the youngest Designated Life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 50 – less than 59½, 5% for ages 59½-79, 6% for ages 80 to 84, 7% for ages 85 to 89, and 8% for ages 90 and older. We use the age of the youngest Designated Life even if that Designated Life is no longer a participant under the Annuity due to death or divorce.

Under the Spousal Highest Daily Lifetime 7 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income

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Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions are based on the actual amount of the withdrawal, including any CDSC that may apply. Lifetime Withdrawals of any amount up to and including the Annual Income Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. Withdrawals of Excess Income will reduce the Protected Withdrawal Value by the same ratio as the reduction to the Annual Income Amount.

Note that if your withdrawal of the Annual Income Amount in a given Annuity Year exceeds the applicable Charge Free Withdrawal amount under the Annuity (but is not considered Excess Income), we will not impose any CDSC on the amount of that withdrawal.

You may use the Systematic Withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime 7 Plus will (i) increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including the amount of any associated Credit) based on the age of the younger Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 50 – less than 59½, 5% for ages 59½-79, 6% for ages 80-84, 7% for ages 85-89, and 8% for ages 90 and older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including the amount of any associated Credit).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Effective September 14, 2012, we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 7 Plus benefit.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the youngest Designated Life on the Annuity Anniversary as of which the step-up would occur. The percentages are 4% for ages 50 – less than 59½, 5% for ages 59½ – 79, 6% for ages 80 – 84, 7% for ages 85 – 89, and 8% for ages 90 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. The Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Account Values that occurred on Valuation Days during the year. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime 7 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime 7 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject.

If you establish a Systematic Withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount.

The Spousal Highest Daily Lifetime 7 Plus benefit does not affect your ability to make withdrawals under your Annuity, or limit your ability to request withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime 7 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year.

If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Account Value, it is possible for the Account Value to fall to zero, even though the Annual Income Amount remains.

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Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime 7 Plus benefit or any other fees and charges. Assume the following for all three examples:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 younger Designated Life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 7 Plus benefit.

**Example of dollar-for-dollar reductions**

On November 24, 2009, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the youngest designated life is between the ages of 59½ and 79 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including December 1, 2009) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on November 27, 2009 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 – reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the excess withdrawal to the Account Value immediately prior to the excess withdrawal. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Less amount of "non" excess withdrawal | $3500.00 |
|  Account Value immediately before excess withdrawal of $1,500 | $114500.00 |
|  Excess withdrawal amount | $1500.00 |
|  Divided by Account Value immediately before excess withdrawal | $114500.00 |
|  Ratio | 1.31% |
|  Annual Income Amount | $6000.00 |
|  Less ratio of 1.31% | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

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Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year.

• The
 Annuity Anniversary is July 1.

• The
 AIA for this Annuity Year is $12,000.

• The
 applicable Withdrawal Percentage is 5%.

• There
 were no excess withdrawals during the Annuity Year.

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000.

• The
 Unadjusted Account Value on July 1 is $239,000.

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime 7 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_10_936)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value above will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Spousal Highest Daily Lifetime 7 Plus benefit. You must tell us if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Spousal Highest Daily Lifetime 7 Plus benefit. If you don't elect the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Protected Withdrawal Value and Annual Income Amount. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value and the Return of Principal guarantee. It will also proportionally reduce the Periodic Value guarantees on the tenth, twentieth and twenty-fifth anniversaries of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce all three by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the time of the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a Systematic Withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first partial withdrawal in payment of any third party investment advisory service from your Annuity also cannot be classified as the Non-Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2008

• The
 Spousal Highest Daily Lifetime 7 Plus benefit is elected on March 5, 2009

• The
 Account Value at benefit election was $105,000

• The
 younger Designated Life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 7 Plus benefit.

• No
 previous withdrawals have been taken under the Spousal Highest Daily Lifetime 7 Plus benefit.

On May 2, 2009, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, the 10<sup>th</sup> benefit year Return of Principal guarantee is $105,000, the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, the 25<sup>th</sup> benefit year minimum Periodic Value guarantee is $630,000 and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on May 2, 2009 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Spousal Highest Daily Lifetime 7 Plus benefit will be reduced by the ratio the total withdrawal amount represents of the Account Value just prior to the withdrawal being taken.

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**Here is the calculation:**

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| | |
|:---|:---|
|  Withdrawal Amount divided by | $15000 |
|  Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Return of Principal | $91875 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |
|  25<sup>th</sup> benefit year Minimum Periodic Value | $551250 |

---

**Required Minimum Distributions**

Withdrawals that exceed the Annual Income Amount, but which you are required to take as a required minimum distribution for this Annuity, will not reduce the Annual Income Amount for future years. No additional Annual Income Amounts will be available in an Annuity Year due to required minimum distributions unless the required minimum distribution amount is greater than the Annual Income Amount. Any withdrawal you take that exceeds the Annual Income Amount in Annuity Years that your required minimum distribution amount is not greater than the Annual Income Amount will be treated as an Excess Withdrawal under the benefit. If the required minimum distribution (as calculated by us for your Annuity and not previously withdrawn in the current calendar year) is greater than the Annual Income Amount, an amount equal to the remaining Annual Income Amount plus the difference between the required minimum distribution amount not previously withdrawn in the current calendar year and the Annual Income Amount will be available in the current Annuity Year without it being considered an excess withdrawal.

In the event that a required minimum distribution is calculated in a calendar year that crosses more than one Annuity Year and you choose to satisfy the entire required minimum distribution for that calendar year in the next Annuity Year, the distribution taken in the next Annuity Year will reduce your Annual Income Amount in that Annuity Year on a dollar-for-dollar basis. If the required minimum distribution not taken in the prior Annuity Year is greater than the Annual Income Amount as guaranteed by the benefit in the current Annuity Year, the total required minimum distribution amount may be taken without being treated as an excess withdrawal.

**Example – required minimum distributions**

The following example is purely hypothetical and is intended to illustrate a scenario in which the required minimum distribution amount in a given Annuity Year is greater than the Annual Income Amount.

Annual Income Amount = $5,000

Remaining Annual Income Amount = $3,000

Required Minimum Distribution = $6,000

The amount you may withdraw in the current Annuity Year without it being treated as an Excess Withdrawal is $4,000. ($3,000 + ($6,000 – $5,000) = $4,000).

If the $4,000 withdrawal is taken, the remaining Annual Income Amount will be zero and the remaining required minimum distribution amount of $2,000 may be taken in the subsequent Annuity Year (when your Annual Income Amount is reset to $5,000) without proportionally reducing all guarantees associated with the Spousal Highest Daily Lifetime 7 Plus benefit as described above. The amount you may withdraw in the subsequent Annuity Year if you choose not to satisfy the required minimum distribution in the current Annuity Year (assuming the Annual Income Amount in the subsequent Annuity Year is $5,000) without being treated as an Excess Withdrawal is $6,000. This withdrawal must comply with all IRS guidelines in order to satisfy the required minimum distribution for the current calendar year.

**Benefits Under Spousal Highest Daily Lifetime 7 Plus**

• To
 the extent that your Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that are equal to or less than the
 Annual Income Amount or as a result of the fee that we assess for Spousal Highest Daily Lifetime 7 Plus, and amounts are
 still payable under Spousal Highest Daily Lifetime 7 Plus, we will make an additional payment, if any, for that Annuity Year equal to
 the remaining Annual
 Income Amount for the Annuity Year. If you have not begun taking Lifetime Withdrawals and your Account Value is reduced
 to zero as a result of the fee we assess for Spousal Highest Daily Lifetime 7 Plus, we will calculate the Annual Income Amount as if
 you made your first Lifetime Withdrawal on the date the Account Value was reduced to zero and Lifetime Withdrawals will begin on the next
 Annuity Anniversary. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in these
 scenarios, the remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent
 Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments

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until the death of the first of the Designated Lives to die, and will continue to make payments until the death of the second Designated Life. To the extent that cumulative withdrawals in the Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount, the Spousal Highest Daily Lifetime 7 Plus benefit terminates, and no additional payments will be made. However, if a withdrawal in the latter scenario was taken to satisfy a required minimum distribution under the Annuity the benefit will not terminate, and we will continue to pay the Annual Income Amount in subsequent Annuity Years until the death of the second Designated Life.

• If
 Annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving Annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

a. apply
 your Account Value to any Annuity option available; or

b. request
 that, as of the date Annuity payments are to begin, we make Annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life. If, due to death of a Designated Life or divorce prior to Annuitization, only a single Designated Life remains,
 then Annuity payments will be made as a life annuity for the lifetime of the Designated Life. We must receive your request in
 a form acceptable to us at our office.

In the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor or single (as applicable) life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such Annuity payments will be the greater of:

a. the
 present value of the future Annual Income Amount payments. Such present value will be calculated using the greater of the joint and
 survivor or single (as applicable) life fixed annuity rates then currently available or the joint and survivor or single (as applicable) life fixed annuity
 rates guaranteed in your Annuity; and

b. the
 Account Value.

• If
 no Lifetime Withdrawal was ever taken, we will calculate the Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity
 payments are to begin.

• Please
 note that payments that we make under this benefit after the Annuity Anniversary coinciding with or next following the older of the Owner
 or Annuitant's 95 <sup>th</sup> birthday will be treated as annuity payments.

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime 7 Plus benefit are subject to all of the terms and conditions of the Annuity, including any
 applicable CDSC for the Non-Lifetime Withdrawal as well as withdrawals that exceed the Annual Income Amount.

• Withdrawals
 made while the Spousal Highest Daily Lifetime 7 Plus benefit is in effect will be treated, for tax purposes, in the same way as any
 other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable Options.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Highest Daily Lifetime
 7 Plus benefit. The Spousal Highest Daily Lifetime 7 Plus benefit provides a guarantee that if your Account Value is reduced to zero
 (subject to program rules regarding the timing and amount of withdrawals), you will be able to receive your Annual Income Amount in the
 form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• Upon
 inception of the benefit, and to maintain the benefit, 100% of your Account Value must have been allocated to the Permitted Variable Options.

• You
 cannot allocate Purchase Payments or transfer Account Value to or from the AST Investment Grade Bond portfolio (as described below)
 if you elected this benefit. **A summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936) **.** You can find a copy
 of the AST Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>.

• Transfers
 to and from the elected Variable Options and the AST Investment Grade Bond portfolio triggered by the Spousal Highest Daily Lifetime
 7 Plus predetermined mathematical formula will not count toward the maximum number of free transfers allowable under an Annuity.

• You
 must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order to maintain
 the Spousal Highest Daily Lifetime 7 Plus benefit. If, subsequent to your election of the benefit, we change our requirements for how
 Account Value must be allocated under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly
 adopted requirements. Subject to any change in requirements, transfer of Account Value and allocation of additional Purchase Payments
 may be subject to new investment limitations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 maximum fee for Spousal Highest Daily Lifetime 7 Plus is 1.50% annually of the greater of Account Value and the Protected Withdrawal
 Value. We deduct this fee on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary
 (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.375% of the greater of the prior day's
 Account Value, or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the
 Variable Options including the AST Investment Grade Bond portfolio, and from the DCA Fixed Rate Option (if applicable). Since
 this fee is based on the greater of the Account Value and the Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime 7
 Plus may be greater than it would have been, had it been based on the Account Value alone. If the fee to be deducted exceeds the Account
 Value, we will reduce the Account Value to zero, and continue the benefit as described above. You will begin paying the charge for
 this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges
 you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime 7 Plus cause your Account Value to reduce
 to zero. Certain optional Death Benefits may terminate if withdrawals taken under Spousal Highest Daily Lifetime 7 Plus cause your
 Account Value to reduce to zero. (See " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
  for more information.)

**Election of and Designations under the Benefit**

We no longer permit new elections of Spousal Highest Daily Lifetime 7 Plus. Spousal Highest Daily Lifetime 7 Plus could only be elected based on two Designated Lives. Designated Lives must be natural persons who are each other's spouses at the time of election of the benefit. Spousal Highest Daily Lifetime 7 Plus only could be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The youngest Owner/Annuitant
 and the beneficiary must be at least 50 years old and the oldest must be at least 55 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. The youngest Owner must be at least 50 years old and the oldest Owner
 must be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. The youngest of the Annuitant and the Contingent Annuitant
 must be at least 50 years old and the oldest must be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of beneficiary designations under this benefit. If the Designated Lives divorce, however, the Spousal Highest Daily Lifetime 7 Plus benefit may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime 7 Plus could have been elected at the time that you purchased your Annuity or after the Issue Date, subject to our eligibility rules and restrictions. See "<u>[Optional Living Benefits](#chapter_11-sect1_2_936) - [Termination of Existing Benefits and Election of New Benefits](#chapter_2-sect1_1_982)</u>" below for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect a new living benefit, you** **lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your** **Account Value as of the date the new benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency** **in the future.**

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply. The benefit automatically terminates: (i) if upon the death of the first Designated Life, the surviving Designated Life opts to take the death benefit under the Annuity (thus, the benefit does not terminate solely because of the death of the first Designated Life), (ii) upon the death of the second Designated Life, (iii) upon your termination of the benefit, (iv) upon your surrender of the Annuity, (v) upon your election to begin receiving annuity payments (although if you have elected to take annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount), (vi) if both the Account Value and Annual Income Amount equal zero, or (vii) if you cease to meet our requirements as described in "Election of and Designations under the Benefit".

Upon termination of Spousal Highest Daily Lifetime 7 Plus other than upon death of a Designated Life, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Variable Options, and (ii) transfer all amounts held in the AST Investment Grade Bond Portfolio (as defined below) to your Variable Options based on your existing allocation instructions or (in the absence of such instruction) on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options).

**How Spousal Highest Daily Lifetime 7 Plus Transfers Account Value between Your Permitted Variable Options and the AST Investment Grade** **Bond Portfolio**

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See "[<u>How Highest Daily Lifetime 7 Plus Transfers Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond</u> <u>Portfolio</u>](#a_001)" in this Prospectus for information regarding this component of the benefit.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the required minimum distribution rules under the Code provide that you begin receiving periodic amounts from your annuity beginning after you turn the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts. Please note that any withdrawal (except the Non-Lifetime Withdrawal) you take prior to the Tenth Anniversary, even if withdrawn to satisfy required minimum distribution rules, will cause you to lose the ability to receive the Return of Principal Guarantee and the guaranteed amount described above under "Key Feature – Protected Withdrawal Value".

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Spousal Highest Daily Lifetime 7 Plus through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

If you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note all Non-lifetime Withdrawal provisions will apply.

**Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option**

**Effective September 14, 2012, Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option is no longer available for new elections** **and we no longer accept additional Purchase Payments for Annuities with the Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income** **Option.**

We previously offered an optional death benefit feature under Spousal Highest Daily Lifetime 7 Plus, the amount of which is linked to your Annual Income Amount. We refer to this optional death benefit as the Beneficiary Income Option or BIO. Spousal Highest Daily Lifetime 7 Plus with BIO is no longer available for new elections. You could choose Spousal Highest Daily Lifetime 7 Plus with or without also selecting the Beneficiary Income Option death benefit. However, you could not elect the Beneficiary Income Option without Spousal Highest Daily Lifetime 7 Plus and you could elect the Beneficiary Income Option death benefit at the time you elect Spousal Highest Daily Lifetime 7 Plus. Please note that if you terminate Spousal Highest Daily Lifetime 7 Plus with BIO and elect any available living benefit you lose the guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. As long as your Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option is in effect, you must allocate your Account Value in accordance with the then permitted and available investment option(s) with this benefit.

If you elected the Beneficiary Income Option death benefit, you could not elect any other optional benefit. You could elect the Beneficiary Income Option death benefit so long as each Designated Life is no older than age 75 at the time of election and the Spousal Highest Daily Lifetime 7 Plus age requirements are met. This death benefit is not transferable in the event of a divorce, nor may the benefit be split in accordance with any divorce proceedings or similar instrument of separation. If you choose the Spousal Highest Daily Lifetime 7 Plus with BIO, the maximum charge is 2.00% of the greater of Account Value and the Protected Withdrawal Value ("PWV") annually. We deduct this charge on each quarterly anniversary of the benefit effective date. Thus, on each such quarterly anniversary (or the next Valuation Day, if the quarterly anniversary is not a Valuation Day), we deduct 0.50% of the greater of the prior day's Account Value or the prior day's Protected Withdrawal Value at the end of the quarter. We deduct the fee on a proportional basis from each of the Variable Options, including the AST Investment Grade Bond portfolio, and from the DCA Fixed Rate Option (if applicable). Because the fee for this benefit is based on the greater of the Account Value or the Protected Withdrawal Value, the fee for Spousal Highest Daily Lifetime 7 Plus with the Beneficiary Income Option may be greater than it would have been based on the Account Value alone. If the fee to be deducted exceeds the current Account Value, we will reduce the Account Value to zero, and continue the benefit as described below.

For purposes of this optional death benefit, we calculate the Annual Income Amount and Protected Withdrawal Value in the same manner that we do under Spousal Highest Daily Lifetime 7 Plus itself. However, we will stop determining the Periodic Value (as described above) on the earlier of your first Lifetime Withdrawal after the effective date of the benefit or the Tenth Anniversary Date. This means that under the Spousal Highest Daily Lifetime 7 Plus with BIO benefit you will not be eligible for the guaranteed minimum Periodic Values described above on the 20<sup>th</sup> and 25<sup>th</sup> Anniversary of the Benefit Effective Date. Upon the first death of a Designated Life, no amount is payable under the Beneficiary Income Option death benefit. Upon the second death of a Designated Life, we identify the following amounts: (a) the amount of the basic death benefit under the Annuity, (b) the Protected Withdrawal Value (less any Credits associated with Purchase Payments applied within 12 months prior to the date of death), and (c) the Annual Income Amount. If there were no Lifetime Withdrawals prior to the date of death of the second Designated Life, then we calculate the Protected Withdrawal Value for purposes of this death benefit as of the date of death of the second Designated Life, and we calculate the Annual Income Amount as if there were a

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Lifetime Withdrawal on the date of death of the second Designated Life. If there were Lifetime Withdrawals prior to the date of death of the second Designated Life, then we set the Protected Withdrawal Value and Annual Income Amount for purposes of this death benefit as of the date that we receive due proof of death.

If there is one beneficiary, he/she must choose to receive either the basic death benefit (in a lump sum or other permitted form of distribution) or the Beneficiary Income Option death benefit (in the form of annual payments of the Annual Income Amount – such payments may be annual or at other intervals that we permit). If there are multiple beneficiaries, each beneficiary is presented with the same choice. Thus, each beneficiary can choose to take his/her portion of either (a) the basic Death Benefit, or (b) the Beneficiary Income Option death benefit. If chosen, for qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than December 31<sup>st</sup> of the year following the annuity Owner's date of death. For Non-qualified Annuities, the Beneficiary Income Option death benefit payments must begin no later than one year after the Owner's date of death. For Non-qualified Annuities, if the beneficiary is other than an individual, payment under the Beneficiary Income Option may be limited to a period not exceeding five years from the Owner's date of death. In order to receive the Beneficiary Income Option Death Benefit, each beneficiary's share of the death benefit proceeds must be allocated as a percentage of the total death benefit to be paid. We allow a beneficiary who has opted to receive the Annual Income Amount to designate another beneficiary, who would receive any remaining payments upon the former beneficiary's death. Note also that the final payment, exhausting the Protected Withdrawal Value, may be less than the Annual Income Amount.

Here is an example to illustrate how the death benefit may be paid:

• Assume
 that (i) the basic death benefit is $50,000, the Protected Withdrawal Value is $100,000, and the Annual Income Amount is $5,000; (ii)
 there are two beneficiaries (the first designated to receive 75% of the death benefit and the second designated to receive 25% of the death benefit); (iii)
 the first beneficiary chooses to receive his/her portion of the death benefit in the form of the Annual Income Amount, and
 the second beneficiary chooses to receive his/her portion of the death benefit with reference to the basic death benefit.

• Under
 those assumptions, the first beneficiary will be paid a pro-rated portion of the Annual Income Amount for 20 years (the 20 year pay out
 period is derived from the $5,000 Annual Income Amount, paid each year until it exhausts the entire $100,000 Protected Withdrawal Value).
 The pro-rated portion of the Annual Income Amount equal to $3,750 (i.e., the first beneficiary's 75% share multiplied by $5,000)
 is then paid each
 year for the 20 year period. Payment of $3,750 for 20 years results in total payments of $75,000 (i.e., the first beneficiary's 75% share of the
 $100,000 Protected Withdrawal Value). The second beneficiary would receive 25% of the basic death benefit amount (or $12,500).

If you elect to terminate Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option, both Spousal Highest Daily Lifetime 7 Plus and that death benefit option will be terminated. You may not terminate the death benefit option without terminating the entire benefit. If you terminate Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option, your ability to elect other optional living benefits will be affected as indicated in the "Election of and Designations under the Benefit" section.

**TRIGGERS FOR PAYMENT OF THE DEATH BENEFIT**

Each Annuity provides a Death Benefit during its Accumulation Period. **If an Annuity is owned by one or more natural persons, the Death Benefit is** **payable upon the first death of an Owner. If an Annuity is owned by an entity, the Death Benefit is payable upon the Annuitant's death, if there** **is no Contingent Annuitant.** Please note that if your Annuity is held as a Beneficiary Annuity and owned by one of the permissible entities, no death benefit will be payable since the Annuity will continue distributing the required distributions over the life expectancy of the Key Life until either the Account Value is depleted or the Annuity is fully surrendered. Generally, if a Contingent Annuitant was designated before the Annuitant's death and the Annuitant dies, then the Contingent Annuitant becomes the Annuitant and a Death Benefit will not be paid at that time. The person upon whose death the Death Benefit is paid is referred to below as the "decedent."

**BASIC DEATH BENEFIT**

Each Annuity provides a basic Death Benefit at no additional charge. The insurance charge we deduct daily from your Account Value allocated to the Variable Options is used, in part, to pay us for the risk we assume in providing the basic Death Benefit guarantee under an Annuity. **In addition, with** **respect to Optimum Plus, under certain circumstances, your Death Benefit may be reduced by the amount of any Credits we applied to your** **Purchase Payments. (See "**[**<u>How are Credits Applied to My Account Value</u>**](#chapter_12-sect1_7_936)**".)** Also, no basic Death Benefit will be paid if your Annuity terminates because your Account Value reaches zero (which can happen if, for example, you are taking withdrawals under an optional living benefit).

**Considerations for Contingent Annuitants:** We may allow the naming of a Contingent Annuitant when a Non-qualified Annuity contract is held by a pension plan or a tax favored retirement plan or held by a Custodial Account (as defined in this prospectus). In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity contract continues after the death of the Annuitant. In some of our Annuities held by these same types of entities we allow for the naming of a Co-Annuitant, which also is used to mean the successor annuitant (and not another life used for measuring the duration of an annuity payment option). Like in the case of a Contingent Annuitant, the Annuity may no longer qualify for tax deferral where the contract continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a Contingent Annuitant when a Non-qualified Annuity contract is held by an entity which is not eligible for tax deferral benefits under Section 72(u) of the Code. This does not supersede any benefit language which may restrict the use of the Contingent Annuitant.

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Non-qualified For Optimum, Optimum Four and Optimum Plus Annuities, the existing basic Death Benefit (for all decedent ages) is the greater of:

• The
 sum of all Purchase Payments (not including any Credits) less the sum of all proportional withdrawals and

• The
 sum of your Account Value in the Variable Options, the Benefit Fixed Rate Account and your Interim Value in the Market Value Adjustment
 Fixed Allocations (less the amount of any Credits applied within 12-months prior to the date of death, with respect to Optimum Plus,
 if allowed by applicable State law). Please note that your Account Value includes any applicable Market Value Adjustment.

**<u>"Proportional withdrawals"</u>** are determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn. For example, a withdrawal of 50% of Account Value would be considered as a 50% reduction in Purchase Payments for purposes of calculating the basic Death Benefit.

**<u>Here is an example of how the basic death benefit is calculated:</u>**

The contract was issued with Purchase Payments totaling $100,000 but, due to negative Variable Option performance, the Account Value had decreased to $80,000. If the Owner died, the death benefit would still be $100,000. This amount, however, is reduced proportionally when you make a withdrawal from the contract. If the contract Owner had withdrawn 50% of the remaining $80,000, the death benefit would also be reduced by 50%. Since the death benefit had been $100,000, it would now be $50,000.

**OPTIONAL DEATH BENEFITS**

Optional Death Benefits are offered for purchase with your Annuity to provide an enhanced level of protection for your beneficiaries. No optional Death Benefit is available if your Annuity is held as a Beneficiary Annuity. We reserve the right to cease offering any optional death benefit.

**Currently, these benefits are only offered in those jurisdictions where we have received regulatory approval and must be elected at the time** **that you purchase your Annuity. We may, at a later date, allow existing Annuity Owners to purchase an optional Death Benefit subject to our** **rules and any changes or restrictions in the benefits. The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit may only** **be elected individually, and cannot be elected in combination with any other optional Death Benefit. If you elect Spousal Lifetime Five,** **Spousal Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime 7 Plus or the BIO feature of Highest Daily Lifetime Seven or the Highest** **Daily Lifetime 7 Plus suite of benefits, you are not permitted to elect an optional Death Benefit. With respect to Optimum Plus, under certain** **circumstances, each Optional Death Benefit that you elect may be reduced by the amount of Credits applied to your Purchase Payments.**

**Investment restrictions may apply if you elect certain optional death benefits. See the chart in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_936) **for a list of investment options** **available and permitted with each benefit.**

**Investment Restrictions may apply if you elect certain optional death benefits.**

**ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT**

**The Enhanced Beneficiary Protection Optional Death Benefit is no longer available for new elections. It provides additional amounts to your** **Beneficiary that may be used to offset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. Whether** **this benefit is appropriate for you may depend on your particular circumstances, including other financial resources that may be available to** **your Beneficiary to pay taxes on your Annuity should you die during the Accumulation Period. No benefit is payable if death occurs on or** **after the Annuity Date.**

**The Enhanced Beneficiary Protection Optional Death Benefit provided a benefit payable in addition to the basic Death Benefit and certain** **other optional death benefits you may elect in conjunction with this benefit. If the Annuity has one Owner, the Owner had to be age 75 or less** **at the time the benefit was purchased. If an Annuity has joint Owners, the oldest Owner had to be age 75 or less. If an Annuity is owned by an** **entity, the Annuitant had to be age 75 or less.**

**Calculation Of Enhanced Beneficiary Protection Optional Death Benefit**

If you purchased the Enhanced Beneficiary Protection Optional Death Benefit, the Death Benefit is calculated as follows:

1. the **basic Death Benefit** described above; <br>**PLUS** 

1. 40%
 of your **"Growth"** under an Annuity, as defined below.

**"** **<u>Growth</u>** **"** means the sum of your Account Value in the Variable Options and your Interim Value in the Market Value Adjustment Fixed Allocations, minus the total of all Purchase Payments (less the amount of any Credits applied within 12-months prior to the date of death, with respect to Optimum Plus) reduced by the sum of all proportional withdrawals.

**"** **<u>Proportional withdrawals</u>** **"** are determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn. For example, a withdrawal of 50% of Account Value would be considered as a 50% reduction in Purchase Payments.

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**The Enhanced Beneficiary Protection Optional Death Benefit is subject to a maximum of 100% of all Purchase Payments applied to an** **Annuity at least 12 months prior to the death of the decedent that triggers the payment of the Death Benefit.**

**The Enhanced Beneficiary Protection Optional Death Benefit was offered in those jurisdictions where we received regulatory approval.** **Certain terms and conditions may differ between jurisdictions once approved. Please refer to the section entitled "**[**<u>Taxes</u>**](#chapter_14-sect1_1_936)**" for a discussion of** **special tax considerations for purchasers of this benefit.** **The Enhanced Beneficiary Protection Death Benefit was not available if you elect the** **"**[**<u>Combination 5% Roll-up and Highest Anniversary Value</u>**](#chapter_2-sect1_1_984)**" Death Benefit or the** [**<u>Spousal Lifetime Five Income Benefit</u>**](#chapter_11-sect1_12_936)**,** [**<u>Spousal Highest Daily</u>** **<u>Lifetime Seven</u>**](#chapter_11-sect1_15_936) **or Highest Daily Lifetime Seven with BIO.**

**Examples of Enhanced Beneficiary Protection Optional Death Benefit Calculation**

The following are examples of how the Enhanced Beneficiary Protection Optional Death Benefit is calculated. Each example assumes that a $50,000 initial Purchase Payment is made. Each example assumes that there is one Owner who is age 50 on the Issue Date and that all Account Value is maintained in the Variable Options. The formula for determining the Enhanced Beneficiary Protection Optional Death Benefit is as follows:

Growth = Account Value of Variable Options plus Interim Value of Fixed Allocations minus Purchase Payments - proportional withdrawals

**<u>Example with Variable Option increase</u>**

Assume that the Owner has made no withdrawals and that the Account Value has been increasing due to positive Variable Option performance. On the date we receive due proof of death, the Account Value is $75,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, which ever is greater. Therefore, the basic Death Benefit is equal to $75,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($75,000) **PLUS** 40% of the "Growth" under the Annuity.

---

| | | |
|:---|:---|:---|
| Growth | = | $75,000 - [$50,000 - $0] |
|  | = | $25000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth |
|  | = | $25,000 × 0.40 |
|  | = | $10000 |
| Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $85000 |

---

**<u>Examples with Variable Option decline</u>**

Assume that the Owner has made no withdrawals and that the Account Value has been decreasing due to declines in Variable Option performance. On the date we receive due proof of death, the Account Value is $45,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, which ever is greater. Therefore, the basic Death Benefit is equal to $50,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($50,000) **PLUS** the "Growth" under the Annuity.

---

| | | |
|:---|:---|:---|
|  Growth | = | $45,000 – [$50,000 – $0] |
|  | = | -$5000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth<br> NO BENEFIT IS PAYABLE | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth<br> NO BENEFIT IS PAYABLE | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth<br> NO BENEFIT IS PAYABLE |
|  Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $50000 |

---

**In this example you would receive no additional benefit from purchasing the Enhanced Beneficiary Protection Optional Death Benefit.**

**Example with Variable Option increase and withdrawals**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 5 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $90,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, whichever is greater. Therefore, the basic Death Benefit is equal to $90,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($90,000) **PLUS** 40% of the "Growth" under the Annuity.

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---

| | | |
|:---|:---|:---|
| Growth | = | $90,000 – [$50,000 – ($50,000 × $15,000/$75,000)] |
|  | = | $90,000 – [$50,000 – $10,000] |
|  | = | $90000 – $40000 |
|  | = | $50000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth |
|  | = | $50,000 × 0.40 |
|  | = | $20000 |
| Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $110000 |

---

**HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**

**If an Annuity has one Owner, the Owner must be age 79 or less at the time the Highest Anniversary Value Optional Death Benefit is** **purchased. If an Annuity has joint Owners, the oldest Owner must be age 79 or less. If an Annuity is owned by an entity, the Annuitant must** **be age 79 or less.** **Certain of the Portfolios offered as Variable Options under the Annuity are not available if you elect the Highest Anniversary** **Value Death Benefit. In addition, we reserve the right to require you to use certain asset allocation model(s) if you elect this death benefit.**

**Calculation of Highest Anniversary Value Death Benefit**

The HAV Death Benefit depends on whether death occurs before or after the Death Benefit Target Date.

*If the Owner dies before the Death Benefit Target Date,* the Death Benefit equals the greater of:

a. the
 basic Death Benefit described above; and

b. the
 Highest Anniversary Value as of the Owner's date of death.

*If the Owner dies on or after the Death Benefit Target Date,* the Death Benefit equals the greater of:

a. the
 basic Death Benefit described above; and

b. the
 Highest Anniversary Value on the Death Benefit Target Date plus the sum of all Purchase Payments (including any Credits applied
 to such Purchase Payments more than twelve (12) months prior to date of death in the case of Optimum Plus or as otherwise
 provided for under applicable State law) less the sum of all proportional withdrawals since the Death Benefit Target Date.

**The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and** **decreased by any proportional withdrawals since such date.**

**The Highest Anniversary Value Death Benefit described above is currently being offered in those jurisdictions where we have received** **regulatory approval.. The Highest Anniversary Value Death Benefit is not available if you have elected the "Combination 5% Roll-up and** **Highest Anniversary Value" or the "Highest Daily Value" Death Benefit. It is also not available with Spousal Lifetime Five, Spousal** **Highest Daily Lifetime Seven or Spousal Highest Daily Lifetime 7 Plus Benefit.**

Please refer to the definition of Death Benefit Target Date below. This death benefit may not be an appropriate feature where the Owner's age is near the age specified in the Death Benefit Target Date. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer contract anniversaries before the death benefit target date is reached. The death benefit target date under this death benefit is earlier than the death benefit target date under the Combination 5% Roll-up and Highest Anniversary Value Death Benefit for Owners who are age 76 or older when an Annuity is issued, which may result in a lower value on the death benefit, since there will be fewer contract anniversaries before the death benefit target date is reached.

**Examples of Highest Anniversary Value Death Benefit Calculation**

The following are examples of how the Highest Anniversary Value Death Benefit is calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date and that all Account Value is maintained in the Variable Options.

**<u>Example with Variable Option increase and death before Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the date we receive due proof of death, the Account Value is $75,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Anniversary Value or the basic Death Benefit. The Death Benefit would be the Highest Anniversary Value ($90,000) because it is greater than the amount that would have been payable under the basic Death Benefit ($75,000).

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**<u>Example with withdrawals</u>**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $80,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Anniversary Value or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Anniversary Value | = | $90,000 – [$90,000 × $15,000/$75,000] |
|  | = | $90000 - $18000 |
|  | = | $72000 |
| Basic Death Benefit | = | max [$80,000, $50,000 – ($50,000 × $15,000/$75,000)] |
|  | = | max [$80,000, $40,000] |
|  | = | $80000 |
| The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. |

---

**<u>Example with death after Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals had been made prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Highest Anniversary Value on the Death Benefit Target Date was $80,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greater of the Highest Anniversary Value plus Purchase Payments minus proportional withdrawals after the Death Benefit Target Date or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Anniversary Value | = | $80,000 + $15,000 - [($80,000 + $15,000) × $5,000/$70,000] |
|  | = | $80,000 + $15,000 – $6,786 |
|  | = | $88214 |
| Basic Death Benefit | = | max [$75,000, ($50,000 + $15,000) – {($50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. |

---

**COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT**

If an Annuity has one Owner, the Owner must be age 79 or less at the time the Combination 5% Roll-up and HAV Optional Death Benefit is purchased. If an Annuity has joint Owners, the oldest Owner must be age 79 or less. If the Annuity is owned by an entity, the Annuitant must be age 79 or less.

***Certain Portfolios offered as Variable Options under an Annuity are not available if you elect the Combination 5% Roll-up and HAV Death*** ***Benefit. If you elect this benefit, you must allocate your Account Value in accordance with the then permitted and available option(s). In*** ***addition, we reserve the right to require you to use certain asset allocation model(s) if you elect this Death Benefit.***

**Calculation of the Combination 5% Roll-up and Highest Anniversary Value Death Benefit**

The Combination 5% Roll-up and HAV Death Benefit equals the greatest of:

1. the
 basic Death Benefit described above; and

2. the
 Highest Anniversary Value Death Benefit described above; and

3. 5%
 Roll-up described below.

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The calculation of the 5% Roll-up depends on whether death occurs before or after the Death Benefit Target Date.

*If the Owner dies before the Death Benefit Target Date the 5% Roll up is equal to:*

• all
 Purchase Payments (including any Credits applied to such Purchase Payments more than twelve (12) months prior to date of death in the
 case of Optimum Plus or as otherwise provided for under applicable State law) increasing at an annual effective interest rate of 5% starting
 on the date that each Purchase Payment is made and ending on the Owner's date of death;

**MINUS**

• the
 sum of all withdrawals, dollar for dollar up to 5% of the Roll-up value as of the prior contract anniversary (or Issue Date if the withdrawal
 is in the first contract year). Any withdrawals in excess of the 5% dollar for dollar limit are proportional.

*If the Owner dies on or after the Death Benefit Target Date the 5% Roll-up is equal to:*

• the
 5% Roll-up value as of the Death Benefit Target Date increased by total Purchase Payments (including any Credits applied to such Purchase
 Payments more than twelve (12) months prior to date of death in the case of Optimum Plus) made after the Death Benefit Target
 Date;

**MINUS**

• the
 sum of all withdrawals which reduce the 5% Roll-up proportionally.

**In the case of Optimum Plus, as indicated, the amounts calculated in Items 1, 2 and 3 above (before, on or after the Death Benefit Target Date)** **may be reduced by any Credits under certain circumstances if allowed under applicable State law. Please refer to the definitions of Death** **Benefit Target Date below. This Death Benefit may not be an appropriate feature where the Owner's age is near the age specified in the Death** **Benefit Target Date. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer** **Annuity anniversaries before the Death Benefit Target Date is reached.**

**The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit described above is currently being offered in those jurisdictions** **where we have received regulatory approval. The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit is not available if** **you elect any other optional Death Benefit or elect Spousal Lifetime Five, Spousal Highest Daily Lifetime Seven, Spousal Highest Daily** **Lifetime 7 Plus or any benefit with BIO.**

**Key Terms Used with the Highest Anniversary Value Death Benefit and the Combination 5% Roll-up and Highest Anniversary Value Death** **Benefit:**

• The <u>Death Benefit Target Date</u> for the Highest Anniversary Value Death Benefit is the contract anniversary on or after the 80 <sup>th</sup> birthday of the current
 Owner, the oldest of either joint Owner or the Annuitant, if entity owned.

• The <u>Death Benefit Target Date</u> for the Combination 5% Roll-up and HAV Death Benefit is the later of the contract anniversary on or after the
 80 <sup>th</sup> birthday of the current Owner, the oldest of either joint Owner or the Annuitant, if entity owned, or five years after the Issue Date of an Annuity.

• The <u>Highest Anniversary Value</u> equals the highest of all previous "Anniversary Values" less proportional withdrawals since such anniversary
 and plus any Purchase Payments (including any Credits applied to such Purchase Payments more than twelve (12) months prior
 to the date of death in the case of Optimum Plus or as otherwise provided for under applicable State law) since such anniversary.

• The <u>Anniversary Value</u> is the
 Account Value in the Variable Options plus the Interim Value in any Market Value Adjustment Fixed Allocations
 as of each anniversary of the Issue Date of an Annuity. The Anniversary Value on the Issue Date is equal to your Purchase Payment.
 (including any Credits applied to such Purchase Payments more than twelve (12) months prior to the date of death in the case of
 Optimum Plus or as otherwise provided for under applicable State law).

• <u>Proportional Withdrawals</u> are
 determined by calculating the percentage of your Account Value that each prior withdrawal represented when
 withdrawn. Proportional withdrawals result in a reduction to the Highest Anniversary Value or 5% Roll-up value by reducing such value
 in the same proportion as the Account Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your
 Highest Anniversary Value or 5% Roll-up value is $125,000 and you subsequently withdraw $10,000 at a time when your Account Value
 is equal to $100,000 (a 10% reduction), when calculating the optional Death Benefit we will reduce your Highest Anniversary Value ($125,000) by 10% or $12,500.

**Examples of Combination 5% Roll-up and Highest Anniversary Value Death Benefit Calculation**

The following are examples of how the Combination 5% Roll-Up and Highest Anniversary Value Death Benefit are calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date and that all Account Value is maintained in the Variable Options.

**<u>Example with Variable Option increase and death before Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the 7<sup>th</sup> anniversary of the Issue Date we receive due proof of death, at which time the Account Value is $75,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died *before* the Death Benefit Target Date. The Roll-Up

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Value is equal to initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit. The Death Benefit would be the Highest Anniversary Value ($90,000) because it is greater than both the Roll-Up Value ($67,005) and the amount that would have been payable under the basic Death Benefit ($75,000).

**<u>Example with withdrawals</u>**

Assume that the Owner made a withdrawal of $5,000 on the 6<sup>th</sup> anniversary of the Issue Date when the Account Value was $45,000. The Roll-Up Value on the 6<sup>th</sup> anniversary of the Issue Date is equal to initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The 5% Dollar-for-Dollar Withdrawal Limit for the 7<sup>th</sup> Annuity Year is equal to 5% of the Roll-Up Value as of the 6<sup>th</sup> anniversary of the Issue Date, or $3,350. Therefore, the remaining $1,650 of the withdrawal results in a proportional reduction to the Roll-Up Value. On the 7<sup>th</sup> anniversary of the Issue Date we receive due proof of death, at which time the Account Value is $43,000; however, the Anniversary Value on the 2<sup>nd</sup> anniversary of the Issue Date was $70,000. Assume as well that the Owner has died *before* the Death Benefit Target Date. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Roll-Up Value | = | {(67,005 – $3,350) – [($67,005 – $3,350) × $1,650/($45,000 – $3,350)]} × 1.05 |
|  | = | ($63,655 – $2,522) × 1.05 |
|  | = | $64190 |
| Highest Anniversary Value | = | $70,000 – [$70,000 × $5,000/$45,000] |
|  | = | $70000 – $7778 |
|  | = | $62222 |
| Basic Death Benefit | = | max [$43,000, $50,000 – ($50,000 × $5,000/$45,000)] |
|  | = | max [$43,000, $44,444] |
|  | = | $44444 |
| The Death Benefit therefore is $64,190. | The Death Benefit therefore is $64,190. | The Death Benefit therefore is $64,190. |

---

**<u>Example with death after Death Benefit Target Date</u>**

Assume that the Owner has not made any withdrawals prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Roll-Up Value on the Death Benefit Target Date (the contract anniversary on or following the Owner's 80<sup>th</sup> birthday) is equal to initial Purchase Payment accumulated at 5% for 10 years, or $81,445. The Highest Anniversary Value on the Death Benefit Target Date was $85,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit as of the Death Benefit Target Date; each increased by subsequent Purchase Payments and reduced proportionally for subsequent withdrawals.

---

| | | |
|:---|:---|:---|
| Roll-Up Value | = | $81,445 + $15,000 – [($81,445 + 15,000) × $5,000/$70,000] |
|  | = | $81,445 + $15,000 – $6,889 |
|  | = | $89556 |
| Highest Anniversary Value | = | $85,000 + $15,000 – [($85,000 + 15,000) × $5,000/$70,000] |
|  | = | $85,000 + $15,000 – $7,143 |
|  | = | $92857 |
| Basic Death Benefit | = | max [$75,000, $50,000 + $15,000 – {(50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $92,857. | The Death Benefit therefore is $92,857. | The Death Benefit therefore is $92,857. |

---

**HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**

The Highest Daily Value Death Benefit is no longer available for new elections. If an Annuity has one Owner, the Owner must have been age 79 or less at the time the Highest Daily Value Death Benefit was elected. If an Annuity has joint Owners, the older Owner must have been age 79 or less. If there are joint Owners, death of the Owner refers to the first to die of the joint Owners. If an Annuity is owned by an entity, the Annuitant must have been age 79 or less at the time of the election and death of the Owner refers to the death of the Annuitant.

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***If you elected this benefit, you must allocate your Account Value in accordance with the permitted and available option(s) with this benefit. You*** ***are required to enroll and maintain your Account Value in the asset allocation program if you elected this benefit. If, subsequent to your*** ***election of the benefit, we change our requirements for how Account Value must be allocated under the benefit, the new requirement would*** ***apply only to new elections of the benefit, and we will not compel you to re-allocate your Account Value in accordance with our newly-adopted*** ***requirements. Subsequent to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments may be*** ***subject to the new investment limitations.***

The HDV Death Benefit depends on whether death occurs before or after the Death Benefit Target Date (see the definitions below).

*If the Owner dies before the Death Benefit Target Date, the Death Benefit equals the greater of:*

a. the
 basic Death Benefit described above (including any Credits applied to such Purchase Payments more than twelve (12) months prior
 to the date of death in the case of Optimum Plus or as otherwise provided for under applicable State law); and

b. the
 HDV as of the Owner's date of death.

*If the Owner dies on or after the Death Benefit Target Date, the Death Benefit equals the greater of:*

a. the
 basic Death Benefit described above; and

b. the
 HDV on the Death Benefit Target Date plus the sum of all Purchase Payments (including any Credits applied to such Purchase Payments
 more than twelve (12) months prior to the date of death in the case of Optimum Plus or as otherwise provided for under applicable
 State law) less the sum of all proportional withdrawals since the Death Benefit Target Date.

The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and decreased by any proportional withdrawals since such date.

The Highest Daily Value Death Benefit described above was offered in those jurisdictions where we received regulatory approval. The Highest Daily Value Death Benefit was not available if you elected the Guaranteed Return Option, Guaranteed Return Option Plus, Guaranteed Return Option Plus 2008, Highest Daily GRO, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, the Highest Daily Lifetime 7 Plus benefits, the "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit, or the Highest Anniversary Value Death Benefit.

**Key Terms Used with the Highest Daily Value Death Benefit:**

• The <u>Death Benefit Target</u> Date for the Highest Daily Value Death Benefit is the later of an Annuity anniversary on or after the 80 <sup>th</sup> birthday of the current
 Owner, or the older of either the joint Owner or the Annuitant, if entity owned, or five years after the Issue Date of an Annuity.

• The <u>Highest Daily Value</u> equals
 the highest of all previous "Daily Values" less proportional withdrawals since such date and plus any Purchase
 Payments (plus associated Credits in the case of Optimum Plus applied more than twelve (12) months prior to the date of death or
 as otherwise provided for under applicable State law) since such date.

• The <u>Daily Value</u> is the
 Account Value as of the end of each Valuation Day. The Daily Value on the Issue Date is equal to your Purchase Payment
 (plus associated Credits applied more than twelve (12) months prior to the date of death in the case of Optimum Plus or as otherwise
 provided for under applicable State law).

• <u>Proportional Withdrawals</u> are
 determined by calculating the percentage of your Account Value that each prior withdrawal represented when
 withdrawn. Proportional withdrawals result in a reduction to the Highest Daily Value by reducing such value in the same proportion as
 the Account Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your Highest Daily Value is $125,000
 and you subsequently withdraw $10,000 at a time when your Account Value is equal to $100,000 (a 10% reduction), when calculating
 the optional Death Benefit we will reduce your Highest Daily Value ($125,000) by 10% or $12,500.

**Examples of Highest Daily Value Death Benefit Calculation**

The following are examples of how the HDV Death Benefit is calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date.

**<u>Example with Variable Option increase and death before Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the date we receive due proof of death, the Account Value is $75,000; however, the Highest Daily Value was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Daily Value or the basic Death Benefit. The Death Benefit would be the HDV ($90,000) because it is greater than the amount that would have been payable under the basic Death Benefit ($75,000).

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**<u>Example with withdrawals</u>**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $80,000; however, the Highest Daily Value ($90,000) was attained during the fifth Annuity Year. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Daily Value (proportionally reduced by the subsequent withdrawal) or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Daily Value | = | $90,000 – [$90,000 × $15,000/$75,000] |
|  | = | $90000 - $18000 |
|  | = | $72000 |
| Basic Death Benefit | = | max [$80,000, $50,000 – ($50,000 × $15,000/$75,000)] |
|  | = | max [$80,000, $40,000] |
|  | = | $80000 |
| The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. |

---

**<u>Example with death after Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals had been made prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Highest Daily Value on the Death Benefit Target Date was $80,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greater of the Highest Daily Value on the Death Benefit Target Date plus Purchase Payments minus proportional withdrawals after the Death Benefit Target Date or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Daily Value | = | $80,000 + $15,000 - [($80,000 + $15,000) × $5,000/$70,000] |
|  | = | $80,000 + $15,000 – $6,786 |
|  | = | $88214 |
| Basic Death Benefit | = | max [$75,000, ($50,000 + $15,000) – {($50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. |

---

**Annuities with Joint Owners**

For Annuities with joint Owners, the Death Benefits are calculated as shown above except that the age of the oldest of the joint Owners is used to determine the Death Benefit Target Date. NOTE: If you and your spouse own your Annuity jointly, we will pay the Death Benefit to the Beneficiary. If the sole primary Beneficiary is the surviving spouse, then the surviving spouse can elect to assume ownership of your Annuity and continue the Annuity instead of receiving the Death Benefit (unless the Annuity is held as a Beneficiary Annuity).

**Annuities Owned by Entities**

For Annuities owned by an entity, the Death Benefits are calculated as shown above except that the age of the Annuitant is used to determine the Death Benefit Target Date. Payment of the Death Benefit is based on the death of the Annuitant (or Contingent Annuitant, if applicable). Where a contract is structured so that it is owned by a grantor trust, but the annuitant is not the grantor, then the contract is required to terminate upon the death of the grantor if the grantor pre-deceases the annuitant under Section 72(s) of the Code. Under this circumstance, the contract value will be paid out to the beneficiary and it is not eligible for the death benefit provided under the contract.

**Can I Terminate the Optional Death Benefits? Do the Optional Death Benefits Terminate under other Circumstances?**

You can terminate the Enhanced Beneficiary Protection Death Benefit and the Highest Anniversary Value Death Benefit at any time. The "Combination 5% Roll-up and HAV Death Benefit" and the HDV Death Benefit may not be terminated once elected. The optional Death Benefits will terminate automatically on the Annuity Date. Also, if you elected one of either the Highest Anniversary Value or the Combination 5% Roll-up and HAV Death Benefits and, in addition, are taking withdrawals under a guaranteed minimum withdrawal or a lifetime Guaranteed Minimum Withdrawal Benefit, these optional Death Benefits will terminate if such withdrawals cause your Account Value to reduce to zero. We may also terminate any optional Death Benefit if necessary to comply with our interpretation of the Code and applicable regulations. For jointly owned Annuities, the optional death benefits are payable upon the first death of either Owner and therefore terminate and do not continue if a surviving spouse continues the Annuity. Where an Annuity is

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structured so that it is owned by a grantor trust but the annuitant is not the grantor, then the Annuity is required to terminate upon the death of the grantor if the grantor pre-deceases the annuitant under Section 72(s) of the Code. Under this circumstance, the Surrender Value will be paid out to the beneficiary and it is not eligible for the death benefit provided under the Annuity.

**What are the Charges for the Optional Death Benefits?**

The maximum charge for Highest Anniversary Value Death Benefit, Combination 5% Roll-Up and HAV Death Benefit, Enhanced Beneficiary Protection Death Benefit, and HDV Death Benefit respectively is 0.40%, 0.80%, 0.25% and 0.50%. We deduct the charge for each of these benefits to compensate us for providing increased insurance protection under the optional Death Benefits. The additional annual charge is deducted daily against your Account Value allocated to the Variable Options.

Please refer to the section entitled "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for additional considerations in relation to the optional Death Benefit.

**ANNUITY REWARDS**

**What is the Annuity Rewards Benefit?**

Annuity Rewards is a death benefit enhancement that Owners can elect when the original CDSC period is over. To be eligible to elect Annuity Rewards, the Account Value on the date that the Annuity Rewards benefit is effective must be greater than the amount that would be payable to the Beneficiary under the Death Benefit (including any amounts payable under any Optional Death Benefit then in effect). In addition, the effective date must occur before annuity payments begin. There can only be one effective date for the Annuity Rewards Death Benefit enhancement. There is no additional charge for electing the Annuity Rewards Death Benefit enhancement.

Annuity Rewards offers Owners the ability to lock in an amount equal to the Account Value in the Variable Options plus the Market Value Adjustment Fixed Allocations (without the effect of any Market Value Adjustment) as an enhancement to their current basic Death Benefit, so their beneficiaries will not receive less than an Annuity's value as of the effective date of the benefit. Under the Annuity Rewards Benefit, we guarantee that the Death Benefit will not be less than:

• your
 Account Value in the Variable Options plus the Interim Value in any Market Value Adjustment Fixed Allocations as of the effective date of the benefit

• MINUS
 any proportional withdrawals following the effective date of the benefit

• PLUS
 any additional Purchase Payments applied to your Annuity following the effective date of the benefit.

The Annuity Rewards Death Benefit enhancement does not affect the calculation of the basic Death Benefit or any Optional Death Benefits available under an Annuity. If the Death Benefit amount payable under your Annuity's basic Death Benefit or any Optional Death Benefits you purchase is greater than the enhanced Death Benefit under the Annuity Rewards Benefit on the date the Death Benefit is calculated, your beneficiary will receive the greater amount. Annuity Rewards is not available if your Annuity is held as a Beneficiary Annuity.

**PAYMENT OF DEATH BENEFITS**

**Payment of Death Benefit to Beneficiary from a Non-qualified Annuity**

Except in the case of a Spousal Continuation, upon your death, certain distributions must be made under the Non-qualified Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. In the event of the Decedent's death before the Annuity Date, the Death Benefit must be distributed:

1. within
 five (5) years of the date of death (the "five-year deadline"); or

2. as
 a series of payments not extending beyond the life expectancy of the Beneficiary or over the life of the Beneficiary. Payments under this
 option must begin within one year of the date of death. If the Beneficiary does not begin installments by such time, then no partial withdrawals
 will be permitted thereafter, and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline.
 If we do not receive instructions on where to send the payment within five-years of the date of death, the funds will be escheated.

3. If
 the Beneficiary is the surviving spouse of the Owner, the spouse may elect to continue the Annuity.

If the Annuity is held as a Beneficiary Annuity, the payment of the Death Benefit must be distributed as a lump sum payment.

Unless you have made an election prior to death benefit proceeds becoming due, a Beneficiary can elect to receive the Death Benefit proceeds as a series of fixed annuity payments. See the section entitled "[<u>Annuity Period</u>](#chapter_10-sect1_1_936)."

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**SPOUSAL CONTINUATION OF ANNUITY**

You may name your spouse as your Beneficiary. If you and your spouse own the Annuity jointly, we assume that the sole primary Beneficiary will be the surviving spouse unless you elect an alternative Beneficiary designation. Unless you elect an alternative Beneficiary designation, the spouse Beneficiary may elect to assume ownership of the Annuity instead of taking the Death Benefit payment. Any Death Benefit (including any optional Death Benefits) that would have been payable to the Beneficiary will become the new Account Value as of the date we receive due proof of death and any required proof of a spousal relationship. As of the date the assumption is effective, the surviving spouse will have all the rights and benefits that would be available under the Annuity to a new purchaser of the same attained age. For purposes of determining any future Death Benefit for the surviving spouse, the new Account Value will be considered as the initial Purchase Payment. No CDSC will apply to the new Account Value. However, any additional Purchase Payments applied after the date the assumption is effective will be subject to all provisions of the Annuity, including any CDSC that may apply to the additional Purchase Payments.

See the section entitled "[<u>Change of Owner, Annuitant and Beneficiary Designations - Contingent Annuitant</u>](#chapter_11-sect1_25_930bc)" for a discussion of the treatment of a spousal Contingent Annuitant in the case of the death of the Annuitant in an entity owned Annuity.

**Alternative Death Benefit Payment Options - Annuities Held by Tax-Favored Plans**

Upon your death under an IRA or Roth IRA, any remaining interest must be distributed in accordance with federal income tax requirements. The post-death distribution requirements were amended, applicable generally with respect to deaths occurring after 2019, by the Further Consolidated Appropriations Act of 2020 (which includes the "Setting Every Community Up for Retirement Enhancement" Act (SECURE Act)), and further clarified by the associated final and proposed regulations. We reserve our rights to implement any additional regulations addressing these requirements in the future. The post-death distribution requirements under prior law continue to apply in certain circumstances. The following rules generally apply to deaths after 2019:

• 10-year
 rule: If you have a designated Beneficiary, any remaining interest must be distributed within 10 years after your death, unless the designated
 Beneficiary is an "eligible designated Beneficiary" ("EDB") or some other exception applies.

• Eligible
 designated beneficiaries: A designated Beneficiary is any individual designated as a Beneficiary by the IRA owner. An EDB is any designated
 Beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically ill, or (5) an individual not more than
 10 years younger than you. An individual's status as an EDB is generally determined on the date of your death.

• Other
 applicable rules: This 10-year post-death distribution period applies regardless of whether you die before your required beginning date,
 or you die on or after that date (including after distributions have commenced in the form of an annuity). However, if you die on or after
 the required beginning date, then annual distributions will be required from the Annuity during the 10-year period. If the Beneficiary
 is an EDB and the
 EDB dies before the entire interest is distributed under this 10-year rule, the remaining interest must be distributed within 10
 years after the EDB's death (i.e., a new 10-year distribution period begins).

Instead of taking distributions under the 10-year rule, an EDB can stretch distributions over life, or over a period not extending beyond life expectancy, provided that such distributions commence within one year of your death, subject to certain special rules. In addition, if your minor child is an EDB, the child will cease to be an EDB on the date the child reaches the age of 21, and any remaining interest must be distributed within 10 years after that date (regardless of whether the remaining distribution period under the stretch rule was more or less than 10 years).

It is important to note that under prior law, annuity payments that commenced under a method that satisfied the distribution requirements while the IRA Owner was alive could continue to be made under that method after the death of the IRA owner. However, under the current law, if you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled to be made beyond the applicable distribution period imposed under the current law might need to be commuted at the end of that period (or otherwise modified after your death if permitted under federal tax law and by Fortitude) in order to comply with the post-death distribution requirements.

The post-death distribution requirements do not apply if annuity payments that comply with prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election before that date as to the method and amount of the annuity.

If your Beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed under prior law in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

In addition, the post-death distribution requirements generally do not apply if the IRA Owner died prior to January 1, 2020. However, if the designated Beneficiary of the deceased IRA Owner dies after January 1, 2020, any remaining interest must be distributed within 10 years of the designated Beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated Beneficiary of an IRA Owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated Beneficiary of an IRA Owner who died prior to 2020.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Spousal
 continuation. Under the current law, as under prior law, if your Beneficiary is your spouse, such surviving spouse can delay the application
 of the post-death distribution requirements until after their death by transferring the remaining interest tax-free to their own IRA,
 or by treating your IRA as their own IRA subject to specific limits under the regulations. The post-death distribution requirements are complex in numerous
 respects. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances.
 You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For more information, see "[<u>Taxes</u>](#chapter_14-sect1_1_936)." You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

Designated Beneficiaries may be eligible for the IRA Beneficiary Continuation Option; however, distribution periods may be limited by applicable tax law as stated above. Beneficiaries should consult a professional tax advisor about the federal income tax consequences of distribution options.

Upon election of this IRA Beneficiary Continuation option:

• the
 Annuity contract will be continued in the Owner's name, for the benefit of the Beneficiary.

• the
 Account Value will be equal to any Death Benefit (including any optional Death Benefit) that would have been payable to the Beneficiary
 if they had taken a lump sum distribution.

• the
 Beneficiary may request transfers among Variable Options, subject to the same limitations and restrictions that applied to the Owner. NOTE: The Variable
 Options offered under  the IRA Beneficiary Continuation option may be limited.

• no
 additional Purchase Payments can be applied to the Annuity.

• the
 basic Death Benefit and any optional Death Benefits elected by the Owner will no longer apply to the Beneficiary.

• the
 Beneficiary can request a withdrawal of all or a portion of the Account Value at any time without application of a CDSC.

• upon
 the death of the Beneficiary, any remaining Account Value will be paid in a lump sum to the person(s) named by the Beneficiary.

• all
 amounts in the Annuity must be paid out to the Beneficiary according to the Minimum Distribution rules described in the " [<u>Taxes</u>](#chapter_14-sect1_1_936) " section.

Payment under this option may be limited based on federal income tax requirements. See the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section for more information on the limitations that may apply to this option.

**Are there any exceptions to these rules for paying the Death Benefit?**

There are exceptions that apply no matter how your Death Benefit is calculated. There are exceptions to the Death Benefit if the decedent was not the Owner or Annuitant as of the Issue Date and did not become the Owner or Annuitant due to the prior Owner's or Annuitant's death. Any Death Benefit (including either optional Death Benefit) that applies will be suspended for a two-year period from the date he or she first became Owner or Annuitant. After the two-year suspension period is completed, the Death Benefit is the same as if this person had been an Owner or Annuitant on the Issue Date.

**When do you determine the Death Benefit?**

We determine the amount of the Death Benefit as of the date we receive "due proof of death", any instructions we require to determine the method of payment and any other written representations we require to determine the proper payment of the Death Benefit to all Beneficiaries. "Due proof of death" may include a certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death or other satisfactory proof of death. Upon our receipt of "due proof of death" we automatically transfer the Death Benefit to the AST Money Market Variable Option until we further determine the universe of eligible Beneficiaries.

Each Beneficiary must make an election as to the method they wish to receive their portion of the Death Benefit. Absent an election of a Death Benefit payment method, no Death Benefit can be paid to the Beneficiary. We may require written acknowledgment of all named Beneficiaries before we can pay the Death Benefit. During the period from the date of death until we receive all required paper work, the amount of the Death Benefit may be subject to Variable Option fluctuations.

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**PURCHASES AND CONTRACT VALUE**

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**The Annuities referenced in this prospectus are no longer available for new sales or re-elections.**

**REQUIREMENTS FOR PURCHASING THE ANNUITY**

**We may apply certain limitations, restrictions, and/or underwriting standards as a condition of our issuance of an Annuity and/or acceptance** **of Purchase Payments. Certain of the current limitations, restrictions and standards are described below. We may change these limitations,** **restrictions and standards in the future.**

**Initial Purchase Payment:** We no longer allow new purchases of these Annuities. Previously, you must have made a minimum initial Purchase Payment as follows: $1,000 for Optimum, and $10,000 for Optimum Plus and Optimum Four. However, if you decided to make payments under a systematic investment or an electronic funds transfer program, we would have accepted a lower initial Purchase Payment provided that, within the first Annuity Year, your subsequent Purchase Payments plus your initial Purchase Payment totaled the minimum initial Purchase Payment amount required for the Annuity purchased.

We must approve any initial and additional Purchase Payments where the total amount of Purchase Payments equal $1,000,000 or more with respect to this Annuity and any other annuities you are purchasing from us (or that you already own) and/or our affiliates. To the extent allowed by state law, that required approval also will apply to a proposed change of Owner of the Annuity, if as a result of the ownership change, total Purchase Payments with respect to this Annuity and all other annuities owned by the new Owner would equal or exceed that $1 million threshold. We may limit additional Purchase Payments under other circumstances, as explained in "Additional Purchase Payments".

Applicable laws designed to counter terrorists and prevent money laundering might, in certain circumstances, require us to block an Annuity Owner's ability to make certain transactions, and thereby refuse to accept Purchase Payments or requests for transfers, partial withdrawals, total withdrawals, death benefits, or income payments until instructions are received from the appropriate regulator. We also may be required to provide additional information about you and your Annuity to government regulators.

**Speculative Investing:** Do not purchase this Annuity if you, anyone acting on your behalf, and/or anyone providing advice to you plan to use it, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme now or at any time prior to termination of the Annuity. Your Annuity may not be traded on any stock exchange or secondary market. By purchasing this Annuity, you represent and warrant that you are not using this Annuity, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme.

Currently, we will not issue an Annuity, permit changes in ownership or allow assignments to certain ownership types, including but not limited to: corporations, partnerships, endowments and grantor trusts with multiple grantors. Further, we will only issue an Annuity, allow changes of ownership and/or permit assignments to certain ownership types if the Annuity is held exclusively for the benefit of the designated annuitant. These rules are subject to state law. Additionally, we will not permit election or re-election of any optional death benefit or optional living benefit by certain ownership types. We may issue an Annuity in ownership structures where the annuitant is also the participant in a Qualified or Non-qualified employer sponsored plan and the Annuity represents his or her segregated interest in such plan. We reserve the right to further limit, restrict and/or change to whom we will issue an Annuity in the future, to the extent permitted by state law. Further, please be aware that we do not provide administration for employer-sponsored plans and may also limit the number of plan participants that elect to use our Annuity as a funding vehicle.

Except as noted below, Purchase Payments must be submitted by check drawn on a U.S. bank, in U.S. dollars, and made payable to us. Purchase Payments may also be submitted via Section 1035 exchange or direct transfer of funds. Under certain circumstances, Purchase Payments may be transmitted to us via wiring funds through your financial professional's broker-dealer firm. Additional Purchase Payments may also be applied to your Annuity under an electronic funds transfer arrangement where you authorize us to deduct money directly from your bank account. We may reject any payment if it is received in an unacceptable form. We may also suspend or cancel electronic funds transfer privileges if we have limited, restricted, suspended or rejected our acceptance of additional Purchase Payments. Our acceptance of a check is subject to our ability to collect funds.

**Age Restrictions:** Unless we agree otherwise and subject to our rules, the Owner (or Annuitant if entity owned) must not be older than a maximum issue age as of the Issue Date of the Annuity as follows: age 80 for Optimum, age 75 for Optimum Plus and age 85 for Optimum Four. If an Annuity is owned jointly, the oldest of the Owners must not be older than the maximum issue age on the Issue Date. You should consider your need to access your Account Value and whether the Annuity's liquidity features will satisfy that need. Under the Beneficiary Annuity, the maximum issue age is 70 based on the Key Life. If you take a distribution prior to age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain. The availability and level of protection of certain optional benefits may vary based on the age of the Owner on the Issue Date of the Annuity or the date of the Owner's death.

**"Beneficiary" Annuity**

If you are a beneficiary of an annuity that was owned by a decedent, subject to the following requirements, you may transfer the proceeds of the decedent's annuity into one of the Annuities described in this prospectus and continue receiving the distributions that are required by the tax laws. This transfer option is only available for purchase of an IRA, Roth IRA, or a Non-qualified annuity, for distributions based on lives age 70 or under. This transfer option is also not available if the proceeds are being transferred from an annuity issued by us or one of our affiliates and the annuity offers a "Beneficiary Continuation Option".

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Upon purchase, the Annuity will be issued in the name of the decedent for your benefit. We do not assess a CDSC (if applicable) on distributions from your Annuity if you are required by law to take such distributions from your Annuity at the time it is taken, provided the amount withdrawn is the amount we calculate and is paid out through a program of systematic withdrawals that we make available.

For IRAs and Roth IRAs, an "eligible designated beneficiary" must elect stretch distributions by December 31 of the year following the year of the decedent's death. If you are the surviving spouse beneficiary, distributions may be deferred until the decedent would have attained the applicable age, however if you choose to defer distributions, you are responsible for complying with the distribution requirements under the Code, and you must make a valid election as to when you would like distributions to begin. For additional information regarding the tax considerations applicable to beneficiaries of an IRA or Roth IRA, including information about the applicable age, see the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section of this Prospectus.

For Non-qualified Annuities, distributions must begin within one year of the decedent's death. For additional information regarding the tax considerations applicable to beneficiaries of a Non-qualified Annuity see "Required Distributions Upon Your Death for Non-qualified Annuity Contracts" in the "[<u>Taxes</u>](#chapter_14-sect1_1_936)" section of this prospectus.

You may choose to take more than your required distribution. You may take withdrawals in excess of your required distributions, however your withdrawal may be subject to the Contingent Deferred Sales Charge. Any withdrawals reduce the required distribution for the year. All applicable charges will be assessed against your Annuity, such as the insurance charge and the Annual Maintenance Fee.

The Annuity may provide a basic Death Benefit upon death, and you may name "successors" who may either receive the Death Benefit as a lump sum or continue receiving distributions after your death under the Beneficiary Continuation Option.

Please note the following additional limitations for a Beneficiary Annuity:

• No
 additional Purchase Payments are permitted. You may only make a one-time initial Purchase Payment transferred to us directly from another
 annuity or eligible account. You may not make your Purchase Payment as an indirect rollover, or combine multiple "Transfer of Assets"
 or "TOA's" into a single contract as part of this "Beneficiary" Annuity.

• You
 may not elect any optional living or death benefits. Annuity Rewards is not available.

• You
 may not annuitize the Annuity; no annuity options are available.

• You
 may participate only in the following programs: Automatic Rebalancing, Dollar Cost Averaging, Systematic Withdrawals, and Third Party
 Investment Advisor.

• You
 may not assign or change ownership of the Annuity, and you may not change or designate another life upon which distributions are based.
 A "Beneficiary Annuity" may not be co-owned.

• If
 the Annuity is funded by means of transfer from another "Beneficiary Annuity" with another company, we require that the sending company or the beneficial
 Owner provide certain information in order to ensure that applicable required distributions have been made prior
 to the transfer of the contract proceeds to us. We further require appropriate information to enable us to accurately determine future distributions from
 the Annuity. Please note we are unable to accept a transfer of another "Beneficiary Annuity" where taxes are calculated based
 on an exclusion amount or an exclusion ratio of earnings to original investment. We are also unable to accept a transfer of an annuity
 that has annuitized.

• The
 beneficial Owner of the Annuity can be an individual, grantor trust, or, for an IRA or Roth IRA, an estate or a qualified trust. In general, a qualified trust
 (1) must be valid under state law; (2) must be irrevocable or became irrevocable by its terms upon the death of the IRA or Roth
 IRA owner; and (3) the beneficiaries of the trust who are beneficiaries with respect to the trust's interest in this Annuity must
 be identifiable from
 the trust instrument and must be individuals. A qualified trust may be required to provide us with a list of all beneficiaries to
 the trust (including contingent and remainder beneficiaries with a description of the conditions on their entitlement), all of whom must
 be individuals, as
 of September 30 <sup>th</sup> of the year following the year of death of the IRA or Roth IRA owner, or date of Annuity application if later.
 The trustee may also be required to provide a copy of the trust document upon request. If the beneficial Owner of the Annuity is a grantor
 trust, distributions must be based on the life expectancy of the grantor. If the beneficial Owner of the Annuity is a qualified trust, distribution options
 may be limited. In certain instances, we may allow distributions based on the life expectancy of a sole individual beneficiary
 under the trust if they qualify as an eligible designated beneficiary. Special rules and limitations may apply to qualified trusts with
 multiple beneficiaries.

• If
 this Beneficiary Annuity is transferred to another company as a tax-free exchange with the intention of qualifying as a Beneficiary Annuity
 with the receiving company, we may require certifications from the receiving company that required distributions will be made as required
 by law.

• If
 you are transferring proceeds as beneficiary of an annuity that is owned by a decedent, we must receive your transfer request at least 45 days prior to
 your first required distribution. If, for any reason, your transfer request impedes our ability to complete your first distribution
 by the required date, we will be unable to accept your transfer request.

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**DESIGNATION OF OWNER, ANNUITANT, AND BENEFICIARY**

**Owner, Annuitant and Beneficiary Designations:** We will ask you to name the Owner(s), Annuitant and one or more Beneficiaries for your Annuity.

• <u>Owner:</u> The Owner(s) holds all rights under the Annuity. You may name up to two Owners in which case all ownership rights are held jointly.
 Generally, joint Owners are required to act jointly; however, if each Owner provides us with a written form that we find acceptable, we
 will permit each Owner to act independently on behalf of both Owners. All information and documents that we are required to send you will
 be sent to the first named Owner. This Annuity does not provide a right of survivorship. Refer to the " [<u>Glossary of Terms</u>](#chapter_2-sect1_1_936) "
 for a complete description
 of the term "Owner."

• <u>Annuitant:</u> The Annuitant is the person upon whose life we continue to make annuity payments. You must name an Annuitant who is a natural
 person. We do not accept a designation of joint Annuitants during the Accumulation Period. In limited circumstances and where allowed
 by law, you may name one or more Contingent Annuitants. Generally, a Contingent Annuitant will become the Annuitant if the Annuitant
 dies before the Annuity Date. Please refer to the discussion of "Considerations for Contingent Annuitants" in the " [<u>Taxes</u>](#chapter_14-sect1_1_936) "
 section of the Prospectus.
 For Beneficiary Annuities, instead of an Annuitant there is a "Key Life" which is used to determine the annual required distributions.

• <u>Beneficiary:</u> The Beneficiary is the person(s) or entity you name to receive the Death Benefit. Your Beneficiary Designation should be the exact
 name of your beneficiary, not only a reference to the beneficiary's relationship to you. If you use a designation of "surviving
 spouse," we
 will pay the Death Benefit to the individual that is your spouse at the time of your death (as defined under the federal tax laws and regulations). If
 no beneficiary is named the Death Benefit will be paid to you or your estate. For Annuities that designate a custodian, trust, or
 a plan as Owner, the custodian or plan must also be designated as the Beneficiary. For Beneficiary Annuities, instead of Beneficiary, the term "Successor"
 is used. If no beneficiary is named for a trust owned contract, the default beneficiary will be the contract owner.

Your right to make certain designations may be limited if your Annuity is to be used as an IRA, Beneficiary Annuity, or other "qualified" investment that is given beneficial tax treatment under the Code. You should seek competent tax advice on the income, estate and gift tax implications of your designations.

**HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?**

(See "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_15_936)" for a description of our procedure for pricing initial and subsequent Purchase Payments.)

**Initial Purchase Payment:** Once we accept your application, we invest your Purchase Payment in your Annuity according to your instructions for allocating your Account Value. The Purchase Payment is your initial Purchase Payment minus any Tax Charge that may apply. You can allocate Purchase Payments to one or more available Variable Options or available Fixed Allocations. Investment restrictions will apply if you elect certain optional benefits.

**Subsequent Purchase Payments:** Unless you participate in an asset allocation program, or unless you have provided us with other specific allocation instructions for one, more than one, or all subsequent Purchase Payments, we will allocate any additional Purchase Payments you make according to your initial Purchase Payment allocation instructions. If you so instruct us, we will allocate subsequent Purchase Payments according to any new allocation instructions. Unless you tell us otherwise, Purchase Payments made while you participate in an asset allocation program will be allocated in accordance with such program. Depending on the tax status of your Annuity (e.g., if you own the Annuity through an IRA), there may be annual contribution limits dictated by applicable law. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for additional information on these contribution limits.

**HOW DO I RECEIVE A LOYALTY CREDIT UNDER THE OPTIMUM AND OPTIMUM FOUR ANNUITIES?**

We apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth Annuity Year ("fifth Annuity Anniversary"). With respect to Optimum, for annuities issued on or after February 13, 2006, the Loyalty Credit is equal to 0.50% of total Purchase Payments made during the first four Annuity Years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Annuity Anniversary. With respect to Optimum Four, for annuities issued between June 20, 2005 and February 13, 2006, the Loyalty Credit is equal to 2.25% of total Purchase Payments made during the first four Annuity Years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Annuity Anniversary. For Optimum Four Annuities issued on or after February 13, 2006, the Loyalty Credit is equal to 2.75% of total Purchase Payments made during the first four Annuity Years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth Annuity Anniversary.

If the total Purchase Payments made during the first four Annuity Years is less than the cumulative amount of withdrawals made on or before the fifth Annuity Anniversary, no Loyalty Credit will be applied to your Annuity. Also, no Loyalty Credit will be applied to your Annuity if your Account Value is zero on the fifth Annuity Anniversary. This would include any situation where the Annuity is still in force due to the fact that payments are being made under an optional benefit such as Lifetime Five, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven, Highest Daily Lifetime 7 Plus, Spousal Highest Daily Lifetime 7 Plus, Guaranteed Minimum Withdrawal Benefit, Highest Daily Lifetime 6 Plus, and Spousal Highest Daily Lifetime 6 Plus. In addition, no Loyalty Credit will be applied to your Annuity if before the fifth Annuity Anniversary: (i) you have surrendered your Annuity; (ii) you have annuitized your Annuity; (iii) your Beneficiary has elected our Beneficiary Continuation Option; or (iv) we have received due proof of your death (and there has been no spousal continuation election made). If your spouse continues the Annuity under our spousal continuation option, we will apply the Loyalty Credit to your Annuity only on the fifth Annuity Anniversary measured from the date that we originally issued

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you the Annuity. Since the Loyalty Credit is applied to the Account Value only, any guarantees that are not based on Account Value will not reflect the Loyalty Credit. Similarly, guarantees that are made against a loss in Account Value will not be triggered in certain very limited circumstances where they otherwise would have been, had no Loyalty Credit been applied to the Account Value.

**HOW ARE LOYALTY CREDITS APPLIED TO MY ACCOUNT VALUE UNDER THE OPTIMUM AND OPTIMUM FOUR ANNUITIES?**

Any Loyalty Credit that is allocated to your Account Value on the fifth Annuity Anniversary will be allocated to the Fixed Allocations and Variable Options according to the "hierarchy" described in this paragraph. This hierarchy consists of a priority list of investment options, and the Loyalty Credit is applied based on which of the items below is applicable and in effect when the Loyalty Credit is applied. Thus, if a given item in the priority list is inapplicable to you, we move to the next item. **The hierarchy is as follows: (a) if you participate in an asset allocation program (see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_936) **for a** **description of such programs), in accordance with that program, (b) in accordance with your standing allocation instructions (c) if you** **participate in the Systematic Investment Program, in accordance with that Program, (d) if you participate in an automatic rebalancing** **program, in accordance with that program (e) in accordance with how your most recent Purchase Payment was allocated and (f) otherwise in** **accordance with your instructions, if items (a) through (e) above are not permitted or applicable.**

**Example of Applying the Loyalty Credit with respect to** **Optimum.**

Assume you make an initial Purchase Payment of $10,000 and your Annuity is issued on or after February 13, 2006. During Annuity Year four (i.e., prior to the fourth Annuity Anniversary) you make an additional $10,000 Purchase Payment. During the early part of Annuity Year five (i.e., prior to the fifth Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year make a withdrawal of $5,000. The Loyalty Credit that we will apply to your Annuity on the fifth Annuity Anniversary is, subject to state availability, equal to 0.50% of $15,000 (this represents the $20,000 of Purchase Payments made during the first four Annuity Years minus the $5,000 withdrawal made in the fifth Annuity Year. The computation disregards the additional $10,000 Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit amount would be equal to $75.00.

**Example of Applying the Loyalty Credit with respect to Optimum Four.**

Assume you make an initial Purchase Payment of $10,000 and your Annuity is issued on or after February 13, 2006. During Annuity Year four (i.e., prior to the fourth Annuity Anniversary) you make an additional $10,000 Purchase Payment. During the early part of Annuity Year five (i.e., prior to the fifth Annuity Anniversary) you make a $10,000 Purchase Payment and later in the year make a withdrawal of $5,000. The Loyalty Credit that we will apply to your Annuity on the fifth Annuity Anniversary is, subject to state availability, equal to 2.75% of $15,000 (this represents the $20,000 of Purchase Payments made during the first four Annuity Years minus the $5,000 withdrawal made in the fifth Annuity Year. The computation disregards the additional $10,000 Purchase Payment made in the fifth Annuity Year.) Therefore, the Loyalty Credit amount would be equal to $412.50.

**HOW DO I RECEIVE CREDITS UNDER THE OPTIMUM PLUS ANNUITY?**

We apply a "Credit" to your Annuity's Account Value each time you make a Purchase Payment during the first six (6) Annuity Years. The amount of the Credit is payable from our general account. The amount of the Credit depends on the Annuity Year in which the Purchase Payment(s) is made, and is described in your Contract. No Credits are available for Purchase Payments in Annuity Years seven and later.

**HOW ARE CREDITS APPLIED TO ACCOUNT VALUE UNDER THE OPTIMUM PLUS ANNUITY?**

Each Credit is allocated to your Account Value at the time the Purchase Payment is applied to your Account Value. The amount of the Credit is allocated to the investment options in the same ratio as the applicable Purchase Payment is applied and is thereafter treated as a Purchase Payment.

**Examples of Applying Credits**

***Initial Purchase Payment***

Assume you make an initial Purchase Payment of $10,000 and your Annuity is issued on or after February 13, 2006. We would apply a 6.5% Credit to your Purchase Payment and allocate the amount of the Credit ($650 = $10,000 × .065) to your Account Value in the proportion that your Purchase Payment is allocated.

***Additional Purchase Payment in Annuity Year 2***

Assume that you make an additional Purchase Payment of $5,000. We would apply a 5.0% Credit to your Purchase Payment and allocate the amount of the Credit ($250 = $5,000 × .05) to your Account Value.

***Additional Purchase Payment in Annuity Year 6***

Assume that you make an additional Purchase Payment of $15,000. We would apply a 1.0% Credit to your Purchase Payment and allocate the amount of the Credit ($150 = $15,000 × .01) to your Account Value.

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The amount of any Credits applied to your Optimum Plus Annuity Account Value can be taken back by us under certain circumstances:

• any
 Credits applied to your Account Value on Purchase Payments made within the 12 months before the Owner's (or Annuitant's if
 entity owned) date
 of death will be recaptured (to the extent allowed by state law);

• the
 amount available under the Medically-Related Surrender portion of the Annuity will not include the amount of any Credits payable on Purchase
 Payments made within 12 months prior to the date of a request under the Medically-Related Surrender provision(to the extent allowed
 by State law); and

• if
 you elect to "Free Look" your Annuity, the amount returned to you will not include the amount of any Credits.

The Account Value may be substantially reduced if we recapture the Credit amount under these circumstances. The amount we recapture will equal the Credit amount, without adjustment up or down for investment performance. Therefore, any gain on the Credit amount will not be recaptured. But if there was a loss on the Credit amount, the amount we recapture will still equal the amount of the Credit amount. We do not deduct a CDSC in any situation where we recapture the Credit amount. During the first 10 Annuity Years, the total asset-based charges on this Annuity (including the insurance charge and the Distribution Charge) are higher than many of our other annuities, including other annuities we offer that apply Credits to Purchase Payments.

**Examples of Recapturing Credits**

The following are hypothetical examples of how Credits could be recaptured by us. These examples do not cover every potential situation. These are the only situations in which Credits may be recaptured.

*Recapture from payment of Death Benefits for contracts issued prior to 2/13/06*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If the Death Benefit becomes payable
 in the 9 <sup>th</sup> month after the Issue Date, the amount of the Death Benefit would be reduced by the entire amount of the prior Credits ($3,600).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If death occurs in the 16 <sup>th</sup> month after the Issue
 Date, the amount of the Death Benefit would be reduced but only in the amount of those Credits applied within the previous
 12-months. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the date
 of death, the Death Benefit would not be reduced by the amount of the Credits applied to the initial Purchase Payment. However, the $10,000
 additional Purchase Payment was made within 12-months of the date of death. Therefore, the amount of the Death Benefit would be
 reduced by the amount of the Credits payable on the additional Purchase Payment ($600).

• NOTE:
 If the Death Benefit would otherwise have been equal to the Purchase Payments minus any withdrawals due to poor investment performance,
 we will not reduce the amount of the Death Benefit by the amount of the Credits as shown in Example 2 above.

*Recapture from Medically-Related Surrenders for contracts issued prior to 2/13/06*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You receive a Credit of $3,000 ($50,000 ×  .06). The Annuitant is diagnosed
 as terminally ill in the 6 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the
 medically-related surrender provision. Assuming the Credits were applied within 12-months of the date of diagnosis of the terminal illness,
 the amount that would be payable under the medically-related surrender provision would be reduced by the entire amount of the Credits
 ($3,000).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. The Annuitant is diagnosed as terminally
 ill in the 16 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the medically-related surrender
 provision. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the diagnosis,
 the amount that would be payable upon the medically-related surrender provision would not be reduced by the amount of the Credits
 applied to the initial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date
 of diagnosis. Therefore, the amount that would be payable under the medically-related surrender provision would be reduced by the amount
 of the Credits payable on the additional Purchase Payment ($600).

*Recapture from payment of Death Benefits for contracts issued on or after 2/13/06*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.5% Credit, for a total of $3,900. If the Death Benefit becomes payable
 in the 9 <sup>th</sup> month after the Issue Date, the amount of the Death Benefit would be reduced by the entire amount of the prior Credits ($3,900).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.5% Credit, for a total of $3,900. If death occurs in the 16 <sup>th</sup> month after the Issue
 Date, the amount of the Death Benefit would be reduced but only in the amount of those Credits applied within the previous
 12-months. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the date
 of death, the Death Benefit would not be reduced by the amount of the Credits applied to the initial Purchase Payment. However, the $10,000
 additional Purchase Payment was made within 12-months of the date of death. Therefore, the amount of the Death Benefit would be
 reduced by the amount of the Credits payable on the additional Purchase Payment ($650).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• NOTE:
 If the Death Benefit would otherwise have been equal to the Purchase Payments minus any withdrawals due to poor investment performance,
 we will not reduce the amount of the Death Benefit by the amount of the Credits as shown in Example 2 above.

*Recapture from Medically-Related Surrenders for contracts issued on or after 2/13/06*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You receive a Credit of $3,250 ($50,000 ×.065). The Annuitant
 is diagnosed as terminally ill in the 6 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the
 medically-related surrender provision. Assuming the Credits were applied within 12-months of the date of diagnosis of the terminal illness,
 the amount that would be payable under the medically-related surrender provision would be reduced by the entire amount of the Credits
 ($3,250).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.5% Credit, for a total of $3,900. The Annuitant is diagnosed as terminally
 ill in the 16 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the medically-related surrender
 provision. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the diagnosis,
 the amount that would be payable upon the medically-related surrender provision would not be reduced by the amount of the Credits
 applied to the initial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date
 of diagnosis. Therefore, the amount that would be payable under the medically-related surrender provision would be reduced by the amount
 of the Credits payable on the additional Purchase Payment ($650).

**General Information about Credits**

• We
 do not consider Credits to be "investment in the contract" (also known as "basis") for income tax purposes.

• You
 may not withdraw the amount of any Credits under the Charge Free Withdrawal provision. The Charge Free Withdrawal provision only
 applies to withdrawals of Purchase Payments.

• Credits
 are included in any contract level standardized or non-standardized performance calculations.

• Please
 note that we expect to make a profit from the Annuity, even though there is not an explicit charge for the Credits.

**ADDITIONAL PURCHASE PAYMENTS**

Unless we agree otherwise and subject to our rules, the minimum amount that we accept as an additional Purchase Payment is $100 unless you participate in our Systematic Investment Program or a periodic Purchase Payment program. Purchase Payments made while you participate in an asset allocation program will be allocated in accordance with such benefit. Additional Purchase Payments may be made at any time before the Annuity Date, or prior to the Account Value being reduced to zero. Purchase payments are not permitted if the Annuity is held as a Beneficiary Annuity. Please see the '[<u>Benefits Available Under the Contract</u>](#chapter_11_936)" section of this prospectus for further information on additional Purchase Payments.

**SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT**

You can make additional Purchase Payments to your Annuity by authorizing us to deduct money directly from your bank account and applying it to your Annuity (unless your Annuity is being held as a Beneficiary Annuity). We call our electronic funds transfer program "The Systematic Investment Program." Purchase payments made through electronic funds transfer may only be allocated to the Variable Options when applied. Different allocation requirements may apply in connection with certain optional benefits. We may allow you to invest in your Annuity with a lower initial Purchase Payment, as long as you authorize payments through an electronic funds transfer that will equal at least the minimum Purchase Payment set forth above during the first 12 months of your Annuity. We may suspend or cancel electronic funds transfer privileges if sufficient funds are not available from the applicable financial institution on any date that a transaction is scheduled to occur. We may also suspend or cancel electronic funds transfer privileges if we have limited, restricted, suspended or rejected our acceptance of additional Purchase Payments.

**SALARY REDUCTION PROGRAMS**

These types of programs are only available with certain types of qualified investments. If your employer sponsors such a program, we may agree to accept periodic Purchase Payments through a salary reduction program as long as the allocations are made only to Variable Options and the periodic Purchase Payments received in the first year total at least the minimum Purchase Payment set forth above.

**HOW IS MY ACCOUNT VALUE DETERMINED?**

During the Accumulation Period, your Annuity has an Account Value. The Account Value is determined separately for each Variable Option allocation and for each Fixed Allocation. The Account Value is the sum of the values of each Variable Option allocation and the value of each Fixed Allocation. For Annuities with a Highest Daily Lifetime Five election, Account Value also includes the value of any allocation to the Benefit Fixed Rate Account. See the "<u>[Benefits Available Under the Contract](#chapter_11-sect1_13_936) – [Highest Daily Lifetime Five](#achapter_11-sect1_13_936)</u>" section of the Prospectus for a description of the Benefit Fixed Rate Account. The Account Value does not reflect any CDSC that may apply to a withdrawal or surrender. With respect to Optimum and Optimum Four, the Account Value includes any Loyalty Credit we apply. With respect to Optimum Plus, the Account Value includes any Credits we applied to your Purchase Payments

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which we are entitled to recapture under certain circumstances. When determining the Account Value on a day more than 30 days prior to a Market Value Adjustment Fixed Allocation's Maturity Date, the Account Value may include any Market Value Adjustment that would apply to a Market Value Adjustment Fixed Allocation (if withdrawn or transferred) on that day.

**SURRENDER VALUE**

The Surrender Value of your Annuity is the value available to you on any day during the Accumulation Period. The Surrender Value is defined under "[<u>Glossary of Terms</u>](#chapter_2-sect1_1_936)".

**VALUING THE VARIABLE OPTIONS**

When you allocate Account Value to a Variable Option, you are purchasing Units of the Variable Option. Each Variable Option invests exclusively in shares of an underlying Portfolio. The value of the Units fluctuates with the market fluctuations of the Portfolios. The value of the Units also reflects the daily accrual for the insurance charge, the Distribution Charge (if applicable) and if you elected one or more optional benefits whose annual charge is deducted daily; the additional charge made for such benefits. There may be several different Unit Prices for each Variable Option to reflect the insurance charge, any distribution charge and the charges for any optional benefits. The Unit Price for the Units you purchase will be based on the total charges for the benefits that apply to your Annuity. See the section entitled "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_15_936)" for a detailed discussion of how Units are purchased and redeemed to reflect changes in the daily charges that apply to your Annuity.

Each Valuation Day, we determine the price for a Unit of each Variable Option, called the "Unit Price." The Unit Price is used for determining the value of transactions involving Units of the Variable Options. We determine the number of Units involved in any transaction by dividing the dollar value of the transaction by the Unit Price of the Variable Option as of the Valuation Day. The investment performance of the Portfolios, expenses, and deductions of certain charges affects the Unit Price, the number of Units, or both.

**Example**

Assume you allocate $5,000 to a Variable Option. On the Valuation Day you make the allocation, the Unit Price is $14.83. Your $5,000 buys 337.154 Units of the Variable Option. Assume that later, you wish to transfer $3,000 of your Account Value out of that Variable Option and into another Variable Option. On the Valuation Day you request the transfer, the Unit Price of the original Variable Option has increased to $16.79 and the Unit Price of the new Variable Option is $17.83. To transfer $3,000, we sell 178.677 Units at the current Unit Price, leaving you 158.477 Units. We then buy $3,000 of Units of the new Variable Option at the Unit Price of $17.83. You would then have 168.255 Units of the new Variable Option.

**VALUING THE FIXED ALLOCATIONS**

During the Guarantee Period, we use the concept of an Interim Value. The Interim Value can be calculated on any day and is equal to the initial value allocated to a Market Value Adjustment Fixed Allocation plus all interest credited to a Market Value Adjustment Fixed Allocation as of the date calculated. The Interim Value does not include the impact of any Market Value Adjustment. If you made any transfers or withdrawals from a Market Value Adjustment Fixed Allocation, the Interim Value will reflect the withdrawal of those amounts and any interest credited to those amounts before they were withdrawn. To determine the Account Value of a Market Value Adjustment Fixed Allocation on any day more than 30 days prior to its Maturity Date, we multiply the Account Value of the Market Value Adjustment Fixed Allocation times the Market Value Adjustment factor.

**PROCESSING AND VALUING TRANSACTIONS**

We are generally open to process financial transactions on those days that the New York Stock Exchange (NYSE) is open for trading. There may be circumstances where the NYSE does not open on a regularly scheduled date or time or closes at an earlier time than scheduled (normally 4:00 p.m. Eastern Time). Generally, financial transactions requested before the close of the NYSE which meet our requirements will be processed according to the value next determined following the close of business. Financial transactions requested on a non-Valuation Day or after the close of the NYSE will be processed based on the value next computed on the next Valuation Day. There may be circumstances when the opening or closing time of the NYSE is different than other major stock exchanges, such as NASDAQ. Under such circumstances, the closing time of the NYSE will be used when valuing and processing transactions.

There may be circumstances where the NYSE is open, however, due to inclement weather, natural disaster or other circumstances beyond our control, our offices may be closed or our business processing capabilities may be restricted. Under those circumstances, your Account Value may fluctuate based on changes in the Unit Values, but you may not be able to transfer Account Value or make a purchase or redemption request.

The NYSE is closed on certain announced holidays. On those dates, we will not process any financial transactions involving purchase or redemption orders.

We will also not process financial transactions involving purchase or redemption orders or transfers on any day that:

• trading
 on the NYSE is restricted;

• an
 emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or

• the
 SEC, by order, permits the suspension or postponement for the protection of security holders.

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**Initial Purchase Payments:** We no longer allow new purchases of this Annuity. We are required to allocate your initial Purchase Payment to the Variable Options within two (2) Valuation Days after we receive all of our requirements at our office to issue an Annuity. If we do not have all the required information to allow us to issue your Annuity, we may retain the Purchase Payment while we try to reach you or your representative to obtain all of our requirements. If we are unable to obtain all of our required information within five (5) Valuation Days, we are required to return the Purchase Payment to you at that time, unless you specifically consent to our retaining the Purchase Payment while we gather the required information. Once we obtain the required information, we will invest the Purchase Payment (and any associated Credits) and issue an Annuity within two (2) Valuation Days. With respect to both your initial Purchase Payment and any subsequent Purchase Payment that is pending investment in our Separate Account, we may hold the amount temporarily in our general account and may earn interest on such amount. You will not be credited with interest during that period.

As permitted by applicable law, the broker-dealer firm through which you purchase your Annuity may forward your initial Purchase Payment to us prior to approval of your purchase by a registered principal of the firm. These arrangements are subject to a number of regulatory requirements, including that customer funds will be deposited in a segregated bank account and held by the insurer until such time that the insurer is notified of the firm's principal approval and is provided with the application, or is notified of the firm principal's rejection. In addition, the insurer must promptly return the customer's funds at the customer's request prior to the firm's principal approval or upon the firm's rejection of the application. The monies held in the bank account will be held in a suspense account within our general account and we may earn interest on amounts held in that suspense account. Contract Owners will not be credited with any interest earned on amounts held in that suspense account. The monies in such suspense account may be subject to our general creditors.

**Additional Purchase Payments:** We will apply any additional Purchase Payments on the Valuation Day that we receive the Purchase Payment with satisfactory allocation instructions.

**Scheduled Transactions:** Scheduled transactions include transfers made in connection with dollar cost averaging, the asset allocation program, automatic rebalancing, systematic withdrawals, systematic investments, required minimum distributions, substantially equal periodic payments under Section 72(t) of the Code, annuity payments and fees that are assessed daily as a percentage of the net assets of the Variable Options. Scheduled transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Valuation Day. In that case, the transaction will be processed and valued on the next Valuation Day, unless (with respect to required minimum distributions, substantially equal periodic payments under Section 72(t)/72(q) of the Code, annuity payments and fees that are assessed daily as a percentage of the net assets of the Variable Options only), the next Valuation Day falls in the subsequent calendar year, in which case the transaction will be processed and valued on the prior Valuation Day.

In addition, if you are taking your Annual Income Amount through our systematic withdrawal program; and the scheduled day is not a Valuation Day; and the next Valuation Day will occur in a new contract year, the transaction will be processed and valued on the prior Valuation Day.

**Unscheduled Transactions**

"Unscheduled" transactions include any other non-scheduled transfers and requests for Partial Withdrawals or Charge Free Withdrawals or Surrenders. With respect to certain written requests to withdraw Account Value, we may seek to verify the requesting Owner's signature. Specifically, we reserve the right to perform a signature verification for (a) any withdrawal exceeding a certain dollar amount and (b) a withdrawal exceeding a certain dollar amount if the payee is someone other than the Owner. In addition, we will not honor a withdrawal request in which the requested payee is the financial professional or agent of record. We reserve the right to request a signature guarantee with respect to a written withdrawal request. If we do perform a signature verification, we will pay the withdrawal proceeds within 7 days after the withdrawal request was received by us in Good Order, and will process the transaction in accordance with the discussion in this section.

**Medically-related Surrenders & Death Benefits:** Medically-Related Surrender requests and Death Benefit claims require our review and evaluation before processing. We price such transactions as of the date we receive at our Office all supporting documentation we require for such transactions and that are satisfactory to us.

We are generally required by law to pay any surrender request or death benefit claims from the Separate Account within 7 days of our receipt of your request in Good Order.

**Distribution Charge Applicable to Optimum and Optimum Plus:** At the end of the Period during which the Distribution Charge applies, your Annuity will become subject to a lower daily asset-based charge. We will process a transaction where your Account Value allocated to the Variable Options will be used to purchase new Units of the same Variable Options that reflect the insurance charge (and the charge for any optional benefits you have elected) but not the Distribution Charge. The number of Units attributed to your Annuity will be decreased and the Unit Price of each Unit of the Variable Options in which you invested will be increased. The adjustment in the number of Units and Unit Price will not affect your Account Value at the time that the transaction is processed. However, beginning on that date, your Account Value will be determined based on the change in the value of Units that reflect the insurance charge and any other optional benefits that you have elected.

**Termination of Optional Benefits:** Except for the Guaranteed Minimum Income Benefit, the "Combination 5% Roll-up and Highest Anniversary Value Death Benefit" and the Highest Daily Value Death Benefit, which generally cannot be terminated by the Owner once elected, if any optional benefit terminates, we will no longer deduct the charge we apply to purchase the optional benefit. Certain optional benefits may be added after you have purchased your Annuity. On the date a charge no longer applies or a charge for an optional benefit begins to be deducted, your Annuity will become subject to a different daily asset-based charge. This change may result in the number of Units attributed to your Annuity and the value of those Units being different than it was before the change; however, the adjustment in the number of Units and Unit Price will not affect your Account Value (although the change in charges that are deducted will affect your Account Value).

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**SURRENDERS AND WITHDRAWALS**

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**TYPES OF DISTRIBUTIONS AVAILABLE TO YOU**

During the Accumulation Period you can access your Account Value through partial withdrawals, Systematic Withdrawals, and where required for tax purposes, Required Minimum Distributions ("RMD"). You can also surrender your Annuity at any time. Depending on your instructions we may deduct a portion of the Account Value being withdrawn or surrendered as a CDSC, if applicable. If you surrender your Annuity, in addition to any CDSC, we may deduct the Annual Maintenance Fee, any Tax Charge that applies and the charge for any optional benefits. We may also apply a Market Value Adjustment to Market Value Adjustment Fixed Allocations being withdrawn or surrendered. Certain amounts may be available to you each Annuity Year that are not subject to a CDSC. These are called "Charge Free Withdrawals." Unless you notify us differently, as permitted, withdrawals are taken on a proportional basis based on the Account Value in the investment options at the time we receive your withdrawal request. Each of these types of distributions is described more fully below.

If you participate in certain Lifetime Guaranteed Minimum Withdrawal Benefits, and you take a withdrawal deemed to be Excess Income that brings your Account Value to zero, both the benefit and the Annuity itself may terminate. See "[<u>Benefits Available Under the Contract</u>](#chapter_11_936)" for more information.

**TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NON-QUALIFIED ANNUITIES**

**Prior to Annuitization**

For federal income tax purposes, a distribution prior to Annuitization is deemed to come first from any "gain" in your Annuity and second as a return of your "cost basis", if any. Distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. If you take a distribution prior to the taxpayer's age 59<sup>½</sup>, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain. You may wish to consult a professional tax advisor for advice before requesting a distribution.

**During Annuitization**

During the Annuitization period, a portion of each annuity payment is taxed as ordinary income at the tax rate you are subject to at the time of the payment. The Code and regulations have "exclusionary rules" that we use to determine what portion of each annuity payment should be treated as a return of any cost basis you have in your Annuity. Once the cost basis in your Annuity has been distributed, the remaining annuity payments are taxable as ordinary income. The cost basis in your Annuity may be based on the cost basis from a prior contract in the case of a Section 1035 exchange or other qualifying transfer.

There may also be tax implications on distributions from qualified Annuities. See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for information about qualified Annuities and for additional information about Non-qualified Annuities.

**CAN I WITHDRAW A PORTION OF MY ANNUITY?**

You can make a withdrawal during the Accumulation Period.

• To
 meet liquidity needs, you can withdraw a limited amount from your Annuity during each Annuity Year without application of any CDSC. We
 call this the "Charge Free Withdrawal" amount. The Charge Free Withdrawal amount is not available if you choose to surrender
 your Annuity. Amounts
 withdrawn as a Charge Free Withdrawal do not reduce the amount of CDSC that may apply upon a subsequent withdrawal
 or surrender of your Annuity. After any partial withdrawal, your Annuity must have a Surrender Value of at least $1,000, or we may
 treat the partial withdrawal request as a request to fully surrender your annuity. The minimum Charge Free Withdrawal you may request
 is $100.

• You
 can also make withdrawals in excess of the Charge Free Withdrawal amount. The minimum partial withdrawal you may request is $100.

To determine if a CDSC applies to partial withdrawals, we:

1. First
 determine what, if any, amounts qualify as a Charge Free Withdrawal. These amounts are not subject to the CDSC.

2. Next
 determine what, if any, remaining amounts are withdrawals of Purchase Payments. Amounts in excess of the Charge Free Withdrawal
 amount will be treated as withdrawals of Purchase Payments unless all Purchase Payments have been previously withdrawn. These
 amounts are subject to the CDSC. Purchase payments are withdrawn on a first in, first out basis.

3. Withdraw
 any remaining amounts from any other Account Value. These amounts are not subject to the CDSC.

You may request a withdrawal for an exact dollar amount after deduction of any CDSC that applies (called a "net withdrawal") or request a gross withdrawal from which we will deduct any CDSC that applies, resulting in less money being payable to you than the amount you requested. If you request a net withdrawal, the amount deducted from your Account Value to pay the CDSC may also be subject to a CDSC.

Partial withdrawals may also be available following Annuitization but only if you choose certain annuity payment options. **(Note, however, that we do** **not permit commutation once annuity payments have commenced).**

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To request the forms necessary to make a withdrawal from your Annuity, call 1-800-879-7012 or visit our website at <u>www.prudential.com/annuities</u>.

**CHARGE FREE WITHDRAWAL AMOUNTS**

The maximum Charge Free Withdrawal amount during each Annuity Year is equal to 10% of all Purchase Payments that are subject to a CDSC. Withdrawals made within an Annuity Year reduce the Charge Free Withdrawal amount available for the remainder of the Annuity Year. If you do not make a withdrawal during an Annuity Year, you are not allowed to carry over the Charge Free Withdrawal amount to the next Annuity Year.

**CAN YOU CLOSE MY ACCOUNT AND INVOLUNTARILY REDEEM MY INVESTMENT?**

As explained above, after any Partial Withdrawal, your Annuity must have a Surrender Value of at least $1,000, or we may treat the Partial Withdrawal request as a request to fully surrender your Annuity.

**SYSTEMATIC WITHDRAWALS**

Our systematic withdrawal program is an administrative program designed for you to withdraw a specified amount from your Annuity on an automated basis at the frequency you select ("systematic withdrawals"). This program is available to you at no additional charge. We may cease offering this program or change the administrative rules related to the program at any time on a non-discriminatory basis.

You may not have a systematic withdrawal program, as described in this section, if you are receiving substantially equal periodic payments under Sections 72(t) or 72(q) of the Code or Required Minimum Distributions.

You may terminate your systematic withdrawal program at any time. Ownership changes to, and assignment of, your Annuity will terminate any systematic withdrawal program on the Annuity as of the effective date of the change or assignment. Requesting partial withdrawals while you have a systematic withdrawal program may also terminate your systematic withdrawal program as described below.

Systematic withdrawals can be made from your Account Value allocated to the Variable Options or certain Market Value Adjustment Options. Please note that systematic withdrawals may be subject to any applicable CDSC and/or a Market Value Adjustment. We will determine whether a CDSC applies and the amount in the same way as we would for a partial withdrawal.

Systematic Withdrawals based on the Charge Free Withdrawal amount may be available, but only if the contract is still within the surrender charge period. The withdrawals will be calculated based only on the Purchase Payments that are still subject to CDSC.

The minimum amount for each systematic withdrawal is $100. If any scheduled systematic withdrawal is for less than $100 (which may occur under a program that provides payment of an amount equal to the earnings in your Annuity for the period requested), we may postpone the withdrawal and add the expected amount to the amount that is to be withdrawn on the next scheduled systematic withdrawal.

If you do not have an optional benefit, we will withdraw systematic withdrawals from the Investment Options you have designated (your "designated Investment Options"). If you do not designate Investment Options for systematic withdrawals, we will withdraw systematic withdrawals on a proportional basis based on the Account Value in the Investment Options at the time we pay out your withdrawal. "On a proportional basis" means that the percentage of each Investment Option withdrawn is the same percentage that the Investment Option bears to the total Account Value. For any scheduled systematic withdrawal for which you have elected a specific dollar amount and have specified percentages to be withdrawn from your designated Investment Options, if the amounts in your designated Investment Options cannot satisfy such instructions, we will withdraw systematic withdrawals on a proportional basis (as described above) based on the Account Value across all of your Investment Options.

If you have a Guaranteed Lifetime Minimum Withdrawal Benefit or the Guaranteed Minimum Withdrawal Benefit (GMWB) and elect, or have elected, to receive withdrawals under the benefit using our systematic withdrawal program, please be advised of the current administrative rules associated with this program:

• Excluding
 Lifetime Five and GMWB, systematic withdrawals must be taken from your Account Value on a proportional basis from the Investment
 Options at the time we process each withdrawal.

• If
 you either have an existing or establish a new systematic withdrawal program for a) your Annual Income Amount, Annual Withdrawal Amount
 (only applicable to Lifetime Five), Protected Annual Withdrawal Amount (only applicable to GMWB) or LIA Amount (only applicable
 to a Lifetime Income Accelerator Benefit) or b) for a designated amount that is less than your Annual Income Amount, Protected Annual
 Withdrawal Amount or LIA amount, and we receive a request for a partial withdrawal from your Annuity in Good Order, we will process
 your partial withdrawal request and may cancel your systematic withdrawal program.

*Gross Withdrawal or Net Withdrawal.* Generally, you can request either a gross withdrawal or a net withdrawal. If, however, you are taking your withdrawal under your living benefit as described above through our Systematic Withdrawal program, you will only be permitted to take that withdrawal on a gross basis. In a gross withdrawal, you request a specific withdrawal amount with the understanding that the amount you actually receive is reduced by any applicable CDSC or tax withholding. In a net withdrawal, you request a withdrawal for an exact dollar amount with the understanding that any applicable deduction for CDSC or tax withholding is taken from your Account Value. This means that an amount greater than the amount of your requested withdrawal will be deducted from your Unadjusted Account Value. To make sure that you receive the full amount requested, we calculate the entire amount, including the amount generated due to the CDSC or tax withholding, that will need to be withdrawn. We then apply the CDSC or tax withholding to that entire amount. As a result, you will pay a greater CDSC or have more tax withheld if you elect a net withdrawal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you either have or establish a new systematic withdrawal program for an amount greater than your Annual Income Amount, Protected Annual
 Withdrawal Amount or LIA Amount, it is important to note that these systematic withdrawals may result in Excess Income which will negatively
 impact your guaranteed withdrawal amounts available in future Annuity Years. Taking partial withdrawals in addition to your systematic
 withdrawal program will further increase the impact on your future guaranteed withdrawal amounts.

• For
 a discussion of how a withdrawal of Excess Income would impact your optional living benefits, see " [<u>Benefits Available Under the</u> <u>Contract</u>](#chapter_11_936) ".

**SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t) AND 72(q) OF THE INTERNAL REVENUE CODE**

If your Annuity is used as a funding vehicle for certain retirement plans that receive special tax treatment under Sections 401, 403(b), 408 or 408A of the Code, Section 72(t) of the Code may provide an exception to the 10% additional tax on distributions made prior to age 59½ if you elect to receive distributions as a series of "substantially equal periodic payments." For Annuities issued as Non-qualified Annuities, Section 72(q) of the Code may provide a similar exception to the 10% additional tax. Distributions received under these provisions in any Annuity Year that exceed the maximum amount available as a Charge Free Withdrawal will be subject to any applicable CDSC. We may apply a Market Value Adjustment to any Market Value Adjustment Fixed Allocations. To request a program that complies with Section 72(t)/72(q), you must provide us with certain required information in writing on a form acceptable to us. We may require advance notice to allow us to calculate the amount of 72(t)/72(q) withdrawals. The Surrender Value of your Annuity must be at least $20,000 before we will allow you to begin a program for withdrawals under Section 72(t)/72(q). The minimum amount for any such withdrawal is $100 and payments may be made monthly, quarterly, semi-annually or annually.

You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments before age 59<sup>½</sup> that are not subject to the 10% additional tax.

**REQUIRED MINIMUM DISTRIBUTIONS**

(See "[<u>Taxes</u>](#chapter_14-sect1_1_936)" for a further discussion of Required Minimum Distributions.)

Required Minimum Distributions are a type of Systematic Withdrawal we allow to meet distribution requirements under Sections 401, 403(b) or 408 of the Code. Required Minimum Distribution rules do not apply to Roth IRAs during the Owner's lifetime. Under the Code, you may be required to begin receiving periodic amounts from your Annuity. In such case, we will allow you to make Systematic Withdrawals in amounts that satisfy the Required Minimum Distribution rules under the Code. We do not assess a CDSC on Required Minimum Distributions from your Annuity if you are required by law to take such Required Minimum Distributions from your Annuity at the time it is taken, provided the amount withdrawn is the amount we calculate as the RMD and is paid out through a program of systematic withdrawals that we make available. However, a CDSC (if applicable) may be assessed on that portion of a Systematic Withdrawal that is taken to satisfy the Required Minimum Distribution provisions in relation to other savings or investment plans under other qualified retirement plans not maintained with us. However, no Market Value Adjustment will be assessed on a withdrawal taken to meet RMD requirements applicable to your Annuity.

The amount of the Required Minimum Distribution for your particular situation may depend on other annuities, savings or investments. We will only calculate the amount of your Required Minimum Distribution based on the value of your Annuity. We require three (3) days advance written notice to calculate and process the amount of your payments. You may elect to have Required Minimum Distributions paid out monthly, quarterly, semi-annually or annually. The $100 minimum amount that applies to Systematic Withdrawals applies to monthly Required Minimum Distributions but does not apply to Required Minimum Distributions taken out on a quarterly, semi-annual or annual basis.

You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments and satisfying the Required Minimum Distribution provisions under the Code.

Please see "[<u>Highest Daily Lifetime 6 Plus</u>](#chapter_11-sect1_16_936)" under the subsection "Required Minimum Distributions" for further information relating to Required Minimum Distributions if you own that benefit.

In any year in which the requirement to take Required Minimum Distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a Required Minimum Distribution if not for the suspension as eligible for treatment as described herein.

**SURRENDER VALUE**

During the Accumulation Period you can surrender your Annuity at any time. Upon surrender, you will receive the Surrender Value. Upon surrender of your Annuity, you will no longer have any rights under the surrendered Annuity.

For purposes of calculating any applicable CDSC on surrender, the Purchase Payments being withdrawn may be greater than your remaining Account Value or the amount of your withdrawal request. This is most likely to occur if you have made prior withdrawals under the Charge Free Withdrawal provision or if your Account Value has declined in value due to negative Variable Option performance. In that scenario, we would determine the CDSC amount as the applicable percentage of the Purchase Payments being withdrawn, rather than as a percentage of the remaining Account Value or withdrawal request. Thus, the CDSC would be greater than if it were calculated as a percentage of remaining Account Value or withdrawal amount. We may apply a Market Value Adjustment to any Market Value Adjustment Fixed Allocations.

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Under certain annuity payment options, you may be allowed to surrender your Annuity for its then current value.

To request the forms necessary to surrender your Annuity, call 1-800-879-7012 or visit our website at <u>www.prudential.com/annuities</u>.

We apply as a threshold, in certain circumstances, a minimum Surrender Value of $1,000. If you purchase an Annuity without a lifetime Guaranteed Minimum Withdrawal Benefit, we will not allow you to take any withdrawals that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value. Likewise, if you purchase an Annuity with certain lifetime Guaranteed Minimum Withdrawal Benefits, we will not allow you to take a Non-Lifetime Withdrawal (see "[<u>Benefits Available Under the Contract</u>](#chapter_11_936)") that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value.

**MEDICALLY-RELATED SURRENDERS**

Where permitted by law, you may request to surrender all or part of your Annuity prior to the Annuity Date without application of any otherwise applicable CDSC upon occurrence of a medically-related "Contingency Event" as described below (a "Medically-Related Surrender"). The requirements of such a surrender and waiver may vary by state.

We may apply a Market Value Adjustment to any Market Value Adjustment Fixed Allocations. If you request a full surrender, the amount payable will be your Account Value minus, with respect to Optimum Plus, (a) the amount of any Credits applied within 12 months prior to your request to surrender your Annuity (or as otherwise stipulated by applicable State law); and (b) the amount of any Credits added in conjunction with any Purchase Payments received after our receipt of your request for a Medically-Related Surrender (e.g. Purchase Payments received at such time pursuant to a salary reduction program). With respect to partial surrenders, we similarly reserve the right to recapture Credits as described above (if allowed by State law).

This waiver of any applicable CDSC is subject to our rules in place at the time of your request, which currently include but are not limited to the following:

• The
 Annuitant must have been named or any change of Annuitant must have been accepted by us, prior to the "Contingency Event" described below in
 order to qualify for a Medically-Related Surrender;

• the
 Annuitant must be alive as of the date we pay the proceeds of such surrender request;

• if
 the Owner is one or more natural persons, all such Owners must also be alive at such time;

• we
 must receive satisfactory proof of the Annuitant's confinement in a Medical Care Facility or Fatal Illness in writing on a form satisfactory to us;

• no
 additional Purchase Payments can be made to the Annuity; and

• proceeds
 will only be sent by check or electronic fund transfer directly to the Owner.

A "Contingency Event" occurs if the Annuitant is:

• first
 confined in a "Medical Care Facility" while your Annuity is in force and remains confined for at least 90 days in a row; or

• first
 diagnosed as having a "Fatal Illness" while your Annuity is in force.

The definitions of "Medical Care Facility" and "Fatal Illness," as well as additional terms and conditions, are provided in your Annuity. Specific details and definitions in relation to this benefit may differ in certain jurisdictions. This waiver is not available in Massachusetts and New York.

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**TAXES**

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The tax considerations associated with an Annuity vary depending on whether the Annuity is (i) owned by an individual or non-natural person, and not associated with a tax-favored retirement plan, or (ii) held under a tax-favored retirement plan. We discuss the tax considerations for these categories of Annuities below. The discussion is general in nature and describes only federal income tax law. We generally do not describe state, local, foreign or other federal tax laws. It is based on current law and interpretations which may change. The information provided is not intended as tax advice. The federal income tax treatment of the Annuity is unclear in certain circumstances, and you should always consult a qualified tax advisor regarding the application of law to individual circumstances. Generally, the cost basis in an Annuity is the amount you pay into your Annuity, or into an annuity exchanged for your Annuity, on an after-tax basis less any withdrawals of such payments. Cost basis for a tax-favored retirement plan is provided only in limited circumstances, such as for contributions to a Roth IRA or nondeductible contributions to a traditional IRA. We do not track cost basis for tax-favored retirement plans, which is the responsibility of the Owner.

On advisory products, you may establish an advisory fee deduction program for a qualified or Non-qualified Annuity such that charges for investment advisory fees are not taxable to the Annuity Owner. Please note that there are additional requirements that must be satisfied in order for investment advisory fee charges paid from a Non-qualified Annuity to be treated as not taxable.

The discussion below generally assumes that the Annuity is issued to the Annuity Owner. For Annuities issued under the Beneficiary Continuation Option or as a Beneficiary Annuity, refer to the Taxes Payable by Beneficiaries for a Non-qualified Annuity and Required Distributions Upon Your Death for Qualified Annuities sections below.

**NON-QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Non-qualified Annuity is owned by an individual or non-natural person and is not associated with a** **tax-favored retirement plan.**

**Taxes Payable by You**

We believe the Annuity is an Annuity for tax purposes. Accordingly, as a general rule, you should not pay any tax until you receive money under the Annuity. Generally, all Annuity contracts issued by the same company (and affiliates) to you during the same calendar year must be treated as one Annuity for purposes of determining the amount of any withdrawal that is subject to tax under the rules described below. We treat advisory fee payments as an expense of the Annuity and not a taxable distribution if your Non-qualified Annuity satisfies the requirements of a Private Letter Ruling issued to us by the Internal Revenue Service ("IRS"). In accordance with the PLR, advisory fee payments from your Non-qualified Annuity are treated as an expense as long as your advisor attests to us that the PLR requirements have been met, including that the advisory fees will not exceed 1.5% of the Annuity's cash value and the Annuity only pays the advisor for fees related to investment advice with respect to the Annuity and no other services. The PLR does not generally allow such favorable tax treatment of advisory fee payments where a commission is also paid on the Annuity.

It is possible that the IRS could assert that some or all of the charges for the optional living or death benefits under the Annuity should be treated for federal income tax purposes as a partial withdrawal from the Annuity. If this were the case, the charge for this benefit could be deemed a withdrawal and treated as taxable income to the extent there are earnings in the Annuity. Additionally, for Owners under age 59½, the taxable income attributable to the charge for the benefit could be subject to the 10% additional tax. If the IRS determines that the charges for one or more benefits under the Annuity are taxable withdrawals, then the sole, primary, or surviving Owner will be provided with a notice from us describing available alternatives regarding these benefits.

**Taxes on Withdrawals and Surrender Before Annuity Payments Begin**

If you make a withdrawal from your Annuity or surrender it before annuity payments begin, the amount you receive will be taxed as ordinary income, rather than as a return of cost basis, until all gain has been withdrawn. At any time there is no gain in your Annuity, payments will be treated as a nontaxable return of cost basis until all cost basis has been returned. After all cost basis is returned, all subsequent amounts will be taxed as ordinary income. An exception to this treatment exists for contracts that include Purchase Payments made prior to August 14, 1982 that are issued via 1035 exchange. Withdrawals from a contract with Purchase Payments made before August 14, 1982 are treated as a return of cost basis in the Annuity first until those pre-August 14, 1982 Purchase Payments are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982 is not subject to the 10% additional tax.

You will generally be taxed on any withdrawals from the Annuity while you are alive even if the withdrawal is paid to someone else. Withdrawals under any of the optional living benefits or as a systematic payment are taxed under these rules. If you assign or pledge all or part of your Annuity as collateral for a loan, the part assigned generally will be treated as a withdrawal and subject to income tax to the extent of gain. If the entire Account Value is assigned or pledged, subsequent increases in the Account Value are also treated as withdrawals for as long as the assignment or pledge remains in place. The cost basis is increased by the amount includible in income with respect to such assignment or pledge. If you transfer your Annuity for less than full consideration, such as by gift, you will also trigger tax on any gain in the Annuity. Under most circumstances, this rule does not apply if you transfer the Annuity to your spouse or if you transfer the Annuity incident to divorce.

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If you choose to receive payments under an interest payment option, or a Beneficiary chooses to receive a death benefit under an interest payment option, that election will be treated, for tax purposes, as surrendering your Annuity and will immediately subject any gain in the Annuity to income tax and possibly the 10% additional tax.

**Taxes on Annuity Payments**

If you select an annuity payment option as described in "[<u>Annuity Period</u>](#chapter_10-sect1_1_936)", a portion of each annuity payment you receive will be treated as a partial return of your cost basis and will not be taxed. The remaining portion will be taxed as ordinary income. Generally, the nontaxable portion is determined by multiplying the annuity payment you receive by a fraction, the numerator of which is your cost basis (less any amounts previously received tax-free) and the denominator of which is the total expected payments under the Annuity. After the full amount of your cost basis has been recovered tax-free, the full amount of the annuity payments will be taxable. If annuity payments stop due to the death of the Annuitant before the full amount of your cost basis has been recovered, a tax deduction may be allowed for the unrecovered amount.

If your Account Value is reduced to zero but the Annuity remains in force due to a benefit provision, further distributions from the Annuity will be reported as annuity payments, using an exclusion ratio based upon the undistributed cost basis in the Annuity and the total value of the anticipated future payments until such time as all cost basis has been recovered.

**Maximum Annuity Date**

You must commence annuity payments no later than the first day of the calendar month following the maximum Annuity Date for your Annuity. Upon reaching the maximum Annuity Date you can no longer make Purchase Payments, surrender, exchange, or transfer your contract. The maximum Annuity Date may be the same as the Latest Annuity Date as described elsewhere in this prospectus. For some of our Annuities, you can choose to defer the Annuity Date beyond the default or Latest Annuity Date, as applicable, described in your Annuity. However, the IRS may not then consider your Annuity to be an Annuity under the tax law.

Please refer to your Annuity contract for the maximum Annuity Date.

**Partial Annuitization**

We do not currently permit partial annuitization.

**Medicare Tax on Net Investment Income**

The Code includes a Medicare tax on investment income. This tax assesses a 3.8% surtax on the lesser of (1) net investment income or (2) the excess of "modified adjusted gross income" over a threshold amount. The "threshold amount" is $250,000 for married taxpayers filing jointly or qualifying widow(er) with dependent child, $125,000 for married taxpayers filing separately, $200,000 for all others, and approximately $16,000 for estates and certain trusts. The taxable portion of payments received as a withdrawal, surrender, annuity payment, death benefit payment or any other actual or deemed distribution under the Annuity will be considered investment income for purposes of this surtax.

**10% Additional Tax for Early Withdrawal from a Non-Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from your Non-qualified Annuity. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½;

• the
 amount is paid on or after your death (or the death of the Annuitant when the owner is not an individual);

• the
 amount received is attributable to your becoming disabled (as defined in the Code);

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually (please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years
 and the impermissible
 modification of payments during that time period will result in retroactive application of the 10% additional tax); or

• the
 amount received is paid under an immediate Annuity (within the meaning of the Code) and the annuity start date is no more than one year
 from the date of purchase (the first monthly annuity payment being required to be paid within 13 months).

Other exceptions to this tax may apply. You should consult your tax advisor for further details.

**Special Rules in Relation to Tax-free Exchanges Under Section 1035**

Section 1035 of the Code permits certain tax-free exchanges of a life insurance contract, annuity contract or endowment contract for an Annuity, including tax-free exchanges of annuity death benefits for a Beneficiary Annuity. Partial exchanges may be treated in the same way as tax-free 1035 exchanges of entire contracts, therefore avoiding current taxation of the partially exchanged amount as well as the 10% additional tax on pre-age 59½ withdrawals. In Revenue Procedure 2011-38, the IRS indicated that, for partial exchanges on or after October 24, 2011, where there is a surrender or distribution from either the initial annuity contract or receiving annuity contract within 180 days of the date on which the partial exchange was completed

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(other than an amount received as an annuity for a period of 10 years or more or during one or more lives), the IRS may not treat the transaction as a tax-free Section 1035 exchange. The IRS will apply general tax rules to determine the substance and treatment of the transaction in such cases. We strongly urge you to discuss any partial exchange transaction of this type with your tax advisor before proceeding with the transaction.

If an Annuity is purchased through a tax-free exchange of a life insurance contract, annuity contract or endowment contract that was purchased prior to August 14, 1982, then any Purchase Payments made to the original contract prior to August 14, 1982 will be treated as made to the new Annuity prior to that date. Generally, such pre-August 14, 1982 withdrawals are treated as a return of cost basis first until Purchase Payments made before August 14, 1982 are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982, is not subject to the 10% additional tax.

After you elect an Annuity Payout Option, we do not allow you to exchange your Annuity.

**Taxes Payable by Beneficiaries for a Non-Qualified Annuity**

If an Owner dies before the Annuity Date, the Death Benefit distributions are taxed at ordinary income tax rates. The value of the Death Benefit, as determined under federal law, is also included in the Owner's estate for federal estate tax purposes. Generally, the same income tax rules described above would also apply to amounts received by your Beneficiary. Choosing an option other than a lump sum Death Benefit may defer taxes. Certain minimum distribution requirements apply upon your death, as discussed further below in the Annuity Qualification section. Tax consequences to the Beneficiary vary depending upon the Death Benefit payment option selected. Generally, for payment of the Death Benefit:

• As
 a lump sum payment, the Beneficiary is taxed in the year of payment on gain in the Annuity.

• Within
 5 years of death of Owner, the Beneficiary is taxed on the lump sum payment. The Death Benefit must be taken as one lump sum payment
 within 5 years of the death of the Owner. Partial withdrawals are not permitted to be paid to Beneficiaries under our Annuity contracts.

• Under
 an Annuity or Annuity settlement option where distributions begin within one year of the date of death of the Owner, the Beneficiary is
 taxed on each payment with part as gain and part as return of cost basis. After the full amount of cost basis has been recovered tax-free,
 the full amount of the annuity payments will be taxable.

After the Annuity Date, if a period certain remains under the annuity option and the Annuitant dies before the end of that period, any remaining payments made to the Beneficiary will be fully excluded from income until the remaining cost basis is recovered and all annuity payments thereafter are fully includible in income. If we allow the Beneficiary to commute the remaining payments in a lump sum, the proceeds will be taxable as a surrender.

**Considerations for Contingent Annuitants:** We may allow the naming of a contingent Annuitant when a Non-qualified Annuity is held by a pension plan or a tax favored retirement plan, or held by a Custodial Account (as defined in this prospectus). In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a contingent annuitant when a Non-qualified Annuity is held by an entity owner when such Annuities do not qualify for tax deferral under the current tax law. This does not supersede any benefit language which may restrict the use of the contingent annuitant.

**Reporting and Withholding on Distributions**

Amounts distributed from an Annuity are subject to federal and state income tax reporting and withholding. In general, we will withhold federal income tax from the taxable portion of such distribution based on the type of distribution. In the case of an annuity payment, we apply default withholding under the applicable tax rules unless you designate a different withholding status. In the case of all other distributions, we will withhold at a 10% rate. You may generally elect a different tax withholding rate or elect not to have tax withheld from your payments. An election out of withholding must be made on forms that we provide. If you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the United States or do not provide a U.S. taxpayer identification number, we are required to withhold income tax.

State income tax withholding rules vary and we will withhold based on the rules of your state of residence. Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country. Please refer to the discussion below regarding withholding rules for a Qualified Annuity.

Regardless of the amount withheld by us, you are liable for payment of income taxes (including any estimated taxes that may be due) on the taxable portion of distributions from the Annuity. You should consult with your tax advisor regarding the payment of the correct amount of these income taxes and potential liability if you fail to pay such taxes.

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**Entity Owners**

Where an Annuity is held by a non-natural person (e.g., a corporation, partnership), other than as an agent or nominee for a natural person (or in other limited circumstances), increases in the value of the Annuity over its cost basis will be subject to tax annually.

Where an Annuity is issued to a Charitable Remainder Trust (CRT), increases in the value of the Annuity over its cost basis will be subject to tax reporting annually. As there are charges for the optional living and death benefits described elsewhere in this prospectus, and such charges reduce the contract value of the Annuity, trustees of the CRT should discuss with their legal advisors whether election of such optional living or death benefits violates their fiduciary duty to the remainder beneficiary.

Where an Annuity is issued to a trust, and such trust is characterized as a grantor trust under the Code, such Annuity is generally not considered to be held by a non-natural person and will be subject to the tax reporting and withholding requirements generally applicable to a Non-qualified Annuity held by a natural person, provided that all grantors of the trust are natural persons. At this time, we will not issue an Annuity to grantor trusts with more than two grantors.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within five years after the date of the first grantor's death (or the Annuitant's death in certain instances) under Section 72(s) of the Code. See the "[<u>Payment of Death Benefits</u>](#chapter_11-sect1_25_930ab)" section for scenarios where a Death Benefit or Surrender Value is payable depending upon the underlying facts.

Trusts are required to complete and submit a Certificate of Entity form, and we will tax report based on the information provided on this form.

**Annuity Qualification**

*Diversification And Investor Control.* In order to qualify for the tax rules applicable to Annuities described above, the investment assets in the Non-qualified Annuity Variable Options must be diversified according to certain rules under the Code. Each Portfolio is required to diversify its investments each quarter so that no more than 55% of the value of its assets is represented by any one investment, no more than 70% is represented by any two investments, no more than 80% is represented by any three investments, and no more than 90% is represented by any four investments. Generally, securities of a single issuer are treated as one investment, and obligations of each U.S. Government agency and instrumentality (such as the Government National Mortgage Association) are treated as issued by separate issuers. In addition, any security issued, guaranteed or insured (to the extent so guaranteed or insured) by the U.S. or an instrumentality of the U.S. will be treated as a security issued by the U.S. Government or its instrumentality, where applicable. We believe the Portfolios underlying the Variable Options of the Annuity meet these diversification requirements.

An additional requirement for qualification for the tax treatment described above is that we, and not you as the Annuity Owner, must have sufficient control over the underlying assets to be treated as the owner of the underlying assets for tax purposes. The tax law limits the amount of control you may have over choosing investments for your Annuity. If this "investor control" rule is violated your Annuity assets will be considered owned directly by you and you lose the favorable tax treatment generally afforded to annuities.

While we also believe these investor control rules will be met, the Treasury Department may promulgate guidelines under which a variable annuity will not be treated as an annuity contract for tax purposes if persons with ownership rights have excessive control over the investments underlying such variable annuity contract. It is unclear whether such guidelines, if in fact promulgated, would have retroactive effect. It is also unclear what effect, if any, such guidelines might have on transfers between the Investment Options offered pursuant to this prospectus. We reserve the right to take any action, including modifications to your Annuity or the Investment Options, required to comply with such guidelines if promulgated. Any such changes will apply uniformly to affected Owners and will be made with such notice to affected Owners as is feasible under the circumstances.

**Required Distributions Upon Your Death for a Non-Qualified Annuity.**

Upon your death, certain distributions must be made under the Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. If you die before the Annuity Date, the entire interest in the Annuity must be distributed within five years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the designated Beneficiary (provided such payments begin within one year of your death). If the Beneficiary does not begin installments within one year of the date of death, no partial withdrawals will be permitted thereafter, and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline. Your designated Beneficiary is the person to whom benefit rights under the Annuity pass by reason of death, and must be a natural person in order to elect a periodic payment option based on life expectancy or a period exceeding five years. Additionally, if the Annuity is payable to (or for the benefit of) your surviving spouse, that portion of the Annuity may be continued with your spouse as the Owner. For Non-qualified Annuities owned by a non-natural person, the required distribution rules generally apply upon the death of the Annuitant. This means, for example, that for an Annuity held by a non-natural person (such as a trust) for which there is named a co-annuitant, then such required distributions will be triggered by the death of the first co-annuitant to die.

*Changes To Your Annuity.* We reserve the right to make any changes we deem necessary to assure that your Annuity qualifies as an Annuity for tax purposes. Any such changes will apply to all Annuity Owners and you will be given notice to the extent feasible under the circumstances.

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**QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Qualified Annuity is an Annuity with applicable endorsements for a tax-favored plan or a** **Non-qualified Annuity held by a tax-favored retirement plan.**

The following is a general discussion of the tax considerations for Qualified Annuities. This Annuity may or may not be available for all types of the tax-favored retirement plans discussed below. This discussion assumes that you have satisfied the eligibility requirements for any tax-favored retirement plan. Please consult your financial professional prior to purchase to confirm if this Annuity is available for a particular type of tax-favored retirement plan or whether we will accept the type of contribution you intend for this Annuity.

A Qualified Annuity may have been purchased for use in connection with:

• Individual
 retirement accounts and annuities (IRAs), including inherited IRAs (which we refer to as a Beneficiary IRA), which are subject to Sections
 408(a) and 408(b) of the Code;

• Roth
 IRAs, including inherited Roth IRAs (which we refer to as a Beneficiary Roth IRA) under Section 408A of the Code;

• A
 corporate Pension or Profit-sharing plan (subject to 401(a) of the Code);

• H.R.
 10 plans (also known as Keogh Plans, subject to 401(a) of the Code);

• Tax
 Sheltered Annuities (subject to 403(b) of the Code, also known as Tax Deferred Annuities or TDAs);

• Section
 457 plans (subject to 457 of the Code).

A Non-qualified Annuity may have been purchased by a 401(a) trust, a custodial IRA or a custodial Roth IRA account, or a Section 457 plan, which can hold other permissible assets. The terms and administration of the trust or custodial account or plan in accordance with the laws and regulations for 401(a) plans, IRAs or Roth IRAs, or a Section 457 plan, as applicable, are the responsibility of the applicable trustee or custodian.

You should be aware that tax favored plans such as IRAs generally provide income tax deferral regardless of whether they invest in Annuities. This means that when a tax favored plan invests in an Annuity, it generally does not result in any additional tax benefits (such as income tax deferral and income tax free transfers).

**Types of Tax-favored Plans**

***IRAs.*** The "IRA Disclosure Statement" and "Roth IRA Disclosure Statement" which accompany the prospectus contain information about eligibility, contribution limits, tax particulars, and other IRA information. In addition to this information (the material terms are summarized in this prospectus and in those Disclosure Statements), the IRS requires that you have a "Free Look" after making an initial contribution to the Annuity. During this time, you can cancel the Annuity by notifying us in writing, and we will refund the greater of all purchase payments under the Annuity or the Account Value, less any applicable federal and state income tax withholding.

*Contribution Limits/Rollovers.* Subject to the minimum purchase payment requirements of an Annuity, you may purchase an Annuity for an IRA in connection with a "rollover" of amounts from a qualified retirement plan, as a transfer from another IRA, by making a contribution consisting of your IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the later applicable due date of your federal income tax return, without extension), or as a current year contribution. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits for the subsequent year in the fourth quarter of the current year. The tax law also provides for a catch-up provision for individuals who are age 50 and above, allowing these individuals an additional $1,000 contribution each year. The $1,000 catch-up contribution for IRA owners age 50 or older is indexed for inflation starting in 2024 in accordance with the Consolidated Appropriations Act, 2023 (which includes SECURE 2.0 of 2022 ("SECURE 2.0"). You may be able to claim a deduction for your contributions depending on your modified adjusted gross income. Go to <u>www.irs.gov</u> for the limits for each year.

The "rollover" rules under the Code are fairly technical; however, an individual (or his or her surviving spouse) may generally "roll over" certain distributions from tax favored retirement plans (either directly or within 60 days from the date of these distributions) if he or she meets the requirements for distribution. Once you buy an Annuity, you can make regular IRA contributions under the Annuity (to the extent permitted by law and the terms of the Annuity). For IRA rollovers, an individual can only make an IRA to IRA rollover if the individual has not made a rollover involving any IRAs owned by the individual in the prior 12 months. An IRA transfer is a tax-free trustee-to-trustee "transfer" from one IRA account to another. IRA transfers are not subject to this 12-month rule. There is no age limitation with regard to contributions to a traditional IRA as long as the earned income requirements are met.

In some circumstances, non-spouse Beneficiaries may roll over to an IRA amounts due from qualified plans, 403(b) plans, and governmental 457(b) plans. However, the rollover rules applicable to non-spouse Beneficiaries under the Code are more restrictive than the rollover rules applicable to Owner/participants and spouse Beneficiaries. Generally, non-spouse Beneficiaries may roll over distributions from tax favored retirement plans only as a direct rollover. An inherited IRA must be directly rolled over from the employer plan or transferred from an IRA and must be titled in the name of the deceased (i.e., John Doe deceased for the benefit of Jane Doe). No additional contributions can be made to an inherited IRA. In this prospectus, an inherited IRA is also referred to as a Beneficiary Annuity.

*Required Provisions.* Annuities that are IRAs (or endorsements that are part of the contract) must contain certain provisions:

• You,
 as Owner of the Annuity, must be the "Annuitant" under the contract (except in certain cases involving the division of property
 under a decree of
 divorce);

• Your
 rights as Owner are non-forfeitable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 cannot sell, assign or pledge the Annuity;

• The
 annual contribution you pay cannot be greater than the maximum amount allowed by law, including catch-up contributions if applicable
 (which does not include any rollover amounts or amounts transferred by trustee-to-trustee transfer);

• The
 date on which required minimum distributions must begin cannot be later than April 1 <sup>st</sup> of the calendar year after the calendar year you
 turn the applicable age (see the Required Minimum Distribution rules for more details); and

• Death
 and annuity payments must meet Required Minimum Distribution rules described below.

Usually, the full amount of any distribution from an IRA (including a distribution from this Annuity) which is not a transfer or rollover is taxable. As taxable income, these distributions are subject to the general income tax withholding rules described earlier regarding an Annuity in the Non-qualified Annuity section. In addition to this normal tax liability, you may also be liable for the following, depending on your actions:

• A
 10% early withdrawal additional tax described below;

• Liability
 for "prohibited transactions" if you, for example, borrow against the value of an IRA; or

• Failure
 to take a Required Minimum Distribution, also described below.

If you make any non-deductible contributions to your IRA, a portion of any subsequent distribution may be tax-free as a return of those contributions. You are required to keep track of this and determine the taxable and non-taxable portions. IRS rules require that we report the full amount of any distribution as taxable.

***Simplified Employee Pensions (SEP).*** SEPs are a variation on a standard IRA, and Annuities issued to a SEP must satisfy the same general requirements described under IRAs (above). There are, however, some differences:

• If
 you participate in a SEP, you generally do not include in income any employer contributions made to the SEP on your behalf up to the lesser
 of (a) the annual employer contribution limit as indexed for inflation, or (b) 25% of your taxable compensation paid by the contributing
 employer (not including the employer's SEP contribution as compensation for these purposes). However, for these purposes, compensation
 in excess of certain limits established by the IRS will not be considered. Go to <u>www.irs.gov</u> for the current year contribution and
 catch-up limits and compensation limit.

• SEPs
 must satisfy certain participation and nondiscrimination requirements not generally applicable to IRAs; and

• SEPs
 that contain a salary reduction or "SARSEP" provision prior to 1997 may permit salary deferrals from employee income with
 the employer making
 these contributions to the SEP. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits
 for the subsequent year in the fourth quarter of the current year. However, no new "salary reduction" or "SARSEPs"
 can be established
 after 1996. Individuals participating in a SARSEP who are age 50 or above by the end of the year are permitted to contribute an
 additional catch-up contribution amount. These amounts are indexed for inflation and may depend on the participant's age. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Not all Annuities issued by us are available for SARSEPs.

• You
 will also be provided the same information, and have the same "Free Look" period, as you would have if you purchased the Annuity for a standard IRA.

• Roth
 contributions are permitted for SEP IRAs starting in 2023. The Company does not currently offer Roth contributions for  SEP IRAs, but we reserve the
 right to offer this contribution type in the future.

***ROTH IRAs.*** The "Roth IRA Disclosure Statement" contains information about eligibility, contribution limits, tax particulars and other Roth IRA information. Like standard IRAs, income within a Roth IRA accumulates tax-free, and contributions are subject to specific limits. Roth IRAs have, however, the following differences:

• Contributions
 to a Roth IRA cannot be deducted from your gross income;

• "Qualified
 distributions" from a Roth IRA are excludable from gross income. A "qualified distribution" is a distribution that satisfies
 two requirements:
 (1) the distribution must be made (a) after the Owner of the IRA attains age 59½; (b) after the Owner's death; (c) due to the Owner's disability;
 or (d) for a qualified first time homebuyer distribution within the meaning of Section 72(t)(2)(F) of the Code; and (2) the distribution
 must be made in the year that is at least five tax years after the first year for which a contribution was made to any Roth IRA established
 for the Owner. Distributions from a Roth IRA that are not qualified distributions will be treated as made first from contributions and
 then from earnings and earnings will be taxed generally in the same manner as distributions from a traditional IRA.

• If
 eligible (including meeting income limitations and earnings requirements), you may make contributions to a Roth IRA during your lifetime,
 and distributions are not required during the owner's lifetime.

Subject to the minimum Purchase Payment requirements of an Annuity, you may purchase an Annuity for a Roth IRA in connection with a "rollover" of amounts of another traditional IRA, SEP, SIMPLE-IRA (subject to a timing restriction), employer sponsored retirement plan (under Sections 401(a) or 403(b) of the Code) or Roth IRA. You may also purchase an Annuity for a Roth IRA, if you meet certain income limitations, by making a contribution consisting of your Roth IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the applicable due date of your federal income tax return, without extension), or as a current year contribution. The Code permits persons who receive certain qualifying distributions from such non-Roth IRAs, to directly rollover or make, within 60 days, a "rollover" of all or any part of the amount of such distribution to a Roth IRA which they establish (a "conversion"). The conversion of non-Roth accounts triggers current taxation (but is not subject to a 10% early distribution additional tax unless a distribution that is allocable to the rollover contribution is distributed within 5 years of the conversion).

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In addition, SECURE 2.0 amends the Code to allow for tax and penalty free rollovers from 529 accounts to Roth IRAs, under certain conditions. Starting in 2024, beneficiaries of 529 college savings accounts would be permitted to roll over up to $35,000 over the course of their lifetime from any 529 account in their name to their Roth IRA. These rollovers generally are also subject to Roth IRA annual contribution limits, and the 529 account must have been open for at least 15 years, among other requirements.

The Code also permits the recharacterization of current year contribution amounts from a traditional IRA into a Roth IRA, or from a Roth IRA to a traditional IRA. Recharacterization is accomplished through a trustee-to-trustee transfer of a contribution (or a portion of a contribution) plus earnings, between different types of IRAs. A properly recharacterized contribution is treated as a contribution made to the second IRA instead of the first IRA. Such recharacterization must be completed by the applicable tax return due date (with extensions). However, no recharacterizations of conversions can be made.

Once an Annuity has been purchased, regular Roth IRA contributions will be accepted to the extent permitted by law and the terms of the Annuity. In addition, an individual receiving an eligible rollover distribution from a designated Roth account under an employer plan may roll over the distribution to a Roth IRA even if the individual is not eligible to make regular contributions to a Roth IRA. Non-spouse Beneficiaries receiving a distribution from an employer sponsored retirement plan under Sections 401(a) or 403(b) of the Code can also directly roll over contributions to a Roth IRA. However, it is our understanding of the Code that non-spouse Beneficiaries cannot "rollover" benefits from a traditional IRA to a Roth IRA.

***TDAs.*** In general, you may own a Tax Deferred Annuity (also known as a TDA, Tax Sheltered Annuity (TSA), 403(b) plan or 403(b) Annuity) if you are an employee of a tax-exempt organization (as defined under Code Section 501(c)(3)) or a public educational organization, and you may make contributions to a TDA so long as your employer maintains such a plan and your rights to the Annuity are non-forfeitable. Contributions to a TDA, and any earnings, are not taxable until distribution. You may also make contributions to a TDA under a salary reduction agreement subject to specific limits. Individuals participating in a TDA who are age 50 or above by the end of the year will be permitted to contribute an additional amount. This amount is indexed for inflation. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Further, you may roll over TDA amounts to another TDA or an IRA. You may also roll over TDA amounts to a qualified retirement plan, a SEP and a governmental 457(b) plan. An Annuity may generally only qualify as a TDA if distributions of salary deferrals (other than "grandfathered" amounts held as of December 31, 1988) may be made only on account of:

• Your
 attainment of age 59½;

• Your
 severance of employment;

• Your
 death;

• Your
 total and permanent disability; or

• Hardship

In any event, you must begin receiving distributions from your TDA by April 1<sup>st</sup> of the calendar year after the calendar year you turn the applicable age or retire, whichever is later. These distribution limits do not apply either to transfers or exchanges of investments under the Annuity, or to any "direct transfer" of your interest in the Annuity to another employer's TDA plan or mutual fund "custodial account" described under Code Section 403(b)(7). Employer contributions to TDAs are subject to the same general contribution, nondiscrimination, and minimum participation rules applicable to "qualified" retirement plans.

**Caution:** Under IRS regulations we can accept contributions, transfers and rollovers only if we have entered into an information-sharing agreement, or its functional equivalent, with the applicable employer or its agent. In addition, in order to comply with the regulations, we will only process certain transactions (e.g., transfers, withdrawals, hardship distributions and, if applicable, loans) with employer approval. This means that if you request one of these transactions we will not consider your request to be in Good Order, and will not therefore process the transaction, until we receive the employer's approval in written or electronic form.

**Late Rollover Self-Certification**

You may be able to apply a rollover contribution to your IRA or qualified retirement plan after the 60-day deadline through a self-certification procedure established by the IRS. Please consult your tax or legal advisor regarding your eligibility to use this self-certification procedure. As indicated in this IRS guidance, we, as a financial institution, are not required to accept your self-certification for waiver of the 60-day deadline.

**Required Minimum Distributions and Payment Options**

If you hold the Annuity under an IRA (or other tax-favored plan), Required Minimum Distribution rules must be satisfied. This means that generally payments must start by April 1 of the year after the year you reach the applicable age ("required beginning date") and must be made for each year thereafter. For a TDA or a 401(a) plan for which the participant is not a greater than 5% owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs and designated Roth accounts under employer sponsored plans are not subject to these rules during the Owner's lifetime.

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| | |
|:---|:---|
| **If you were born...** | **Your "applicable age" is …** |
|  Before July 1, 1949 | 70½ |
|  After June 30, 1949 and before 1951 | 72 |
|  After 1950 and before 1960 | 73 |
|  After 1959 | 75 |

---

The amount of the payment must at least equal the minimum required under the IRS rules. Several choices are available for calculating the minimum amount. More information on the mechanics of this calculation is available on request. Please contact us at a reasonable time before the Required Minimum Distribution deadline so that a timely distribution is made. Please note that there is a 25% excise tax (a 50% excise tax applied prior to the 2023 taxable year) on the amount of any required minimum distribution not made in a timely manner. The excise tax on failure is further reduced from 25% to 10% if corrected in a timely manner and certain other conditions are met in accordance with SECURE 2.0.

Required Minimum Distributions are calculated based on the sum of the Account Value and the actuarial present value of any additional living and death benefits from optional riders that you have purchased under the Annuity. As a result, the Required Minimum Distributions may be larger than if the calculation were based on the Account Value only, which may in turn result in an earlier (but not before the required beginning date) distribution of amounts under the Annuity and an increased amount of taxable income distributed to the Annuity Owner, and a reduction of payments under the living and death benefit optional riders.

You can use the Minimum Distribution option to satisfy the Required Minimum Distribution rules for an Annuity without either beginning annuity payments or surrendering the Annuity. Under this option we will distribute to you the Required Minimum Distribution amount, less any other partial withdrawals that you made during the year. Such amount will be based on the value of the Annuity as of December 31 of the prior year, but is determined without regard to other tax favored retirement plans you may own. If a trustee-to-trustee transfer or direct rollover of the full contract value is requested when there is an active Required Minimum Distribution program running, the Required Minimum Distribution will be removed and sent to the Owner prior to the remaining funds being sent to the transfer institution.

Although the IRS rules determine the required amount to be distributed from your IRA each year, certain payment alternatives are still available to you. In accordance with SECURE 2.0, a new optional method for calculating your RMDs may be available if you have an IRA in an annuity payout (or partial annuity payout), and an IRA in the deferral stage. Please contact your tax advisor to determine if this calculation method is appropriate for you. In addition, if you own more than one IRA, you can choose to satisfy your minimum distribution requirement for each of your IRAs by withdrawing that amount from any of your non-Roth IRAs. If you inherit more than one IRA or more than one Roth IRA from the same Owner, similar rules apply. These rules may also apply to other types of tax favored retirement plans such as TDAs.

**Charitable IRA Distributions.**

Certain qualified IRA distributions used for charitable purposes are eligible for an exclusion from gross income, up to $100,000 (indexed for inflation beginning after 2023), for otherwise taxable IRA distributions from a traditional or Roth IRA. A qualified charitable distribution is a distribution that is made (1) directly by the IRA trustee to certain qualified charitable organizations and (2) on or after the date the IRA owner attains age 70½. Distributions that are excluded from income under this provision are not taken into account in determining the individual's deductions, if any, for charitable contributions. The amount of your qualified charitable distributions that are excluded from income for a tax year is reduced (but not below zero) by the excess of: (1) the total amount of your IRA deductions allowed for all tax years ending on or after the date you attain age 70½, over (2) the total amount of reductions for all tax years preceding the current tax year. You should consult your tax advisor about whether a one-time distribution up to $50,000 (indexed for inflation beginning after 2023) that is made from your IRA to a "split-interest entity" can be excluded from your gross income.

The IRS has currently indicated that an IRA trustee is not responsible for determining whether a distribution to a charity is one that satisfies the requirements of the charitable giving incentive. Unless otherwise required in the future by the IRS, we will report the distribution as a normal IRA distribution on Form 1099-R. In those instances, individuals are responsible for reflecting the distributions as charitable IRA distributions on their personal tax returns. However, if we receive certification that the distribution satisfies the requirements, we will report the distribution as a charitable IRA distribution on Form 1099-R.

**Required Distributions Upon Your Death for a Qualified Annuity**

Upon your death under an IRA, Roth IRA, 403(b) or other employer sponsored plan, any remaining interest must be distributed in accordance with federal income tax requirements. For Owner and Beneficiary deaths prior to 2020, please consult your tax advisor regarding the applicable post-death distribution requirements.

The information provided below applies to Owner and Beneficiary deaths after 2019. In addition, if you are an employee under a governmental plan, such as a section 403(b) plan of a public school or a governmental 457(b) plan, this law applies if you die after 2021. In addition, if your plan is maintained pursuant to one or more collective bargaining agreements, this law generally applies if you die after 2021 (unless the collective bargaining agreements terminate earlier).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• *Death before your required beginning date.* If you die before your required beginning date, and you have a designated beneficiary, any remaining
 interest must be distributed within 10 years after your death, unless the designated beneficiary is an "eligible designated beneficiary"
 ("EDB") or some other exception applies. A designated beneficiary is any individual designated as a beneficiary by the employee
 or IRA owner. An EDB is any designated beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically
 ill, or (5) an individual not more than 10 years younger than you. An individual's status as an EDB is generally determined on the
 date of your death. An EDB (other than a minor child) can generally stretch distributions over their life or life expectancy if payments begin by the end
 of the calendar year following the year of your death and continuing over the EDB's remaining life expectancy after the EDB's
 death. However, all amounts must be fully distributed by the end of the year containing the 10 <sup>th</sup> anniversary of the EDB's death. Special
 rules apply to minors and Beneficiaries that are not individuals. Additional special rules apply to surviving spouses, see "Spousal Continuation"
 below.

• *Death on or after your required beginning date.* In general, if you die on or after your required beginning date, and you have a designated beneficiary
 who is not an EDB, any remaining interest in your Qualified Annuity must continue to be distributed over the longer of your remaining
 life expectancy and your designated beneficiary's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of your
 death. If your Beneficiary is an EDB (other than a minor child), distributions must continue over the longer of your remaining
 life expectancy and the EDB's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of the EDB's
 death. Special rules apply to EDBs who are minors  and Beneficiaries that are not individuals.

• *Annuity payments.* If
 you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a
 joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled
 to be made beyond the applicable distribution period imposed under the law might need to be commuted at the end of that period
 (or otherwise modified after your death if permitted under federal tax law and by us) in order to comply with the post-death distribution
 requirements.

• *Other rules.* The post-death
 distribution requirements do not apply if the employee or IRA owner elected annuity payments that comply with
 prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the
 requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election
 before that date as to the method and amount of the annuity.

If your beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your beneficiary designations.

In addition, these post-death distribution requirements generally do not apply if the employee or IRA owner died prior to January 1, 2020. However, if the designated beneficiary of the deceased employee or IRA owner dies after January 1, 2020, and the designated beneficiary had elected the lifetime payout rule or was under the at-least-as rapidly rule, any remaining interest must be distributed within 10 year of the designated beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated beneficiary of an employee or IRA owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated beneficiary of an employee or IRA owner who died prior to 2020.

• *Spousal continuation.* If your beneficiary is your spouse, such surviving spouse can delay the application of the post-death distribution requirements
 until after their death by transferring the remaining interest tax-free to their own IRA, or by electing to treat your IRA as their own
 IRA. However, in certain circumstances the surviving spouse may have to take "hypothetical RMDs" (i.e., catch-up amounts required in accordance with
 the regulations).

The post-death distribution requirements are complex in numerous respects. Treasury has issued final and proposed regulations that may impact these required minimum distribution requirements. We reserve the right to make changes in order to comply with the final and proposed regulations, or any regulations published in the future. Any such changes will apply uniformly to affected Owners or Beneficiaries and will be made with such notice to affected Owners or Beneficiaries as is feasible under the circumstances. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

Unless payments are being made in the form of an annuity, a Beneficiary has the flexibility to take out more each year than mandated under the required minimum distribution rules.

Note that in 2014, the U.S. Supreme Court ruled that Inherited IRAs, other than IRAs inherited by the owner's spouse, do not qualify as retirement assets for purposes of protection under the federal bankruptcy laws.

Until withdrawn, amounts in a Qualified Annuity continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the required minimum distribution rules, are subject to tax. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For a Roth IRA, if death occurs before the entire interest is distributed, the death benefit must be distributed under the same rules applied to IRAs where death occurs before the required beginning date. Similar rules may apply to designated Roth accounts under an employer-sponsored retirement plan. Consult your plan sponsor or tax advisor for more information on designated Roth accounts.

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**10% Additional Tax for Early Withdrawals from a Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from an IRA, SEP, Roth IRA, TDA or qualified retirement plan. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½ or die;

• the
 amount received is attributable to your becoming disabled; or

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually. (Please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years. Certain modification
 of payments or additional contributions to the Annuity during that time period will result in retroactive application of the
 10% additional tax.)

There are a number of other exceptions to this tax that may apply. In addition, distributions that satisfy certain exceptions to this tax may be repaid in certain circumstances. You should consult your tax advisor for further details.

**Withholding**

For 403(b) Tax Deferred annuities, we will withhold federal income tax at the rate of 20% for any eligible rollover distribution paid by us to or for a plan participant, unless such distribution is "directly" rolled over into another qualified plan, IRA (including the IRA variations described above), SEP, governmental 457(b) plan or TDA. An eligible rollover distribution is defined under the tax law as a distribution from an employer plan under 401(a), a TDA or a governmental 457(b) plan, excluding any distribution that is part of a series of substantially equal payments (at least annually) made over the life expectancy of the employee or the joint life expectancies of the employee and his designated Beneficiary, any distribution made for a specified period of 10 years or more, any distribution that is a required minimum distribution and any hardship distribution. Regulations also specify certain other items which are not considered eligible rollover distributions. We will not withhold for payments made from trustee owned Annuities or for payments under a 457 plan. For all other distributions, unless you elect otherwise, we will withhold federal income tax from the taxable portion of such distribution at an appropriate percentage. The rate of withholding on annuity payments where no mandatory withholding is required is determined on the basis of the withholding certificate that you file with us. If you do not file a certificate, we will automatically withhold federal taxes on the following basis:

• For
 any annuity payments not subject to mandatory withholding, you will have taxes withheld under the applicable default withholding rules;
 and

• For
 all other distributions, we will withhold at a 10% rate.

If no U.S. taxpayer identification number is provided, no election out of withholding will be allowed, and we will automatically withhold using the default withholding rules. In addition, if you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the U.S., we are required to withhold income tax

We will provide you with forms and instructions concerning the right to elect that no amount be withheld from payments in the ordinary course. However, you should know that, in any event, you are liable for payment of federal income taxes (including any estimated tax liabilities) on the taxable portion of the distributions, and you should consult with your tax advisor to find out more information on your potential liability if you fail to pay such taxes. There may be additional state income tax withholding requirements.

Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country.

**ERISA Requirements**

ERISA (the "Employee Retirement Income Security Act of 1974") and the Code prevent a fiduciary and other "parties in interest" with respect to a plan (and, for these purposes, an IRA would also constitute a "plan") from receiving any benefit from any party dealing with the plan, as a result of the sale of the Annuity. Administrative exemptions under ERISA generally permit the sale of insurance/annuity products to plans, provided that certain information is disclosed to the person purchasing the Annuity. This information has to do primarily with the fees, charges, discounts and other costs related to the Annuity, as well as any commissions paid to any agent selling the Annuity. Information about any applicable fees, charges, discounts, penalties or adjustments may be found in the applicable sections of this prospectus. Information about sales representatives and commissions may be found in the sections of this prospectus addressing distribution of the Annuities.

Other relevant information required by the exemptions is contained in the contract and accompanying documentation.

Please consult with your tax advisor if you have any questions about ERISA and these disclosure requirements.

**Spousal Consent Rules for Retirement Plans – Qualified Annuities**

If you are married at the time your payments commence, you may be required by federal law to choose an income option that provides survivor annuity income to your spouse, unless your spouse waives that right. Similarly, if you are married at the time of your death, federal law may require all or a portion of the Death Benefit to be paid to your spouse, even if you designated someone else as your Beneficiary. A brief explanation of the applicable rules follows. For more information, consult the terms of your retirement arrangement.

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*Defined Benefit Plans and Money Purchase Pension Plans.* If you are married at the time your payments commence, federal law requires that benefits be paid to you in the form of a "qualified joint and survivor annuity" (QJSA), unless you and your spouse waive that right, in writing. Generally, this means that you will receive a reduced payment during your life and, upon your death, your spouse will receive at least one-half of what you were receiving for life. You may elect to receive another income option if your spouse consents to the election and waives his or her right to receive the QJSA. If your spouse consents to the alternative form of payment, your spouse may not receive any benefits from the plan upon your death. Federal law also requires that the plan pay a Death Benefit to your spouse if you are married and die before you begin receiving your benefit. This benefit must be available in the form of an Annuity for your spouse's lifetime and is called a "qualified pre-retirement survivor annuity" (QPSA). If the plan pays Death Benefits to other Beneficiaries, you may elect to have a Beneficiary other than your spouse receive the Death Benefit, but only if your spouse consents to the election and waives his or her right to receive the QPSA. If your spouse consents to the alternate Beneficiary, your spouse will receive no benefits from the plan upon your death. Any QPSA waiver prior to your attaining age 35 will become null and void on the first day of the calendar year in which you attain age 35, if still employed.

*Defined Contribution Plans (including 401(k) Plans and ERISA 403(b) Annuities).* Spousal consent to a distribution is generally not required. Upon your death, your spouse will receive the entire Death Benefit, even if you designated someone else as your Beneficiary, unless your spouse consents in writing to waive this right. Also, if you are married and elect an Annuity as a periodic income option, federal law requires that you receive a QJSA (as described above), unless you and your spouse consent to waive this right.

*IRAs, non-ERISA 403(b) Annuities, and 457 Plans.* Spousal consent to a distribution usually is not required unless specifically required under the terms of the plan. Upon your death, any Death Benefit will be paid to your designated Beneficiary.

**ADDITIONAL CONSIDERATIONS**

**Reporting and Withholding for Escheated Amounts**

Revenue Rulings 2018-17 and 2020-24 provide that an amount transferred from an IRA or 401(a) qualified retirement plan to a state's unclaimed property fund is subject to federal income tax withholding at the time of transfer. The amount transferred is also subject to federal tax reporting. Consistent with these Rulings, we will withhold federal and state income taxes and report to the applicable Owner or Beneficiary as required by law when amounts are transferred to a state's unclaimed property fund. Non-qualified annuity contracts generally are subject to the same or similar federal income tax reporting and withholding requirements as IRAs and qualified retirement plans. As a result, we may determine in the future that we have an obligation to follow similar guidelines with respect to any amounts escheated from your Non-qualified Annuity.

**Gifts and Generation-skipping Transfers**

If you transfer your Annuity to another person for less than adequate consideration, there may be gift tax consequences in addition to income tax consequences. Also, if you transfer your Annuity to a person two or more generations younger than you (such as a grandchild or grandniece) or to a person that is more than 37½ years younger than you, there may be generation-skipping transfer tax consequences.

**Civil Unions and Domestic Partnerships**

U.S. Treasury Department regulations provide that for federal tax purposes, the term "spouse" does not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship that is not denominated as a marriage under the laws of the state where the relationship was entered into, regardless of domicile. As a result, if a Beneficiary of a deceased Owner and the Owner were parties to such a relationship, the Beneficiary will be required by federal tax law to take distributions from the Contract in the manner applicable to non-spouse Beneficiaries and will not be able to continue the Contract. Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

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**LEGAL PROCEEDINGS**

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As of the date of this prospectus, neither the Company nor the Registered Separate Account is a party to any material legal proceedings outside of the ordinary routine litigation incidental to the business. Although the Company and its affiliates are involved in pending and threatened legal proceedings in the normal course of its business, we do not anticipate that the outcome of any such legal proceedings will have a material adverse effect on the Registered Separate Account, or the Company's ability to meet its obligations under the Annuity.

As of the date of this prospectus, Prudential Annuities Distributors, Inc. is not a party to any material legal proceedings outside of the ordinary routine litigation incidental to the business. Although Prudential Annuities Distributors, Inc. can be involved in pending and threatened legal proceedings in the normal course of its business, we do not anticipate that the outcome of any such legal proceedings will have a material adverse effect on its ability to meet its obligations related to the Annuity.

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**FINANCIAL STATEMENTS**

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The financial statements of Fortitude Life Insurance & Annuity Company and the Registered Separate Account are incorporated by reference in the Statement of Additional Information.

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**ADDITIONAL INFORMATION**

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**HOW WILL I RECEIVE STATEMENTS AND REPORTS?**

We send any statements and reports required by applicable law or regulation to you at your last known address of record. You should therefore give us prompt notice of any address change. We reserve the right, to the extent permitted by law and subject to your prior consent, to provide any prospectus, prospectus supplements, confirmations, statements and reports required by applicable law or regulation to you at <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u> or any other electronic means. We send a confirmation statement to you each time a transaction is made affecting Account Value, such as making subsequent Purchase Payments, transfers, exchanges or withdrawals. We also send quarterly statements detailing the activity affecting your Annuity during the calendar quarter. We may confirm regularly scheduled transactions, such as systematic withdrawals (including 72(t) payments and required minimum distributions), and bank drafting, in quarterly statements instead of confirming them immediately. You should review the information in these statements carefully. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

Any errors or corrections on transactions for your Annuity must be reported to us at our Service Center as soon as possible to assure proper accounting to your Annuity. For transactions that are confirmed immediately, we assume all transactions are accurate unless you notify us otherwise within 30 days from the date you receive the confirmation. For transactions that are first confirmed on the quarterly statement, we assume all transactions are accurate unless you notify us within 30 days from the date you receive the quarterly statement. All transactions confirmed immediately or by quarterly statement are deemed conclusive after the applicable 30-day period. We may also send an annual report and a semi-annual report containing applicable financial statements for the Registered Separate Account and the Portfolios, as of December 31 and June 30, respectively, to Owners or, with your prior consent, make such documents available electronically through our website or other electronic means.

**HOW TO CONTACT US**

Please communicate with us using the telephone number and addresses below for the purposes described. Failure to send mail to the proper address may result in a delay in our receiving and processing your request.

**Annuities Service Center**

Call our Annuities Service Center at 1-800-879-7012 during normal business hours.

**Internet**

Access information about your Annuity through our website: www.prudential.com/annuities

**Correspondence Sent by Regular Mail**

Annuities Service Center<br>P.O. Box 7960<br>Philadelphia, PA 19176

**Correspondence Sent by Overnight\*, Certified or Registered Mail**

Annuities Service<br>1600 Malone Street<br>Millville, NJ 08332

\*Please note that overnight correspondence sent through the United States Postal Service may be delivered to the P.O. Box listed above, which could delay receipt of your correspondence at our Annuities Service Center. Overnight mail sent through other methods (e.g. Federal Express, United Parcel Service) will be delivered to the address listed below.

Correspondence sent by regular mail to our Annuities Service Center should be sent to the address shown above. Your correspondence will be picked up at this address and then delivered to our Annuities Service Center. Your correspondence is not considered received by us until it is received at our Annuities Service Center. Where this prospectus refers to the day when we receive a Purchase Payment, request, election, notice, transfer or any other transaction request from you, we mean the day on which that item (or the last requirement needed for us to process that item) arrives in complete and proper form at our Annuities Service Center or via the appropriate telephone or fax number if the item is a type we accept by those means. There are two main exceptions: if the item arrives at our Annuities Service Center (1) on a day that is not a business day, or (2) after the close of a business day, then, in each case, we are deemed to have received that item on the next business day.

You can obtain account information by calling our automated response system, and at <u>www.prudential.com/annuities</u>, our website. Our Customer Service representatives are also available during business hours to provide you with information about your account. You can request certain transactions through our telephone voice response system, our website or through a customer service representative. You can provide authorization for a third party, including your attorney-in-fact acting pursuant to a power of attorney or your financial professional, to access your account information and perform certain transactions on your account. You will need to complete a form provided by us which identifies those transactions that you wish to authorize via telephonic and electronic means and whether you wish to authorize a third party to perform any such transactions. Please note that unless you tell us otherwise, we deem that all transactions that are directed by your financial professional with respect to your Annuity have been authorized by you. We

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require that you or your representative provide proper identification before performing transactions over the telephone or through our website. This may include a Personal Identification Number (PIN) that will be provided to you upon issue of your Annuity or you may establish or change your PIN by calling our automated response system, and at <u>www.prudential.com/annuities</u>, our website. Any third party that you authorize to perform financial transactions on your account will be assigned a PIN for your account.

Transactions requested via telephone are recorded. To the extent permitted by law, we will not be responsible for any claims, loss, liability or expense in connection with a transaction requested by telephone or other electronic means if we acted on such transaction instructions after following reasonable procedures to identify those persons authorized to perform transactions on your Annuity using verification methods which may include a request for your Social Security number, PIN or other form of electronic identification. We may be liable for losses due to unauthorized or fraudulent instructions if we did not follow such procedures.

We do not guarantee access to telephonic, facsimile, Internet or any other electronic information or that we will be able to accept transaction instructions via such means at all times. Regular and/or express mail will be the only means by which we will accept transaction instructions when telephonic, facsimile, Internet or any other electronic means are unavailable or delayed. We reserve the right to limit, restrict or terminate telephonic, facsimile, Internet or any other electronic transaction privileges at any time.

**This prospectus is being provided for informational or educational purposes only and does not consider the investment objectives or** **financial situation of any Annuity Owner. The information is not intended as investment advice and is not a recommendation about managing** **or investing your retirement savings. Annuity Owners seeking information regarding their particular investment needs should contact a** **financial professional.**

PRUDENTIAL, THE PRUDENTIAL LOGO AND THE ROCK DESIGN ARE TRADEMARKS OF PRUDENTIAL FINANCIAL, INC. AND ITS RELATED ENTITIES, REGISTERED IN MANY JURISDICTIONS WORLDWIDE. USED UNDER LICENSE.

FORTITUDE RE AND THE FORTITUDE RE LOGO ARE SERVICE MARKS OF FORTITUDE GROUP HOLDINGS, LLC AND ITS AFFILIATES. OTHER PROPRIETARY FORTITUDE RE MARKS MAY BE DESIGNATED AS SUCH THROUGH THE USE OF THE <sup>SM</sup> OR <sup>®</sup> SYMBOLS.

OPTIMUM, OPTIMUM FOUR, OPTIMUM PLUS, HIGHEST DAILY, HIGHEST DAILY LIFETIME, AST, GUARANTEED RETURN OPTION (GRO) AND GUARANTEED RETURN OPTION PLUS (GRO PLUS) ARE SERVICE MARKS OR REGISTERED TRADEMARKS OF THE PRUDENTIAL INSURANCE COMPANY OF AMERICA AND ARE USED UNDER LICENSE BY FORTITUDE RE.

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**APPENDIX A –** **INVESTMENT OPTIONS** **AVAILABLE UNDER THE CONTRACT**

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**Certain Investment Options may not be available through certain financial intermediaries. See the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_936) **for additional information**

**Variable Options**

The following is a list of Portfolios available under the Contract. More information about the Portfolios is available in the prospectuses for the Portfolios, which may be amended from time to time and can be found online at <u>www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT</u>. You can also request this information at no cost by calling 1-800-346-3778 or by sending an email request to service@prudential.com. Depending on the optional benefits you choose, you may not be able to invest in certain Portfolio Companies, as noted below.

The current expenses and performance information below reflects fees and expenses of the Portfolios, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher, and performance would be lower if these other charges were included. Each Portfolio's past performance is not necessarily an indication of future performance.

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|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity<br> Allspring VT Discovery All Cap Growth Fund - Class 1<sup>1,</sup><sup>♦</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 0.75% | 15.53% | 6.31% | 13.84% |
|  Allocation<br> AST Aggressive Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.86% | 16.17% | 8.81% | 9.59% |
|  Allocation<br> AST Balanced Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.87% | 14.35% | 6.96% | 8.05% |
|  Fixed Income<br> AST Bond Portfolio 2026<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 5.19% | 0.02% | 2.35% |
|  Fixed Income<br> AST Bond Portfolio 2027<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 5.99% | -0.67% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2028<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 7.02% | -0.99% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2029<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 7.78% | -1.51% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2030<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.04% | -1.80% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2031<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.43% | -2.39% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2032<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.73% | N/A | N/A |

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|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Fixed Income<br> AST Bond Portfolio 2033<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.94% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2034<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 9.10% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2035<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 9.21% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2036<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | N/A | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2037<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | N/A | N/A | N/A |
|  Fixed Income<br> AST Core Fixed Income Portfolio<sup>1</sup><br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Limited*<br>*Wellington Management Company LLP* | 0.68% | 7.15% | -1.10% | 2.30% |
|  Fixed Income<br> AST Government Money Market Portfolio<sup>1</sup><br>*PGIM Fixed Income* | 0.58% | 3.78% | 2.86% | 1.78% |
|  Equity<br> AST International Equity Portfolio<sup>1</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Massachusetts Financial Services Company*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 1.02% | 32.84% | 5.76% | 10.00% |
|  Fixed Income<br> AST Investment Grade Bond Portfolio<sup>1,</sup><sup>3,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.69% | 8.57% | -0.12% | 3.39% |
|  Equity<br> AST Large-Cap Equity Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Quantitative Solutions LLC* | 0.84% | 14.88% | 13.25% | 12.47% |
|  Equity<br> AST Large-Cap Growth Portfolio<sup>1</sup><br>*Clearbridge Investments, LLC*<br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*T. Rowe Price Associates, Inc.*<br>*Putnam Investment Management LLC* | 0.87% | 17.06% | 11.35% | 16.27% |
|  Equity<br> AST Large-Cap Value Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Putnam Investment Management LLC* | 0.81% | 16.05% | 12.97% | 11.35% |

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|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Allocation<br> AST Multi-Asset Diversified Plus Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate*<br>*Putnam Investment Management LLC* | 1.13% | 13.55% | 5.58% | 5.73% |
|  Allocation<br> AST Preservation Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.89% | 11.33% | 3.76% | 5.45% |
|  Equity<br> AST Small-Cap Equity Portfolio<sup>1</sup><br>*Boston Partners Global Investors, Inc.*<br>*Dimensional Fund Advisors LP*<br>*Driehaus Capital Management LLC*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*TimesSquare Capital Management, LLC* | 1.01% | 7.41% | 1.81% | 10.39% |

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**The additional information below may be applicable to the Portfolios listed in the above table.**

PGIM Fixed Income is a business unit of PGIM, Inc.

PGIM Investments LLC manages each of the Portfolios of The Prudential Series Fund (PSF).

PGIM Investments LLC manages each of the Portfolios of the Advanced Series Trust (AST). AST Investment Services, Inc. serves as co-manager, along with PGIM Investments LLC, to many of the Portfolios of AST.

PGIM Real Estate is a business unit of PGIM, Inc.

1. **These Portfolios are also offered in other variable annuity contracts that utilize a predetermined mathematical formula to manage the guarantees offered in connection with** **optional benefits.** 

Those other variable annuity contracts offer certain optional living benefits that utilize a predetermined mathematical formula (the "formula") to manage the guarantees offered in connection with those optional benefits. The formula monitors each contract Owner's Account Value daily and, if necessary, will systematically transfer amounts among investment options. The formula transfers funds between the Variable Options for those variable annuity contracts and an AST Bond Portfolio Variable Option or a fixed account (those AST Bond Portfolios or a fixed account may not be available in connection with the annuity contracts offered through this prospectus). **You should be aware that the operation of the formula in those other variable annuity** **contracts may result in large-scale asset flows into and out of the underlying Portfolios that are available with your contract. These asset flows could adversely impact the** **underlying Portfolios, including their risk profile, expenses and performance**. Because transfers between the Variable Options and the AST Bond Variable Option or a fixed account can be frequent and the amount transferred can vary from day to day, any of the underlying Portfolios could experience the following effects, among others:

(a) a
 Portfolio's investment performance could be adversely affected by requiring a subadvisor to purchase and sell securities at inopportune
 times or by otherwise limiting the subadvisor's
 ability to fully implement the Portfolio's investment strategy;

(b) the
 subadvisor may be required to hold a larger portion of assets in highly liquid securities than it otherwise would hold, which could adversely
 affect performance if the highly
 liquid securities underperform other securities (e.g., equities) that otherwise would have been held; and

(c) a Portfolio may experience higher turnover and greater negative asset flows than it would have experienced without the formula,
 which could result in higher operating expense
 ratios and higher transaction costs for the Portfolio compared to other similar funds.

The efficient operation of the asset flows among Portfolios triggered by the formula depends on active and liquid markets. If market liquidity is strained, the asset flows may not operate as intended. For example, it is possible that illiquid markets or other market stress could cause delays in the transfer of cash from one Portfolio to another Portfolio, which in turn could adversely impact performance.

Before you allocate to the Variable Option with the AST Portfolios listed above, you should consider the potential effects on the Portfolios that are the result of the operation of the formula in the variable annuity contracts that are unrelated to your Variable Annuity. Please work with your financial professional to determine which Portfolios are appropriate for your needs.

2. Please
 note that you may not allocate Purchase Payments to the target date Bond Portfolios (e.g., AST Bond Portfolio 2036).

3. The
 AST Investment Grade Bond Variable Option is not available for allocation of Purchase Payments or contract Owner transfers.

♦ **This information includes annual expenses that reflect temporary or other fee reductions or waivers. Please see the Portfolio prospectus for additional information.** 

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**Fixed Options**

The following is a list of Fixed Options currently available under the Contract. We may change the features of the Fixed Options listed below, offer new Fixed Options, and terminate existing Fixed Options. We will provide you with written notice before doing so. For more information about the Fixed Options, see "[Description of Insurance Company, Registered Separate Account, and Investment Options](#chapter_7_936)" in this prospectus.

**Note: If amounts are withdrawn from MVA Fixed Allocation before the end of its term, we will apply a Contract Adjustment. This may result in a** **significant reduction in your Contract value. For more information about Market Value Adjustments, please refer to the "[Charges and Adjustments](#chapter_8-sect1_1_936)" section of this prospectus.**

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|:---|:---|:---|
| **Name** | **Term** | **Minimum Guaranteed Interest Rate\*** |
| Benefit Fixed Rate Account<sup>1</sup> | N/A | 1.0% for contract years 1-10; 1.05% thereafter |
| Guaranteed Period GRO<sup>1</sup> | 7 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 1 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 2 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 3 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 5 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 7 Year | 0%<sup>2</sup> |
| MVA Fixed Allocation | 10 Year | 0%<sup>2</sup> |

---

\*The rate shown is the last Minimum Guaranteed Interest Rate issued before the product closed to new customers. Your Minimum Guaranteed Interest Rate is the amount shown on your Contract and can vary by state. Please consult with your representative for availability and current rates.

<sup>1</sup> Not available for allocations. <br><sup>2</sup> The Minimum Guaranteed Interest Rate is linked to an index and never less than zero, as shown on your Contract and subject to state minimums.

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**STIPULATED INVESTMENT RESTRICTIONS**

Please note that the following Portfolios are not available if you have elected any of the following optional benefits:

---

| | |
|:---|:---|
| **Optional Benefit Name:** | **All investment options permitted, EXCEPT these:** |
| GRO PLUS II | Allspring VT Discovery All Cap Growth Fund - Class 1 |
| Highest Daily GRO II | AST Government Money Market Portfolio |
| Highest Daily Lifetime 6 Plus |  |
| Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator |  |
| Spousal Highest Daily Lifetime 6 Plus |  |
| Lifetime Five Income Benefit |  |
| Spousal Lifetime Five Income Benefit |  |
| Highest Daily Lifetime Five Income Benefit |  |
| Highest Daily Lifetime Seven Income Benefit |  |
| Highest Daily Lifetime Seven with Beneficiary Income Option |  |
| Highest Daily Lifetime Seven with Lifetime Income Accelerator |  |
| Spousal Highest Daily Lifetime Seven Income Benefit |  |
| Spousal Highest Daily Lifetime Seven with Beneficiary Income Benefit |  |
| Highest Daily Lifetime 7 Plus |  |
| Highest Daily Lifetime 7 Plus with Beneficiary Income Option |  |
| Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator |  |
| Spousal Highest Daily Lifetime 7 Plus |  |
| Spousal Highest Daily Lifetime 7 Plus with Beneficiary Income Option |  |
| Highest Daily Value Death Benefit |  |

---

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**APPENDIX B – ADDITIONAL INFORMATION ON ASSET ALLOCATION PROGRAMS**

------

**<u>PROGRAM RULES</u>**

• You
 can elect an asset allocation program provided by LPL Financial Corporation ("LPL"), the firm selling the Annuity. Under the
 program, the Variable
 Options for each asset class in each model portfolio are designated based on LPL's evaluation of available Variable Options. If
 you elect the Highest Daily Lifetime Five Benefit ("HD5"), the Lifetime Five Benefit ("LT5"), Spousal Lifetime
 Five Benefit ("SLT5"), the Highest
 Daily Lifetime Seven Benefit (including the "Plus" version) ("HD7"), the Spousal Highest Daily Lifetime Seven
 Benefit (including the
 "Plus" version) ("SHD7"), the Highest Daily Lifetime 6 Plus Benefits, Highest Daily GRO, GRO Plus II, Highest
 Daily GRO II or the Highest
 Daily Value Death Benefit ("HDV"), you must enroll in one of the eligible model portfolios. Asset allocation is a sophisticated method of diversification
 that allocates assets among asset classes in order to manage investment risk and potentially enhance returns over
 the long term. However, asset allocation does not guarantee a profit or protect against a loss.

• We
 do not design the program or the models, and it is not responsible for the program or the models. We do not provide investment advice
 and is responsible only for administering the model you select.

• **Please see your program materials for a detailed description of LPL's asset allocation program including the available model** **portfolios. You can obtain these materials from your LPL financial professional.** 

**HOW THE ASSET ALLOCATION PROGRAM WORKS**

• Amounts
 will automatically be allocated in accordance with the percentages and to Variable Options indicated for the model portfolio that you
 choose with your LPL financial professional. If you allocate your Account Value or transfer your Account Value among any Variable Options
 that are outside of your model portfolio, we will allocate these amounts according to the allocation percentages of the applicable model
 portfolio upon the next rebalancing. You may only choose one model portfolio at a time. When you enroll in the asset allocation program
 and upon each rebalance thereafter, 100% of your Account Value allocated to the Variable Options will be allocated to the asset allocation
 program. Any Account Value not invested in the Variable Options will not be part of the program.

• **Additional Purchase Payments:** Unless otherwise requested, any additional Purchase Payments applied to the Variable Options in the Annuity
 will be allocated to the Variable Options according to the allocation percentages for the model portfolio you choose. Allocation of additional
 Purchase Payments outside of your model portfolio but into a Variable Option, will be reallocated according to the allocation percentages
 of the applicable model portfolio upon the next rebalancing.

• **Rebalancing Your Model Portfolio:** Changes in the value of the Variable Option will cause your Account Value allocated to the Variable Options
 to vary from the percentage allocations of the model portfolio you select. By selecting the asset allocation program, you have directed
 us to periodically (e.g., quarterly) rebalance your Account Value allocated to the Variable Options in accordance with the percentage
 allocations assigned to each Variable Option within your model portfolio at the time you elected the program or as later modified
 with your consent. Some asset allocation programs will only require that a rebalancing occur when the percent of your Account Value
 allocated to the Variable Options are outside of the acceptable range permitted under such asset allocation program. Note – Any Account Value not
 invested in the Variable Options will not be affected by any rebalance.

• **Owner Changes in Choice of Model Portfolio:** Generally, you may change from the model portfolio that you have elected to any other currently
 available model portfolio at any time. The change will be implemented on the date we receive all required information in the manner
 that is then permitted or required. Restrictions and limitations may apply, see LPL program materials for details.

**TERMINATION OR MODIFICATION OF THE ASSET ALLOCATION PROGRAM:**

• You
 may request to terminate your asset allocation program at any time unless you have elected an optional benefit that requires that you maintain your Account
 Value in the asset allocation program. Any termination will be effective on the date that we receive your termination request
 in Good Order. If you move your account from LPL to another firm, and you have elected one of the optional benefits mentioned above,
 then termination of your asset allocation program with LPL must coincide with enrollment in a then currently available and approved
 asset allocation program or other approved option. LPL reserves the right to terminate or modify the asset allocation program at any
 time. We reserve the right to change the way in which we administer the program and to terminate our administration of the program.

**RESTRICTIONS ON ELECTING THE ASSET ALLOCATION:**

• You
 cannot participate in automatic rebalancing or a DCA program while enrolled in an asset allocation program. Upon election of an asset
 allocation program, we will automatically terminate your enrollment in any automatic rebalancing or DCA program. Finally, Systematic
 Withdrawals can only be made as flat dollar amounts.

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**APPENDIX C – FORMULA UNDER HIGHEST DAILY LIFETIME FIVE INCOME BENEFIT**

------

We set out below the current formula under which we may transfer amounts between the Variable Options and the Benefit Fixed Rate Account. Upon your election of Highest Daily Lifetime Five, we will not alter the formula that applies to your Annuity. However, as discussed in the "[<u>Benefits Available</u> <u>Under the Contract</u>](#chapter_11_936)" section, we reserve the right to modify this formula with respect to those who elect Highest Daily Lifetime Five in the future.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime Five benefit (the "Effective Date")
 and is not changed
 for the life of the guarantee. Currently, it is 83%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 77%.

• L
 – the target value as of the current Valuation Day.

• r
 – the target ratio.

• a
 – the factors used in calculating the target value. These factors are established on the Effective Date and are not changed for
 the life of the guarantee.
 The factors that we use currently are derived from the a2000 Individual Annuity Mortality Table with an assumed interest rate
 of 3%. Each number in the table "a" factors (which appears below) represents a factor, which when multiplied by the Highest
 Daily Annual Income
 Amount, projects our total liability for the purpose of asset transfers under the guarantee.

• Q
 – age based factors used in calculating the target value. These factors are established on the Effective Date and are not changed
 for the life of the
 guarantee. The factor is currently set equal to 1.

• V
 – the total value of all Permitted Variable Options in the Annuity.

• F
 – the total value of all Benefit Fixed Rate Account allocations.

• I
 – the income value prior to the first withdrawal. The income value is equal to what the Highest Daily Annual Income Amount would
 be if the first withdrawal
 were taken on the date of calculation. After the first withdrawal the income value equals the greater of the Highest Daily
 Annual Income Amount, the quarterly step-up amount times the annual income percentage, and the Account Value times the annual income
 percentage.

• T
 – the amount of a transfer into or out of the Benefit Fixed Rate Account.

• I%
 – Annual Income Amount percentage. This factor is established on the Effective Date and is not changed for the life of the guarantee. Currently, this percentage
 is equal to 5%

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If theSPOUSAL HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT (SHD7 PLUS) variable Account Value (V) is equal to zero, no calculation is necessary.

L = I × Q × a

**Transfer Calculation:**

The following formula, which is set on the Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – F) / V.

• If
 r (>) C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to Benefit Fixed Rate Account.

• If
 r (<) C <sub>l</sub> ,
 and there are currently assets in the Benefit Fixed Rate Account (F (>) 0), assets in the Benefit Fixed Rate Account are transferred
 to the Permitted Variable Options.

The following formula, which is set on the Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | {Min(V, [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | T>0, Money moving from the Permitted Variable Options to the Benefit Fixed Rate Account |
|  T | = | {Min(F, [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | T<0, Money moving from the Benefit Fixed Rate Account to the Permitted Variable Options |

---

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**Example:**

**Male age 65 contributes $100,000 into the Permitted Variable Options and the value drops to $92,300 during year one, end of day one. A table** **of values for "a" appears below.**

**T** **arget Value Calculation:**

---

| | | |
|:---|:---|:---|
| L | = | I × Q × a |
|  | = | 5000.67 × 1 × 15.34 |
|  | = | 76,710.28 |

---

**Target Ratio:**

---

| | |
|:---|:---|
| r | (L – F) / V |
|  | (76,710.28 – 0) / 92,300.00 |
|  | 83.11% |

---

**Since r > Cu (because 83.11% > 83%) a transfer into the Benefit Fixed Rate Account occurs.**

---

| | |
|:---|:---|
| T | {Min (V, [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} |
|  | {Min (92,300.00, [76,710.28 – 0 – 92,300.00 × 0.80] / (1 – 0.80))} |
|  | {Min (92,300.00, 14,351.40)} |
|  | 14351.40 |

---

**FORMULA FOR CONTRACTS WITH 90% CAP RULE**

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V) is equal to zero, no calculation is necessary.

L = I × Q × a

If you elect this feature, the following replaces the "Transfer Calculation" above.

**Transfer Calculation:**

The following formula, which is set on the effective date of this feature and is not changed for the life of the guarantee, determines when a transfer is required: On the effective date of this feature (and only on the effective date of this feature), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the Benefit Fixed Rate Account:

If (F / (V + F) > .90) then T = F – (V + F) ×.90

If T is greater than $0 as described above, then an amount equal to T is transferred from the Benefit Fixed Rate Account and allocated to the permitted Variable Options, no additional transfer calculations are performed on the effective date, and future transfers to the Benefit Fixed Rate Account will not occur at least until there is first a transfer out of the Benefit Fixed Rate Account.

On each Valuation Day thereafter (including the effective date of this feature provided F / (V + F) (less than) =.90), the following asset transfer calculation is performed

Target Ratio r = (L – F) / V

• If
 r > C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to the Benefit Fixed Rate Account (subject to the 90% cap rule described above).

• If
 r < C <sub>l</sub> and there are currently assets in the Benefit Fixed Rate Account (F (greater than) 0), assets in the Benefit Fixed Rate Account are transferred
 to the Permitted Variable Options.

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The following formula, which is set on the Effective Date of this feature and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V + F)) – F), [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the elected Permitted Variable Options to Benefit Fixed Rate Account |
|  T | = | {Min (F, – [L – F – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the Benefit Fixed Rate Account to the Permitted Variable Options |

---

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**Age 65 "a" Factors for Liability Calculations**

(for the corresponding Year and Month of the Benefit)\*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Month<br>1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06 |
| 31 | 4.04 | 4.02 | 4.00 | 3.98 | 3.97 | 3.95 | 3.93 | 3.91 | 3.90 | 3.88 | 3.86 | 3.84 |
| 32 | 3.83 | 3.81 | 3.79 | 3.78 | 3.76 | 3.74 | 3.72 | 3.71 | 3.69 | 3.67 | 3.66 | 3.64 |
| 33 | 3.62 | 3.61 | 3.59 | 3.57 | 3.55 | 3.54 | 3.52 | 3.50 | 3.49 | 3.47 | 3.45 | 3.44 |
| 34 | 3.42 | 3.40 | 3.39 | 3.37 | 3.35 | 3.34 | 3.32 | 3.30 | 3.29 | 3.27 | 3.25 | 3.24 |
| 35 | 3.22 | 3.20 | 3.18 | 3.17 | 3.15 | 3.13 | 3.12 | 3.10 | 3.08 | 3.07 | 3.05 | 3.03 |
| 36 | 3.02 | 3.00 | 2.98 | 2.96 | 2.95 | 2.93 | 2.91 | 2.90 | 2.88 | 2.86 | 2.85 | 2.83 |
| 37 | 2.81 | 2.79 | 2.78 | 2.76 | 2.74 | 2.73 | 2.71 | 2.69 | 2.68 | 2.66 | 2.64 | 2.62 |
| 38 | 2.61 | 2.59 | 2.57 | 2.56 | 2.54 | 2.52 | 2.51 | 2.49 | 2.47 | 2.45 | 2.44 | 2.42 |
| 39 | 2.40 | 2.39 | 2.37 | 2.35 | 2.34 | 2.32 | 2.30 | 2.29 | 2.27 | 2.25 | 2.24 | 2.22 |
| 40 | 2.20 | 2.19 | 2.17 | 2.15 | 2.14 | 2.12 | 2.11 | 2.09 | 2.07 | 2.06 | 2.04 | 2.02 |
| 41 | 2.01 | 1.84 | 1.67 | 1.51 | 1.34 | 1.17 | 1.00 | 0.84 | 0.67 | 0.50 | 0.33 | 0.17 |

---

\* The values set forth in this table are applied to all ages, and apply whether or not the 90% cap is elected.

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**APPENDIX D – ANNUITIES APPROVED FOR SALE BY THE NEW YORK STATE INSURANCE** **DEPARTMENT**

------

---

| | | | |
|:---|:---|:---|:---|
|  Minimum Investment | Optimum Four NY<br>$10,000 | Optimum NY<br>$1,000 | Optimum Plus NY<br>$10,000 |
|  Maximum Issue Age | Annuitant 85<br>Oldest Owner 85 | Annuitant 85<br>Oldest Owner 80 | Annuitant 85<br>Oldest Owner 75 |
|  Contingent Deferred Sales Charge Schedule | 4 Years<br>(7%, 6%, 5%, 4%) (Applied to Purchase Payments based on the inception date of the Annuity) | 7 Years<br>(7%, 6%, 5%, 4%, 3%, 2%, 1%) (Applied to Purchase Payments based on the inception date of the Annuity) | 10 Years<br>(9%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%) (Applied to Purchase Payments based on the inception date of the Annuity) |
|  Insurance Charge | 1.65% | 0.65% | 0.65% |
|  Distribution Charge | N/A | 0.60% Annuity Years 1-7<br>0.0% Annuity Years 8+ | 1.00% Annuity Years 1-10<br>0.00% Annuity Years 11+ |
|  Annual Maintenance Fee | Lesser of $30 or 2% of Account Value. Waived for Account Values exceeding $100,000 | Lesser of $30 or 2% of Account Value. Waived for Account Values exceeding $100,000 | Lesser of $30 or 2% of Account Value |
|  Transfer Fee | $10 after twenty in any Annuity Year.  | $10 after twenty in any Annuity Year. May be increased to $15 after eight in any Annuity Year | $10 after twenty in any Annuity Year |
|  Contract Credit | Yes. Effective for Annuities issued on or after June 20, 2005. Generally we apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth Annuity year (i.e. on your fifth Contract Anniversary). Currently the Loyalty Credit is equal to 2.75% of total Purchase Payments made during the first four Annuity years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the<br>fifth Contract Anniversary. | Yes. Effective for Annuities issued on or after July 24, 2006. Generally we apply a Loyalty Credit to your Annuity's Account Value at the end of your fifth Annuity year (i.e. on your fifth Contract Anniversary). Currently the Loyalty Credit is equal to 0.50% of total Purchase Payments made during the first four Annuity years less the cumulative amount of withdrawals made (including the deduction of any CDSC amounts) through the fifth<br>Contract Anniversary | Yes The amount of the Credit applied to a Purchase Payment is based on the year the Purchase Payment is received, for the first 6 years of the Annuity. Currently the Credit percentages for each year starting with the first year are: 6.50%, 5.00%, 4.00%, 3.00%, 2.00%, and 1.00%. |
|  Fixed Allocation (If available, early withdrawals are subject to a Market Value Adjustment) | Fixed Allocations Available (Currently offering durations of: 5, 7, and 10 years). The Market Value Adjustment formula for NY is [(1+I)/ (1+J)] N 365. The Market Value Adjustment formula does not apply during the 30 day period immediately before the end of the Guarantee Period. | Fixed Allocations Available (Currently offering durations of: 2, 3, 5, 7, and 10 years). The Market Value Adjustment formula for NY is [(1+I)/ (1+J)] N 365. The Market Value Adjustment formula does not apply during the 30 day period immediately before the end of the Guarantee Period. | No |
|  Variable Investment Options | All options generally available except where restrictions apply when certain riders are purchased. | All options generally available except where restrictions apply when certain riders are purchased. | All options generally available except where restrictions apply when certain riders are purchased. |
|  Basic Death Benefit | The greater of: Purchase Payments less proportional withdrawals or Account Value (variable) plus Interim Value (fixed). (No Market Value Adjustment applied). | The greater of: Purchase Payments less proportional withdrawals or Account Value (variable) plus Interim Value (fixed). (No Market Value Adjustment applied). | The greater of: Purchase Payments less proportional withdrawals or Account Value (variable) (No Market Value Adjustment applied). |
|  Optional Death Benefits (for an additional cost)<sup>1</sup> | HAV | HAV | HAV |

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---

| | |
|:---|:---|
|  Optional Living Benefits (for an additional cost)<sup>2</sup> | GRO/GRO Plus, GRO Plus 2008, Highest Daily GRO, GMWB, GMIB, Lifetime Five, Spousal Lifetime Five, Highest Daily Lifetime Five, Highest Daily Lifetime Seven, Spousal Highest Daily Lifetime Seven and "Plus" versions, GRO Plus II, Highest Daily GRO II, Highest Daily Lifetime 6 Plus, Spousal Highest Daily Lifetime 6 Plus |
|  Annuity Rewards<sup>3</sup> | Available after initial CDSC period |
|  Annuitization Options | Fixed option only Annuity date cannot exceed the first day of the calendar month following Annuitant's 90<sup>th</sup> birthday. The maximum Annuity Date is based on the first Owner or Annuitant to reach the maximum age, as indicated in your Annuity. |
|  Medically Related Surrender | No |

---

1. For
 more information on these benefits, refer to the " [<u>Optional Death Benefits</u>](#chapter_11-sect1_22_936) "
  section in the Prospectus.

2. For
 more information on these benefits, refer to the " [<u>Benefits Available Under the Contract</u>](#chapter_11_936) "
  section in the Prospectus. Highest Daily Lifetime Seven with Beneficiary Income Option (BIO), Spousal
 Highest Daily Lifetime Seven with Beneficiary Income Option (BIO), Highest Daily Lifetime Seven with Lifetime Income Accelerator (LIA),
 Highest Daily Lifetime 7 Plus with BIO, Spousal
 Highest Daily Lifetime 7 Plus with BIO, Highest Daily Lifetime 7 Plus with LIA, and Highest Daily Lifetime 6 Plus with LIA are not currently
 available in New York.

3. The
 Annuity rewards benefit offers Owners an ability to increase the guaranteed death benefit so that the death benefit will at least equal
 the Annuity's Account Value on the effective date of
 the Annuity Rewards benefits, if the terms of the Annuity Rewards benefit are met.

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**APPENDIX E – FORMULA UNDER GRO PLUS 2008**

------

(The following formula also applies to elections of HD GRO, if HD GRO was elected prior to July 16, 2010)

**<u>The Following are the Terms and Definitions Referenced in the Transfer Calculation Formula:</u>**

• AV
 is the current Account Value of the Annuity

• V
 is the current Account Value of the elected Variable Options of the Annuity

• B
 is the total current value of the AST Bond portfolio

• C <sub>l</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount

• N <sub>i</sub> is the number of days until the maturity date

• di
 is the discount rate applicable to the number of days until the maturity date. It is determined with reference to a benchmark index, reduced
 by the Discount Rate Adjustment. Once selected, we will not change the applicable benchmark index. However, if the benchmark index
 is discontinued, we will substitute a successor benchmark index, if there is one. Otherwise we will substitute a comparable benchmark
 index. We will obtain any required regulatory approvals prior to substitution of the benchmark index.

The formula, which is set on the Effective Date and is not changed while the Rider is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the guarantee amount at the end of the Base Guarantee Period or Step-Up Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (Li), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>.

Next the formula calculates the following formula ratio:

r = (L – B) / V.

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the bond fund Variable Option associated with the current liability. If at the time we make a transfer to the bond fund Variable Option associated with the current liability there is Account Value allocated to a bond fund Variable Option not associated with the current liability, we will transfer all assets from that bond fund Variable Option to the bond fund Variable Option associated with the current liability.

The formula will transfer assets into the Transfer Account if r > C<sub>u</sub>.

The transfer amount is calculated by the following formula:

T = {Min(V, [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the Transfer Account, then the formula will transfer assets out of the Transfer Account into the elected Variable Options.

The transfer amount is calculated by the following formula:

T = {Min(B, - [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If following a transfer to the elected Variable Options, there are assets remaining in a bond fund Variable Option not associated with the current liability, we will transfer all assets from that bond fund Variable Option to the bond fund Variable Option associated with the current liability.

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**FORMULA FOR ANNUITIES WITH 90% CAP RULE – GRO PLUS 2008 AND HIGHEST DAILY GRO**

------

(The following formula also applies to elections of HD GRO with 90% cap, if HD GRO with 90% cap was elected prior to July 16, 2010)

**<u>The Following are the Terms and Definitions Referenced in the Transfer Calculation Formula:</u>**

• AV
 is the current Account Value of the Annuity

• V
 is the current Account Value of the elected Variable Options of the Annuity

• B
 is the total current value of the AST Bond Portfolio

• C <sub>I</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

• T
 is the amount of a transfer into or out of the Transfer AST Bond Portfolio.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount

• N <sub>i</sub> is the number of days until the maturity date

• d <sub>i</sub> is the discount rate applicable to the number of days until the maturity date. It is determined with reference to a benchmark index, reduced
 by the Discount Rate Adjustment and subject to the discount rate minimum. The discount rate minimum, beginning on the effective
 date of the benefit, is three percent, and will decline monthly over the first twenty-four months following the effective date of the benefit to one percent
 in the twenty-fifth month, and will remain at one percent for every month thereafter. Once selected, we will not change
 the applicable benchmark index. However, if the benchmark index is discontinued, we will substitute a successor benchmark index,
 if there is one. Otherwise we will substitute a comparable benchmark index. We will obtain any required regulatory approvals prior to
 substitution of the benchmark index.

**Transfer Calculation**

The formula, which is set on the Effective Date of the 90% Cap Rule, and is not changed while the benefit is in effect, determines, on each Valuation Day, when a transfer is required.

On the Effective Date of the 90% Cap Rule (and only on this date), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the AST Bond portfolio:

If (B / (V + B) >.90), then T = B – [(V + B) ×.90]

If T as described above is greater than $0, then that amount ("T") is transferred from the AST Bond portfolio to the elected Variable Options and no additional transfer calculations are performed on the Effective Date of the 90% Cap Rule. Any transfers into the AST Bond portfolio are suspended. The suspension will be lifted once a transfer out of the AST Bond portfolio occurs.

On each Valuation Date thereafter (including the Effective Date of the 90% Cap Rule, provided (B / (V + B) < =.90), the formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the Guarantee Amount at the end of the Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Next the formula calculates the following formula ratio:

r = (L – B) / V

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the AST Bond portfolio associated with the current liability, subject to the rule that prevents a transfer into that AST Bond portfolio if 90% or more of Account Value is in that Variable Option (the "90% cap rule"). If, at the time we make a transfer to the AST Bond portfolio associated with the current liability, there is Account Value allocated to an AST Bond portfolio not associated with the current liability, we will transfer all assets from that AST Bond portfolio to the AST Bond portfolio associated with the current liability.

The formula will transfer assets into the Transfer AST Bond portfolio if r > C<sub>u</sub>, subject to the 90% cap rule.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V + B)) – B), [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the Transfer AST Bond portfolio, then the formula will transfer assets out of the Transfer AST Bond portfolio into the elected Variable Options.

The formula will transfer assets out of the Transfer AST Bond portfolio if r < C<sub>l</sub> and B > 0.

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The transfer amount is calculated by the following formula:

T = {Min(B, – [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If, following a transfer to the elected Variable Options, there are assets remaining in an AST Bond portfolio not associated with the current liability, we will transfer all assets from that AST Bond portfolio to the AST Bond portfolio associated with the current liability.

If transfers into the AST Bond portfolio are restricted due to the operation of the 90% cap rule, then we will not perform any intra-AST Bond portfolio transfers. However, if assets transfer out of an AST Bond portfolio and into the elected Variable Options due to the maturity of the AST bond portfolio, by operation of the formula, assets may subsequently transfer to another AST Bond portfolio that is associated with a future guarantee, subject to the 90% cap rule.

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**APPENDIX F – FORMULA UNDER HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT AND** **SPOUSAL HIGHEST DAILY LIFETIME SEVEN INCOME BENEFIT**

------

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime Seven benefit (the "Effective Date")
 and is not changed
 for the life of the guarantee. Currently, it is 83%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 77%.

• L
 – the target value as of the current business day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.

• V <sub>v</sub> – the total value of all Permitted Variable Options in the Annuity.

• V <sub>F</sub> – the total value of all elected Fixed Rate Options in the Annuity.

• B
 – the total value of the AST Investment Grade Bond portfolio.

• P
 – Income Basis. Prior to the first withdrawal, the Income Basis is the Protected Withdrawal Value calculated as if the first withdrawal were taken on the
 date of calculation. After the first withdrawal, the Income Basis is equal to the greater of (1) the Protected Withdrawal Value
 at the time of the first withdrawal, adjusted for additional Purchase Payments including the amount of any associated Credits, and adjusted
 proportionally for excess withdrawals \* ,
 (2) any highest quarterly value increased for additional Purchase Payments including the amount
 of any associated Credits, and adjusted for withdrawals, and (3) the Account Value.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond portfolio.

\* Note: withdrawals of less than the Annual Income Amount do not reduce the Income Basis.

**TARGET VALUE CALCULATION:**

On each business day, a target value (L) is calculated, according to the following formula. If the Account Value (V<sub>V</sub> + V<sub>F</sub>) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 r > C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to the AST Investment Grade Bond Portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment Grade Bond Portfolio
 are transferred to the Permitted Variable Options according to most recent allocation instructions.

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | {Min ((V<sub>V</sub> + V<sub>F</sub>), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the Permitted Variable Options and Fixed Rate Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>)× C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**2. Formula for Contracts Issued Prior to 7/21/08**

**(Without Election of 90% Cap Rule)**

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime Seven benefit (the "Effective Date")
 and is not changed
 for the life of the guarantee. Currently, it is 83%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 77%.

• L
 – the target value as of the current business day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.

• V
 – the total value of all Permitted Variable Options in the annuity.

• B
 – the total value of the AST Investment Grade Bond portfolio.

• P
 – Income Basis. Prior to the first withdrawal, the Income Basis is the Protected Withdrawal Value calculated as if the first withdrawal were taken on the
 date of calculation. After the first withdrawal, the Income Basis is equal to the greater of (1) the Protected Withdrawal Value
 at the time of the first withdrawal, adjusted for additional Purchase Payments including the amount of any associated Credits, and adjusted
 proportionally for excess withdrawals \* ,
 (2) any highest quarterly value increased for additional Purchase Payments including the amount
 of any associated Credits, and adjusted for withdrawals, and (3) the Account Value.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond portfolio

\* Note: Withdrawals of less than the Annual Income Amount do not reduce the Income Basis.

**TARGET VALUE CALCULATION:**

On each business day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / V.

• If
 r > C <sub>u</sub> ,
 assets in the Permitted Variable Options are transferred to the AST Investment Grade Bond portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond portfolio (B > 0), assets in the AST Investment Grade Bond portfolio
 are transferred to the Permitted Variable Options according to most recent allocation instructions.

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, <u>determines the transfer amount:</u>

---

| | | | |
|:---|:---|:---|:---|
|  T | = | {Min(V, [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}, | Money is transferred from the Permitted Variable Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min(B, – [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))}, | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. Formula for Annuities with 90% Cap Rule if Benefit was Elected Prior to July 21, 2008**

**See above for the Terms and Definitions Referenced in the Calculation Formula.**

**Target Value Calculation:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. Target values are subject to change for new elections of the Rider on a going-forward basis.

L = 0.05 × P × a

**Transfer Calculation:**

The following formula, which is set on the Effective Date of the 90% Cap Rule as shown in the Schedule Supplement and is not changed for the life of the guarantee, determines when a transfer is required. On the Effective Date of the 90% Cap Rule (and only on this date), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the AST Investment Grade Bond portfolio:

If (B / (V + B) > .90) then T = B – [(V + B) × .90]

If T is greater than $0 as described above, then no additional transfer calculations are performed on the Effective Date of the 90% Cap Rule. Any transfers into the AST Investment Grade Bond portfolio are suspended. The suspension will be lifted once a transfer out of the AST Investment Grade Bond portfolio occurs.

On each Valuation Day thereafter (including the Effective Date of the 90% Cap Rule, provided B / (V + B) <=.90), the following asset transfer calculation is performed:

Target Ratio r = (L – B) / V.

• If
 r > C <sub>u</sub> ,
 assets in the elected Variable Options are transferred to the AST Investment Grade Bond portfolio provided transfers are not suspended
 under the 90% Cap Rule described below.

• If
 r < C <sub>l</sub> and there are currently assets in the AST Investment Grade Bond portfolio (B > 0), assets in the AST Investment Grade Bond portfolio
 are transferred to the elected Variable Options according to most recent allocation instructions.

The following formula, which is set on the Effective Date of the 90% Cap Rule and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V + B)) – B), [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the elected Variable Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – V × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the elected Variable Options. |

---

At any given time, some, most, or none of the Account Value may be allocated to the AST Investment Grade Bond portfolio under the Transfer Calculation formula.

**90% Cap Rule:** If, on any Valuation Day, on and after the Effective Date of the 90% Cap Rule, a transfer into the AST Investment Grade Bond portfolio occurs which results in 90% of the Account Value being allocated to the AST Investment Grade Bond portfolio, any transfers into the AST Investment Grade Bond portfolio will be suspended, even if the formula would otherwise dictate that a transfer into the AST Investment Grade Bond portfolio should occur. Transfers out of the AST Investment Grade Bond portfolio and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST Investment Grade Bond portfolio occurs. Due to the performance of the AST Investment Grade Bond portfolio and the elected Variable Options, the Account Value could be more than 90% invested in the AST Investment Grade Bond portfolio.

**4. Formula for Annuities with 90% Cap Rule if Benefit was Elected on or after July 21, 2008**

**See above for the Terms and Definitions Referenced in the Calculation Formula**

**Target Value Calculation:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. Target values are subject to change for new elections of the Rider on a going-forward basis.

L = 0.05 × P × a

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**Transfer Calculation:**

The following formula, which is set on the Effective Date of the 90% Cap Rule as shown in the Schedule Supplement and is not changed for the life of the guarantee, determines when a transfer is required. On the Effective Date of the 90% Cap Rule (and only on this date), the following asset transfer calculation is performed to determine the amount of Account Value allocated to the AST Investment Grade Bond Portfolio:

If (B / (V<sub>V</sub> + V<sub>F</sub> + B) > .90) then T = B – [(V<sub>V</sub> + V<sub>F</sub> + B) × .90]

If T is greater than $0 as described above, then no additional transfer calculations are performed on the Effective Date of the 90% Cap Rule. Any transfers into the AST Investment Grade Bond Portfolio are suspended. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs.

On each Valuation Day thereafter (including the Effective Date of the 90% Cap Rule, provided B / (V<sub>V</sub> + V<sub>F</sub> + B) <= .90), the following asset transfer calculation is performed:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 r > C <sub>u</sub> ,
 assets in the elected Variable Options are transferred to the AST Investment Grade Bond Portfolio, provided transfers are not suspended
 under the 90% Cap Rule described below.

• If
 r < C <sub>l</sub> and there are currently assets in the AST Investment Grade Bond Portfolio (B > 0), assets in the AST Investment Grade Bond Portfolio
 are transferred to the elected Variable Options according to most recent allocation instructions.

The following formula, which is set on the Effective Date of the 90% Cap Rule and is not changed for the life of the guarantee, <u>determines the transfer</u> <u>amount:</u>

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B),<br>[L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the elected Variable Option to the AST Investment Grade Bond Portfolio. |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the elected Variable Options. |

---

At any given time, some, most, or none of the Account Value may be allocated to the AST Investment Grade Bond Portfolio under the Transfer Calculation formula.

**90% Cap Rule:** If, on any Valuation Day, on and after the Effective Date of the 90% Cap Rule, a transfer into the AST Investment Grade Bond Portfolio occurs which results in 90% of the Account Value being allocated to the AST Investment Grade Bond Portfolio, any transfers into the AST Investment Grade Bond Portfolio will be suspended, even if the formula would otherwise dictate that a transfer into the AST Investment Grade Bond Portfolio should occur. Transfers out of the AST Investment Grade Bond Portfolio and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs. Due to the performance of the AST Investment Grade Bond Portfolio and the elected Variable Options, the Account Value could be more than 90% invested in the AST Investment Grade Bond Portfolio.

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**"a" Factors for Liability Calculations**

(for the corresponding Year and Month of the Benefit)\*

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Month<br>1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06 |
| 31 | 4.04 | 4.02 | 4.00 | 3.98 | 3.97 | 3.95 | 3.93 | 3.91 | 3.90 | 3.88 | 3.86 | 3.84 |
| 32 | 3.83 | 3.81 | 3.79 | 3.78 | 3.76 | 3.74 | 3.72 | 3.71 | 3.69 | 3.67 | 3.66 | 3.64 |
| 33 | 3.62 | 3.61 | 3.59 | 3.57 | 3.55 | 3.54 | 3.52 | 3.50 | 3.49 | 3.47 | 3.45 | 3.44 |
| 34 | 3.42 | 3.40 | 3.39 | 3.37 | 3.35 | 3.34 | 3.32 | 3.30 | 3.29 | 3.27 | 3.25 | 3.24 |
| 35 | 3.22 | 3.20 | 3.18 | 3.17 | 3.15 | 3.13 | 3.12 | 3.10 | 3.08 | 3.07 | 3.05 | 3.03 |
| 36 | 3.02 | 3.00 | 2.98 | 2.96 | 2.95 | 2.93 | 2.91 | 2.90 | 2.88 | 2.86 | 2.85 | 2.83 |
| 37 | 2.81 | 2.79 | 2.78 | 2.76 | 2.74 | 2.73 | 2.71 | 2.69 | 2.68 | 2.66 | 2.64 | 2.62 |
| 38 | 2.61 | 2.59 | 2.57 | 2.56 | 2.54 | 2.52 | 2.51 | 2.49 | 2.47 | 2.45 | 2.44 | 2.42 |
| 39 | 2.40 | 2.39 | 2.37 | 2.35 | 2.34 | 2.32 | 2.30 | 2.29 | 2.27 | 2.25 | 2.24 | 2.22 |
| 40 | 2.20 | 2.19 | 2.17 | 2.15 | 2.14 | 2.12 | 2.11 | 2.09 | 2.07 | 2.06 | 2.04 | 2.02 |
| 41 | 2.01 | 1.84 | 1.67 | 1.51 | 1.34 | 1.17 | 1.00 | 0.84 | 0.67 | 0.50 | 0.33 | 0.17 |

---

\* **The values set forth in this table are applied to all ages, and apply to each formula set out in this Appendix.**

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**APPENDIX G – FORMULA FOR HIGHEST DAILY LIFETIME 7 PLUS INCOME BENEFIT AND** **SPOUSAL HIGHEST DAILY LIFETIME PLUS INCOME BENEFIT**

------

(including Highest Daily Lifetime 7 Plus with BIO, Highest Daily Lifetime 7 Plus with LIA and Spousal Highest Daily Lifetime 7 Plus with BIO)

**TRANSFERS OF ACCOUNT VALUE BETWEEN YOUR PERMITTED VARIABLE OPTIONS AND**<br>**THE AST INVESTMENT GRADE BOND PORTFOLIO**

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULAS:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime 7 Plus/Spousal Highest Daily Lifetime 7 Plus
 benefit (the "Effective
 Date") and is not changed for the life of the guarantee. Currently, it is 83%.

• Cu <sub>s</sub> – The secondary upper target is established on the effective date of the Highest Daily Lifetime 7 Plus/Spousal Highest Daily Lifetime 7 Plus benefit (the
 "Effective Date") and is not changed for the life of the guarantee. Currently it is 84.5%

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 78%.

• L
 – the target value as of the current Valuation Day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.
 (See below for the table of "a" factors)

• V <sub>v</sub> – the total value of all Permitted Variable Options in the Annuity.

• V <sub>F</sub> – the total value of all elected Fixed Rate Options in the Annuity

• B
 – the total value of the AST Investment Grade Bond portfolio.

• P
 – Income Basis. Prior to the first Lifetime Withdrawal, the Income Basis is equal to the Protected Withdrawal Value calculated as
 if the first Lifetime
 Withdrawal were taken on the date of calculation. After the first Lifetime Withdrawal, the Income Basis is equal to the greater of
 (1) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for additional Purchase Payments, including the amount of any
 associated Credits, and adjusted proportionally for excess withdrawals \* ,
 and (2) any highest daily Account Value occurring
 on or after the date of the first Lifetime Withdrawal and prior to or including the date of this calculation increased for additional Purchase Payments
 including the amount of any associated Credits, and adjusted for Lifetime Withdrawals.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond portfolio

• T <sub>M</sub> – the amount of a monthly transfer out of the AST Investment Grade Bond Portfolio

\* Note: Lifetime Withdrawals of less than or equal to the Annual Income Amount do not reduce the Income Basis.

**DAILY CALCULATIONS**

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V<sub>V</sub> + V<sub>F</sub>) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**TRANSFER CALCULATION:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 on the third consecutive Valuation Day r > C <sub>u</sub> and r £ Cu <sub>s</sub> or if on any day r > Cu <sub>s</sub> ,
 and subject to the 90% cap rule described above, assets
 in the Permitted Variable Options (including Book Value Fixed Allocations used with any applicable Enhanced DCA Program) are transferred
 to the AST Investment Grade Bond portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond portfolio (B > 0), assets in the AST Investment Grade Bond portfolio
 are transferred to the Permitted Variable Options according to most recent allocation instructions.

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The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B),<br>[L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the Permitted Variable Options and Fixed Rate Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

---

**MONTHLY CALCULATION**

On each monthly anniversary of the Annuity Issue Date and following the daily Transfer Calculation above, the following formula determines if a transfer from the AST Investment Grade Bond Portfolio to the Permitted Variable Options will occur:

If, after the daily Transfer Calculation is performed,

{Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} < (C<sub>u</sub> × (V<sub>V</sub> + V<sub>F</sub>) – L + B) / (1 – C<sub>u</sub>), then

T<sub>M</sub> = {Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options

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**"a" Factors for Liability Calculations**

(for the corresponding Year and Month of the Benefit)\*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Month<br>1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06\*\* |

---

\* The values set forth in this table are applied to all ages.

\*\* In all subsequent years and months thereafter, the annuity factor is 4.06.

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**APPENDIX H – SPECIAL CONTRACT PROVISIONS FOR ANNUITIES ISSUED IN CERTAIN STATES**

------

Certain features of your Annuity may be different than the features described in this prospectus if your Annuity is issued in certain states described below. **For Annuities issued in New York, please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_936)**.**

---

| | |
|:---|:---|
| Jurisdiction | Special Provisions |
|  Connecticut | Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. |
|  Maryland | Fixed Allocations are not available. |
|  Massachusetts | If your Annuity is issued in Massachusetts after January 1, 2009, the annuity rates we use to calculate annuity payments are available only on a gender-neutral basis under any Annuity Option or any lifetime withdrawal optional benefit (except the Guaranteed Minimum Withdrawal Benefit). Medically-Related Surrenders are not available. |
|  Montana | If your Annuity is issued in Montana, the annuity rates we use to calculate annuity payments are available only on a gender-neutral basis under any Annuity Option or any lifetime withdrawal optional benefit (except the Guaranteed Minimum Withdrawal Benefit). |
|  Nevada | Fixed Allocations are not available. |
|  New York | Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. Medically Related Surrender is not available. |
|  Texas | Death benefit suspension not applicable upon provision of evidence of good health. See annuity contract for exact details. |
|  Utah | Fixed Allocations are not available. |
|  Washington | If your Annuity was issued in Washington, and you have elected Highest Daily Lifetime Five, or any version of Highest Daily Lifetime Seven or Highest Daily Lifetime 7 Plus, the Guaranteed Minimum Account Value Credit otherwise available on these optional benefits is not available.<br>Fixed Allocations are not available. Combination Roll-Up Value and Highest Periodic Value Death Benefit not available. Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. |

---

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**APPENDIX I – FORMULA UNDER THE GUARANTEED RETURN OPTION PLUS BENEFIT**

------

We set out below the current formula under which we may transfer amounts between the Variable Options and the Fixed Allocations. We will not alter the formula.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity (including any Market Value Adjustment on Fixed Allocations)

• V
 is the current Account Value of the elected Variable Options of the Annuity

• F
 is the current Account Value of the Fixed Allocations

For each guarantee provided under the program,

• G <sub>i</sub> is the Principal Value of the guarantee

• t <sub>i</sub> is the number of whole and partial years until the maturity date of the guarantee.

• r <sub>i</sub> is the current fixed rate associated with Fixed Allocations of length ti (ti is rounded to the next highest integer to determine this
 rate).

The formula determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each guarantee the value (Li) that, if appreciated at the current fixed rate, would equal the Principal Value on the applicable maturity date. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + r<sub>i</sub>)<sup>ti</sup>

Next, the formula determines whether or not a transfer to or from the Fixed Allocations is needed:

A transfer into the Fixed Allocations will occur if L > (AV – 0.2 × V), and V > 0.

The transfer amount is calculated by the following formula:

T = MIN(V, (V – (1 / 0.23) × (AV – L)))

A transfer from the Fixed Allocations to the Variable Options will occur if L < (AV – 0.26 × V), and F > 0.

The transfer amount is calculated by the following formula:

T = MIN(F, ((1 / 0.23) × (AV – L) – V))

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[Back to **Table of Contents**](#TOC_936)

**APPENDIX J – FORMULA UNDER THE GUARANTEED RETURN OPTION BENEFIT**

------

We set out below the current formula under which we may transfer amounts between the Variable Options and the Fixed Allocations. We will not alter this predetermined mathematical formula.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity (including any Market Value Adjustment on Fixed Allocations)

• V
 is the current Account Value of the elected Variable Options of the Annuity

• F
 is the current Account Value of the Fixed Allocations

• G
 is the Principal Value of the guarantee

• t
 is the number of whole and partial years between the current Valuation Day and the maturity date.

• t <sub>i</sub> is the number of whole and partial years between the next Valuation Day (i.e., the Valuation Day immediately following the current Valuation
 Day) and the maturity date.

• r
 is the fixed rate associated with Fixed Allocations of length t (t <sub>i</sub> is rounded to the next highest whole number to determine this rate) as of the
 current Valuation Day.

• r <sub>i</sub> is the fixed rate associated with Fixed Allocations of length t <sub>i</sub> (t <sub>i</sub> is rounded to the next highest whole number to determine this rate) as of the
 next Valuation Day.

• M
 is the total maturity value of all Fixed Allocations, i.e., the total value that the Fixed Allocations will have on the maturity date
 of the guarantee
 if no subsequent transactions occur.

The formula determines, on each Valuation Day, when a transfer is required.

The formula begins by determining a "cushion", D:

D = 1 – [(G – M) / (1 + r)<sup>t</sup>] / V

Next, the formula determines whether or not a transfer to or from the Fixed Allocations is needed:

A transfer into the Fixed Allocations will occur if D (less than) 0.20, V (greater than) 0, and V (greater than) 0.02 × AV.

The transfer amount is calculated by the following formula:

T = MIN (V, (V × (0.75 × (1 + r<sub>i</sub>)t<sub>i</sub> – G + M) / (0.75 × (1 + r<sub>i</sub>)<sup>^ti</sup> – (1 + r)<sup>t</sup>)))

A transfer from the Fixed Allocations to the Variable Options will occur if D (greater than) 0.30 and F (greater than) 0.

The transfer amount is calculated by the following formula:

T = MIN (F, (V × (0.75 × (1 + r<sub>i</sub>)t<sub>i</sub> – G + M) / ((1 + r)<sup>t</sup> – 0.75 × (1 + r<sub>i</sub>)<sup>^ti</sup>)))

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**APPENDIX K – FORMULA FOR HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT AND** **SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT**

------

(including Highest Daily Lifetime 6 Plus with LIA)

**TRANSFERS OF ACCOUNT VALUE BETWEEN YOUR PERMITTED VARIABLE OPTIONS AND THE**<br>**AST INVESTMENT GRADE BOND PORTFOLIO**

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULAS:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime 6 Plus/Spousal Highest Daily Lifetime 6 Plus
 benefit (the "Effective
 Date") and is not changed for the life of the guarantee. Currently, it is 83%.

• Cu <sub>s</sub> – The secondary upper target is established on the effective date of the Highest Daily Lifetime 6 Plus/Spousal Highest Daily Lifetime 6 Plus benefit (the
 "Effective Date") and is not changed for the life of the guarantee. Currently it is 84.5%.

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 78%.

• L
 – the target value as of the current Valuation Day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.
 (See below for the table of "a" factors).

• V <sub>v</sub> – the total value of all Permitted Variable Options in the Annuity.

• V <sub>F</sub> – the total value of all elected Fixed Rate Options in the Annuity.

• B
 – the total value of the AST Investment Grade Bond portfolio.

• P
 – Income Basis. Prior to the first Lifetime Withdrawal, the Income Basis is equal to the Protected Withdrawal Value calculated as
 if the first Lifetime
 Withdrawal were taken on the date of calculation. After the first Lifetime Withdrawal, the Income Basis is equal to the greater of
 (1) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for additional Purchase Payments, including the amount of any
 associated purchase Credits, and adjusted proportionally for excess withdrawals\*, and (2) the Protected Withdrawal Value
 on any Annuity Anniversary subsequent to the first Lifetime Withdrawal, increased for subsequent additional Purchase Payments (including
 the amount of any associated purchase Credits) and adjusted proportionately for Excess Income \* and (3) any highest daily Account
 Value occurring on or after the later of the immediately preceding Annuity anniversary, or the date of the first Lifetime Withdrawal, and prior to or including
 the date of this calculation, increased for additional Purchase Payments (including the amount of any associated purchase
 Credits) and adjusted for withdrawals, as described herein.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond portfolio.

• T <sub>M</sub> – the amount of a monthly transfer out of the AST Investment Grade Bond Portfolio.

\* Note: Lifetime Withdrawals of less than or equal to the Annual Income Amount do not reduce the Income Basis.

**Daily Calculations**

**TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If the variable Account Value (V<sub>V</sub> + V<sub>F</sub>) is equal to zero, no calculation is necessary.

L = 0.05 × P × a

**Transfer Calculation:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 on the third consecutive Valuation Day r > C <sub>u</sub> and r £ Cu <sub>s</sub> or if on any day r > Cu <sub>s</sub> ,
 and subject to the 90% cap rule described above, assets
 in the Permitted Variable Options (including DCA Fixed Rate Options used with any applicable 6 or 12 Month DCA Program) are transferred
 to the AST Investment Grade Bond portfolio.

• If
 r < C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond portfolio (B > 0), assets in the AST Investment Grade Bond portfolio
 are transferred to the Permitted Variable Options as described above.

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The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B),<br>[L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the Permitted Variable Options and DCA Fixed Rate Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

---

**Monthly Calculation**

On each monthly anniversary of the Annuity Issue Date and following the daily Transfer Calculation above, the following formula determines if a transfer from the AST Investment Grade Bond Portfolio to the Permitted Variable Options will occur:

If, after the daily Transfer Calculation is performed,

{Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} < (C<sub>u</sub> × (V<sub>V</sub> + V<sub>F</sub>) – L + B) / (1 – C<sub>u</sub>), then

T<sub>M</sub> = {Min (B, .05 × (V<sub>V</sub> + V<sub>F</sub> + B))} Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options

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**"a" Factors for Liability Calculations**

(for the corresponding Year and Month of the Benefit)\*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Month<br>1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06\*\* |

---

\* The values set forth in this table are applied to all ages.

\*\* In all subsequent years and months thereafter, the annuity factor is 4.06.

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**APPENDIX L – FORMULA FOR GRO PLUS II**

------

(The following formula also applies to elections of HD GRO II, if HD GRO II was elected prior to July 16, 2010)

The following are the terms and definitions referenced in the transfer calculation formula:

• AV
 is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of any fixed-rate Variable Options of the Annuity

• B
 is the total current value of the AST Bond Portfolio

• C <sub>l</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

• T
 is the amount of a transfer into or out of the AST Bond Portfolio.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount

• N <sub>i</sub> is the number of days until the maturity date

• d <sub>i</sub> is the discount rate applicable to the number of days until the maturity date. It is determined with reference to a benchmark index, reduced
 by the Discount Rate Adjustment and subject to the discount rate minimum. The discount rate minimum, beginning on the effective
 date of the benefit, is three percent, and will decline monthly over the first twenty-four months following the effective date of the benefit to one percent
 in the twenty-fifth month, and will remain at one percent for every month thereafter. Once selected, we will not change
 the applicable benchmark index. However, if the benchmark index is discontinued, we will substitute a successor benchmark index,
 if there is one. Otherwise we will substitute a comparable benchmark index. We will obtain any required regulatory approvals prior to
 substitution of the benchmark index.

The formula, which is set on the effective date and is not changed while the benefit is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the guarantee amount at the end of each applicable Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Next the formula calculates the following formula ratio:

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the AST Bond Portfolio associated with the current liability subject to the rule that prevents a transfer into that AST Bond Portfolio if 90% or more of Account Value is in that Variable Option ("90% cap rule"). If at the time we make a transfer to the AST Bond Portfolio associated with the current liability there is Account Value allocated to an AST Bond Portfolio not associated with the current liability, we will transfer all assets from that AST Bond Portfolio to the AST Bond Portfolio associated with the current liability.

The formula will transfer assets into the AST Bond Portfolio if r > C<sub>u</sub>, subject to the 90% cap rule.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the AST Bond Portfolio, then the formula will transfer assets out of the AST Bond Portfolio into the elected Variable Options.

The formula will transfer assets out of the AST Bond Portfolio if r < C<sub>l</sub> and B > 0.

The transfer amount is calculated by the following formula:

T = {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If following a transfer to the elected Variable Options, there are assets remaining in a AST Bond Portfolio not associated with the current liability, we will transfer all assets from that AST Bond Portfolio to the AST Bond Portfolio associated with the current liability.

If transfers into the AST Bond Portfolio are restricted due to the operation of the 90% cap rule, then we will not perform any intra-AST Bond Portfolio transfers. However, if assets transfer out of an AST Bond Portfolio and into the elected Variable Options due to the maturity of the AST bond portfolio, by operation of the formula, assets may subsequently transfer to another AST Bond Portfolio that is associated with a future guarantee, subject to the 90% cap.

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**APPENDIX M – FORMULA FOR HIGHEST DAILY GRO**

------

Formula for elections of HD GRO on or after July 16, 2010, subject to state approval. The operation of the formula is the same as for elections of HD GRO prior to July 16, 2010. The formula below provides additional information regarding the concept of the Projected Future Guarantee throughout the Transfer Calculation.

**<u>THE FOLLOWING ARE THE TERMS AND DEFINITIONS REFERENCED IN THE TRANSFER CALCULATION FORMULA:</u>**

• AV
  is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of the elected Fixed Rate Options of the Annuity

• B
 is the total current value of the Transfer Account

• C <sub>l</sub> is the lower target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>t</sub> is the middle target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>u</sub> is the upper target value; it is established on the Effective Date and is not changed for the life of the guarantee

• T
 is the amount of a transfer into or out of the Transfer Account

• "Projected
 Future Guarantee" is an amount equal to the highest Account Value (adjusted for Withdrawals and additional Purchase Payments)
 within the current Benefit Year that would result in a new Guarantee Amount. For the Projected Future Guarantee, the assumed
 Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the Effective Date. We only
 calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend
 beyond the latest Annuity Date applicable to the Annuity.

The formula, which is set on the Effective Date and is not changed while the Rider is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each Guarantee Amount and for the Projected Future Guarantee, the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the Guarantee Amount at the end of the Guarantee Period. We call the greatest of these values the "current liability (L)".

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Where:

• G <sub>i</sub> is the value of the Guarantee Amount or the Projected Future Guarantee

• N <sub>i</sub> is the number of days until the end of the Guarantee Period

• d <sub>i</sub> is the discount rate associated with the number of days until the end of a Guarantee Period (or the assumed Guarantee Period, for the Projected Future
 Guarantee). The discount rate is determined by taking the greater of the Benchmark Index Interest Rate less the Discount
 Rate Adjustment, and the Discount Rate Minimum. The applicable term of the Benchmark Index Interest Rate is the same as the number
 of days remaining until the end of the Guarantee Period (or the assumed Guarantee Period, for the Projected Future Guarantee). If
 no Benchmark Index Interest Rate is available for such term, the nearest available term will be used. The Discount Rate Minimum is determined
 based on the number of months since the Effective Date.

Next the formula calculates the following formula ratio (r):

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then Account Value will be transferred to the Bond portfolio associated with the current liability subject to the feature. If, at the time we make a transfer to the Bond portfolio associated with the current liability, there is Account Value allocated to a Bond portfolio not associated with the current liability, we will transfer all assets from that Bond portfolio to the Bond portfolio associated with the current liability.

The formula will transfer assets into the Transfer Account if r > C<sub>u</sub> and if transfers have not been suspended due to the feature. Assets in the elected Variable Options and Fixed Rate Options, if applicable, are transferred to the Transfer Account in accordance with the Transfer provisions of the Rider.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value, and there are assets in the Transfer Account, then the formula will transfer assets out of the Transfer Account and into the elected Variable Options.

The formula will transfer assets out of the Transfer Account if r < C<sub>l</sub> and B > 0.

The transfer amount is calculated by the following formula:

T = {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

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If, following a transfer to the elected Variable Options, there are assets remaining in a Bond portfolio not associated with the current liability, we will transfer all assets from that Bond portfolio to the Bond portfolio associated with the current liability.

**90% Cap Rule:** If, on any Valuation Day the Rider remains in effect, a transfer into the Transfer Account occurs which results in 90% of the Account Value being allocated to the Transfer Account, any transfers into the Transfer Account will be suspended even if the formula would otherwise dictate that a transfer into the Transfer Account should occur. Transfers out of the Transfer Account and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the Transfer Account occurs. Due to the performance of the Transfer Account and the elected Variable Options, the Account Value could be more than 90% invested in the Transfer Account.

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**APPENDIX N – FORMULA FOR HIGHEST DAILY GRO II**

------

Formula for elections of HD GRO II made on or after July 16, 2010, subject to state approval. The operation of the formula is the same as for elections of HD GRO II prior to July 16, 2010. The formula below provides additional information regarding the concept of the Projected Future Guarantee throughout the Transfer Calculation.

The following are the Terms and Definitions referenced in the Transfer Calculation Formula:

• AV
 is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of the elected Fixed Rate Options of the Annuity

• B
 is the total current value of the Transfer Account

• C <sub>l</sub> is the lower target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>t</sub> is the middle target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>u</sub> is the upper target value; it is established on the Effective Date and is not changed for the life of the guarantee

• T
 is the amount of a transfer into or out of the Transfer Account

• "Projected
 Future Guarantee" is an amount equal to the highest Account Value (adjusted for Withdrawals and additional Net Purchase Payments)
 within the current Benefit Year that would result in a new Guarantee Amount. For the Projected Future Guarantee, the assumed
 Guarantee Period begins on the current Valuation Day and ends10 years from the next anniversary of the Effective Date. We only
 calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend
 beyond the latest Annuity Date applicable to the Annuity.

The formula, which is set on the Effective Date and is not changed while the Rider is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each Guarantee Amount and for the Projected Future Guarantee, the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the Guarantee Amount at the end of the Guarantee Period. We call the greatest of these values the "current liability (L)".

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + d<sub>i</sub>)<sup>^(Ni/365)</sup>

Where:

• G <sub>i</sub> is the value of the Guarantee Amount or the Projected Future Guarantee

• N <sub>i</sub> is the number of days until the end of the Guarantee Period

• d <sub>i</sub> is the discount rate associated with the number of days until the end of a Guarantee Period (or the assumed Guarantee Period, for the Projected Future
 Guarantee). The discount rate is determined by taking the greater of the Benchmark Index Interest Rate less the Discount
 Rate Adjustment, and the Discount Rate Minimum. The applicable term of the Benchmark Index Interest Rate is the same as the number
 of days remaining until the end of the Guarantee Period (or the assumed Guarantee Period, for the Projected Future Guarantee). If
 no Benchmark Index Interest Rate is available for such term, the nearest available term will be used. The Discount Rate Minimum is determined
 based on the number of months since the Effective Date.

Next the formula calculates the following formula ratio (r):

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then Account Value will be transferred to the Bond Portfolio associated with the current liability subject to the feature. If, at the time we make a transfer to the Bond Portfolio associated with the current liability, there is Account Value allocated to a Bond Portfolio not associated with the current liability, we will transfer all assets from that Bond Portfolio to the Bond Portfolio associated with the current liability.

The formula will transfer assets into the Transfer Account if r > C<sub>u</sub> and if transfers have not been suspended due to the feature. Assets in the elected Variable Options and Fixed Rate Options, if applicable, are transferred to the Transfer Account in accordance with the Transfer provisions of the Rider.

The transfer amount is calculated by the following formula:

T = {Min(MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value, and there are assets in the Transfer Account, then the formula will transfer assets out of the Transfer Account and into the elected Variable Options.

The formula will transfer assets out of the Transfer Account if r < C<sub>l</sub> and B > 0.

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The transfer amount is calculated by the following formula:

T = {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If, following a transfer to the elected Variable Options, there are assets remaining in a Bond Portfolio not associated with the current liability, we will transfer all assets from that Bond Portfolio to the Bond Portfolio associated with the current liability.

**90% Cap Rule:** If, on any Valuation Day the Rider remains in effect, a transfer into the Transfer Account occurs which results in 90% of the Account Value being allocated to the Transfer Account, any transfers into the Transfer Account will be suspended even if the formula would otherwise dictate that a transfer into the Transfer Account should occur. Transfers out of the Transfer Account and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the Transfer Account occurs. Due to the performance of the Transfer Account and the elected Variable Options, the Account Value could be more than 90% invested in the Transfer Account.

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**Mailing**

------

This prospectus describes the important features of the Annuity and provides information about Fortitude Life Insurance & Annuity Company ("we," "our," "us," "FLIAC," or "the Company") and Fortitude Life Insurance & Annuity Company Variable Account B ("the Registered Separate Account").

We have filed with the Securities and Exchange Commission ("SEC") a Statement of Additional Information (SAI), dated May 1, 2026 that includes additional information about the Annuity and the Registered Separate Account, and the Company. The SAI is incorporated by reference into this prospectus. The SAI is available from us, without charge, upon request. To request a copy of the SAI, to ask about your Annuity, or to make other investor inquiries, please call 1-800-879-7012.

Reports and other information about the Contract, Registered Separate Account, and the Company are available on the SEC's website at <u>www.sec.gov</u>, and copies of reports and other information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.

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![](pr936img001.jpg)<br>Ten Exchange Place<br>Suite 2210<br>Jersey City, New Jersey 07302

Edgar Contract Identifier: <br>Optimum: C000010675; C000267655<br>Optimum Four: C000010677; C000267652<br>Optimum Plus: C000010676; C000267650 OPTIMUM

------

**FORTITUDE LIFE INSURANCE & ANNUITY COMPANY**<br>Fortitude Life Insurance & Annuity Company Variable Account B<br>A Fortitude Re Company<br>Ten Exchange Place, Suite 2210, Jersey City, NJ 07302

**STAGECOACH XTRA CREDIT SIX**

**Flexible Premium Deferred Annuity**<br>**Prospectus Dated:** **May 1, 2026**

This Prospectus describes XTra Credit SIX, a flexible premium deferred annuity (the "Contract" or "Annuity"), offered by Fortitude Life Insurance & Annuity Company, formerly named Prudential Annuities Life Assurance Corporation ("we," "our," "us" or "the Company"). The Annuity provides for the potential accumulation of retirement savings through investment in the Contract's investment options during the Savings Stage and retirement income through annuitization during the Payout Period. The Contract is intended for retirement or other long-term investment purposes. This prospectus describes all material rights and obligations of Annuity Owners under the Annuity contracts. The Annuity is a complex investment that involves risks, including potential loss of principal. The Annuity is not a short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawals may reduce the level of various optional benefit guarantees and could result in taxes and tax penalties. In addition, premature withdrawals from a MVA Fixed Allocation will result in a Market Value Adjustment. **In extreme circumstances, the maximum potential loss resulting from a** **negative Market Value Adjustment is 100% of the amount invested in a MVA Fixed Allocation.**

This prospectus describes all the investment options, features, and benefits that we make available under the Annuity. **The availability of investment** **options, features and benefits described in this prospectus may vary depending on the broker-dealer through which the Contract is sold** **("financial intermediary variations").** We have identified all such financial intermediary variations that are known or reasonably available to us. Financial intermediary variations may be imposed by some broker-dealers without our knowledge. For example, your Financial Professional may not recommend a particular investment option or benefit to you because of a decision by the Financial Professional's broker-dealer not to offer that investment option or benefit to its customers. Taking into consideration the breadth of our distribution network, we are unable to obtain information about all financial intermediary variations without unreasonable effort or expense. **You should discuss with your Financial Professional any limitations,** **restrictions, or other variations related to the investment options, benefits or other features available to you through your Financial** **Professional.**

The types of investment options currently offered under the Annuity include variable investment options with underlying mutual funds ("Variable Options") and MVA Fixed Allocation Options that offer a fixed rate of interest for a set period of time called a "Guarantee Period." **See** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for additional** **information about each investment option.**

If you are receiving this prospectus, it is because you currently own the Annuity. The Annuity is no longer offered for new sales.

The Company's obligations under the Annuity are subject to its financial strength and claims-paying ability.

In compliance with U.S. law, we deliver this prospectus to Annuity Owners that currently reside outside of the United States. In addition, we may not market or offer benefits, features, or enhancements to prospective or current Annuity Owners while outside of the United States.

This Annuity provides a Credit which can be recaptured in certain circumstances described in this prospectus. This Credit may be more than offset by fees and charges in this Annuity, which are also described in this prospectus. These fees and charges may be higher than other, similar products that do not offer a Credit.

These Annuities are NOT deposits or obligations of, or issued, guaranteed or endorsed by, any bank, are NOT insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency.

------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

------

Additional information about certain investment products, including variable annuities and market value adjusted annuities, has been prepared by the Securities and Exchange Commission's staff and is available at www.investor.gov.

FOR FURTHER INFORMATION CALL 1-800-879-7012 OR VISIT: WWW.PRUDENTIAL.COM/ANNUITIES

WFXT6PROS

------

**Table of Contents**

------

---

| | |
|:---|:---|
| [**GLOSSARY OF TERMS**.......................................................................................](#chapter_2_890) | [**1**](#chapter_2_890) |
| [**OVERVIEW OF THE CONTRACT**................................................................................](#chapter_3_890) | [**3**](#chapter_3_890) |
| [**KEY INFORMATION**.........................................................................................](#chapter_4_890) | [**4**](#chapter_4_890) |
| [**FEE TABLE**................................................................................................](#chapter_5_890) | [**8**](#chapter_5_890) |
| [**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT**..............................................................](#chapter_6_890) | [**10**](#chapter_6_890) |
| [**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT OPTIONS**..................](#chapter_7_890) | [**12**](#chapter_7_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHO IS FORTITUDE LIFE INSURANCE & ANNUITY COMPANY?....................................................](#chapter_7-sect1_2_890) | [12](#chapter_7-sect1_2_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT ARE THE SEPARATE ACCOUNTS?.....................................................................](#chapter_7-sect1_3_890) | [12](#chapter_7-sect1_3_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [INVESTMENT OPTIONS...................................................................................](#chapter_7-sect1_4_890) | [13](#chapter_7-sect1_4_890) |
| [**CHARGES AND ADJUSTMENTS**................................................................................](#chapter_8_890) | [**16**](#chapter_8_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FIXED RATE OPTIONS CHARGES AND ADJUSTMENTS..........................................................](#chapter_8-sect1_2_890) | [18](#chapter_8-sect1_2_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ANNUITY PAYMENT OPTION CHARGES......................................................................](#chapter_8-sect1_3_890) | [18](#chapter_8-sect1_3_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES...........................................................](#chapter_8-sect1_4_890) | [18](#chapter_8-sect1_4_890) |
| [**GENERAL DESCRIPTION OF CONTRACTS**.......................................................................](#chapter_9_890) | [**19**](#chapter_9_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS.............................................](#chapter_9-sect1_2_890dd) | [19](#chapter_9-sect1_2_890dd) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO THE FIXED RATE OPTIONS WORK?..................................................................](#chapter_9-sect1_3_890) | [20](#chapter_9-sect1_3_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?...................................................](#chapter_9-sect1_4_890) | [20](#chapter_9-sect1_4_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?....................................................](#chapter_9-sect1_5_890) | [20](#chapter_9-sect1_5_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRANSFER AND REBALANCING PROGRAMS..................................................................](#chapter_9-sect1_6_890) | [20](#chapter_9-sect1_6_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?........................................................](#chapter_9-sect1_7_890) | [21](#chapter_9-sect1_7_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [DO YOU OFFER PROGRAMS DESIGNED TO GUARANTEE A "RETURN OF PREMIUM" AT A FUTURE DATE?.................](#chapter_9-sect1_8_890) | [21](#chapter_9-sect1_8_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS ...............................................](#chapter_9-sect1_9_890) | [22](#chapter_9-sect1_9_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS ..............................](#chapter_9-sect1_10_890) | [23](#chapter_9-sect1_10_890) |
| [**ANNUITY PERIOD**...........................................................................................](#chapter_10_890) | [**24**](#chapter_10_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?................................................](#chapter_10-sect1_2_890) | [24](#chapter_10-sect1_2_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE ANNUITY PAYMENTS CALCULATED?...............................................................](#chapter_10-sect1_3_890) | [25](#chapter_10-sect1_3_890) |
| [**BENEFITS AVAILABLE UNDER THE CONTRACT**...................................................................](#chapter_11_890) | [**26**](#chapter_11_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL LIVING BENEFITS..............................................................................](#chapter_11-sect1_2_890) | [27](#chapter_11-sect1_2_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION (GRO)......................................................................](#chapter_11-sect1_3_890) | [28](#chapter_11-sect1_3_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION PLUS (GRO PLUS)............................................................](#chapter_11-sect1_4_890) | [32](#chapter_11-sect1_4_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB).......................................................](#chapter_11-sect1_5_890) | [36](#chapter_11-sect1_5_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED MINIMUM INCOME BENEFIT (GMIB).............................................................](#chapter_11-sect1_6_890) | [39](#chapter_11-sect1_6_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)..............................................................](#chapter_11-sect1_7_890) | [42](#chapter_11-sect1_7_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE).............................................](#chapter_11-sect1_8_890) | [48](#chapter_11-sect1_8_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRIGGERS FOR THE PAYMENT OF THE DEATH BENEFIT .......................................................](#chapter_11-sect1_9_890) | [52](#chapter_11-sect1_9_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [BASIC DEATH BENEFIT...................................................................................](#chapter_11-sect1_10_890) | [52](#chapter_11-sect1_10_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL DEATH BENEFITS..............................................................................](#chapter_11-sect1_11_890) | [52](#chapter_11-sect1_11_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PAYMENT OF DEATH BENEFITS............................................................................](#chapter_11-sect1_12_890) | [61](#chapter_11-sect1_12_890) |
| [**PURCHASES AND CONTRACT VALUE**...........................................................................](#chapter_12_890) | [**64**](#chapter_12_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIREMENTS FOR PURCHASING THE ANNUITY.............................................................](#chapter_12-sect1_2_890) | [64](#chapter_12-sect1_2_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?.......................................................](#chapter_12-sect1_3_890) | [65](#chapter_12-sect1_3_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW DO I RECEIVE CREDITS?.............................................................................](#chapter_12-sect1_4_890) | [65](#chapter_12-sect1_4_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW ARE CREDITS APPLIED TO MY ACCOUNT VALUE?.........................................................](#chapter_12-sect1_5_890) | [65](#chapter_12-sect1_5_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ADDITIONAL PURCHASE PAYMENTS........................................................................](#chapter_12-sect1_6_890) | [66](#chapter_12-sect1_6_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT....................................................](#chapter_12-sect1_7_890) | [66](#chapter_12-sect1_7_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SALARY REDUCTION PROGRAMS..........................................................................](#chapter_12-sect1_8_890) | [66](#chapter_12-sect1_8_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW IS MY ACCOUNT VALUE DETERMINED?.................................................................](#chapter_12-sect1_9_890) | [66](#chapter_12-sect1_9_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SURRENDER VALUE.....................................................................................](#chapter_12-sect1_10_890) | [67](#chapter_12-sect1_10_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [VALUING THE VARIABLE OPTIONS..........................................................................](#chapter_12-sect1_11_890) | [67](#chapter_12-sect1_11_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[VALUING THE FIXED ALLOCATIONS ........................................................................](#chapter_12-sect1_12_890) | [67](#chapter_12-sect1_12_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[PROCESSING AND VALUING TRANSACTIONS ................................................................](#chapter_12-sect1_13_890) | [67](#chapter_12-sect1_13_890) |
| [**SURRENDERS AND WITHDRAWALS**............................................................................](#chapter_13_890) | [**69**](#chapter_13_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TYPES OF DISTRIBUTIONS AVAILABLE TO YOU ...............................................................](#chapter_13-sect1_2_890) | [69](#chapter_13-sect1_2_890) |

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NON-QUALIFIED ANNUITIES........................................](#chapter_13-sect1_3_890) | [69](#chapter_13-sect1_3_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CAN I WITHDRAW A PORTION OF MY ANNUITY?...............................................................](#chapter_13-sect1_4_890) | [69](#chapter_13-sect1_4_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FREE WITHDRAWAL AMOUNTS ............................................................................](#chapter_13-sect1_5_890) | [70](#chapter_13-sect1_5_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [IS THERE A CHARGE FOR A PARTIAL WITHDRAWAL?...........................................................](#chapter_13-sect1_6_890) | [70](#chapter_13-sect1_6_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CAN YOU CLOSE MY ACCOUNT AND INVOLUNTARILY REDEEM MY INVESTMENT....................................](#chapter_13-sect1_7_890) | [70](#chapter_13-sect1_7_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS..............................................................................](#chapter_13-sect1_8_890) | [70](#chapter_13-sect1_8_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS UNDER SECTION 72(t) OF THE INTERNAL REVENUE CODE..............................](#chapter_13-sect1_9_890) | [71](#chapter_13-sect1_9_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIRED MINIMUM DISTRIBUTIONS.......................................................................](#chapter_13-sect1_10_890) | [71](#chapter_13-sect1_10_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SURRENDER VALUE.....................................................................................](#chapter_13-sect1_11_890) | [71](#chapter_13-sect1_11_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [MEDICALLY-RELATED SURRENDERS.......................................................................](#chapter_13-sect1_12_890) | [71](#chapter_13-sect1_12_890) |
| [**TAXES**...................................................................................................](#chapter_14_890) | [**73**](#chapter_14_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [NON-QUALIFIED ANNUITIES...............................................................................](#chapter_14-sect1_2_890) | [73](#chapter_14-sect1_2_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [QUALIFIED ANNUITIES...................................................................................](#chapter_14-sect1_3_890) | [77](#chapter_14-sect1_3_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ADDITIONAL CONSIDERATIONS............................................................................](#chapter_14-sect1_4_890) | [83](#chapter_14-sect1_4_890) |
| [**LEGAL PROCEEDINGS**......................................................................................](#chapter_15_890) | [**84**](#chapter_15_890) |
| [**FINANCIAL STATEMENTS**....................................................................................](#chapter_16_890) | [**85**](#chapter_16_890) |
| [**ADDITIONAL INFORMATION**...................................................................................](#chapter_17_890) | [**86**](#chapter_17_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW WILL I RECEIVE STATEMENTS AND REPORTS?...........................................................](#chapter_17-sect1_2_890) | [86](#chapter_17-sect1_2_890) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW TO CONTACT US...................................................................................](#chapter_17-sect1_3_890) | [86](#chapter_17-sect1_3_890) |
| [**APPENDIX A – INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT**............................................](#chapter_18_890) | [**A-1**](#chapter_18_890) |
| [**APPENDIX B – ADDITIONAL INFORMATION ON ASSET ALLOCATION PROGRAMS**........................................](#chapter_19_890) | [**B-1**](#chapter_19_890) |
| [**APPENDIX C – FORMULA UNDER THE GUARANTEED RETURN OPTION PLUS BENEFIT**...................................](#chapter_20_890) | [**C-1**](#chapter_20_890) |
| [**APPENDIX D – FORMULA UNDER THE GUARANTEED RETURN OPTION BENEFIT**........................................](#chapter_21_890) | [**D-1**](#chapter_21_890) |

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**GLOSSARY OF TERMS**

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Many terms used within this prospectus are described within the text where they appear. Not all the descriptions of those terms are repeated in this Glossary of Terms.

**Account Value:** The value of each allocation to a Variable Option or a Fixed Allocation prior to the Annuity Date, plus any earnings, and/or less any losses, distributions and charges. The Account Value is calculated before we assess any applicable Contingent Deferred Sales Charge ("CDSC") and/or any Annual Maintenance Fee. The Account Value includes any additional amounts we applied to your Purchase Payments that we are entitled to recapture under certain circumstances. The Account Value is determined separately for each Variable Option and for each Fixed Allocation, and then totaled to determine the Account Value for your entire Annuity. The Account Value of each Fixed Allocation on other than its Maturity Date may be calculated using a Market Value Adjustment.

**Accumulation Period:** The period of time from the Issue Date through the last Valuation Day immediately preceding the Annuity Date.

**Annuities Service Center:** The place to which all requests and payments regarding the Annuity are to be sent. We may change the address of the Annuities Service Center at any time, and will notify you in advance of any such change of address. Please see "[<u>How to Contact Us</u>](#chapter_17-sect1_3_890)" later in this prospectus for the Annuities Service Center address.

**Annuitization:** The application of Account Value to one of the available annuity options for the Annuitant to begin receiving periodic payments for life, for a guaranteed minimum number of payments or for life with a guaranteed minimum number of payments.

**Annuity Date:** The date you choose for annuity payments to commence. A maximum Annuity Date may apply.

**Annuity Year:** A 12-month period commencing on the Issue Date of the Annuity and each successive 12-month period thereafter.

**Free Withdrawal:** The Free Withdrawal amount is the amount that can be withdrawn from your Annuity each Annuity Year without the application of any CDSC.

**Code:** The Internal Revenue Code of 1986, as amended from time to time and the regulations promulgated thereunder.

**Co-Annuitant:** The person shown on the contract data pages who becomes the Annuitant upon the death of the Annuitant before the Annuity Date. No Co-Annuitant may be designated if the Owner is a non-natural person.

**Contingent Annuitant:** The natural person named to become the Annuitant upon the death of Annuitant prior to the Annuity Date. A Contingent Annuitant may be named only in limited circumstances involving an Annuity issued to a Custodial Account or to a tax-qualified retirement plan.

**Credit:** An amount we allocate to your Annuity's Account Value each time you make a Purchase Payment. The amount of the Credit is payable from our general account. The amount of the Credit depends on the cumulative amount of Purchase Payments you have made to your Annuity, payable as a percentage of each specific Purchase Payment.

**Custodial Account:** A trust or Custodial Account that qualifies as an individual retirement account as defined in Section 408(a) of the Code, including a Roth IRA that satisfies the definitions in Sections 408(a) and 408A of the Code.

**Fixed Allocation:** An allocation of Account Value that is to be credited a fixed rate of interest for a specified Guarantee Period during the Accumulation Period.

**Guarantee Period:** A period of time during the Accumulation Period where we credit a fixed rate of interest on a Fixed Allocation.

**Interim Value:** The value of a Fixed Allocation on any date other than the Maturity Date. The Interim Value is equal to the initial value allocated to the Fixed Allocation plus all interest credited to the Fixed Allocation as of the date calculated, less any transfers or withdrawals from the Fixed Allocation.

**Issue Date:** The effective date of your Annuity.

**Market Value Adjustment:** A Market Value Adjustment used in the determination of Account Value of each Fixed Allocation on any day other than the Maturity Date of such Fixed Allocation.

**MVA Fixed Allocation:** An investment option that offers a fixed rate of interest for a specified Guarantee Period during the accumulation period that is subject to a market value adjustment if you withdraw Account Value prior to the maturity of the Fixed Allocation. Your Annuity may include Fixed Allocations that are not subject to a market value adjustment, such as a benefit fixed rate account.

**Maturity Date:** The last day of the Guarantee Period.

**Owner:** With an Annuity issued as an individual annuity contract, the Owner is either an eligible entity or person named as having ownership rights in relation to the Annuity. With an Annuity issued as a certificate under a group annuity contract, the "Owner" refers to the person or entity who has the rights and benefits designated as to the "Participant" in the certificate.

**Payout Period:** The period starting on the Annuity Date and during which annuity payments are made.

**Portfolio:** Any underlying mutual fund which may be selected as an investment option by the Owner. The terms "Fund" and "Portfolio" are used interchangeably. Some of the Portfolios use the term "Fund" and others use the term "Portfolio" in their respective prospectuses.

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**Purchase Payment:** A cash consideration in currency of the United States of America given to us in exchange for the rights, privileges, and benefits of the Annuity.

**Registered Separate Account:** Fortitude Life Insurance & Annuity Co Variable Account B, which holds the assets supporting the Variable Options. Assets held in the Registered Separate Account are kept separate from all of our other assets and may not be charged with liabilities arising out of any other business we may conduct. The Registered Separate Account may be referred to as the "Separate Account" in this prospectus and the Contract.

**Surrender Value:** The value of your Annuity available upon surrender prior to the Annuity Date. It equals the Account Value as of the date we price the surrender minus any applicable CDSC, Annual Maintenance Fee, Tax Charge, the charge for any optional benefits and any additional amounts we applied to your Purchase Payments that we are entitled to recapture upon surrender of your Annuity.

**Unit:** A measure used to calculate your Account Value in a Variable Option during the Accumulation Period.

**Valuation Day:** Every day the New York Stock Exchange is open for trading or any other day the Securities and Exchange Commission requires mutual funds or unit investment trusts to be valued.

**Variable Option:** A division of the Registered Separate Account. The Variable Option also may be referred to in this prospectus and the Annuity as a Variable Sub-account or Sub-account.

**"We", "our", "us", "FLIAC", or "the Company":** Fortitude Life Insurance & Annuity Company.

**"You" or "your":** the Owner(s) shown in the Annuity.

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**OVERVIEW OF THE CONTRACT**

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**The Annuity referenced in this prospectus and its applicable riders are no longer available for new sales.**

**Purpose of the Contract**

The Annuity is a long-term investment designed for long-term retirement purposes because it allows you to accumulate retirement savings and also offers annuity payment options when you are ready to begin receiving income. This Annuity is a "flexible premium deferred annuity." It is called "flexible premium" because you have considerable flexibility in the timing and amount of premium payments. Generally, investors "defer" receiving annuity payments until after an Accumulation Period. This Annuity may be appropriate for investors accumulating retirement savings on a tax deferred basis and would seek guaranteed income through an annuity payment option.

**Phases of the Contract**

The Annuity features two distinct phases - the Accumulation Period and the Payout Period. During the Accumulation Period your Account Value is allocated to one or more investment options. See "Investment Options" below. During the Payout Period (after Annuitization), you can elect to receive annuity payments (1) for life; (2) for life with a guaranteed minimum number of payments; (3) based on joint lives; or (4) for a guaranteed number of payments. We currently make annuity payments available on a fixed basis only. After Annuitization, the Death Benefits and optional benefits described in this prospectus will no longer apply. We reserve the right to make available other annuity options. See the [<u>"Annuity Period"</u>](#chapter_10-sect1_1_890) section of this prospectus.

**Investment Options**

*Variable Options:* The Variable Options we make available each invest in an underlying Portfolio whose share price generally fluctuates each day. The Variable Options do not provide any level of protection against negative returns. You are at risk of losing principal and any earnings if you allocate funds to a Portfolio.

*Fixed Rate Options:* The Annuity currently offers one fixed interest rate option ("Fixed Rate Option"). The Market Value Adjustment Fixed Allocation provides a guaranteed annual interest rate for a term of 1-10 years (in most states) called the "Guarantee Period".

An investment in the Fixed Rate Option may be appropriate for investors who seek a fixed rate of return on either all or a portion of their Account Value and do not need access to their money before the end of the Guarantee Period. If you withdraw or transfer assets from a Market Value Adjustment Fixed Allocation more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose a significant amount of money due to a negative Market Value Adjustment. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.

**Additional information about the Investment Options is provided in** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_890) **to the prospectus.**

**Contract Features**

*Credits:* This Annuity offers a Credit which we add to your Annuity with each Purchase Payment we receive in Annuity Years one (1) through six (6). The amount of the Credit depends on the Annuity Year in which the Purchase Payment(s) is made.

*Death Benefits:* The Annuity also offers a basic Death Benefit that could protect your retirement savings if you die during a period of declining markets, depending on when you die. It also offers optional Death Benefits that provide enhanced levels of protection for your beneficiary(ies) for an additional charge.

*Living Benefits:* We offer optional benefits for an additional fee that guarantee your ability to take withdrawals for life as a percentage of an initial guaranteed benefit base, even after your Account Value falls to zero (unless it does so due to a withdrawal of Excess Income). We also offer optional benefits for an additional fee that guarantee your Account Value to a certain level after a period of years. As part of these benefits, you are required to invest only in certain permitted investment options. **For more information, see "**[**<u>Appendix A</u>**](#chapter_18-sect1_1_890)**".**

*Withdrawals:* You can withdraw a limited amount of money from your Annuity on an annual basis without any charges.

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**KEY INFORMATION**

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|:---|:---|
| **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are There Charges or<br>Adjustments for<br>Early Withdrawals? | **Yes.**<br>*Surrender Charges:* If you withdraw money from the Contract within 10 years following your Contract Issue Date, you may be assessed a surrender charge. The maximum surrender charge is 9.0% of the premium payment, and a surrender charge may be assessed up to 10 years after the Issue Date of your Contract. If you make an early withdrawal, you could pay a surrender charge of up to $9,000 on a $100,000 withdrawal. Credits may also be recaptured if you take an Early Withdrawal.<br>*Market Value Adjustments:* If you withdraw or transfer assets from a MVA Fixed Allocation Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a MVA Fixed Allocation Option as a result of a negative Market Value Adjustment. For example, if you allocate $100,000 to a MVA Fixed Allocation Option with a 1 year Guarantee Period and later withdraw the entire amount before the 1 year has ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under elected optional benefits), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.<br>For more information on early withdrawal charges and Market Value Adjustments, please refer to the [<u>"Charges and</u> <u>Adjustments"</u>](#chapter_8-sect1_1_890) section of this prospectus. |
|  Are There Transaction<br>Charges? | **Yes.**<br>In addition to surrender charges and Market Value Adjustments, charges may be applied to transfers (if more than 20 in a Contract Year), requesting additional or duplicate reports, or if state or local premium taxes are assessed. For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890) section of this prospectus. |

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| | | | |
|:---|:---|:---|:---|
| **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are There Ongoing<br>Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890) for more information. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. Please refer to [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890) for more information. |
|  Are There Ongoing<br>Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are There Ongoing<br>Fees and Expenses? | Base Contract Fees | 0.677%<sup>\*</sup> | 1.677%<sup>\*</sup> |
|  Are There Ongoing<br>Fees and Expenses? | Portfolio Company fees and expenses | 0.58%<sup>\*</sup> | 1.84%<sup>\*</sup> |
|  Are There Ongoing<br>Fees and Expenses? | Optional benefits available for an additional charge<br>(for a single optional benefit, if elected) | 0.25%<sup>1</sup> | 0.75%<sup>2</sup> |
|  Are There Ongoing<br>Fees and Expenses? | <sup>\*</sup> Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_890) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_890) **for more information.**<br><sup>1</sup> Charge based on a percentage of net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup> Charge based on a percentage of the net assets allocated to the Variable Options. This charge is the current charge for the Spousal Lifetime Five Income Benefit, the most expensive optional benefit with an additional charge. Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup> Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_890) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_890) **for more information.**<br><sup>1</sup> Charge based on a percentage of net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup> Charge based on a percentage of the net assets allocated to the Variable Options. This charge is the current charge for the Spousal Lifetime Five Income Benefit, the most expensive optional benefit with an additional charge. Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** | <sup>\*</sup> Charge based on average daily net assets allocated to the Variable Options. **Please refer to the** [**<u>"Charges and</u>** **<u>Adjustments"</u>**](#chapter_8-sect1_1_890) **section and** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_890) **for more information.**<br><sup>1</sup> Charge based on a percentage of net assets allocated to the Variable Options or the Account Value. This charge is the current charge for the Guaranteed Return Option (GRO)/GRO Plus, Highest Anniversary Value Death Benefit, and Enhanced Beneficiary Protection Death Benefit, the least expensive optional benefits with an additional charge.<br><sup>2</sup> Charge based on a percentage of the net assets allocated to the Variable Options. This charge is the current charge for the Spousal Lifetime Five Income Benefit, the most expensive optional benefit with an additional charge. Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. **This estimate assumes that you do not take withdrawals from the Contract, which could add negative Market Value** **Adjustments and surrender charges that substantially increase costs.** |
|  Are There Ongoing<br>Fees and Expenses? | **Lowest Annual Cost**<br>**$2,280** | **Highest Annual Cost**<br>**$5,819** |  |
|  Are There Ongoing<br>Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and<br>expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of<br>optional benefits and Portfolio fees<br>and expenses<br> No sales charges<br> No additional Purchase Payments,<br>transfers or withdrawals |  |
|  Are There Ongoing<br>Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_890)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_890)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_890)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890)sections of this prospectus. |

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| | |
|:---|:---|
| **Risks** | **Risks** |
|  Is There a Risk of Loss from Poor Performance? | **Yes.**<br>You can lose money by investing in the Contract. You can also lose value from Credits if they are recaptured by us.<br>For more information on the risk of loss from poor performance, please refer to the [<u>"Principal Risks of Investing in the Contract"</u>](#chapter_6-sect1_1_890) section of this prospectus. |
|  Is this a Short-Term Investment? | **No.**<br>The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. The Contract is designed to provide benefits on a long-term basis. Because of the long-term nature of the Contract, you should consider whether the Contract is consistent with your financial situation and objectives. Withdrawals may generally reduce the level of various optional benefit guarantees provided and may be subject to federal and state income taxes, as well as a 10% additional tax. If you withdraw or transfer assets from the MVA Fixed Allocation Options more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>For more information on the short-term investment risks, please refer to the [<u>"Principal Risks of Investing in the Contract"</u>](#chapter_6-sect1_1_890) section of this prospectus. |
|  What are the Risks Associated with the Investment Options? | An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the Investment Options you select. Each of the Investment Options available under the Contract, including the Variable Options and the Fixed Allocations, has its own unique risks. You should review the investment options before making an investment decision. The Fixed Allocations may be subject to a Market Value Adjustment, which can be negative, causing you to lose money.<br>For more information on the risks associated with investment options, please refer to the [<u>"Principal Risks of Investing in the Contract"</u>](#chapter_6-sect1_1_890)section of this prospectus. |
|  What are the Risks Related to the Insurance Company? | An investment in the Contract is subject to the risks related to the Company. Any obligations (including under any Fixed Allocation), guarantees, or benefits are subject to the claims-paying ability of the Company. More information about the Company, including its financial strength ratings, is available upon request. Such requests can be made toll-free at 1-800-879-7012.<br>For more information on insurance company risks, please refer to the [<u>"Principal Risks of Investing in the Contract"</u>](#chapter_6-sect1_1_890) section of this prospectus. |
| **Restrictions** | **Restrictions** |
|  Are There Restrictions on the Investment Options? | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions that may limit the investment options that you may choose, and there are limitations on the transfer of Account Value among investment options.<br> You may make twenty (20) free transfers between investment options each Contract Year. After the twentieth transfer in each Contract Year, we will charge $10 for each additional transfer. This charge may be increased to $15 after 8 transfers in any Contract Year.<br> If you select an optional benefit, your selection of investment options may be limited.<br> We reserve the right to remove or substitute Portfolios as investment options. Or<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impose limitations on an investment professional's or investment advisor's ability to request financial transactions on your behalf.<br> Limit the number of transfers you may make or to impose a minimum transfer amount; and<br> Limit, suspend or reject any additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities.<br> Certain Investment Options may not be available through certain financial intermediaries. See the [<u>Cover Page</u>](#chapter_1-sect1_1_890) for additional information.<br>**For more information on investment and transfer restrictions, please refer to the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_890) **section,** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_890)**, the** [**<u>"Principal Risks of Investing in the Contract"</u>**](#chapter_6-sect1_1_890) **section, the** [**<u>"General Description of Contracts"</u>**](#chapter_9-sect1_1_890) **section, the** [**<u>"What are the Separate Accounts?"</u>**](#chapter_7-sect1_3_890) **section and the** [**<u>"Financial Professional Permission to Forward Transaction Instructions"</u>**](#chapter_9-sect1_10_890)**section of this prospectus.** |

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| | |
|:---|:---|
| **Restrictions** | **Restrictions** |
|  Are There any Restrictions on Contract Benefits? | &nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions and limitation relating to benefits offered under the Contract. Except as otherwise provided, Contract benefits may not be modified or terminated by the Company.<br> You may be able to obtain optional benefits, which may require additional charges. If you elect to purchase one or more optional benefits, we will deduct an additional charge on a daily basis from your Account Value allocated to the Variable Options. The charge for each optional benefit is deducted in addition to the insurance charge due to the increased insurance risk associated with the optional benefits.<br> Any withdrawals that exceed limits specified by the terms of an optional benefit may affect the availability of the benefit by reducing the benefit by an amount greater than the value withdrawn, and/or could terminate the benefit.<br> Certain Contract Benefits may not be available through certain financial intermediaries. See the [<u>Cover Page</u>](#chapter_1-sect1_1_890) for additional information.<br>For more information on optional benefits under the Contract, please refer to the [<u>"Benefits Available Under the Contract"</u>](#chapter_11-sect1_1_890) section of this prospectus. |
| **Taxes** | **Taxes** |
|  What Are the Contract's Tax Implications? | You should consult with a tax professional to determine the tax implications of an investment in and payments received under the Contract. There is no additional tax benefit if you purchase the Contract through a tax-qualified plan or individual retirement account (IRA). Withdrawals will be subject to ordinary income tax, and may be subject to the 10% additional tax for distributions taken prior to age 59 1/2.<br>For more information on tax implications, please refer to the "[<u>Taxes</u>](#chapter_14-sect1_1_890)" section of this prospectus. |
| **Conflicts of Interest** | **Conflicts of Interest** |
|  How are Investment Professionals Compensated? | Investment professionals may receive compensation for selling the Contract to investors and may have a financial incentive to offer or recommend the Contract over another investment. This compensation is paid in the form of commissions, based on your investment in the Contract.<br>For more information on investment professional compensation, please refer to the Statement of Additional Information. |
|  Should I Exchange My Contract? | Some investment professionals may have a financial incentive to offer you a new contract in place of the one you already own. You should only exchange your contract if you determine after comparing the features, fees, and risks of both contracts, and any fees or penalties to terminate the existing contract, that it is preferable to purchase the new contract, rather than continue to own your existing contract. This Contract is no longer sold.<br>For more information on exchanges, please refer to the Statement of Additional Information. |

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**FEE TABLE**

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**The following tables describe the fees, expenses, and adjustments that you will pay when buying, owning, and surrendering or making** **withdrawals from an Investment Option or from the Annuity.**

**The first table describes the fees and expenses that you will pay at the time that you buy the Annuity, surrender or make withdrawals from the** **Annuity, transfer Account Value between investment options, or request duplicate reports. State premium taxes may also be deducted. These** **fees and charges are described in more detail within this prospectus in the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_890) **section.**

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| | |
|:---|:---|
|  **Transaction Expenses** | **Maximum** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales Charge Imposed on Purchases |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred Sales Charge (as a percentage of each Purchase Payment)<sup>1</sup> | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer Fee<sup>2</sup> | $15 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional Copies of Reports<sup>3</sup> | $50 |

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1. The
 charge is a percentage of each applicable Purchase Payment deducted upon surrender or withdrawal. The period during which a particular
 percentage applies
 is measured from the Issue Date of the Annuity.

2. You
 may make twenty (20) free transfers between investment options each Annuity Year. We will charge $10 for each transfer after the twentieth
 in each Annuity Year.
 This charge may be increased to $15 after 8 transfers in any Annuity Year.

3. We
 do not currently assess this fee. However, we reserve the right to charge up to $50 for each additional report (i.e. confirmation statement
 or quarterly statement)
 you request.

**The next table describes the adjustments, in addition to any transaction expenses, that apply if all or a portion of the Account Value is** **removed from an MVA Fixed Allocation before the expiration of a specified period.**

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| | |
|:---|:---|
|  **Adjustments** | **Adjustments** |
| &nbsp;&nbsp;&nbsp;&nbsp; Market Value Adjustment Maximum Potential Loss (as a percentage of Unadjusted Account Value in the MVA Fixed Allocation)<sup>1</sup> | 100% |

---

1. The
 following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment:
 (i) partial withdrawals (including systematic
 withdrawals and Required Minimum Distributions), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled
 DCA transfers), and (v) the deduction of fees.

**The following Contingent Deferred Sales Charge percentages apply based on the year of the surrender or withdrawal:**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Yr. 1 | Yr. 2 | Yr. 3 | Yr. 4 | Yr. 5 | Yr. 6 | Yr. 7 | Yr. 8 | Yr. 9 | Yr. 10 | Yr. 11+ |
| 9.0% | 9.0% | 8.5% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% |  |

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**The next table describes the maximum fees and expenses that you will pay each year during the time that you own the Annuity (not including** **Portfolio fees and expenses). Your current fees and expenses may be less than the maximum.**

**If you choose to purchase an optional benefit, you will pay additional charges, as shown below.**

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| | |
|:---|:---|
|  **Annual Annuity Expenses** | **Maximum** |
|  **Administrative** **Expenses<sup>1,</sup>**<sup>**2**</sup><br>*(assessed annually on the Annuity's anniversary date or upon surrender)* | Lesser of $35 or 2% of Account Value |
|  **Base Contract Expenses<sup>3</sup>**<br>*(based on the average daily net assets of the Variable Options) (excluding Settlement Service Charge)* | 1.65% in Annuity Years 1-10;<br>0.65% in Annuity Years 11+ |
|  **Optional Benefit Fees and Charges** |  |
|  Guaranteed Return Option (based on the average daily net assets of the Variable Options) | 0.50% |
|  Guaranteed Return Option Plus (based on the average daily net assets of the Variable Options) | 0.50% |
|  Guaranteed Minimum Withdrawal Benefit (based on the average daily net assets of the Variable Options) | 1.00% |
|  Guaranteed Minimum Income Benefit (based on the average Protected Income Value) | 1.00% |
|  Lifetime Five Income Benefit (based on the average daily net assets of the Variable Options) | 1.50% |

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| | |
|:---|:---|
|  **Optional Benefit Fees and Charges** |  |
|  Spousal Lifetime Five Income Benefit (based on the average daily net assets of the Variable Options) | 1.50% |
|  Enhanced Beneficiary Protection Death Benefit (based on the average daily net assets of the Variable Options) | 0.75% |
|  Highest Anniversary Value Death Benefit (based on the average daily net assets of the Variable Options) | 0.75% |
|  Combination 5% Roll Up and HAV Death Benefit (based on the average daily net assets of the Variable Options) | 0.50% |
|  Highest Daily Value Death Benefit (based on the average daily net assets of the Variable Options) | 0.60% |

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1. The
 Administrative Expense is referred to as "Annual Maintenance Fee" elsewhere in this Prospectus.

2. The
 Administrative Expense for the Beneficiary Continuation Option is the lesser of $30 or 2% of Account Value.

3. The
 Base Contract Expense does not apply if you are a beneficiary under the Beneficiary Continuation Option. The Settlement Service Charge
 only applies if your beneficiary
 elects the Beneficiary Continuation Option. Beneficiaries are assessed a Settlement Service Charge of 1.40% (based on the average daily
 net assets of the
 Variable Options). Please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_890) section in this prospectus for more information about the Settlement Service Charge.

**The next item shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the** **time that you own the Annuity. Expenses shown may change over time and be higher or lower in the future. A complete list of Portfolios** **available under the Annuity, including their annual expenses, may be found at** [**<u>"</u>**](#chapter_18-sect1_1_890)[**<u>Appendix A"</u>**](#chapter_18-sect1_1_890) **of this prospectus.**

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| | | |
|:---|:---|:---|
|  **Annual Portfolio Expenses** | **Annual Portfolio Expenses** | **Annual Portfolio Expenses** |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | *<u>Minimum</u>* | *<u>Maximum</u>* |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.58% | 1.84% |

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**Example**

This Example is intended to help you compare the cost of investing in the Variable Options with the cost of investing in other annuity contracts that offer variable positions. These costs include Transaction Expenses, Annual Annuity Expenses, and Annual Portfolio Expenses.

The Example assumes all Account Value is allocated to the Variable Options. The Example does not reflect Market Value Adjustment. Your costs could differ from those shown below if you invest in the MVA Fixed Allocation.

The Example assumes that you invest $100,000 in the Variable Options for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the most expensive combination of Annual Portfolio Expenses and optional benefits available for an additional charge which includes Lifetime Five and Highest Anniversary Value Death Benefit. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** | **STAGECOACH XTRA CREDIT SIX WITH LIFETIME FIVE AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $14819 | $25791 | $35545 | $57759 | $13576 | $22271 | $30026 | $48423 |
|  If you annuitize your Contract at the end of the applicable time period: | $5819 | $17291 | $28545 | $55759 | $4576 | $13771 | $23026 | $46423 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $5819 | $17291 | $28545 | $55759 | $4576 | $13771 | $23026 | $46423 |

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**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT**

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The risks identified below are the principal risks of investing in the Annuity. The Annuity may be subject to additional risks other than those identified and described in this prospectus.

**Risk of Loss:** You could lose money by investing in the Annuity, including your principal investment. An investment in the Annuity is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

**Risks Associated with Variable Options:** You take all the investment risk for amounts allocated to one or more of the Variable Options, which invest in Portfolios. If the Variable Options you select increase in value, then your Account Value goes up; if they decrease in value, your Account Value goes down. How much your Account Value goes up or down depends on the performance of the Portfolios in which your Variable Options invest. We do not guarantee the investment results of any Portfolio. An investment in the Annuity is subject to the risk of poor investment performance, and the value of your investment can vary depending on the performance of the selected Portfolio(s), each of which has its own unique risks. You should review the Portfolios before making an investment decision. We reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates.

**Risks Associated with the MVA Fixed Allocation:** We determine the interest rates credited to the MVA Fixed Allocation in our sole discretion, subject to guaranteed minimums, and we may change the rates for new Guarantee Periods at any time. Any change in interest rates do not affect Guarantee Periods that began before the date of the change. There is a risk that the interest rates for new Guarantee Periods will be lower than the rates that were previously in effect. In addition, if you withdraw or transfer assets from a MVA Fixed Allocations more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a MVA Fixed Allocation as a result of a negative Market Value Adjustment. Generally, if yields are higher at the time of Market Value Adjustment application than they were at the beginning of the Guarantee Period, the Market Value Adjustment will be negative.

**Early Withdrawal Risk:** The Annuity is not a short-term investment vehicle and is not an appropriate investment for an investor who needs ready access to cash. The Annuity is designed to provide benefits on a long-term basis. Because of the long-term nature of the Annuity, you should consider whether the Annuity is consistent with your financial situation and objectives. Withdrawals under the Annuity, including partial withdrawals and a full surrender, may be subject to negative Market Value Adjustments and negative tax consequences. If you have elected certain Optional Benefits, a withdrawal may reduce the amount of your Benefit on more than a dollar-for-dollar basis. While the Annuity provides a Death Benefit, the amount of that benefit is subject to investment gains and losses and is reduced for any withdrawals you take.

**Insurance Company Risk:** No company other than us has any legal responsibility to pay amounts that we owe under the Annuity, including amounts allocated to the Fixed Allocations, which are supported by our general account and are subject to our claims-paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities, such as the payment of salaries, rent and other ordinary business expenses. You should look to our financial strength for our claims-paying ability. We are also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect us and our ability to conduct business and process transactions. Although we have business continuity plans, it is possible that the plans may not operate as intended or required and that we may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

**Possible Adverse Tax Consequences:** The tax considerations associated with the Annuity vary and can be complicated. The tax considerations discussed in this prospectus are general in nature and describe only federal income tax law (not state, local, foreign or other federal tax laws). Before making a Purchase Payment or taking other action related to your Annuity, you should consult with a qualified tax advisor for complete information and advice. For example, distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. In addition, if you take a distribution prior to the taxpayer's age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain.

**Possible Fees on Access to Account Value:** We may apply fees if you access your Account Value during the Accumulation Period or surrender your Annuity. For example, in addition to possible tax consequences discussed above, you may incur fees for accessing your Account Value such as a Contingent Deferred Sales Charge, Annual Maintenance Fee, Tax Charge, and/or a charge for any optional benefits. In addition, we may recapture some or all of the Credits applied to your Annuity and assess a Market Value Adjustment for withdrawals from a Fixed Allocation.

**Credit Recapture:** In certain circumstances we may recapture any Credits applied to your Contract if you access your Account Value during the Accumulation Period or surrender your Annuity.

**Annuity Changes Risk:** We reserve the right to limit the number of transfers you may make or to impose a minimum transfer amount. We also reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates. We may limit, suspend or reject any additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with

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an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities. In addition, we may impose limitations on an investment professional's or investment advisor's ability to request financial transactions on your behalf.

**Cyber Security and Business Continuity Risks:** With the increasing use of technology and computer systems in general and, in particular, the Internet to conduct necessary business functions, the Company is susceptible to operational, information security and related risks. These risks, which are often collectively referred to as "cyber security" risks, may include deliberate or malicious attacks, as well as unintentional events and occurrences. These risks are heightened by our offering of increasingly complex products, such as those that feature automatic asset transfer or reallocation strategies, and by our employment of complex investment, trading and hedging programs. Cyber security is generally defined as the technology, operations and related protocol surrounding and protecting a user's computer hardware, network, systems and applications and the data transmitted and stored therewith. These measures ensure the reliability of a user's systems, as well as the security, availability, integrity, and confidentiality of data assets.

Deliberate cyber attacks can include, but are not limited to, gaining unauthorized access (including physical break-ins) to computer systems in order to misappropriate and/or disclose sensitive or confidential information; deleting, corrupting or modifying data; and causing operational disruptions. Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (in order to prevent access to computer networks). In addition to deliberate breaches engineered by external actors, cyber security risks can also result from the conduct of malicious, exploited or careless insiders, whose actions may result in the destruction, release or disclosure of confidential or proprietary information stored on an organization's systems.

The Company is also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect the Company and our ability to conduct business and process transactions. Although the Company has business continuity plans, it is possible that the plans may not operate as intended or required and that the Company may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

Cyber security events, disasters and similar events, whether deliberate or unintentional, that could impact the Company and Contract owners could arise not only in connection with our own administration of the Annuity, but also with entities operating the Annuity's Portfolios and with third-party service providers. Cyber security and other events affecting any of the entities involved with the offering and administration of the Annuity may cause significant disruptions in the business operations related to the Annuity. Potential impacts may include, but are not limited to, potential financial losses under the Annuity, your inability to conduct transactions under the Annuity and/or with respect to a Portfolio, an inability to calculate unit values with respect to the Annuity and/or the net asset value ("NAV") with respect to a Portfolio, and disclosures of your personal or confidential account information.

In addition to direct impacts to you, cyber security and other events described above may result in adverse impacts to the Company, including regulatory inquiries, regulatory proceedings, regulatory and/or legal and litigation costs, and reputational damage. Costs incurred by the Company may include reimbursement and other expenses, including the costs of litigation and litigation settlements and additional compliance costs. Considerable expenses also may be incurred by the Company in enhancing and upgrading computer systems and systems security following a cyber security failure or responding to a disaster or similar event. The rapid proliferation of technologies, as well as the increased sophistication and activities of organized crime, hackers, terrorists, and others continue to pose new and significant cyber security threats. In addition, the global spread of COVID-19 has caused the Company and its service providers to implement business continuity plans, including widespread use of work-from-home arrangements. Although the Company, our service providers, and the Portfolios offered under the Annuity may have established business continuity plans and risk management systems to mitigate risks, there can be no guarantee or assurance that such plans or systems will be effective, or that all risks that exist, or may develop in the future, have been completely anticipated and identified or can be protected against. Furthermore, the Company cannot control or assure the efficacy of the cyber security and business continuity plans and systems implemented by third-party service providers, the Portfolios, and the issuers in which the Portfolios invest.

The military invasion of Ukraine initiated by Russia in February 2022 and the resulting response by the United States and other countries have led to economic disruptions, as well as increased volatility and uncertainty in the financial markets. It is not possible to predict the ultimate duration and scope of the conflict, or the future impact on U.S. and global economies and financial markets.

**Artificial Intelligence Risk:** In addition to the cyber security risks described above, the development, adoption and use of AI, including generative artificial intelligence ("Generative AI"), by us and by third parties on whom we rely may increase existing operational risks or create new operational risks that we are not currently anticipating. AI technologies offer potential benefits in areas such as customer service personalization and process automation, and we expect to use AI and Generative AI to help deliver products and services and support critical functions. We also expect third parties on whom we rely to do the same. There are significant risks involved in developing and deploying AI, and there can be no assurance that its use will enhance our products or services or be beneficial to our business, including our efficiency or profitability. The risk that AI and Generative AI may be misused is increased by the relative newness of the technology, the speed at which it is being adopted, and the lack of laws, regulations or standards governing its use. Such misuse could expose the Company to legal or regulatory risk, damage customer relationships or cause reputational harm. Further, our ability to continue to develop and efficiently deploy AI technologies depends on access to specific third-party equipment and other physical infrastructure, such as processing hardware and network capacity, the availability and pricing of which is difficult to control, especially in a highly competitive environment. Our competitors may also adopt AI or Generative AI more quickly or more effectively than we do, which could cause competitive harm. Because the Generative AI technology is so new, some of the potential risks of Generative AI are currently unknowable.

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**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT** **OPTIONS**

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**WHO IS FORTITUDE LIFE INSURANCE & ANNUITY COMPANY?**

Annuities and Life Insurance are issued by Fortitude Life Insurance & Annuity Company ("FLIAC"), located at Ten Exchange Place, Suite 2210, Jersey City, NJ 07302. FLIAC is obligated to pay all amounts promised to investors under the Annuity, subject to its financial strength and claims-paying ability. Fortitude Re has retained The Prudential Insurance Company of America ("PICA") as an unaffiliated Third-Party Administrator. Variable Annuities are distributed by Prudential Annuities Distributors, Inc. ("PAD"), Shelton, CT (main office). PICA and PAD are Prudential Financial Inc. companies. Each company (FLIAC, PICA, PAD) is solely responsible for its own financial condition and contractual obligations.

Fortitude Re is the marketing name for FGH Parent, L.P. and its subsidiaries, including FLIAC. Each subsidiary is responsible for its own financial condition and contractual obligations.

Pursuant to the delivery obligations under Section 5 of the Securities Act of 1933 and Rule 159 thereunder, we deliver this prospectus to current contract owners that reside outside of the United States. In addition, we may not market or offer benefits, features or enhancements to prospective or current contract owners while outside of the United States.

**<u>Rule 12h-7</u>**

With respect to the offering of Market Value Adjusted options, the Company relies on the exemption provided by Rule 12h-7 under the Securities Exchange Act of 1934 from the requirement to file reports pursuant to Section 15(d) of that Act.

**<u>Claims of Creditors</u>**

To the extent permitted by law, no payment or value under this Annuity is subject to the claims of your creditors or those of any other Owner, any Annuitant, or any Beneficiary.

**<u>Deferral of Transactions</u>**

We may defer any annuity payment for a period not to exceed the lesser of 6 months or the period permitted by law. If we defer a distribution or transfer from any annuity payout for more than thirty days, we will pay interest as required by state law. We may defer any distribution from any Allocation Option or any transfer from Allocation Options for a period not to exceed seven calendar days from the date the transaction is affected.

**WHAT ARE THE SEPARATE ACCOUNTS?**

**Fortitude Life Insurance & Annuity Company Separate Account B**

During the Accumulation Period, the assets supporting obligations based on allocations to the Variable Options are held in Fortitude Life Insurance & Annuity Company Variable Account B (the "Registered Separate Account"). Income, gains and losses credited to, or charged against, the Registered Separate Account reflect the Registered Separate Account's own investment experience and not the investment experience of our other assets. The assets of the Registered Separate Account may not be used to pay any liabilities of ours other than those arising from the Annuity and other annuity contracts issued in connection with the Registered Separate Account.

The Registered Separate Account consists of multiple Variable Options. Each Variable Option invests only in a single Portfolio. The name of each Variable Option generally corresponds to the name of the Portfolio. Each Variable Option may have several different Unit Prices to reflect charges that are offered under annuities issued by us through the Registered Separate Account. The Registered Separate Account is registered with the SEC under the Investment Company Act of 1940 ("Investment Company Act") as a unit investment trust, which is a type of investment company. The SEC does not supervise investment policies, management or practices of the Registered Separate Account. We may offer new Variable Options, eliminate Variable Options, or combine Variable Options at our sole discretion. We may also close Variable Options to additional Purchase Payments on existing annuities or close Variable Options for annuities purchased on or after specified dates.

In addition to rights that we specifically reserve elsewhere in this prospectus, we reserve the right to perform any or all of the following:

• offer
 new Variable Options, eliminate Variable Options, substitute Variable Options or combine Variable Options;

• close
 Variable Options to subsequent Purchase Payments on existing Annuities or close Variable Options for Annuities purchased on or after
 specified dates;

• combine
 the Registered Separate Account with separate accounts;

• deregister
 the Registered Separate Account under the Investment Company Act of 1940;

• manage
 the Registered Separate Account as a management investment company under the Investment Company Act of 1940 or in any other
 form permitted by law;

• make
 changes required by any change in the federal securities laws, including, but not limited to, the Securities Act of 1933, the Securities Exchange Act of 1934,
 the Investment Company Act of 1940, or any other changes to the Securities and Exchange Commission's interpretation
 thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• establish
 a provision in the Annuity for federal income taxes if we determine, in our sole discretion, that we will incur a tax as the result of the operation of
 the Registered Separate Account;

• make
 any changes required by federal or state laws with respect to annuity contracts; and

• to
 the extent dictated by any underlying Portfolio, impose a redemption fee or restrict transfers within any Variable Option.

We will first notify you and receive any necessary SEC and/or state approval before making such a change. If an underlying Portfolio is liquidated, we will ask you to reallocate any amount in the liquidated fund. If you do not reallocate these amounts, we will reallocate such amounts only in accordance with SEC pronouncements and only after obtaining an order from the SEC, if required. If investment in the Portfolios or a particular Portfolio is no longer possible, or in our discretion becomes inappropriate for purposes of the Annuity, or for any other rationale in our sole judgment, we may substitute another Portfolio or investment Portfolios without your consent. The substituted Portfolio may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any required approval of the SEC and any applicable state insurance departments. In addition, we may close Portfolios to allocation of Purchase Payments or Account Value, or both, at any time in our sole discretion. We do not control the Portfolios, so we cannot guarantee that any of those Portfolios will always be available.

**INVESTMENT OPTIONS**

**VARIABLE OPTIONS**

Each Variable Option is a sub-account that invests exclusively in a single Portfolio. Account Value allocated to the Variable Option will vary based on the investment experience of the Portfolio in which the Variable Option invests. There is a risk of loss of the entire amount invested. **Please refer to** [**<u>"</u>**](#chapter_18-sect1_1_890)[**<u>Appendix A"</u>**](#chapter_18-sect1_1_890) **for certain information regarding each Portfolio, including (i) its name, (ii) its type (** **e.g** **., money market fund, bond fund,** **balanced fund, etc.), (iii) its investment advisor and any Sub-advisor, (iv) current expenses, and (v) performance.** There is no guarantee that any underlying Portfolio will meet its investment objective. Each Portfolio has issued a prospectus that contains more detailed information about the Portfolio. The prospectuses for the Portfolios can be found online at <u>www.prudential.com/regdocs/FLIAC-SC-XT6-STAT</u>. You can also request this information at no cost by calling 1- 800-879-7012.

**MARKET VALUE ADJUSTED FIXED ALLOCATION INVESTMENT**

We offer fixed investment options of different durations during the Accumulation Period. These "Fixed Allocations" earn a guaranteed fixed rate of interest for a specified period of time, called the "Guarantee Period." In most states, we offer Fixed Allocations with Guarantee Periods from 1 to 10 years. We may also offer special purpose Fixed Allocations for use with certain optional investment programs. We guarantee the fixed rate for the entire Guarantee Period. However, if you withdraw or transfer Account Value before the end of the Guarantee Period, we will adjust the value of your withdrawal or transfer based on a formula, called a "Market Value Adjustment". The Market Value Adjustment can either be positive or negative, depending on the rates that are currently being credited on Fixed Allocations. You may allocate Account Value to more than one Fixed Allocation at a time.

Fixed Allocations may not be available in all states. Availability of Fixed Allocations is subject to change and may differ by state and by the annuity <br>product you purchase. Please call us at 1-800-879-7012 to determine availability of Fixed Allocations in your state and for your annuity product.

Market Value Adjusted Fixed Allocation Investments are supported by our general account and are subject to our claims paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities.

The interest rate declared for a MVA Fixed Allocation will be no less than the minimum guaranteed interest rate. The minimum guaranteed interest rate that applies to you may vary depending on the state in which your Annuity was issued, but it will be shown on your Annuity specifications page and will never be less than 0% or the minimum rate required under state law or regulation; whichever is greater. We may, from time to time, declare new interest rates for new Purchase Payments that are higher than the minimum guaranteed interest rate. Any change in interest rates does not affect MVA Fixed Allocation that were in effect before the date of the change. At the time that we confirm the allocation of your Purchase Payment to an MVA Fixed Allocation, we will advise you of the interest rate in effect. To inquire as to the current rates, please contact our Annuity Service Center at 1-800-879-7012.

Each underlying Portfolio is registered as an open-end management investment company under the Investment Company Act. Shares of the underlying Portfolios are sold to separate accounts of life insurance companies offering variable annuity and variable life insurance products. The shares may also be sold directly to qualified pension and retirement plans.

**Voting Rights**

We are the legal Owner of the shares of the underlying Portfolios in which the Variable Options invest. However, under current SEC rules, you have voting rights in relation to Account Value allocated to the Variable Options. If an underlying Portfolio requests a vote of shareholders, we will vote our shares based on instructions received from Owners with Account Value allocated to that Variable Option. Owners have the right to vote an amount equal to the number of shares attributable to their Annuity. If we do not receive voting instructions in relation to certain shares, we will vote those shares in the same manner and proportion as the shares for which we have received instructions. This voting procedure is sometimes referred to as "mirror voting"

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because, as indicated in the immediately preceding sentence, we mirror the votes that are actually cast, rather than decide on our own how to vote. We will also "mirror vote" shares that are owned directly by us or an affiliate (excluding shares held in the separate account of an affiliated insurer). In addition, because all the shares of a given Portfolio held within the Registered Separate Account are legally owned by us, we intend to vote all of such shares when that underlying Portfolio seeks a vote of its shareholders. As such, all such shares will be counted towards whether there is a quorum at the underlying Portfolio's shareholder meeting and toward the ultimate outcome of the vote. Thus, under "mirror voting," it is possible that the votes of a small percentage of Owners who actually vote will determine the ultimate outcome.

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

We will furnish those Owners who have Account Value allocated to a Variable Option whose underlying Portfolio has requested a "proxy" vote with proxy materials and the necessary forms to provide us with their voting instructions. Generally, you will be asked to provide instructions for us to vote on matters such as changes in a fundamental investment strategy, adoption of a new investment advisory agreement, or matters relating to the structure of the underlying Portfolio that require a vote of shareholders. We reserve the right to change the voting procedures described above if applicable SEC rules change.

**Similar Funds**

The Portfolios are not publicly traded mutual funds. They are only available as investment options in variable annuity contracts and variable life insurance policies issued by insurance companies, or in some cases, to participants in certain qualified retirement plans. However, some of the Portfolios available as Variable Options under the Annuity are managed by the same advisor or Sub-advisor as a retail mutual fund of the same or similar name that the Portfolio may have been modeled after at its inception. Certain retail mutual funds may also have been modeled after a Portfolio. While the investment objective and policies of the retail mutual funds and the Portfolios may be substantially similar, the actual investments will differ to varying degrees. Differences in the performance of the funds can be expected, and in some cases could be substantial. You should not compare the performance of a publicly traded mutual fund with the performance of any similarly named Portfolio offered as a Variable Option.

**Material Conflicts**

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

1. changes
 in state insurance law;

2. changes
 in federal income tax law;

3. changes
 in the investment management of any Variable Options; or

4. differences
 between voting instructions given by variable life insurance policy owners and variable annuity contract Owners.

**Fees and Payments Received by Us**

As detailed below, we receive substantial payments from the underlying Portfolios and/or related entities, such as the Portfolios' advisors and subadvisors. Because these fees and payments are made to us, allocations you make to the underlying Portfolios benefit us financially. In selecting Portfolios available under the Annuity, we consider the payments that will be made to us. Prudential Annuities Distributors, Inc. receives Rule 12b-1 fees which compensate it for distribution and administrative services (including recordkeeping services and the mailing of prospectuses and reports to Owners invested in the Portfolios). These fees are paid by the underlying Portfolio out of each Portfolio's assets and are therefore borne by Owners.

We also receive administrative services payments from the Portfolios or the advisors of the underlying Portfolios or their affiliates, which are referred to as "revenue sharing" payments. The maximum combined 12b-1 fees and administrative services payments we receive with respect to a Portfolio are generally equal to an annual rate of 0.55% of the average assets allocated to the Portfolio under the Annuity (in certain cases, however, this amount may be equal to an annual rate of 0.60% of the average assets allocated to the Portfolio). We expect to make a profit on these fees and payments and consider them when selecting the Portfolios available under the Annuity.

In addition, an advisor or subadvisor of a Portfolio or a distributor of the Annuity (not the Portfolios) may also compensate us by providing reimbursement, defraying the costs of, or paying directly for, among other things, marketing and/or administrative services and/or other services they provide in connection with the Annuity. These services may include but are not limited to: sponsoring or co-sponsoring various promotional, educational or marketing meetings and seminars attended by distributors, wholesalers, and/or broker dealer firms' registered representatives, and creating marketing material discussing the Annuity, available options, and underlying Portfolios. The amounts paid depend on the nature of the meetings, the number of meetings attended by the advisor, subadvisor, or distributor, the number of participants and attendees at the meetings, the costs expected to be incurred, and the level of the advisor's, subadvisor's or distributor's participation. These payments or reimbursements may not be offered by all advisors,

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subadvisors, or distributors and the amounts of such payments may vary between and among each advisor, subadvisor, and distributor depending on their respective participation. We may also consider these payments and reimbursements when selecting the Portfolios available under the Annuity. For the annual period ended December 31, 2025, under the kind of agreements described in this paragraph, there were no payments received.

In addition to the payments that we receive from underlying Portfolios and/or their affiliates, those same Portfolios and/or their affiliates may make payments to us and/or other insurers affiliated with us related to the offering of investment options within variable annuity contracts or life insurance policies offered by our different business units.

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**CHARGES AND ADJUSTMENTS**

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The charges under the Annuity are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under the contracts. They are also designed, in the aggregate, to compensate us for the risks of loss we assume pursuant to the contracts. If, as we expect, the charges that we collect from the contracts exceed our total costs in connection with the contracts, we will earn a profit. Otherwise we will incur a loss. For example, we may make a profit on the insurance charge if, over time, the actual costs of providing the guaranteed insurance obligations under the Annuity are less than the amount we deduct for the insurance charge. To the extent we make a profit on the insurance charge, such profit may be used for any other corporate purpose, including payment of other expenses that we incur in promoting, distributing, issuing and administering the Annuity and to offset a portion of the costs associated with offering Credits which are funded through our general account. The insurance charge is deducted against your Annuity's Account Value, which includes the amount of any Credits we apply to your Purchase Payments and any increases or decreases in your Account Value based on market fluctuations of the Variable Options.

The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In most cases, this prospectus identifies such expenses or risks in the name of the charge; however, the fact that any charge bears the name of, or is designed primarily to defray a particular expense or risk does not mean that the amount we collect from that charge will never be more than the amount of such expense or risk, nor does it mean that we may not also be compensated for such expense or risk out of any other charges we are permitted to deduct by the terms of the contract.

A portion of the proceeds that we receive from charges that apply solely to the Variable Options may include amounts based on Variable Option appreciation of the Variable Option values, including appreciation on amounts that represent Credits.

**Contingent Deferred Sales Charge (CDSC):** We do not deduct a sales charge from Purchase Payments you make to your Annuity. However, we may deduct a CDSC if you surrender your Annuity or when you make a partial withdrawal. The CDSC reimburses us for expenses related to sales and distribution of the Annuity, including commissions, marketing materials and other promotional expenses. The CDSC is calculated as a percentage of your Purchase Payment being surrendered or withdrawn during the applicable Annuity Year. For purposes of calculating the CDSC, we consider the year following the Issue Date of your Annuity as Year 1. The amount of the CDSC decreases over time, measured from the Issue Date of the Annuity. The CDSC percentages are shown below.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Yr. 1 | Yr. 2 | Yr. 3 | Yr. 4 | Yr. 5 | Yr. 6 | Yr. 7 | Yr. 8 | Yr. 9 | Yr. 10 | Yr. 11+ |
| 9.0% | 9.0% | 8.5% | 8.0% | 7.0% | 6.0% | 5.0% | 4.0% | 3.0% | 2.0% |  |

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The CDSC period is based on the Issue Date of the Annuity, not on the date each Purchase Payment is applied to the Annuity. Purchase Payments applied to the Annuity after the Issue Date do not have their own CDSC period. Under certain circumstances, during the first ten (10) Annuity Years, you can withdraw a limited amount from your Annuity without paying a CDSC. This is referred to as a "Free Withdrawal." Free Withdrawals are not treated as a withdrawal of Purchase Payments for purposes of calculating the CDSC on a subsequent withdrawal or surrender. Withdrawals of amounts greater than the maximum Free Withdrawal amount are treated as a withdrawal of Purchase Payments and will be assessed a CDSC during Annuity Years 1 through 10. For purposes of calculating the CDSC on a surrender, the Purchase Payments being withdrawn may be greater than your remaining Account Value or the amount of your withdrawal request. This is most likely to occur if you have made prior withdrawals under the Free Withdrawal provision or if your Account Value has declined in value due to negative Variable Option performance.

We may waive the CDSC under certain medically-related circumstances or when taking a Minimum Distribution from an Annuity purchased as a "qualified" investment. Free Withdrawals, Medically-Related Surrenders and Minimum Distributions are each explained more fully in the section entitled "[<u>Surrenders and Withdrawals</u>](#chapter_13-sect1_1_890)".

**Transfer Fee:** Currently, you may make twenty (20) free transfers between investment options each Annuity Year. We will charge $10.00 for each transfer after the twentieth in each Annuity Year. This charge may be increased to $15 after 8 transfers in any Annuity Year. The fee will never be more than $15.00 for each transfer. We do not consider transfers made as part of a dollar cost averaging program when we count the twenty free transfers. Transfers made as part of a rebalancing, market timing or third party investment advisory service will be subject to the twenty-transfer limit. However, all transfers made on the same day will be treated as one (1) transfer. Renewals or transfers of Account Value from a Fixed Allocation at the end of its Guarantee Period are not subject to the transfer fee and are not counted toward the twenty free transfers. We may reduce the number of free transfers allowable each Annuity Year (subject to a minimum of eight) without charging a Transfer Fee unless you make use of electronic means to transmit your transfer requests. We may eliminate the Transfer Fee for transfer requests transmitted electronically or through other means that reduce our processing costs.

**Annual Maintenance Fee:** During the Accumulation Period we deduct an Annual Maintenance Fee. The Annual Maintenance Fee is $35 or 2% of your Account Value invested in the Variable Options, whichever is less. This fee will be deducted annually on the anniversary of the Issue Date of your Annuity or, if you surrender your Annuity during the Annuity Year, the fee is deducted at the time of surrender.

**Tax Charges:** Some states, municipalities and other jurisdictions charge premium taxes or similar taxes on annuities that we are required to pay. The amount of tax will vary from jurisdiction to jurisdiction and is subject to change. We currently deduct the Tax Charge from the Account Value upon Annuitization. The Tax Charge is designed to approximate the taxes that we are required to pay and is assessed as a percentage of the Account Value. The Tax Charge currently ranges up to 3.5%. We reserve the right to deduct the Tax Charge from Purchase Payments when received or from Surrender

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Value upon surrender. "Surrender Value" refers to the Account Value (which includes the effect of any Market Value Adjustment) less any applicable CDSC, any applicable Tax Charge, any charges assessable as a deduction from the Account Value for any optional living or death benefits provided by rider or endorsement, and any Annual Maintenance Fee. We may also assess a charge equal to any Company Taxes or other taxes which may be imposed against the Separate Accounts.

In calculating our corporate income tax liability, we may derive certain corporate income tax benefits associated with the investment of company assets, including Separate Account assets, which are treated as company assets under applicable income tax law. These benefits reduce our overall corporate income tax liability. Under current law, such benefits include foreign tax credits and corporate dividends received deductions. We do not pass these tax benefits through to holders of the Separate Account annuity contracts because (i) the contract Owners are not the Owners of the assets generating these benefits under applicable income tax law and (ii) we do not currently include company income taxes in the Tax Charges you pay under the Annuity. We reserve the right to change these tax practices.

**Insurance Charge:** We deduct an insurance charge daily. The charge is based on the average daily assets allocated to the Variable Options and is equal to 0.65% on an annual basis. The insurance charge is the combination of the Mortality & Expense Risk Charge (0.50%) and the Administration Charge (0.15%). The insurance charge is intended to compensate us for providing the insurance benefits under the Annuity, including the Annuity's basic death benefit that provides guaranteed benefits to your beneficiaries even if the Variable Option declines and the risk that persons we guarantee annuity payments to will live longer than our assumptions. The charge also covers administrative costs associated with providing the Annuity benefits, including preparation of the contract, confirmation statements, annual account statements and annual reports, legal and accounting fees as well as various related expenses. Finally, the charge covers the risk that our assumptions about the mortality risks and expenses under this Annuity are incorrect and that we have agreed not to increase these charges over time despite our actual costs.

The insurance charge is not deducted against assets allocated to a Fixed Allocation. However, the amount we credit to Fixed Allocations may also reflect similar assumptions about the insurance guarantees provided under the Annuity.

**Distribution Charge:** We deduct a Distribution Charge daily. The charge is based on the average assets allocated to the Variable Options and is equal to 1.00% on an annual basis in Annuity Years 1 through 10. After the end of the first ten Annuity Years, the 1.00% charge for distribution will no longer be assessed. The Distribution Charge is intended to compensate us for a portion of our acquisition expenses under the Annuity, including promotion and distribution of the Annuity and costs associated with offering Credits which are funded through our general account. The Distribution Charge is deducted against your Annuity's Account Value, which includes the amount of any Credits we apply to your Purchase Payments and any increases or decreases in your Account Value based on market fluctuations of the Variable Options will affect the charge.

**Settlement Service Charge:** If your beneficiary takes the death benefit under a Beneficiary Continuation Option, we deduct a Settlement Service Charge, although the insurance charge no longer applies. The charge is assessed daily against the assets allocated to the Variable Options and is equal to an annual charge of 1.40%.

**Benefits Available Under the Contract:** For information about the benefits available under the Contract and their corresponding charges, please refer to the section titled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_890)" in this prospectus.

**Fees and Expenses Incurred by the Portfolios:** We do not assess any charges directly against the Portfolios. However, each Portfolio pays charges, fees and expenses, which are deducted daily by each Portfolio before it provides us with the net asset value as of the close of business each day. **More** **detailed information about fees and charges can be found in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **to this prospectus and the prospectuses for the Portfolios located at** **<u>www.prudential.com/regdocs/FLIAC-SC-XT6-STAT</u>** **.**

**Charge for Additional Reports:** We send any statements and reports required by applicable law or regulation to you at your last known address of record. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

**Market Value Adjustment:** If you transfer or withdraw Account Value from an MVA Fixed Allocation before the end of its Guarantee Period, we will adjust the value of your investment based on a formula, called a "Market Value Adjustment" or "MVA". The Market Value Adjustment may be positive or negative, meaning it may increase or decrease your initial investment into the account, if you transfer or withdraw an MVA Fixed Allocation before the end of the Guarantee Period.

Generally, if yields are lower at the time of MVA application than they were at the beginning of the Guarantee period, the MVA will be positive. Generally, if yields are higher at the time of MVA application than they were at the beginning of the Guarantee period, the MVA will be negative.

You may request a quote of the impact an early distribution would have on your Account Value by contacting our Service Center at 1-800-879-7012. Values fluctuate daily and the actual Market Value Adjustment applied at the time a transaction is processed may be more or less than the values quoted at the time of your call. **Additional information about the calculation of the Market Value Adjustment, including the Market Value Adjustment** **formula and examples, can be found in the Statement of Additional Information.**

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**FIXED RATE OPTION CHARGES AND ADJUSTMENTS**

**Fixed Rate Option Charges and Adjustments:** No specific fee or expenses are deducted when determining the rate we credit to a Fixed Allocation. However, for some of the same reasons that we deduct the insurance charge against Account Value allocated to the Variable Options, we also consider mortality, expense, administration, profit and other factors in determining the interest rates we credit to Fixed Allocations. Any CDSC or Tax Charge applies to amounts that are taken from the Variable Options or the Fixed Allocations. A Market Value Adjustment may also apply to transfers, certain withdrawals, surrender or Annuitization from a Fixed Allocation.

**ANNUITY PAYMENT OPTION CHARGES**

If you select a fixed payment option, the amount of each fixed payment will depend on the Account Value of your Annuity when you elected to annuitize. There is no specific charge deducted from these payments; however, the amount of each annuity payment reflects assumptions about our insurance expenses. Also, a tax charge may apply (see "Tax Charges" above).

**EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES**

We may reduce or eliminate certain fees and charges or alter the manner in which the particular fee or charge is deducted. For example, we may reduce the amount of the CDSC or the length of time it applies, reduce or eliminate the amount of the Annual Maintenance Fee or reduce the portion of the total insurance charge that is deducted as an Administration Charge. Generally, these types of changes will be based on a reduction to our sales, maintenance or administrative expenses due to the nature of the individual or group purchasing the Annuity. Some of the factors we might consider in making such a decision are: (a) the size and type of group; (b) the number of Annuities purchased by an Owner; (c) the amount of Purchase Payments or likelihood of additional Purchase Payments; and/or (d) other transactions where sales, maintenance or administrative expenses are likely to be reduced. We will not discriminate unfairly between Annuity purchasers if and when we reduce any fees and charges.

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**GENERAL DESCRIPTION OF CONTRACTS**

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**CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS**

You may change the Owner, Annuitant and Beneficiary designations. Where allowed by law, such changes will be subject to our acceptance. We assume no responsibility for the validity or tax consequences of any change of ownership. Some of the changes we will not accept include, but are not limited to:

• a
 new Owner subsequent to the death of the Owner or the first of any joint Owners to die, except where a spouse-Beneficiary has become
 the Owner as a result of an Owner's death;

• a
 new Annuitant subsequent to the Annuity Date;

• for
 "Non-qualified" investments, a new Annuitant prior to the Annuity Date if the Annuity is owned by an entity;

• a
 change in Beneficiary if the Owner had previously made the designation irrevocable;

• a
 new Owner or Annuitant that is a certain ownership type, including but not limited to corporations, partnerships, endowments, and grantor
 trusts with multiple grantors (if allowed by state law); and

• a
 new Annuitant for a contract issued to a grantor trust where the new Annuitant is not the grantor of the trust.

Unless prohibited by applicable State Law, we reserve the right to refuse a proposed change of Owner and/or Beneficiary, and a proposed assignment of the Annuity.

We will reject a proposed change where the proposed Owner, Annuitant, Beneficiary or assignee is any of the following:

• a
 company(ies) that issues or manages viatical or structured settlements;

• an
 institutional investment company;

• an
 Owner with no insurable relationship to the Annuitant or Contingent Annuitant (a "Stranger-Owned Annuity" or "STOA");
 or

• a
 change in designation(s) that does not comply with or that we cannot administer in compliance with Federal and/or state law.

**Spousal Owners/Spousal Beneficiaries**

If an Annuity is co-owned by spouses, we will assume that the sole primary Beneficiary is the surviving spouse. Upon the death of either spousal Owner, the surviving spouse may elect to assume ownership of the Annuity instead of taking the Death Benefit payment. The Death Benefit that would have been payable will be the new Account Value of the Annuity as of the date of due proof of death and any required proof of a spousal relationship. As of the date the assumption is effective, the surviving spouse will have all the rights and benefits that would be available under the Annuity to a new purchaser of the same attained age. For purposes of determining any future Death Benefit for the beneficiary of the surviving spouse, the new Account Value will be considered as the initial Purchase Payment. No CDSC will apply to the new Account Value. However, any additional Purchase Payments applied after the date the assumption is effective will be subject to all provisions of the Annuity, including the CDSC when applicable.

Spousal assumption is also permitted, subject to our rules and regulatory approval, if the Annuity is held by a Custodial Account established to hold retirement assets for the benefit of the natural person Annuitant pursuant to the provisions of Section 408(a) of the Code ("Code") (or any successor Code section thereto) ("Custodial Account") and, on the date of the Annuitant's death, the spouse of the Annuitant is (1) the Contingent Annuitant under the Annuity and (2) the beneficiary of the Custodial Account. The ability to continue the Annuity in this manner will result in the Annuity no longer qualifying for tax deferral under the Code. However, such tax deferral should result from the ownership of the Annuity by the Custodial Account. Please consult your tax or legal advisor.

Note that any division of your Annuity due to divorce will be treated as a withdrawal and the non-Owner spouse may then decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract Owners. Note that any division of your Annuity due to divorce will be treated as a withdrawal and CDSC may apply. If CDSC is applicable, it cannot be divided between the Owner and the non-Owner ex-spouses. The non-Owner ex-spouse may decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract Owners. Depending upon the method used for the division of the Annuity, the CDSC may be applied to the existing or new Annuity. Please consult with your tax advisor regarding your personal situation if you will be transferring or dividing your Annuity pursuant to a divorce.

The federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

**Contingent Annuitant**

Generally, if an Annuity is owned by an entity and the entity has named a Contingent Annuitant, the Contingent Annuitant will become the Annuitant upon the death of the Annuitant, and no Death Benefit is payable. Unless we agree otherwise, the Annuity is only eligible to have a Contingent Annuitant designation if the entity which owns the Annuity is (1) a plan described in Code Section 72(s)(5)(A)(i) (or any successor Code section thereto); (2) an entity described in Code Section 72(u)(1) (or any successor Code section thereto); or (3) a Custodial Account, as described in the above section.

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Where the Annuity is held by a Custodial Account, the Contingent Annuitant will not automatically become the Annuitant upon the death of the Annuitant. Upon the death of the Annuitant, the Custodial Account will have the choice, subject to our rules, to either elect to receive the Death Benefit or elect to continue the Annuity. If the Custodial Account elects to receive the Death Benefit, the Account Value of the Annuity as of the date of due proof of death of the Annuitant will reflect the amount that would have been payable had a Death Benefit been paid. See the section entitled "[<u>Spousal Owners/Spousal</u> <u>Beneficiaries</u>](#chapter_9-sect1_2_890)" for more information about how the Annuity can be continued by a Custodial Account.

**HOW DO THE FIXED RATE OPTIONS WORK?**

The interest rate credited to a Fixed Allocation is the rate in effect when the Guarantee Period begins and does not change during the Guarantee Period. The rates are an effective annual rate of interest. We determine the interest rates for the various Guarantee Periods. At the time that we confirm your Fixed Allocation, we will advise you of the interest rate in effect and the date your Fixed Allocation matures. We may change the rates we credit new Fixed Allocations at any time. Any change in interest rate does not affect Fixed Allocations that were in effect before the date of the change. To inquire as to the current rates for Fixed Allocations, please call 1-800-879-7012.

A Guarantee Period for a Fixed Allocation begins:

• when
 all or part of a net Purchase Payment is allocated to that particular Guarantee Period;

• upon
 transfer of any of your Account Value to a Fixed Allocation for that particular Guarantee Period; or

• when
 you "renew" a Fixed Allocation by electing a new Guarantee Period.

To the extent permitted by law, we may establish different interest rates for Fixed Allocations offered to a class of Owners who choose to participate in various optional investment programs we make available. This may include, but is not limited to, Owners who elect to use Fixed Allocations under a dollar cost averaging program (see "[<u>Transfer and Rebalancing Programs - Dollar Cost Averaging Programs</u>](#chapter_9-sect1_6_890)") or a balanced investment program (see [<u>"Do</u> <u>You Offer Programs Designed to Guarantee a "Return of Premium" at a Future Date?"</u>](#chapter_9-sect1_7_890)). The interest rate credited to Fixed Allocations offered to this class of purchasers may be different than those offered to other purchasers who choose the same Guarantee Period but who do not participate in an optional investment program. Any such program is at our sole discretion.

**HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?**

We do not have a specific formula for determining the fixed interest rates for Fixed Allocations. Generally, the interest rates we offer for Fixed Allocations will reflect the investment returns available on the types of investments we make to support our fixed rate guarantees. These investment types may include cash, debt securities guaranteed by the United States government and its agencies and instrumentalities, money market instruments, corporate debt obligations of different durations, private placements, asset-backed obligations and municipal bonds. In determining rates we also consider factors such as the length of the Guarantee Period for the Fixed Allocation, regulatory and tax requirements, liquidity of the markets for the type of investments we make, commissions, administrative and investment expenses, our insurance risks in relation to the Fixed Allocations, general economic trends and competition. Some of these considerations are similar to those we consider in determining the insurance charge that we deduct from Account Value allocated to the Variable Options.

We will credit interest on a new Fixed Allocation in an existing Annuity at a rate not less than the rate we are then crediting to Fixed Allocations for the same Guarantee Period selected by new Annuity purchasers in the same class.

**WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?**

The "Maturity Date" for a Fixed Allocation is the last day of the Guarantee Period. Before the Maturity Date, you may choose to renew the Fixed Allocation for a new Guarantee Period of the same or different length or you may transfer all or part of that Fixed Allocation's Account Value to another Fixed Allocation or to one or more Variable Options. We will notify you before the end of the Guarantee Period about the fixed interest rates that we are currently crediting to all Fixed Allocations that are being offered. The rates being credited to Fixed Allocations may change before the Maturity Date. We will not charge a Market Value Adjustment if you choose to renew a Fixed Allocation on its Maturity Date or transfer the Account Value to one or more Variable Options.

If you do not specify how you want a Fixed Allocation to be allocated on its Maturity Date, it will be renewed for a Fixed Allocation of the same duration if then available.

**TRANSFER AND REBALANCING PROGRAMS**

**Dollar Cost Averaging Programs**

We offer Dollar Cost Averaging during the Accumulation Period. Dollar Cost Averaging allows you to systematically transfer an amount periodically from one investment option to one or more other investment options. You can choose to transfer earnings only, principal plus earnings or a flat dollar amount. You may elect a Dollar Cost Averaging program that transfers amounts monthly, quarterly, semi-annually, or annually from Variable Options, or a program that transfers amounts monthly from Fixed Allocations. By investing amounts on a regular basis instead of investing the total amount at one time, Dollar

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Cost Averaging may decrease the effect of Variable Option fluctuation on the investment of your Purchase Payment. This may result in a lower average cost of Units over time. However, there is no guarantee that Dollar Cost Averaging will result in a profit or protect against a loss in a declining Variable Option.

There is no minimum Account Value required to enroll in a Dollar Cost Averaging program and we do not deduct a charge for participating in a Dollar Cost Averaging program.

You can Dollar Cost Average from Variable Options or Fixed Allocations. Dollar Cost Averaging from Fixed Allocations is subject to a number of rules that include, but are not limited to the following:

• You
 may only use Fixed Allocations with Guarantee Periods of 1, 2 or 3 years.

• You
 may only Dollar Cost Average earnings or principal plus earnings. If transferring principal plus earnings, the program must be designed
 to last the entire Guarantee Period for the Fixed Allocation.

• Dollar
 Cost Averaging transfers from Fixed Allocations are not subject to a Market Value Adjustment.

**NOTE:** When a Dollar Cost Averaging program is established from a Fixed Allocation, the fixed rate of interest we credit to your Account Value is applied to a declining balance due to the transfers of Account Value to the Variable Options during the Guarantee Period. This will reduce the effective rate of return on the Fixed Allocation over the Guarantee Period. The Dollar Cost Averaging program is not available if you elect the Guaranteed Return Option Plus, the Guaranteed Return Option or the automatic rebalancing programs when it involves transfers out of the Fixed Allocations and is also not available when you have elected an asset allocation program.

**Automatic Rebalancing Programs**

During the Accumulation Period, we offer automatic rebalancing among the Variable Options you choose. You can choose to have your Account Value rebalanced monthly, quarterly, semi-annually, or annually. On the appropriate date, the Variable Options you chose are rebalanced to the allocation percentages you requested. With automatic rebalancing, we transfer the appropriate amount from the "overweighted" Variable Options to the "underweighted" Variable Options to return your allocations to the percentages you request. For example, over time the performance of the Variable Options will differ, causing your percentage allocations to shift. Any transfer to or from any Variable Option that is not part of your automatic rebalancing program, will be made, however that Variable Option will not become part of your rebalancing program unless we receive instructions from you indicating that you would like such option to become part of the program.

There is no minimum Account Value required to enroll in automatic rebalancing. All rebalancing transfers as part of an automatic rebalancing program are not included when counting the number of transfers each year toward the maximum number of free transfers. We do not deduct a charge for participating in an automatic rebalancing program. Participation in the Automatic Rebalancing program may be restricted if you are enrolled in certain other optional programs.

**ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?**

We currently do not offer any asset allocation programs for use with your Annuity. Prior to December 5, 2005, we made certain asset allocation programs available. **If you enrolled in one of the asset allocation programs prior to December 5, 2005, see the** [**<u>Appendix B</u>**](#chapter_19-sect1_1_890) **entitled, "Additional** **Information on the Asset Allocation Programs" for more information on how the programs are administered.**

**DO YOU OFFER PROGRAMS DESIGNED TO GUARANTEE A "RETURN OF PREMIUM" AT A FUTURE DATE?**

We offer two different programs for investors who wish to invest in the Variable Options but also wish to protect their principal, at least as of a specific date in the future. You may not want to use either of these programs if you expect to begin taking annuity payments before the program would be completed.

**Balanced Investment Program**

We offer a balanced investment program where a portion of your Account Value is allocated to a Fixed Allocation and the remaining Account Value is allocated to the Variable Options that you select. When you enroll in the Balanced Investment Program, you choose the duration that you wish the program to last. This determines the duration of the Guarantee Period for the Fixed Allocation. Based on the fixed rate for the Guarantee Period chosen, we calculate the portion of your Account Value that must be allocated to the Fixed Allocation to grow to a specific "principal amount" (such as your initial Purchase Payment). We determine the amount based on the rates then in effect for the Guarantee Period you choose. If you continue the program until the end of the Guarantee Period and make no withdrawals or transfers, at the end of the Guarantee Period, the Fixed Allocation will have grown to equal the "principal amount". Withdrawals or transfers from the Fixed Allocation before the end of the Guarantee Period will terminate the program and may be subject to a Market Value Adjustment. You can transfer the Account Value that is not allocated to the Fixed Allocation between any of the Variable Options available under the Annuity. Account Value you allocate to the Variable Options is subject to Variable Option fluctuations and may increase or decrease in value. We do not deduct a charge for participating in the Balanced Investment Program.

**Example**

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Assume you invest $100,000. You choose a 10-year program and allocate a portion of your Account Value to a Fixed Allocation with a 10-year Guarantee Period. The rate for the 10-year Guarantee Period is 2.50%\*. Based on the fixed interest rate for the Guarantee Period chosen, the factor is 0.781198 for determining how much of your Account Value will be allocated to the Fixed Allocation. That means that $78,120 will be allocated to the Fixed Allocation and the remaining Account Value ($21,880) will be allocated to the Variable Options. Assuming that you do not make any withdrawals or transfers from the Fixed Allocation, it will grow to $100,000 at the end of the Guarantee Period. Of course we cannot predict the value of the remaining Account Value that was allocated to the Variable Options.

\* The rate in this example is hypothetical and may not reflect the current rate for Guarantee Periods of this duration.

**Guaranteed Return Option (GRO)/Guaranteed Return Option Plus (GRO Plus)**

We also offer a seven-year program where we monitor your Account Value daily and systematically transfer amounts between Fixed Allocations and the Variable Options you choose. For more information about this option, please refer to the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_890)" section of this prospectus.

**RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS**

During the Accumulation Period you may transfer Account Value between investment options. Transfers are not subject to taxation on any gain. We currently limit the number of Variable Options you can invest in at any one time to twenty (20). However, you can invest in an unlimited number of Fixed Allocations. We may require a minimum of $500 in each Variable Option you allocate Account Value to at the time of any allocation or transfer. If you request a transfer and, as a result of the transfer, there would be less than $500 in the Variable Option, we may transfer the remaining Account Value in the Variable Option on a proportional basis to the other investment options to which you transferred.

We may impose specific restrictions on financial transactions for certain Portfolios based on the Portfolio's investment restrictions. Currently, any purchase, redemption or transfer involving the ProFunds VP Variable Options must be received by us no later than one hour prior to any announced closing of the applicable securities exchange (generally, 3:00 p.m. Eastern Time) to be processed on the current Valuation Day. The "cut-off" time for such financial transactions involving a ProFunds VP Variable Option will be extended to ½ hour prior to any announced closing (generally, 3:30 p.m. Eastern Time) for transactions submitted electronically through our website (<u>www.prudential.com/annuities</u>).

Currently, we charge $10 for each transfer after the twentieth (20<sup>th</sup>) in each Annuity Year, including transfers made as part of any rebalancing, market timing, asset allocation or similar program which you have authorized. Transfers made as part of a dollar cost averaging program do not count toward the twenty free transfer limit. Renewals or transfers of Account Value from a Fixed Allocation at the end of its Guarantee Period are not subject to the transfer charge. We may reduce the number of free transfers allowable each Annuity Year (subject to a minimum of eight) without charging a Transfer Fee unless you make use of electronic means to transmit your transfer requests. We may eliminate the Transfer Fee for transfer requests transmitted electronically or through other means that reduce our processing costs.

**Frequent Transfers**

Frequent transfers among investment options in response to short-term fluctuations in markets, sometimes called "market timing," can make it very difficult for a Portfolio manager to manage a Portfolio's investments. Frequent transfers may cause the Portfolio to hold more cash than otherwise necessary, disrupt management strategies, increase transaction costs, or affect performance. Considering the risks posed to Owners and other investors by frequent transfers, we reserve the right to limit the number of transfers in any Annuity Year for all Owners and to take the other actions discussed below. We also reserve the right to limit the number of transfers in any Annuity Year or to refuse any transfer request for an Owner or certain Owners if: (a) we believe that excessive transfer activity (as we define it) or a specific transfer request or group of transfer requests may have a detrimental effect on Unit Values or the share prices of the Portfolios; or (b) we are informed by a Portfolio (*e.g*., by a Portfolio's Portfolio manager) that the purchase or redemption of shares in the Portfolio must be restricted because the Portfolio believes the transfer activity to which such purchase and redemption relates would have a detrimental effect on the share prices of the affected Portfolio. Without limiting the above, the most likely scenario where either of the above could occur would be if the aggregate amount of a trade or trades represented a relatively large proportion of the total assets of a particular Portfolio. In furtherance of our general authority to restrict transfers as described above, and without limiting other actions we may take in the future, we have adopted the following specific restrictions. With respect to each Annuity, we track amounts exceeding a certain dollar threshold that were transferred into a Variable Option. If you transfer such amount into a particular Variable Option, and within 30 calendar days thereafter transfer (the "Transfer Out") all or a portion of that amount into another Variable Option, then upon the Transfer Out, the former Variable Option becomes restricted (the "Restricted Variable Option"). Specifically, we will not permit subsequent transfers into the Restricted Variable Option for 90 calendar days after the Transfer Out if the Restricted Variable Option invests in a non-international Portfolio, or 180 calendar days after the Transfer Out if the Restricted Variable Option invests in an international Portfolio. For purposes of this rule, we (i) do not count transfers made in connection with one of our systematic programs; (ii) do not count any transfer that solely involves a holding account; and (iii) do not categorize as a transfer the first transfer that you make after the Issue Date, if you make that transfer within 30 calendar days after the Issue Date. Even if an amount becomes restricted under the foregoing rules, you are still free to redeem the amount from your Annuity at any time.

We reserve the right to effect transfers on a delayed basis for all annuities in accordance with our rules regarding frequent transfers. That is, we may price a transfer involving the Variable Options on the Valuation Day subsequent to the Valuation Day on which the transfer request was received. Before implementing such a practice, we would issue a separate written notice to Owners that explains the practice in detail.

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If we deny one or more transfer requests under the foregoing rules, we will inform you or your financial professional promptly of the circumstances concerning the denial.

There are Owners of different variable annuity contracts that are funded through the same Separate Account that may not be subject to the above-referenced transfer restrictions and, therefore, might make more numerous and frequent transfers than Owners who are subject to such limitations. Finally, there are Owners of other variable annuity contracts or variable life contracts that are issued by us as well as other insurance companies that have the same Portfolios available to them. Since some Owners are not subject to the same transfer restrictions, unfavorable consequences associated with such frequent trading within the Portfolios (*e.g*., greater Portfolio turnover, higher transaction costs, or performance or tax issues) may affect all Owners. Similarly, while contracts managed by a financial professional are subject to the restrictions on transfers between Variable Options that are discussed above, if the financial professional manages a number of contracts in the same fashion unfavorable consequences may be associated with management activity since it may involve the movement of a substantial portion of an Portfolio's assets which may affect all Owners invested in the affected Portfolios. Apart from jurisdiction-specific and contract differences in transfer restrictions, we will apply these rules uniformly (including contracts managed by a financial professional) and will not waive a transfer restriction for any Owner.

Although our transfer restrictions are designed to prevent excessive transfers, they are not capable of preventing every potential occurrence of excessive transfer activity. The Portfolios have adopted their own policies and procedures with respect to excessive trading of their respective shares, and we reserve the right to enforce any such current or future policies and procedures. The prospectuses for the Portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Under SEC rules, we are required to: (1) enter into a written agreement with each Portfolio or its principal underwriter or its transfer agent that obligates us to provide to the Portfolio promptly upon request certain information about the trading activity of individual Owners (including an Owner's TIN number), and (2) execute instructions from the Portfolio to restrict or prohibit further purchases or transfers by specific Owners who violate the excessive trading policies established by the Portfolio. In addition, you should be aware that some Portfolios may receive "omnibus" purchase and redemption orders from other insurance companies or intermediaries such as retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual Owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Portfolios in their ability to apply their excessive trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Portfolios (and thus you) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Portfolios.

A Portfolio also may assess a short-term trading fee (also referred to as "redemption fee") in connection with a transfer out of the Variable Option investing in that Portfolio that occurs within a certain number of days following the date of allocation to the Variable Option. Each Portfolio determines the amount of the short-term trading fee and when the fee is imposed. The fee is retained by or paid to the Portfolio and is not retained by us. The fee will be deducted from your Account Value, to the extent allowed by law. At present, no Portfolio has adopted a short-term trading fee.

**FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS**

If you have provided the necessary authorization on the application for your Annuity, the individual who signed the application for your Annuity may forward instructions regarding the allocation of your Account Value, and request financial transactions involving Investment Options. We refer to this person as your "financial professional." You may have another person providing investment advisory services to you with respect to this Annuity and who you have separately authorized on the form we require to forward instructions to us regarding the allocation of your Account Value or certain financial transactions. Please be aware that if you authorize more than one person to provide investment instructions to us, we will follow all instructions received from authorized persons in the order in which we receive them. **If your financial professional or investment advisor has this authority, we deem** **that all such transactions that are directed by your financial professional or investment advisor, as applicable, with respect to your Annuity** **have been authorized by you.** You will receive a confirmation of any financial transaction involving the purchase or sale of Units of your Annuity. You must contact us immediately if and when you revoke such authority. We will not be responsible for acting on instructions from your financial professional or authorized investment advisor until we receive notification of the revocation of such person's authority. We may also suspend, cancel or limit these authorizations at any time. In addition, we may restrict the Investment Options available for transfers or allocation of Purchase Payments by such financial professional or investment advisor. We will notify you and your financial professional if we implement any such restrictions or prohibitions.

**Please Note:** Annuity contracts managed by your financial professional or investment advisor also are subject to the restrictions on transfers between Investment Options that are discussed in the section titled "[<u>Restrictions on Transfers Between Investment Options</u>](#chapter_9-sect1_9_890)." We may also require that your financial professional or investment advisor transmit all financial transactions using the electronic trading functionality available through our website (<u>www.prudential.com/annuities</u>). Limitations that we may impose on your financial professional or investment advisor under the agreement (e.g., a custodial agreement) do not apply to financial transactions requested by an Owner on his or her own behalf, except as otherwise described in this prospectus.

**It is your responsibility to arrange for the payment of the advisory fee charged by your investment advisor. Similarly, it is your responsibility** **to understand the advisory services provided by your investment advisor and the advisory fees charged for the services.**

***<u>For certain Broker Dealers:</u>*** If instructed by your Broker Dealer, we may allow your financial professional to effectuate withdrawals on your behalf. In the event you do not wish that your financial professional has this authority, please contact us immediately.

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**ANNUITY PERIOD**

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We currently make annuity options available that provide fixed annuity payments. Your Annuity provides certain fixed annuity payment options. We do not guarantee to continue to make available any other option other than the fixed annuity payment options set forth in your Annuity. Fixed options provide the same amount with each payment. You must annuitize your entire Account Value; partial Annuitizations are not allowed.

When you purchase an Annuity, or at a later date, you may choose an Annuity Date, an annuity option and the frequency of annuity payments. You may change your choices before the Annuity Date under the terms of the contract. A maximum Annuity Date may be required by law. The Annuity Date may depend on the annuity option you choose. Certain annuity options may not be available depending on the age of the Annuitant. For qualified annuities, the period certain option may be limited to 10 years or less depending on the circumstances.

Certain of these annuity options may be available to Beneficiaries who choose to receive the Death Benefit proceeds as a series of payments instead of a lump sum payment. For qualified annuities, the period certain option may be limited to 10 years or less depending on the circumstances.

**<u>Option 1</u>**

**Payments for Life:** Under this option, income is payable periodically until the death of the "key life". The "key life" (as used in this section) is the person or persons upon whose life annuity payments are based. No additional annuity payments are made after the death of the key life. Since no minimum number of payments is guaranteed, this option offers the largest amount of periodic payments of the life contingent annuity options. *It is possible that only one payment will be payable if the death of the key life occurs before the date the second payment was due, and no other payments nor death benefits would be payable.* Under this option, you cannot make a partial or full surrender of the annuity.

**<u>Option 2</u>**

**Payments Based on Joint Lives:** Under this option, income is payable periodically during the joint lifetime of two key lives, and thereafter during the remaining lifetime of the survivor, ceasing with the last payment prior to the survivor's death. No minimum number of payments is guaranteed under this option. *It is possible that only one payment will be payable if the death of all the key lives occurs before the date the second payment was due, and no other payments or death benefits would be payable.* Under this option, you cannot make a partial or full surrender of the annuity.

**<u>Option 3</u>**

**Payments for Life with a Certain Period:** Under this option, income is payable until the death of the key life. However, if the key life dies before the end of the period selected (5, 10 or 15 years), the remaining payments are paid to the Beneficiary until the end of such period.

**<u>Option 4</u>**

**Fixed Payments for a Certain Period:** Under this option, income is payable periodically for a specified number of years. If the payee dies before the end of the specified number of years, the remaining payments are paid to the Beneficiary until the end of such period. *Note that under this option, payments are not based on any assumptions of life expectancy. Therefore, that portion of the insurance charge assessed to cover the risk that key lives outlive our expectations provides no benefit to an Owner selecting this option*. Under this option, you cannot make a partial or full surrender of the annuity.

We may make different annuity and settlement options available in the future. We do not guarantee to continue to make available or any other option other than the fixed annuity payment options set forth in your contract.

**HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?**

Unless prohibited by law, we require that you elect either a life annuity or an annuity with a certain period of at least 5 years if any CDSC would apply were you to surrender your Annuity on the Annuity Date. Therefore, making a Purchase Payment within eight years of the Annuity Date limits your annuity payment options. Certain annuity payment options may not be available if your Annuity Date occurs during the period that a CDSC would apply.

If you have not provided us with your Annuity Date or annuity payment option in writing, then:

• the
 Annuity Date will be the first day of the calendar month following the later of the Annuitant's 85 <sup>th</sup> birthday or the fifth anniversary of our receipt
 of your request to purchase an Annuity; and

• the
 annuity payments, where allowed by law, will be calculated on a fixed basis under Option 3, Payments for Life with 10 years certain.

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**HOW ARE ANNUITY PAYMENTS CALCULATED?**

**Fixed Annuity Payments**

If you choose to receive fixed annuity payments, you will receive equal fixed-dollar payments throughout the period you select. The amount of the fixed payment will vary depending on the annuity payment option and payment frequency you select. Generally, the first annuity payment is determined by multiplying the Account Value, minus any state premium taxes that may apply, by the factor determined from our table of annuity rates. The table of annuity rates differs based on the type of annuity chosen and the frequency of payment selected. Our rates will not be less than our guaranteed minimum rates. These guaranteed minimum rates are derived from the 1983a Individual Annuity Mortality Table with an assumed interest rate of 3% per annum. Where required by law or regulation, such annuity table will have rates that do not differ according to the gender of the key life. Otherwise, the rates will differ according to the gender of the key life.

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**BENEFITS AVAILABLE UNDER THE CONTRACT**

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**The following table summarizes information about the benefits available under the Annuity. Certain Contract Benefits may not be available** **through certain financial intermediaries. See the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_890) **for additional information.**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Benefit** | **Purpose** | **Standard or** **Optional** | **Maximum Fee** | **Restrictions/Limitations** |
|  Guaranteed Return Option(GRO)<sup>1</sup>/Guaranteed Return Option Plus (GRO Plus)<sup>2</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.50%<br>(based on the average daily net assets of the Variable Options) | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for** **Variable Option availability.** |
|  Guaranteed Minimum Withdrawal Benefit\*<sup>,</sup><sup>3</sup> | Guarantees your ability to withdraw amounts over time equal to an initial principal value, regardless of the impact of Variable Option performance on your Account Value. | Optional | 1.00%<br>(based on the average daily net assets of the Variable Options) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for Variable** **Option availability.** |
|  Guaranteed Minimum Income Benefit\*<sup>,</sup><sup>3</sup> | Guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on your total Purchase Payments and an annual increase of 5% on such Purchase Payments adjusted for withdrawals (called the "Protected Income Value"), regardless of the impact of Variable Option performance on your Account Value. | Optional | 1.00%<br>(based on the average Protected Income Value) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for Variable** **Option availability.** |
|  Lifetime Five Income Benefit\*<sup>,</sup><sup>2</sup> | Guarantees your ability to withdraw amounts equal to a percentage of an initial principal value, regardless of the impact of market performance on your Account Value, subject to our program rules regarding the timing and amount of withdrawals. | Optional | 1.50%<br>(based on the average daily net assets of the Variable Options) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for Variable** **Option availability.** |
|  Spousal Lifetime Five Income Benefit\*<sup>,</sup><sup>2</sup> | Guarantees your ability to withdraw amounts equal to a percentage of an initial principal value, regardless of the impact of market performance on your Account Value, subject to our program rules regarding the timing and amount of withdrawals. | Optional | 1.50%<br>(based on the average daily net assets of the Variable Options) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for Variable** **Option availability.** |
|  Basic Death Benefit  | Provides protection for your beneficiary(ies) by ensuring that they do not receive less than your Account Value. | Standard | None. | None. |
|  Enhanced Beneficiary Protection Death Benefit\*<sup>,</sup><sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing amounts in addition to the basic Death Benefit that can be used to offset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. | Optional | 0.75%<br>(based on the average daily net assets of the Variable Options) | None. |
|  Highest Anniversary Value Death Benefit\*<sup>,</sup><sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit or the Highest Anniversary Value. | Optional | 0.75%<br>(based on the average daily net assets of the Variable Options) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for Variable** **Option availability.** |
|  Combination 5% Roll-Up and HAV Death Benefit\*<sup>,</sup><sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing the greater of the Highest Anniversary Value Death Benefit and a 5% annual increase on Purchase Payments adjusted for withdrawals. | Optional | 0.50%<br>(based on the average daily net assets of the Variable Options) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for Variable** **Option availability.** |
|  Highest Daily Value Death Benefit\*<sup>,</sup><sup>3</sup> | Provides an enhanced level of protection for your beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit and the Highest Daily Value, less proportional withdrawals. | Optional | 0.60%<br>(based on the average daily net assets of the Variable Options) | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_890) **for Variable** **Option availability.** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Benefit** | **Purpose** | **Standard or** **Optional** | **Maximum Fee** | **Restrictions/Limitations** |
|  Annuity Rewards\*<sup>,</sup><sup>4</sup> | Provides an enhancement to the Death Benefit that captures any Variable Option gains since the Issue Date of your Annuity so that your beneficiary(ies) would not receive less than an Annuity's value as of the effective date of the benefit. After the 10<sup>th</sup> Annuity Year, the Death Benefit would equal the Account Value. | Standard | None. | None. |
|  Dollar Cost Averaging | Allows you to systematically transfer a percentage amount out of an investment option and into any other Variable Option(s). | Standard | None. | Minimum allocation requirements. |
|  Automatic Rebalancing | You can direct us to automatically rebalance your assets to return to your original allocation percentage or to a subsequent allocation percentage you select. | Standard | None. | None. |

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\* These optional benefits are not available under the Qualified BCO.

1. The
 Guaranteed Return Option benefit is no longer available for election. If you currently participate in this benefit, you may re-start the
 benefit on each anniversary of the Issue Date.

2. These
 benefits are no longer available for election.

3. These
 benefits are no longer offered and must have been elected at the time that you purchased your Annuity.

4. This
 benefit may be referred to as "Prudential Annuities' Annuity Rewards" in certain documents.

**OPTIONAL LIVING BENEFITS**

We offer different optional benefits, for an additional charge, that can provide investment protection for Owners while they are alive. Notwithstanding the additional protection provided under the optional Living Benefit Programs, the additional cost has the impact of reducing net performance of the investment options. Each optional benefit offers a distinct type of guarantee, regardless of the performance of Variable Options, that may be appropriate for you depending on the manner in which you intend to make use of your annuity while you are alive. Depending on which optional benefit you choose, you can have substantial flexibility to invest in Variable Options while:

• protecting
 a principal amount from decreases in value as of specified future dates due to investment performance;

• taking
 withdrawals with a guarantee that you will be able to withdraw not less than a principal amount over time; or

• guaranteeing
 a minimum amount of growth will be applied to your principal, if it is to be used as the basis for lifetime income payments beginning
 after a waiting period. Below is a brief summary of the "living benefits" that we offer. Please refer to the benefit description
 for a complete description
 of the terms, conditions and limitations of each optional benefit. You should consult with your investment professional
 to determine if any of these optional benefits may be appropriate for you based on your financial needs. There are many factors
 to consider, but we note that among them you may want to evaluate the tax implications of these different approaches to meeting your
 needs, both between these benefits and in comparison to other potential solutions to your needs (e.g. comparing the tax implications of
 the withdrawal benefit and annuity payments).

(A) The
 Guaranteed Return Option Plus (GRO Plus) guarantees that, after a seven-year period following commencement of the benefit ("Maturity
 Date") and on each anniversary of the Maturity Date thereafter, your Account Value will not be less than the Account Value on
 the effective date of the benefit. The benefit also offers you the option to elect a second, enhanced guarantee amount at a higher Account
 Value subject to a separate maturity period (and its anniversaries). The GRO Plus benefit may be appropriate if you wish to protect
 a principal amount (called the "Protected Principal Value") against Variable Option downturns as of a specific date in the future, but also
 wish to exercise control by allocating and transferring your available Account Value among the Variable Options to participate
 in market experience. Under the GRO Plus  benefit, you give us the right to allocate amounts to Market Value Adjustment Fixed
 Allocations as needed to support the guarantees provided. The available Account Value that may be allocated among your Variable
 Options are those amounts not allocated to the Market Value Adjustment Fixed Allocations to support the guarantees provided.

(B) The
 Guaranteed Minimum Withdrawal Benefit (GMWB) guarantees your ability to make cumulative withdrawals over time equal to an
 initial principal value (called the "Protected Value"), regardless of decreases in your Account Value due to Variable Option
 losses. GMWB may
 be appropriate if you intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option performance
 will not affect your ability to receive guaranteed minimum withdrawals. Taking income as withdrawals, rather than annuity
 payments, may be less tax efficient for Non-qualified uses of the Annuity, but provides greater control over the timing and amount
 of withdrawals during the Accumulation Period, as well as continuing the Annuity's other benefits, such as the death benefit.

(C) The
 Guaranteed Minimum Income Benefit (GMIB) guarantees your ability, after a minimum seven-year waiting period, to begin receiving
 income from the Annuity in the form of annuity payments based on your total Purchase Payments under the Annuity and an
 annual increase of 5% on such Purchase Payments, adjusted for withdrawals, regardless of the impact of Variable Option

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performance on your Account Value. The GMIB program may be appropriate if you anticipate using your Annuity as a future source of periodic fixed income payments for the remainder of your life and wish to ensure that the basis upon which your income payments will be calculated will achieve at least a minimum amount despite fluctuations in Variable Option performance.

(D) The
 Lifetime Five Income Benefit guarantees your ability to withdraw amounts equal to a percentage of a "Protected Withdrawal Value"
 regardless of decreases in your Account Value due to Variable Option losses. The Lifetime Five Benefit may be appropriate if you
 intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option performance will not affect your ability
 to receive guaranteed minimum withdrawals. Taking income as withdrawals, rather than annuity payments, may be less tax efficient
 for Non-qualified uses of the Annuity, but provides greater control over the timing and amount of withdrawals during the Accumulation
 Period, as well as continuing the Annuity's other benefits, such as the death benefit.

(E) The
 Spousal Lifetime Five Income Benefit guarantees until the later death of two natural persons the ability to withdraw amounts equal
 to a percentage of a "Protected Withdrawal Value" regardless of decreases in your Account Value due to Variable Option losses.
 The Spousal Lifetime Five Benefit may be appropriate if you intend to make periodic withdrawals from your Annuity and wish to
 ensure that Variable Option performance will not affect your ability to receive guaranteed minimum withdrawals. Taking income as withdrawals,
 rather than annuity payments, may be less tax efficient for Non-qualified uses of the Annuity, but provides greater control
 over the timing and amount of withdrawals during the Accumulation Period, as well as continuing the Annuity's other benefits, such
 as the death benefit.

***GUARANTEED RETURN OPTION (GRO)***

**GRO is no longer available for new elections.**

GRO is an optional benefit that, after a seven-year period following commencement of the benefit (we refer to the end of that period as the "Maturity Date") guarantees your Account Value will not be less than your Account Value on the effective date of your benefit (called the "Protected Principal Value").

The benefit monitors your Account Value daily and, if necessary, systematically transfers amounts pursuant to a mathematical formula between the Variable Options you choose and the Market Value Adjustment Fixed Allocation used to support the Protected Principal Value. There is an additional charge if you elect the Guaranteed Return Option benefit.

The guarantee provided by the benefit exists only on the applicable Maturity Date. However, due to the ongoing monitoring of your Account Value and the transfer of Account Value between the Variable Options and the Market Value Adjustment Fixed Allocation to support our future guarantee, the benefit may provide some protection from significant Variable Option losses if you choose to surrender your Annuity or begin receiving annuity payments prior to a Maturity Date.

**Key Feature – Protected Principal Value**

Under the GRO benefit, we guarantee that on the Maturity Date, your Account Value will be no less than the Protected Principal Value. On the Maturity Date if your Account Value is below the Protected Principal Value, we will apply additional amounts to your Annuity from its general account to increase your Account Value to be equal to the Protected Principal Value. A subsequent Purchase Payment increases the amount of the Protected Principal Value by the amount of the Purchase Payment (plus any Credits), and withdrawals reduce the Protected Principal Value (as discussed below).

We will notify you of any amounts added to your Annuity under the benefit. If our assumptions are correct and the operations relating to the administration of the benefit work properly, we do not expect that we will need to add additional amounts to an Annuity. The Protected Principal Value is generally referred to as the "Guaranteed Amount" in the rider we issue for this benefit.

**Key Feature – Allocation of Account Value**

GRO uses a mathematical formula that we operate to help manage your guarantees through all market cycles. The formula weighs a number of factors, including the current Account Value, the value in the Variable Options, the value in the Market Value Adjustment Fixed Allocations, the Protected Principal Value, the expected value of the Market Value Adjustment Fixed Allocations used to support the guarantee, the time remaining until maturity, and the current crediting rates associated with the Market Value Adjustment Fixed Allocations. In essence, and as detailed in the formula, the formula will transfer Account Value into the Market Value Adjustment Fixed Allocations if needed to support an anticipated guarantee. **The formula is set forth in** [**<u>Appendix</u>** **<u>D</u>**](#chapter_21-sect1_1_890)**.** This required formula thus helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Market Value Adjustment Fixed Allocations).

Each Valuation Day, the formula determines if any portion of your Account Value needs to be transferred into or out of the Market Value Adjustment Fixed Allocations, through reference to a "reallocation trigger". At any given time, some, none, or all of your Account Value may be allocated to the Market Value Adjustment Fixed Allocations. If your entire Account Value is transferred to the Market Value Adjustment Fixed Allocations, the formula will not transfer amounts out of the Market Value Adjustment Fixed Allocations to the Variable Options and the entire Account Value would remain in the Market Value Adjustment Fixed Allocations. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Market Value Adjustment

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Fixed Allocations. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Market Value Adjustment Fixed Allocations, if dictated by the formula. The amount of any such transfers will vary, as dictated by the formula, and will depend on the factors listed below.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Market Value Adjustment Fixed Allocations pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value (including any Market Value Adjustment) and your Protected Principal Value(s);

• The
 amount of time until the maturity of your Guarantee(s);

• The
 amount invested in, and the performance of, the Variable Options;

• The
 amount invested in, and interest earned within, the Market Value Adjustment Fixed Allocations;

• The
 current crediting rates associated with Market Value Adjustment Fixed Allocations;

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the Market Value Adjustment Fixed Allocations will affect your ability to participate in a subsequent recovery within the Variable Options. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

While you are not notified when your Account Value reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Market Value Adjustment Fixed Allocation.

You may not allocate Purchase Payments to or transfer Account Value to or from the Market Value Adjustment Fixed Allocations.

You should be aware of the following potential ramifications of the formula:

• A
 Market Value Adjustment will apply when we reallocate Account Value from the Market Value Adjustment Fixed Allocation to the Variable Options. Transfers
 of your Account Value can be frequent, and under some scenarios may occur on a daily basis. As indicated, each such transfer
 may be subject to a Market Value Adjustment, which can be positive or negative. Thus, a Market Value Adjustment will directly increase
 or reduce your Account Value.

• As
 indicated, some or even all, of your Account Value may be maintained in the Market Value Adjustment Fixed Allocations. The greater the
 Account Value held in Market Value Adjustment Fixed Allocations, the larger (in dollar terms) the Market Value Adjustment upon any transfer
 of such Account Value to the Variable Options.

• If
 your Account Value is less than the reallocation trigger, a portion of your Account Value in the Variable Options will be transferred
 from the Variable
 Options on a proportional basis according to your allocations to a new Market Value Adjustment Fixed Allocation(s) to support the
 applicable guaranteed amount. The new Market Value Adjustment Fixed Allocation(s) will have a Guarantee Period equal to the time remaining
 until the applicable Maturity Date(s). The Account Value allocated to the new Market Value Adjustment Fixed Allocation(s) will be credited
 with the fixed interest rate(s) then being credited to a new Market Value Adjustment Fixed Allocation(s) maturing on the applicable Maturity
 Date(s) (rounded to the next highest yearly duration). The Account Value will remain invested in each applicable Market Value Adjustment
 Fixed Allocation until the applicable Maturity Date unless, at an earlier date, your Account Value is greater than or equal to the reallocation
 trigger and, therefore, amounts can be transferred to the Variable Options while maintaining the guaranteed protection under the
 program (as described above).

• If
 your Account Value is greater than or equal to the reallocation trigger, and a portion of the Account Value must be transferred from the Market Value Adjustment
 Fixed Allocations to the Variable Options, then those amounts will be transferred from the Market Value Adjustment
 Fixed Allocations and re-allocated to the Variable Options according to any asset allocation programs (including an Automatic Rebalancing
 program) established on your Annuity or in the absence of such programs, on a proportional basis, based on the Account Values
 in such Variable Options at that time. A Market Value Adjustment will apply upon a transfer out of the Market Value Adjustment Fixed
 Allocations, which may result in an increase or decrease in your Account Value.

• Transfers
 under the formula do not impact your guarantees under GRO that have already been locked-in.

Withdrawals from your Annuity, while the benefit is in effect, will reduce the Protected Principal Value proportionally. The proportion will be equal to the proportionate reduction in the Account Value due to the withdrawal as of that date. Withdrawals will be taken on a proportional basis from the Variable Options and any Market Value Adjustment Fixed Allocations. Systematic Withdrawals will be taken on a proportional basis from the Variable Options and the Market Value Adjustment Fixed Allocations up to growth in the Market Value Adjustment Fixed Allocations and thereafter on a proportional basis solely from the Variable Options. The growth in the Market Value Adjustment Fixed Allocations at any point in time consists of the remaining earnings since the program of systematic withdrawal began. Withdrawals will be subject to all other provisions of your Annuity, including any Contingent Deferred Sales Charge and Market Value Adjustment that would apply.

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**Election of the Benefit**

We no longer permit new elections of GRO. If you currently participate in GRO, your existing guarantees are unaffected by the fact that we no longer offer GRO. **Please note that if you terminate a living benefit such as GRO and elect a new living benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

**Restart of the Benefit**

Once each Annuity Year you may request to restart the Benefit. Such a request is an election by you to terminate the existing Benefit (and all guarantees under the benefit) and start a new one. Restarts only take effect on anniversaries of the Issue Date. To make such a request for a restart, you must notify us in advance in accordance with our administrative requirements. If we accept your request, we then terminate the existing Benefit as of that valuation period, if it is an anniversary of the Issue Date, or, if not, as of the next following anniversary of the Issue Date. The new Benefit starts at that time. The initial Protected Principal Value for the new Benefit is the Account Value as of the effective date of the new Benefit. Unless you tell us otherwise, the duration of the new Benefit will be the same as that for the existing Benefit. However, if we do not then make that duration available, you must elect from those we make available at that time. For those who elect to re-start the benefit, the charge will be assessed according to the current methodology prior to re-starting the benefit. – see "Charges under the Program" below.

As part of terminating the existing Benefit, we transfer any amounts in Market Value Adjustment Fixed Allocations, subject to a Market Value Adjustment, to the Variable Options on a proportional basis. If your entire Account Value was then in Market Value Adjustment Fixed Allocations, you must first provide us instructions as to how to allocate the transferred Account Value among the Variable Options.

**Termination of the Benefit**

The Annuity Owner also can terminate the Guaranteed Return Option benefit. Upon termination, any amounts held in the Market Value Adjustment Fixed Allocations will be transferred as follows: (a) if only a portion of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options on a proportional basis based on the Account Values in such Variable Options on the day of the transfer, unless we receive at our office other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program (b) if your entire Account Value is in Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable Option corresponding to the AST Government Money Market Portfolio, unless we receive at our Office prior instructions from you. A Market Value Adjustment will apply (except that if the benefit has terminated automatically due to payment of a death benefit, whether a Market Value Adjustment applies depends solely on the terms of the death benefit – see the "[<u>Basic Death Benefit</u>](#chapter_11-sect1_10_890)" and "[<u>Optional Death Benefits</u>](#chapter_11-sect1_11_890)" sections of this prospectus).

In general, you may cancel GRO and then elect another living benefit available post issue, effective on any Valuation Day after your cancellation of GRO. If you terminate GRO, you will lose all guarantees under that benefit. Your election of another living benefit is subject to State and firm availability and our eligibility rules.

The benefit will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract); (b) as of the date Account Value is applied to begin annuity payments; or (c) upon full surrender of your Annuity. If you elect to terminate the benefit, the Guaranteed Return Option will no longer provide any guarantees.

The charge for the Guaranteed Return Option benefit will no longer be deducted from your Account Value after the benefit has been terminated, although for those Annuities for which the GRO charge is deducted annually rather than daily (see "Charges Under the Program"), we will deduct the final annual charge upon termination of the benefit.

**Special Considerations under the Guaranteed Return Option**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Variable Options. The Market Value Adjustment
 Fixed Allocation must not have been in effect as of the date that you elected to participate in the benefit. However, the formula may
 transfer Account Value to the Market Value Adjustment Fixed Allocation as of the effective date of the benefit under some circumstances.

• Annuity
 Owners cannot allocate any portion of Purchase Payments (including any Credits) or transfer Account Value to or from the Market Value
 Adjustment Fixed Allocation while participating in the benefit; however, all or a portion of any Purchase Payments (including any Credits)
 may be allocated by us to the Market Value Adjustment Fixed Allocation to support the amount guaranteed. You cannot participate
 in any dollar cost averaging benefit that transfers Account Value from a Market Value Adjustment Fixed Allocation to a Variable Option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Transfers
 from the Market Value Adjustment Fixed Allocation made as a result of the formula under the benefit will be subject to the Market
 Value Adjustment formula under an Annuity; however, the 0.10% liquidity factor in the formula will not apply. A Market Value Adjustment
 may be either positive or negative. Transfer amounts will be taken from the most recently established Market Value Adjustment
 Fixed Allocation.

• Transfers
 from the Variable Options to the Market Value Adjustment Fixed Allocation or from the Market Value Adjustment Fixed Allocation to
 the Variable Options under the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• Any
 amounts applied to your Account Value by us on the Maturity Date will not be treated as "investment in the contract" for income
 tax purposes.

• Any
 amounts that we add to your Annuity to support our guarantee under the benefit will be applied to the Variable Options on a proportional
 basis, after first transferring any amounts held in the Market Value Adjustment Fixed Allocations as follows: (a) if only a portion
 of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options
 on a proportional basis based on the Account Values in such Variable Options on the day of the transfer, unless we receive at our office
 other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative
 support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program
 and (b) if your entire Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable
 Option corresponding to the AST Government Money Market Portfolio, unless we receive at our Office prior instructions from you.

• Low
 interest rates may require allocation to the Market Value Adjustment Fixed Allocation even when the current Account Value exceeds the
 guarantee.

• As
 the time remaining until the applicable Maturity Date gradually decreases the benefit will become increasingly sensitive to moves to the Market Value Adjustment
 Fixed Allocation.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

**Charges under the Program**

The maximum charge for Guaranteed Return Option is 0.50% annually of the daily net assets of the Variable Options. The annual charge is deducted daily. Account Value allocated to Fixed Allocations under the program is not subject to the charge. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date of the program is less than the amount guaranteed; and (b) administration of the program. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

**Examples**

Example 1. Benefit Maturity

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the annuity. It is intended to illustrate the benefit maturity on a guarantee amount under this benefit.

A Guaranteed Return Option (GRO) program begins on July 1, 2015. Your Account Value (AV) at the start of the program is $100,000. As of program maturity on July 1, 2022, there have been no additional Purchase Payments and no prior withdrawals, so your Guaranteed Amount remains at $100,000. The Account Value is $93,000.<br>Since the Guaranteed Amount exceeds the Account Value, a total of $7,000, the amount by which the guaranteed exceeds the AV, is added to the variable Variable Options which you have elected (or the AST Money Market Variable Option if such elections have not been made).

Example 2. Proportional reduction for withdrawal.

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit.

A Guaranteed Return Option (GRO) program begins on July 1, 2015. Your Account Value (AV) at the start of the program is $100,000. As of July 1, 2020, there have been no additional Purchase Payments and no prior withdrawals, so your Guaranteed Amount remains at $100,000. The Account Value is $120,000. You then elect to take a $6,000 withdrawal. Assume that no CDSC, Market Value Adjustment or other charges apply.

The Guaranteed Amount is reduced as follows:

• Guaranteed
 Amount prior to withdrawal × (1 - withdrawal / AV prior to withdrawal)

= $100,000 × (1 - $6,000 / $120,000)

= $95,000

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**GUARANTEED RETURN OPTION Plus (GRO Plus)**

**GRO Plus is no longer available for new elections.**

GRO Plus is an optional benefit that, after a seven-year period following commencement of the benefit (we refer to the end of that period and any applicable subsequent period as the "Maturity Date") and on each anniversary of the Maturity Date thereafter while the benefit remains in effect, guarantees your Account Value will not be less than your Account Value on the effective date of your benefit (called the "Protected Principal Value"). The benefit also offers you the opportunity to elect a second, enhanced guaranteed amount at a later date if your Account Value has increased, while preserving the guaranteed amount established on the effective date of your benefit. The enhanced guaranteed amount (called the "Enhanced Protected Principal Value") guarantees that, after a separate period following election of the enhanced guarantee and on each anniversary thereafter while this enhanced guarantee amount remains in effect, your Account Value will not be less than your Account Value on the effective date of your election of the enhanced guarantee. If the Maturity Date of any guarantee under GRO Plus is not a Valuation Day, and we are required to contribute an amount to your Account Value with respect to that maturing guarantee, we would contribute such an amount on the next Valuation Day.

The benefit monitors your Account Value daily and, if necessary, systematically transfers amounts between the Variable Options you choose and Market Value Adjustment Fixed Allocations used to support the Protected Principal Value(s). The benefit may be appropriate if you wish to protect a principal amount against poor Variable Option performance as of a specific date in the future. There is an additional charge if you elected the Guaranteed Return Option Plus benefit.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s) and on each anniversary of the Maturity Date(s) thereafter.

**Key Feature – Protected Principal Value/Enhanced Protected Principal Value**

The Guaranteed Return Option Plus offers a base guarantee as well as the option of electing an enhanced guarantee at a later date.

• **Base Guarantee:** Under
 the base guarantee, we guarantee that on the Maturity Date and on each anniversary of the Maturity Date thereafter
 that the benefit remains in effect, your Account Value will be no less than the Protected Principal Value. On the Maturity Date and
 on each anniversary after the Maturity Date that the benefit remains in effect, if your Account Value is below the Protected Principal Value, we will apply
 additional amounts to your Annuity from its general account to increase your Account Value to be equal to the Protected
 Principal Value. A subsequent Purchase Payment increases the amount of the base guarantee by the amount of the Purchase Payment
 (plus any Credits), and withdrawals reduce the base guarantee (as discussed below). Any amounts applied to your Account Value
 by us on the Maturity Date or any anniversary of the Maturity Date will first be applied to any Market Value Adjustment Fixed Allocations
 then required to support guarantees due on subsequent Maturity Dates. We will allocate the remainder to the Variable Options on
 a proportional basis, based on the Account Value in the Variable Options at that time.

• **Enhanced Guarantee:** On
 any anniversary following commencement of the benefit, you can establish an enhanced guarantee amount based
 on your current Account Value. Under the enhanced guarantee, we guarantee that at the end of the specified period following the election
 of the enhanced guarantee (also referred to as its "Maturity Date"), and on each anniversary of the Maturity Date thereafter
 that the enhanced
 guaranteed amount remains in effect, your Account Value will be no less than the Enhanced Protected Principal Value. You can
 elect an enhanced guarantee more than once; however, a subsequent election supersedes the prior election of an enhanced guarantee.
 Election of an enhanced guarantee does not impact the base guarantee. In addition, you may elect an "auto step-up" feature that will automatically
 create an enhanced guarantee (or increase your enhanced guarantee, if previously elected) on each anniversary of the
 benefit (and create a new maturity period for the new enhanced guarantee) if the Account Value as of that anniversary exceeds the Protected
 Principal Value and Enhanced Protected Principal Value by 7% or more. You may also elect to terminate an enhanced guarantee.
 If you elect to terminate an enhanced guarantee, any amounts held in the Market Value Adjustment Fixed Allocations for the enhanced
 guarantee will be liquidated, on the Valuation Day the request is processed, (which may result in a Market Value Adjustment), and
 such amounts will be transferred according to the rules described in "Termination of the Benefit/Enhanced Guarantee". Termination
 of an enhanced guarantee
 will not result in termination of the base guarantee. If you have elected the enhanced guarantee, on the guarantee's
 Maturity Date and on each anniversary of the Maturity Date thereafter that the enhanced guarantee amount remains in effect, if
 your Account Value is below the Enhanced Protected Principal Value, we will apply additional amounts to your Annuity from its general account to increase
 your Account Value to be equal to the Enhanced Protected Principal Value. Any amounts applied to your Account Value
 by us on the Maturity Date or any anniversary of the Maturity Date will first be applied to any Market Value Adjustment Fixed Allocations
 then required to support guarantees due on subsequent Maturity Dates. We will allocate the remainder to the Variable Options on
 a proportional basis, based on the Account Value in the Variable Options at that time.

If our assumptions are correct and the operations relating to the administration of the benefit work properly, we do not expect that we will need to add additional amounts to your Annuity. The Protected Principal Value is referred to as the "Base Guarantee" and the Enhanced Protected Principal Value is referred to as the "Step-Up Guarantee" in the rider we issue for this benefit.

**Withdrawals under your Annuity**

Withdrawals from your Annuity, while the benefit is in effect, will reduce the base guarantee under the benefit as well as any enhanced guarantee. Cumulative annual withdrawals up to 5% of the Protected Principal Value as of the effective date of the benefit (adjusted for any subsequent Purchase Payments and any Credits applied to such Purchase Payments) will reduce the applicable guaranteed amount by the actual amount of the withdrawal

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(referred to as the "dollar-for-dollar limit"). If the amount withdrawn is greater than the dollar-for-dollar limit, the portion of the withdrawal equal to the dollar-for-dollar limit will be treated as described above, and the portion of the withdrawal in excess of the dollar-for-dollar limit will reduce the base guarantee and the enhanced guarantee proportionally, according to the formula as described in the rider for this benefit (see the examples of this calculation below). Withdrawals other than Systematic Withdrawals will be taken on a proportional basis from the Variable Options and any Fixed Allocations. Withdrawals will be subject to all other provisions of your Annuity, including any Contingent Deferred Sales Charge and Market Value Adjustment (which may be positive or negative) that would apply.

Charges for other optional benefits under your Annuity that are deducted as an annual charge in arrears will not reduce the applicable guaranteed amount under the Guaranteed Return Option Plus benefit, however, any third party investment advisory service will be treated as withdrawals and will reduce the applicable guaranteed amount.

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GRO Plus benefit are October 13, 2004; 2.) an initial Purchase Payment of $250,000 (includes any Credits); 3.) a base guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GRO Plus or other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 29, 2004 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Dollar-for-dollar Limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 18, 2004 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 base guarantee amount is first reduced by the Remaining Limit (from $240,000 to $237,500);

• The
 result is then further reduced by the ratio of A to B, where:

○ A
 is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

○ B
 is the Account Value less the Remaining Limit ($180,000 – $2,500, or $177,500).

The resulting base guarantee amount is: $237,500 × (1 – $7,500 / $177,500), or $227,464.79.

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the Dollar-for-dollar limit**

A $10,000 withdrawal is made on December 19, 2005 (second Annuity Year). The Remaining Limit has been reset to the dollar-for-dollar limit of $12,500. As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 base guarantee amount is reduced by the amount withdrawn (i.e., reduced by $10,000, from $227,464.79 to $217,464.79).

• The
 Remaining Limit for the balance of the second Annuity Year is also reduced by the amount withdrawn (from $12,500 to $2,500).

**Key Feature – Allocation of Account Value**

GRO Plus uses a mathematical formula that we operate to help manage your guarantees through all market cycles. Each Valuation Day, the formula determines if any portion of your Account Value needs to be transferred into or out of the Market Value Adjustment Fixed Allocations, through reference to a "reallocation trigger". The formula does this by (a) first identifying each guarantee that is outstanding under GRO Plus (b) then discounting the value of each such guarantee to a present value, based on crediting rates associated with the Market Value Adjustment Fixed Allocations, then (c) identifying the largest of such present values. Then, the formula compares the largest present value to both the Account Value and the value of assets allocated to the Variable Options to determine whether a transfer into or out of the Market Value Adjustment Fixed Allocations is required. As detailed in the formula, if that largest present value exceeds the Account Value less a percentage of the Variable Option value, a transfer into the Market Value Adjustment Fixed

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Allocations will occur. Conversely, if the largest present value is less than the Account Value less a percentage of the Variable Option value, a transfer out of the Market Value Adjustment Fixed Allocations will occur. This required formula helps us manage our financial exposure under the benefit, by moving assets to a more stable option (i.e., the Market Value Adjustment Fixed Allocations). **The formula is set forth in** [**<u>Appendix C</u>**](#chapter_20-sect1_1_890)**.**

If your Account Value is greater than or equal to the reallocation trigger, then:

• your
 Account Value in the Variable Options will remain allocated according to your most recent instructions; and

• if
 a portion of your Account Value is allocated to a Market Value Adjustment Fixed Allocation to support the applicable guaranteed amount, all or a portion
 of those amounts will be transferred from the Market Value Adjustment Fixed Allocation and re-allocated to the Variable Options
 according to any asset allocation programs (including an Automatic Rebalancing program) established on your Annuity or in the absence
 of such programs, on a proportional basis, based on the Account Values in such Variable Options at that time;

• if
 all of your Account Value is allocated to a Market Value Adjustment Fixed Allocation, then all or a portion of that amount may be transferred
 from the Market Value Adjustment Fixed Allocation and re-allocated to the Variable Options, according to the following hierarchy:
 (i) first according to any asset allocation program that you may have in effect (ii) if no such program is in effect, then in accordance
 with any automatic rebalancing program that you may have in effect and (iii) if neither such program is in effect, then to the AST
 Government Money Market Variable Option; and

• a
 Market Value Adjustment will apply when we reallocate Account Value from a Market Value Adjustment Fixed Allocation to the Variable Options,
 which may result in a decrease or increase in your Account Value.

If your Account Value is less than the reallocation trigger, a portion of your Account Value in the Variable Options will be transferred from the Variable Options on a proportional basis according to your allocations to a new Market Value Adjustment Fixed Allocation(s) to support the applicable guaranteed amount. The new Market Value Adjustment Fixed Allocation(s) will have a Guarantee Period equal to the time remaining until the applicable Maturity Date(s). The Account Value allocated to the new Market Value Adjustment Fixed Allocation(s) will be credited with the fixed interest rate(s) then being credited to a new Market Value Adjustment Fixed Allocation(s) maturing on the applicable Maturity Date(s) (rounded to the next highest yearly duration). The Account Value will remain invested in each applicable Market Value Adjustment Fixed Allocation until the applicable Maturity Date unless, at an earlier date, your Account Value is greater than or equal to the reallocation trigger and, therefore, amounts can be transferred to the Variable Options while maintaining the guaranteed protection under the program (as described above).

At any given time, some, none, or all of your Account Value may be allocated to the Market Value Adjustment Fixed Allocations. With respect to any amounts held within the Market Value Adjustment Fixed Allocations, we can give no assurance how long the amounts will reside there or if such amounts will transfer out of the Market Value Adjustment Fixed Allocations. If you make additional Purchase Payments to your Annuity, they will be allocated to the Variable Options according to your allocation instructions. Such additional Purchase Payments may or may not cause the formula to transfer money in or out of the Market Value Adjustment Fixed Allocations. Once the Purchase Payments are allocated to your Annuity, they will also be subject to the formula, which may result in immediate transfers to or from the Market Value Adjustment Fixed Allocations, if dictated by the formula. The amount of such transfers will vary, as dictated by the formula, and will depend on the factors listed below. Market Value Adjustment will always be applicable on withdrawals and/or surrenders when allocated to the Market Value Adjustment Fixed Allocations.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Market Value Adjustment Fixed Allocations pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Account Value (including any Market Value Adjustment) and your Protected Principal Value(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Variable Options;

• The
 amount invested in, and interest earned within, the Market Value Adjustment Fixed Allocations;

• The
 current crediting rates associated with Market Value Adjustment Fixed Allocations;

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the Market Value Adjustment Fixed Allocations will affect your ability to participate in a subsequent recovery within the Sub-accounts. Conversely, the Account Value may be higher at the beginning of the recovery, e.g. more of the Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected.

While you are not notified when your Account Value reaches a reallocation trigger, you will receive a confirmation statement indicating the transfer of a portion of your Account Value either to or from the Market Value Adjustment Fixed Allocations.

You may not allocate Purchase Payments to or transfer Account Value to or from the Market Value Adjustment Fixed Allocations.

Separate Fixed Allocations may be established in support of the Protected Principal Value and the Enhanced Protected Principal Value (if elected). There may also be circumstances when a Market Value Adjustment Fixed Allocation will be established only in support of the Protected Principal Value or the Enhanced Protected Principal Value. If you elect an enhanced guarantee, it is more likely that a portion of your Account Value may be allocated to Market Value Adjustment Fixed Allocations and will remain allocated for a longer period of time to support the Enhanced Protected Principal Value, even during a period of positive Variable Option performance and/or under circumstances where Market Value Adjustment Fixed Allocations would not be necessary to

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support the Protected Principal Value. Further, there may be circumstances where Market Value Adjustment Fixed Allocations in support of the Protected Principal Value or Enhanced Protected Principal Value are transferred to the Variable Options under the formula differently than each other because of the different guarantees they support.

You should be aware of the following potential ramifications of the formula:

• Transfers
 of your Account Value can be frequent, and under some scenarios may occur on a daily basis. As indicated, each such transfer may
 be subject to a Market Value Adjustment, which can be positive or negative. Thus, a Market Value Adjustment will directly increase or reduce your Account
 Value.

• As
 indicated, some or even all, of your Account Value may be maintained in the Market Value Adjustment Fixed Allocations. The greater the
 Account Value held in Market Value Adjustment Fixed Allocations, the larger (in dollar terms) the Market Value Adjustment upon any transfer
 of such Account Value to the Variable Options.

• Transfers
 under the formula do not impact your guarantees under GRO Plus that have already been locked-in.

**Election of the Benefit**

We no longer permit new elections of GRO Plus. If you currently participate in GRO Plus, your existing guarantees are unaffected by the fact that we no longer offer GRO Plus. **Please note that if you terminate a living benefit such as GRO Plus and elect a new living benefit, you lose the** **guarantees that you had accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account** **Value as of the date the new benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the** **future.**

**Termination of the Benefit/Enhanced Guarantee**

You can elect to terminate the enhanced guarantee but maintain the protection provided by the base guarantee. You also can terminate the Guaranteed Return Option Plus benefit entirely, in which case you will lose any existing guarantees.

Upon termination of the benefit or of the enhanced guarantee, any amounts held in the Market Value Adjustment Fixed Allocations related to the guarantee(s) being terminated will be transferred as follows: (a) if only a portion of your Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer such Account Value (i) to the Variable Options on a proportional basis, based on your Account Value in such Variable Options on the day of the transfer, unless we receive other prior instructions from you or (ii) if you are then participating in an asset allocation program for which we are providing administrative support, we allocate the transferred amount in accordance with the then current percentages for that asset allocation program (b) if your entire Account Value is in the Market Value Adjustment Fixed Allocations, we will transfer your Account Value to the Variable Option corresponding to the AST Government Money Market Portfolio, unless we receive prior instructions from you. A Market Value Adjustment will apply (except that if the benefit has terminated automatically due to payment of a death benefit, whether a Market Value Adjustment applies depends solely on the terms of the death benefit – see the "[<u>Optional Death Benefits</u>](#chapter_11-sect1_11_890)" section of this prospectus).

In general, you may cancel GRO Plus and then elect another living benefit that is available post issue, effective on any Valuation Day after your cancellation of GRO Plus. If you terminate GRO Plus, you will lose all guarantees under that benefit. Your election of another living benefit is subject to State and firm availability and our eligibility rules.

The benefit will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract); (b) as of the date Account Value is applied to begin annuity payments; or (c) upon full surrender of the Annuity. If you elect to terminate the benefit, the Guaranteed Return Option Plus will no longer provide any guarantees.

**Special Considerations under the Guaranteed Return Option Plus**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Account Value must have been allocated to the Variable Options. No Market Value Adjustment Fixed
 Allocations may be in effect as of the date that you elect to participate in the benefit. However, the formula may transfer Account Value
 to Market Value Adjustment Fixed Allocations as of the effective date of the benefit under some circumstances.

• You
 cannot allocate any portion of Purchase Payments (including any Credits) or transfer Account Value to or from a Market Value Adjustment
 Fixed Allocation while participating in the benefit; however, all or a portion of any Purchase Payments (including any Credits) may
 be allocated by us to a Market Value Adjustment Fixed Allocations to support the amount guaranteed. You cannot participate in any dollar
 cost averaging benefit that transfers Account Value from a Market Value Adjustment Fixed Allocation to a Variable Option.

• Transfers
 from Market Value Adjustment Fixed Allocations made as a result of the formula under the benefit will be subject to the Market Value
 Adjustment formula under an Annuity; however, the 0.10% liquidity factor in the formula will not apply. A Market Value Adjustment may
 be either positive or negative. Transfer amounts will be taken from the most recently established Market Value Adjustment Fixed Allocation.

• Transfers
 from the Variable Options to Market Value Adjustment Fixed Allocations or from Market Value Adjustment Fixed Allocations to the
 Variable Options under the benefit will not count toward the maximum number of free transfers allowable under an Annuity.

• Any
 amounts applied to your Account Value by us on the Maturity Date or any anniversary of the Maturity Date will not be treated as "investment
 in the contract" for income tax purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Low
 interest rates may require allocation to Market Value Adjustment Fixed Allocations even when the current Account Value exceeds the guarantee.

• As
 the time remaining until the applicable Maturity Date gradually decreases the benefit will become increasingly sensitive to moves to Market
 Value Adjustment Fixed Allocations.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

**Charges under the Benefit**

The maximum charge for Guaranteed Return Option Plus is 0.50% annually of the daily net assets of the Variable Options. The annual charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the Maturity Date is less than the amount guaranteed; and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

If you elect the Enhanced Guarantee under the benefit, and on the date you elect to step-up, the charges under the benefit have changed for new purchases, your benefit may be subject to the new charge level. These charges will not exceed the maximum charges shown in the section of this prospectus entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_890)."

**GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)**

**The Guaranteed Minimum Withdrawal Benefit is no longer available for new elections.**

The Guaranteed Minimum Withdrawal Benefit guarantees your ability to withdraw amounts equal to an initial principal value (called the "Protected Value"), regardless of the impact of Variable Option performance on your Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option performance will not affect your ability to protect your principal. You are not required to make withdrawals as part of the benefit – the guarantee is not lost if you withdraw less than the maximum allowable amount of principal each year under the rules of the benefit. There is an additional charge if you elected the GMWB benefit; however, the charge may be waived under certain circumstances described below.

**KEY FEATURE – Protected Value**

The Protected Value is the total amount that we guarantee will be available to you through withdrawals from your Annuity and/or benefit payments, regardless of the impact of Variable Option performance on your Account Value. The Protected Value is reduced with each withdrawal you make until the Protected Value is reduced to zero. When the Protected Value is reduced to zero due to your withdrawals, GMWB terminates. Additionally, the Protected Value is used to determine the maximum annual amount that you can withdraw from your Annuity, called the Protected Annual Withdrawal Amount, without triggering an adjustment in the Protected Value on a proportional basis. The Protected Value is referred to as the "Benefit Base" in the rider we issue for this benefit.

The Protected Value is determined as of the date you make your first withdrawal under the Annuity following your election of GMWB. The initial Protected Value is equal to the greater of (A) the Account Value on the date you elect GMWB, plus any additional Purchase Payments before the date of your first withdrawal; or (B) the Account Value as of the date of the first withdrawal from your Annuity. The Protected Value may be enhanced by increases in your Account Value due to Variable Option performance during the period between your election of GMWB and the date of your first withdrawal.

• If
 you elect GMWB at the time you purchase your Annuity, the Account Value will be your initial Purchase Payment.

• If
 we offer GMWB to existing Annuity Owners, the Account Value on the anniversary of the Issue Date of your Annuity following your election
 of GMWB will be used to determine the initial Protected Value.

• If
 you make additional Purchase Payments after your first withdrawal, the Protected Value will be increased by the amount of the additional
 Purchase Payment.

You may elect to step-up your Protected Value if, due to positive Variable Option performance, your Account Value is greater than the Protected Value. You are eligible to step-up the Protected Value on or after the 5<sup>th</sup> Annuity anniversary following the first withdrawal under GMWB. The Protected Value can be stepped up again on or after the 5<sup>th</sup> Annuity anniversary following the preceding step-up. If you elect to step-up the Protected Value, you must do so during the 30-day period prior to your eligibility date or any Valuation Day thereafter. If you elect to step-up the Protected Value under the benefit, and on the date you elect to step-up, the charges under GMWB have changed for new purchasers, your benefit may be subject to the new charge going forward.

Upon election of the step-up, we reset the Protected Value to be equal to the then current Account Value. For example, assume your initial Protected Value was $100,000 and you have made cumulative withdrawals of $40,000, reducing the Protected Value to $60,000. On the date you are eligible to step-up the Protected Value, your Account Value is equal to $75,000. You could elect to step-up the Protected Value to $75,000 on the date you are eligible. Upon election of the step-up, we also reset the Protected Annual Withdrawal Amount (discussed immediately below) to be equal to the greater of (A) the Protected Annual Withdrawal Amount immediately prior to the reset; and (B) 7% of the Protected Value immediately after the reset.

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**KEY FEATURE – Protected Annual Withdrawal Amount**

The initial Protected Annual Withdrawal Amount is equal to 7% of the Protected Value. Under GMWB, if your cumulative withdrawals each Annuity Year are less than or equal to the Protected Annual Withdrawal Amount, your Protected Value will be reduced on a "dollar-for-dollar" basis (the Protected Value is reduced by the actual amount of the withdrawal, including any CDSC or Market Value Adjustment that may apply). Cumulative withdrawals in any Annuity Year that exceed the Protected Annual Withdrawal Amount trigger a proportional adjustment to both the Protected Value and the Protected Annual Withdrawal Amount, as described in the rider for this benefit (see the examples of this calculation below). The Protected Annual Withdrawal Amount is referred to as the "Maximum Annual Benefit" in the rider we issue for this benefit.

**GMWB does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed the** **Protected Annual Withdrawal Amount.** You are not required to withdraw all or any portion of the Protected Annual Withdrawal Amount each Annuity Year.

• If,
 cumulatively, you withdraw an amount less than the Protected Annual Withdrawal Amount in any Annuity Year, you cannot carry-over the
 unused portion of the Protected Annual Withdrawal Amount to subsequent Annuity Years. However, because the Protected Value is only
 reduced by the actual amount of withdrawals you make under these circumstances, any unused Protected Annual Withdrawal Amount
 may extend the period of time until the remaining Protected Value is reduced to zero.

• Additional
 Purchase Payments will increase the Protected Annual Withdrawal Amount by 7% of the applicable Purchase Payment.

• If
 the Protected Annual Withdrawal Amount after an adjustment exceeds the Protected Value, the Protected Annual Withdrawal Amount will
 be set equal to the Protected Value.

The following examples of dollar-for-dollar and proportional reductions and the reset of the Maximum Annual Benefit assume that: 1.) the Issue Date and the effective date of GMWB are October 13, 2004; 2.) an initial Purchase Payment of $250,000; 3.) a Protected Value of $250,000; and 4.) a Protected Annual Withdrawal Amount of $17,500 (7% of $250,000). The values set forth here are purely hypothetical and do not reflect the charge for GMWB or any other fees and charges:

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 13, 2004 (in the first Annuity Year). No prior withdrawals have been taken. As the amount withdrawn is less than the Protected Annual Withdrawal Amount:

• The
 Protected Value is reduced by the amount withdrawn (i.e., by $10,000, from $250,000 to $240,000).

• The
 remaining Protected Annual Withdrawal Amount for the balance of the first Annuity Year is also reduced by the amount withdrawn (from
 $17,500 to $7,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 13, 2004 (still within the first Annuity Year). The Account Value immediately before the withdrawal is $220,000. As the amount withdrawn exceeds the remaining Protected Annual Withdrawal Amount of $7,500 from Example 1:

• The
 Protected Value is first reduced by the remaining Protected Annual Withdrawal Amount (from $240,000 to $232,500);

• The
 result is then further reduced by the ratio of A to B, where:

• A
 is the amount withdrawn less the remaining Protected Annual Withdrawal Amount ($10,000 - $7,500, or $2,500).

• B
 is the Account Value less the remaining Protected Annual Withdrawal Amount ($220,000 - $7,500, or $212,500)

The resulting Protected Value is: $232,500 × (1 - $2,500 / $212,500), or $229,764.71.

• The
 Protected Annual Withdrawal Amount is also reduced by the ratio of A to B: The resulting Protected Annual Withdrawal Amount is: $17,500
 × (1 - $2,500 / $212,500), or $17,294.12.

• The
 remaining Protected Annual Withdrawal Amount is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the Maximum Annual Benefit**

A $10,000 withdrawal is made on October 13, 2005 (second Annuity Year). The remaining Protected Annual Withdrawal Amount has been reset to the Protected Annual Withdrawal Amount of $17,294.12 from Example 2. As the amount withdrawn is less than the remaining Protected Annual Withdrawal Amount:

• The
 Protected Value is reduced by the amount withdrawn (i.e., reduced by $10,000, from $229,764.71 to $219,764.71).

• The
 remaining Protected Annual Withdrawal Amount for the balance of the second Annuity Year is also reduced by the amount withdrawn (from
 $17,294.12 to $7,294.12).

**BENEFITS UNDER GMWB**

• In
 addition to any withdrawals you make under GMWB, Variable Option performance may reduce your Account Value. If your Account Value
 is equal to zero, and you have not received all of your Protected Value in the form of withdrawals from your Annuity, we will continue to make payments
 equal to the remaining Protected Value in the form of fixed, periodic payments until the remainder of the Protected

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Value is paid, at which time the rider terminates. The fixed, periodic payments will each be equal to the Protected Annual Withdrawal Amount, except for the last payment which may be equal to the remaining Protected Value. We will determine the duration for which periodic payments will continue by dividing the Protected Value by the Protected Annual Withdrawal Amount. You will not have the right to make additional Purchase Payments or receive the remaining Protected Value in a lump sum. You can elect the frequency of payments, subject to our rules then in effect.

• If
 the death benefit under the Annuity becomes payable before you have received all of your Protected Value in the form of withdrawals from
 your Annuity, your Beneficiary has the option to elect to receive the remaining Protected Value as an alternate death benefit payout in lieu of the amount
 payable under any other death benefit provided under the Annuity. The remaining Protected Value will be payable in the form
 of fixed, periodic payments. Your beneficiary can elect the frequency of payments, subject to our rules then in effect. We will determine
 the duration for which periodic payments will continue by dividing the Protected Value by the Protected Annual Withdrawal Amount.
 The Protected Value is not equal to the Account Value for purposes of the Annuity's other death benefit options. GMWB does not increase
 or decrease the amount otherwise payable under the Annuity's other death benefit options. Generally, GMWB would be of value to
 your Beneficiary only when the Protected Value at death exceeds any other amount available as a death benefit.

• If
 you elect to begin receiving annuity payments before you have received all of your Protected Value in the form of withdrawals from your Annuity, an additional
 annuity payment option will be available that makes fixed annuity payments for a certain period, determined by dividing
 the Protected Value by the Protected Annual Withdrawal Amount. If you elect to receive annuity payments calculated in this manner,
 the assumed interest rate used to calculate such payments will be 0%, which is less than the assumed interest rate on other annuity
 payment options we offer. This 0% assumed interest rate results in lower annuity payments than what would have been paid if the assumed
 interest rate was higher than 0%. You can also elect to terminate GMWB and begin receiving annuity payments based on your then
 current Account Value (not the remaining Protected Value) under any of the available annuity payment options.

**Other Important Considerations**

• Withdrawals
 under GMWB are subject to all of the terms and conditions of the Annuity, including any CDSC and Market Value Adjustment that
 may apply.

• Withdrawals
 made while GMWB is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity.

• GMWB
 does not directly affect the Annuity's Account Value or Surrender Value, but any withdrawal will decrease the Account Value by the amount of the withdrawal.
 If you surrender your Annuity, you will receive the current Surrender Value, not the Protected Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing GMWB. GMWB provides a guarantee
 that if your Account Value declines due to Variable Option performance, you will be able to receive your Protected Value in the form
 of periodic benefit payments.

• We
 currently limit the Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the
 number of free transfers during an Annuity Year.

• The
 Basic Death Benefit will terminate if withdrawals taken under GMWB cause your Account Value to reduce to zero. Certain optional Death
 Benefits may terminate if withdrawals taken under GMWB cause your Account Value to reduce to zero. (See " [<u>Optional Death</u> <u>Benefits</u>](#chapter_11-sect1_11_890) "
 for more information.)

**Election of the Program**

GMWB is no longer available. If you currently participate in GMWB, your existing guarantees are unaffected by the fact that we no longer offer GMWB. We reserve the right to restrict the maximum amount of Protected Value that may be covered under GMWB under this Annuity or any other annuities that you own that are issued by us.

**Termination of the Benefit**

The benefit terminates automatically when your Protected Value reaches zero based on your withdrawals. You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective. The benefit terminates upon your surrender of the Annuity, upon due proof of death (unless your surviving spouse elects to continue the Annuity and GMWB or your Beneficiary elects to receive the amounts payable under GMWB in lieu of the death benefit) or upon your election to begin receiving annuity payments.

The charge for GMWB will no longer be deducted from your Account Value upon termination of the benefit.

**Please note that if you terminate a living benefit such as GMWB and elect a new living benefit, you lose the guarantees that you had** **accumulated under your existing benefit and we will base any guarantees under the new benefit on your Account Value as of the date the new** **benefit becomes active. We reserve the right to waive, change and/or further limit the election frequency in the future.**

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**Charges under the Benefit**

• The
 maximum charge for GMWB is 1.00% annually of the daily net assets of the Variable Options. The annual charge is deducted daily. Account
 Value allocated to Fixed Allocations under the program is not subject to the charge.

• If,
 during the seven years following the effective date of the benefit, you do not make any withdrawals, and also during the five years after the effective date
 of the benefit you make no Purchase Payment, we will thereafter waive the charge for GMWB. If you make a Purchase Payment
 after we have instituted that fee waiver (whether that Purchase Payment is directed to a Variable Option or to a Fixed Allocation), we
 will resume imposing the GMWB fee (without notifying you of the resumption of the charge). Withdrawals that you take after the fee waiver
 has been instituted will not result in the re-imposition of the GMWB charge.

• If
 you elect to step-up the Protected Value under the benefit, and on the date you elect to step-up, the charges under the benefit have changed
 for new purchasers, your benefit may be subject to the new charge level for the benefit.

**Additional Tax Considerations for Qualified Contracts**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Roth IRA or Tax Sheltered Annuity (or 403(b)), the minimum distribution rules under the Code require that you begin receiving periodic amounts from your Annuity beginning after the applicable age. The amount required under the Code may exceed the Protected Annual Withdrawal Amount, which will cause us to recalculate the Protected Value and the Protected Annual Withdrawal Amount, resulting in a lower amount payable in future Annuity Years. In addition, the amount and duration of payments under the annuity payment and death benefit provisions may be adjusted so that the payments do not trigger any additional federal tax or excise taxes due to tax considerations such as minimum distribution requirements. See "[<u>Taxes</u>](#chapter_14-sect1_1_890)" for more information about the applicable age and for further discussions on RMDs.

**GUARANTEED MINIMUM INCOME BENEFIT (GMIB)**

**The Guaranteed Minimum Income Benefit is no longer available for new elections.**

The Guaranteed Minimum Income Benefit is an optional benefit that, after a seven-year waiting period, guarantees your ability to begin receiving income from your Annuity in the form of annuity payments based on a guaranteed minimum value (called the "Protected Income Value") that increases after the waiting period begins, regardless of the impact of Variable Option performance on your Account Value. The benefit may be appropriate for you if you anticipate using your Annuity as a future source of periodic fixed income payments for the remainder of your life and wish to ensure that the basis upon which your income payments will be calculated will achieve at least a minimum amount despite fluctuations in Variable Option performance. There is an additional charge if you elected GMIB.

**KEY FEATURE – Protected Income Value**

The Protected Income Value is the minimum amount that we guarantee will be available (net of any applicable tax charge), after a waiting period of at least seven years, as a basis to begin receiving fixed annuity payments. The Protected Income Value is initially established on the effective date of GMIB and is equal to your Account Value on such date. Currently, since GMIB may only be elected at issue, the effective date is the Issue Date of the Annuity. The Protected Income Value is increased daily based on an annual growth rate of 5%, subject to the limitations described below. The Protected Income Value is referred to as the "Protected Value" in the rider we issue for this benefit. The 5% annual growth rate is referred to as the "Roll-Up Percentage" in the rider we issue for this benefit.

The Protected Income Value is subject to a limit of 200% (2X) of the sum of the Protected Income Value established on the effective date of GMIB, or the effective date of any step-up value, plus any additional Purchase Payments made after the waiting period begins ("Maximum Protected Income Value"), minus the impact of any withdrawals (as described below in "Impact of Withdrawals on the Protected Income Value") you make from your Annuity after the waiting period begins.

• Subject
 to the maximum age/durational limits described immediately below, we will no longer increase the Protected Income Value by the 5%
 annual growth rate once you reach the Maximum Protected Income Value. However, we will increase the Protected Income Value by the
 amount of any additional Purchase Payments after you reach the Maximum Protected Income Value. Further, if you make withdrawals after
 you reach the Maximum Protected Income Value, we will reduce the Protected Income Value and the Maximum Protected Income Value
 by the proportional impact of the withdrawal on your Account Value.

• Subject
 to the Maximum Protected Income Value, we will no longer increase the Protected Income Value by the 5% annual growth rate after
 the later of the anniversary date on or immediately following the Annuitant's 80 <sup>th</sup> birthday or the 7 <sup>th</sup> anniversary of the later of the effective
 date of GMIB or the effective date of the most recent step-up. However, we will increase the Protected Income Value by the amount
 of any additional Purchase Payments. Further, if you make withdrawals after the Annuitant reaches the maximum age/duration limits,
 we will reduce the Protected Income Value and the Maximum Protected Income Value by the proportional impact of the withdrawal on
 your Account Value.

• Subject
 to the Maximum Protected Income Value, if you make an additional Purchase Payment, we will increase the Protected Income Value
 by the amount of the Purchase Payment and will apply the 5% annual growth rate on the new amount from the date the Purchase Payment
 is applied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• As
 described below, after the waiting period begins, cumulative withdrawals each Annuity Year that are up to 5% of the Protected Income Value
 on the prior anniversary of the Annuity will reduce the Protected Income Value by the amount of the withdrawal. Cumulative withdrawals
 each Annuity Year in excess of 5% of the Protected Income Value on the prior anniversary of the Annuity, will reduce the Protected
 Income Value proportionately. The 5% annual growth rate will be applied to the reduced Protected Income Value from the date of
 the withdrawal.

**Stepping-Up the Protected Income Value** -- You may elect to "step-up" or "reset" your Protected Income Value if your Account Value is greater than the current Protected Income Value. Upon exercise of the step-up provision, your initial Protected Income Value will be reset equal to your current Account Value. From the date that you elect to step-up the Protected Income Value, we will apply the 5% annual growth rate to the stepped-up Protected Income Value, as described above. You can exercise the step-up provision twice on any business day while GMIB is in effect, and only while the Annuitant is less than age 76.

• A
 new seven-year waiting period will be established upon the effective date of your election to step-up the Protected Income Value. You cannot exercise your
 right to begin receiving annuity payments under GMIB until the end of the new waiting period. In light of this waiting period
 upon resets, it is not recommended that you reset your GMIB if the required beginning date under Internal Revenue Service ("IRS") minimum distribution
 requirements would commence during the 7-year waiting period. See " [<u>Taxes</u>](#chapter_14-sect1_1_890) "
 section in this prospectus for additional information
 on IRS requirements.

• The
 Maximum Protected Income Value will be reset as of the effective date of any step-up. The new Maximum Protected Income Value will
 be equal to 200% of the sum of the Protected Income Value as of the effective date of the step-up plus any subsequent Purchase Payments,
 minus the impact of any withdrawals after the date of the step-up.

• When
 determining the guaranteed annuity purchase rates for annuity payments under GMIB, we will apply such rates based on the number
 of years since the most recent step-up.

• If
 you elect to step-up the Protected Income Value under the benefit, and on the date you elect to step-up, the charges under GMIB have changed
 for new purchasers, your program may be subject to the new charge going forward.

• A
 step-up will increase the dollar for dollar limit on the anniversary of the Issue Date of the Annuity following such step-up.

**Impact of Withdrawals on the Protected Income Value** -- Cumulative withdrawals each Annuity Year up to 5% of the Protected Income Value will reduce the Protected Income Value on a "dollar-for-dollar" basis (the Protected Income Value is reduced by the actual amount of the withdrawal). Cumulative withdrawals in any Annuity Year in excess of 5% of the Protected Income Value will reduce the Protected Income Value proportionately (see the examples of this calculation below). The 5% annual withdrawal amount is determined on each anniversary of the Issue Date (or on the Issue Date for the first Annuity Year) and applies to any withdrawals during the Annuity Year. This means that the amount available for withdrawals each Annuity Year on a "dollar-for-dollar" basis is adjusted on each Annuity anniversary to reflect changes in the Protected Income Value during the prior Annuity Year.

The Maximum Protected Income Value is reduced by the same dollar-for-dollar amount as the Protected Income Value is reduced and the same proportional percentage as the Protected Income Value is reduced.

The following examples of dollar-for-dollar and proportional reductions assume that: 1.) the Issue Date and the effective date of the GMIB benefit are October 13, 2005; 2.) an initial Purchase Payment of $250,000; 3.) an initial Protected Income Value of $250,000; 4.) a dollar-for-dollar limit of $12,500 (5% of $250,000); and 5.) a Maximum Protected Income Value of $500,000 (200% of the initial Protected Income Value). The values set forth here are purely hypothetical and do not reflect the charge for GMIB or any other fees and charges.

**Example 1. Dollar-for-dollar reduction**

A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year). No prior withdrawals or step-ups have been taken. Immediately prior to the withdrawal, the Protected Income Value is $251,038.10 (the initial value accumulated for 31 days at an annual effective rate of 5%). As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 Protected Income Value is reduced by the amount withdrawn (i.e., by $10,000, from $251,038.10 to $241,038.10).

• The
 Maximum Protected Income Value is reduced by the amount withdrawn (i.e., by $10,000 from $500,000.00 to $490,000.00).

• The
 remaining dollar-for-dollar limit ("Remaining Limit") for the balance of the first Annuity Year is also reduced by the amount
 withdrawn (from $12,500
 to $2,500).

**Example 2. Dollar-for-dollar and proportional reductions**

A second $10,000 withdrawal is taken on December 13, 2005 (still within the first Annuity Year). Immediately before the withdrawal, the Account Value is $220,000 and the Protected Income Value is $242,006.64 and the Maximum Protected Income Value is $490,000.00. As the amount withdrawn exceeds the Remaining Limit of $2,500 from Example 1:

• The
 Protected Income Value is first reduced by the Remaining Limit (from $242,006.64 to $239,506.64);

• The
 result is then further reduced by the ratio of A to B, where:

• A
 is the amount withdrawn less the Remaining Limit ($10,000 – $2,500, or $7,500).

• B
 is the Account Value less the Remaining Limit ($220,000 – $2,500, or $217,500).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 resulting Protected Income Value is:  $239,506.64 × (1 – $7,500 / $217,500), or $231,247.79.

• The
 Maximum Protected Income Value is reduced first by the same dollar amount as the Protected Income Value ($490,000.00 – $2,500 or
 $487,500.00) and by the same proportion as for the Protected Income Value ($487,500.00 × 0.9655 or $470,689.66).

• The
 Remaining Limit is set to zero (0) for the balance of the first Annuity Year.

**Example 3. Reset of the Dollar-for-dollar Limit**

A $10,000 withdrawal is made on the first anniversary of the Issue Date, October 13, 2006 (second Annuity Year). Prior to the withdrawal, the Protected Income Value is $240,838.37 and the Maximum Protected Income Value is $470,689.66. The Remaining Limit is reset to 5% of the Protected Income Value amount, or $12,041.92. As the amount withdrawn is less than the dollar-for-dollar limit:

• The
 Protected Income Value is reduced by the amount withdrawn (i.e., reduced by $10,000, from $240,838.37 to $230,838.37).

• The
 Maximum Protected Income Value is also reduced by the amount withdrawn (i.e., by $10,000 from $470,689.66, to $460,689.66).

• The
 Remaining Limit for the balance of the second Annuity Year is also reduced by the amount withdrawn (from $12,041.92 to $2,041.92).

**KEY FEATURE – GMIB Annuity Payments**

You can elect to apply the Protected Income Value to one of the available GMIB Annuity Payment Options on any anniversary date following the initial waiting period, or any subsequent waiting period established upon your election to step-up the Protected Income Value. Once you have completed the waiting period, you will have a 30-day period each year, prior to the Annuity anniversary, during which you may elect to begin receiving annuity payments under one of the available GMIB Annuity Payment Options. You must elect one of the GMIB Annuity Payment Options by the anniversary of the Annuity's Issue Date on or immediately following the Annuitant's 95<sup>th</sup> birthday, except for Annuities used as a funding vehicle for an IRA, SEP IRA or 403(b), in which case you must elect one of the GMIB Annuity Payment Options by the anniversary of the Annuity's Issue Date on or immediately following the Annuitant's 92<sup>nd</sup> birthday.

Your Annuity or state law may require you to begin receiving annuity payments at an earlier date.

The amount of each GMIB Annuity Payment will be determined based on the age and, where permitted by law, sex of the Annuitant by applying the Protected Income Value (net of any applicable tax charge that may be due) to the GMIB Annuity Payment Option you choose. We use special annuity purchase rates to calculate the amount of each payment due under the GMIB Annuity Payment Options. These special rates for the GMIB Annuity Payment Options are calculated using an assumed interest rate factor that provides for lower growth in the value applied to produce annuity payments than if you elected an annuity payment option that is not part of GMIB. These special rates also are calculated using other factors such as "age setbacks" (use of an age lower than the Annuitant's actual age) that result in lower payments than would result if you elected an annuity payment option that is not part of GMIB. Use of an age setback entails a longer assumed life for the Annuitant which in turn results in lower annuity payments.

**On the date that you elect to begin receiving GMIB Annuity Payments, we guarantee that your payments will be calculated based on your** **Account Value and our then current annuity purchase rates if the payment amount calculated on this basis would be higher than it would be** **based on the Protected Income Value and the special GMIB annuity purchase rates.**

**GMIB Annuity Payment Option 1 – Payments for Life with a Certain Period**

Under this option, monthly annuity payments will be made until the death of the Annuitant. If the Annuitant dies before having received 120 monthly annuity payments, the remainder of the 120 monthly annuity payments will be made to the Beneficiary.

**GMIB Annuity Payment Option 2 – Payments for Joint Lives with a Certain Period**

Under this option, monthly annuity payments will be made until the death of both the Annuitant and the Joint Annuitant. If the Annuitant and the Joint Annuitant die before having received 120 monthly annuity payments, the remainder of the 120 monthly annuity payments will be made to the Beneficiary.

• If
 the Annuitant dies first, we will continue to make payments until the later of the death of the Joint Annuitant and the end of the period certain. However,
 if the Joint Annuitant is still receiving annuity payments following the end of the certain period, we will reduce the amount
 of each subsequent payment to 50% of the original payment amount.

• If
 the Joint Annuitant dies first, we will continue to make payments until the later of the death of the Annuitant and the end of the period certain.

You cannot withdraw your Account Value or the Protected Income Value under either GMIB Annuity Payment Option once annuity payments have begun. We may make other payout frequencies available, such as quarterly, semi-annually or annually.

**Other Important Considerations**

• You
 should note that GMIB is designed to provide a type of insurance that serves as a safety net only in the event your Account Value declines
 significantly due to negative investment performance. If your contract value is not significantly affected by negative investment performance,
 it is unlikely that the purchase of the GMIB will result in your receiving larger annuity payments than if you had not purchased
 GMIB. This is because the assumptions that we use in computing the GMIB, such as the annuity purchase rates, (which

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include assumptions as to age-setbacks and assumed interest rates), are more conservative than the assumptions that we use in computing annuity payout options outside of GMIB. Therefore, you may generate higher income payments if you were to annuitize a lower Account Value at the current annuity purchase rates, than if you were to annuitize under the GMIB with a higher Protected Value than your Account Value but, at the annuity purchase rates guaranteed under the GMIB. GMIB does not directly affect the Annuity's Account Value, Surrender Value or the amount payable under either the basic death benefit provision of the Annuity or any optional death benefit provision. If you surrender your Annuity, you will receive the current Surrender Value, not the Protected Income Value. The Protected Income Value is only applicable if you elect to begin receiving annuity payments under one of the GMIB annuity options after the waiting period.

• The
 Annuity offers other annuity payment options that you can elect which do not impose an additional charge, but which do not offer to guarantee
 a minimum value on which to make annuity payments.

• Where
 allowed by law, we reserve the right to limit subsequent Purchase Payments if we determine, at our sole discretion, that based on the
 timing of your Purchase Payments and withdrawals, your Protected Income Value is increasing in ways we did not intend. In determining
 whether to limit Purchase Payments, we will look at Purchase Payments which are disproportionately larger than your initial Purchase
 Payment and other actions that may artificially increase the Protected Income Value.

• We
 currently limit Variable Options in which you may allocate Account Value if you participate in this benefit. Should we prohibit access
 to any investment
 option, any transfers required to move Account Value to eligible investment options will not be counted in determining the number
 of free transfers during an Annuity Year.

• If
 you change the Annuitant after the effective date of GMIB, the period of time during which we will apply the 5% annual growth rate may be changed based
 on the age of the new Annuitant. If the new Annuitant would not be eligible to elect GMIB based on his or her age at the
 time of the change, then GMIB will terminate.

• Annuity
 payments made under GMIB are subject to the same tax treatment as any other annuity payment.

• At
 the time you elect to begin receiving annuity payments under GMIB or under any other annuity payment option we make available, the protection
 provided by the Annuity's basic death benefit or any optional death benefit provision you elected will no longer apply.

**Election of the Program**

The GMIB benefit is no longer available. If you currently participate in GMIB, your existing guarantees are unaffected by the fact that we no longer offer GMIB.

**Termination of the Program**

GMIB cannot be terminated by the Owner once elected. GMIB automatically terminates as of the date the Annuity is fully surrendered, on the date the death benefit is payable to your Beneficiary (unless your surviving spouse elects to continue the Annuity), or on the date that your Account Value is transferred to begin making annuity payments. GMIB may also be terminated if you designate a new Annuitant who would not be eligible to elect GMIB based on his or her age at the time of the change.

Upon termination of GMIB we will deduct the charge from your Account Value for the portion of the Annuity Year since the prior anniversary of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

**Charges under the Program**

The maximum charge for GMIB is 1.00% per year of the average Protected Income Value for the period the charge applies. Because the charge is calculated based on the average Protected Income Value, it does not increase or decrease based on changes to the Annuity's Account Value due to Variable Option performance. The dollar amount you pay each year will increase in any year the Protected Income Value increases, and it will decrease in any year the Protected Income Value decreases due to withdrawal, irrespective of whether your Account Value increases or decreases.

The charge is deducted annually in arrears each Annuity Year on the anniversary of the Issue Date of the Annuity. We deduct the amount of the charge on a proportional basis from the Account Value allocated to the Variable Options and the Fixed Allocations. No Market Value Adjustment will apply to Account Value deducted from a Fixed Allocation. If you surrender your Annuity, begin receiving annuity payments under GMIB or any other annuity payment option we make available during an Annuity Year, or GMIB terminates, we will deduct the charge for the portion of the Annuity Year since the prior anniversary of the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).

No charge applies after the Annuity Date.

**LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)**

**The Lifetime Five Income Benefit is no longer available for new elections.**

Lifetime Five could have been elected only where the Annuitant and the Owner were the same person or, if the Annuity Owner is an entity, where there was only one Annuitant. The Annuitant must have been at least 45 years old when the benefit is elected. The Lifetime Five Income Benefit was not available if you elected any other optional living benefit. As long as your Lifetime Five Income Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available option(s) with this benefit. The benefit guarantees your ability to withdraw amounts equal to a

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percentage of an initial principal value (called the "Protected Withdrawal Value"), regardless of the impact of Variable Option performance on your Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. There are two options – one is designed to provide an annual withdrawal amount for life (the "Life Income Benefit") and the other is designed to provide a greater annual withdrawal amount as long as there is Protected Withdrawal Value (adjusted as described below) (the "Withdrawal Benefit"). If there is no Protected Withdrawal Value, the withdrawal benefit will be zero. You do not choose between these two options; each option will continue to be available as long as your Annuity has an Account Value and the Lifetime Five is in effect. Certain benefits under Lifetime Five may remain in effect even if the Account Value of your Annuity is zero. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Account Value is reduced to zero (unless the benefit has terminated).

**KEY FEATURE – Protected Withdrawal Value**

The Protected Withdrawal Value is initially used to determine the amount of each initial annual payment under the Life Income Benefit and the Withdrawal Benefit. The initial Protected Withdrawal Value is determined as of the date you make your first withdrawal under the Annuity following your election of Lifetime Five. The initial Protected Withdrawal Value is equal to the greater of (A) the Account Value on the date you elect Lifetime Five, plus any additional Purchase Payments and associated Credits each growing at 5% per year from the date of your election of the benefit, or application of the Purchase Payment and associated Credit to your Annuity, as applicable, until the date of your first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier, (B) the Account Value as of the date of the first withdrawal from your Annuity, prior to the withdrawal, and (C) the highest Account Value on each Annuity anniversary, plus subsequent Purchase Payments prior to the first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier. With respect to (A) and (C) above, after the 10<sup>th</sup> anniversary of the benefit effective date, each value is increased by the amount of any subsequent Purchase Payments:

• If
 you elect the Lifetime Five benefit at the time you purchase your Annuity, the Account Value will be your initial Purchase Payment plus the amount of any
 associated Credits.

• If
 you make additional Purchase Payments after your first withdrawal, the Protected Withdrawal Value will be increased by the amount of each
 additional Purchase Payment plus associated Credits.

The Protected Withdrawal Value is reduced each time a withdrawal is made on a dollar-for-dollar basis up to the Annual Withdrawal Amount, per Annuity Year, of the Protected Withdrawal Value and on the greater of a dollar-for-dollar basis or on a proportional basis for withdrawals in an Annuity Year in excess of that amount until the Protected Withdrawal Value is reduced to zero. At that point the Annual Withdrawal Amount will be zero until such time (if any) as the Annuity reflects a Protected Withdrawal Value (for example, due to a step-up or additional Purchase Payments being made into the Annuity).

**Step-Up of the Protected Withdrawal Value**

You may elect to step-up your Protected Withdrawal Value if, due to positive Variable Option performance, your Account Value is greater than the Protected Withdrawal Value.

If you elected the Lifetime Five benefit on or after March 20, 2006:

• you
 are eligible to step-up the Protected Withdrawal Value on or after the 1 <sup>st</sup> anniversary of the first withdrawal under the Lifetime Five benefit

• the
 Protected Withdrawal Value can be stepped up again on or after the 1 <sup>st</sup> anniversary of the preceding step-up

If you elected the Lifetime Five benefit prior to March 20, 2006 and that original election remains in effect:

• you
 are eligible to step-up the Protected Withdrawal Value on or after the 5 <sup>th</sup> anniversary of the first withdrawal under the Lifetime Five benefit

• the
 Protected Withdrawal Value can be stepped up again on or after the 5 <sup>th</sup> anniversary of the preceding step-up

In either scenario (i.e., elections before or after March 20, 2006) if you elect to step-up the Protected Withdrawal Value under the benefit, and on the date you elect to step-up, the charges under the Lifetime Five benefit have changed for new purchasers, you may be subject to the new charge at the time of step-up. Upon election of the step-up, we increase the Protected Withdrawal Value to be equal to the then current Account Value. For example, assume your initial Protected Withdrawal Value was $100,000 and you have made cumulative withdrawals of $40,000, reducing the Protected Withdrawal Value to $60,000. On the date you are eligible to step-up the Protected Withdrawal Value, your Account Value is equal to $75,000. You could elect to step-up the Protected Withdrawal Value to $75,000 on the date you are eligible. If your current Annual Income Amount and Annual Withdrawal Amount are less than they would be if we did not reflect the step-up in Protected Withdrawal Value, then we will increase these amounts to reflect the step-up as described below.

An optional automatic step-up ("Auto Step-Up") feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force.

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If you elected Lifetime Five on or after March 20, 2006 and have also elected the Auto Step-Up feature:

• the
 first Auto Step-Up opportunity will occur on the 1 <sup>st</sup> contract anniversary that is at least one year after the later of (1) the date of the first withdrawal
 under Lifetime Five or (2) the most recent step-up.

• your
 Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by any amount.

• if
 at the time of the first Auto Step-Up opportunity, 5% of the Account Value is not greater than the Annual Income Amount, an Auto Step-Up
 opportunity will occur on each successive contract anniversary until a step-up occurs.

• once
 a step-up occurs, the next Auto Step-Up opportunity will occur on the 1 <sup>st</sup> contract anniversary that is at least one year after the most recent
 step-up.

If you elected Lifetime Five prior to March 20, 2006 and have also elected the Auto Step-Up feature:

• the
 first Auto Step-Up opportunity will occur on the contract anniversary that is at least five years after the later of (1) the date of the
 first withdrawal
 under Lifetime Five or (2) the most recent step-up.

• your
 Protected Withdrawal Value will only be stepped-up if 5% of the Account Value is greater than the Annual Income Amount by 5% or more.

• if
 at the time of the first Auto Step-Up opportunity, 5% of the Account Value does not exceed the Annual Income Amount by 5% or more, an
 Auto Step-Up opportunity will occur on each successive contract anniversary until a step-up occurs.

• once
 a step-up occurs, the next Auto Step-Up opportunity will occur on the contract anniversary that is at least 5 years after the most recent
 step-up.

In either scenario (i.e., elections before or after March 20, 2006), if on the date that we implement an Auto Step-Up to your Protected Withdrawal Value, the charge for Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Protected Withdrawal Value even if you elect the Auto Step-Up feature.

**KEY FEATURE – Annual Income Amount under the Life Income Benefit**

The initial Annual Income Amount is equal to 5% of the initial Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active. Under Lifetime Five, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. A withdrawal can be considered Excess Income under the Life Income Benefit even though it does not exceed the Annual Withdrawal Amount under the Withdrawal Benefit. When you elect a step-up (or an auto step-up is effected), your Annual Income Amount increases to equal 5% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity year, if such amount is greater than your Annual Income Amount. Your Annual Income Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 5% of any additional Purchase Payments plus any associated Credits. Any increase will be added to your Annual Income Amount beginning on the day that the step-up is effective or the Purchase Payment is made. A determination of whether you have exceeded your Annual Income Amount is made at the time of each withdrawal; therefore, a subsequent increase in the Annual Income Amount will not offset the effect of a withdrawal that exceeded the Annual Income Amount at the time the withdrawal was made.

**KEY FEATURE – Annual Withdrawal Amount under the Withdrawal Benefit**

The initial Annual Withdrawal Amount is equal to 7% of the initial Protected Withdrawal Value. Under the Lifetime Five program, if your cumulative withdrawals each Annuity Year are less than or equal to the Annual Withdrawal Amount, your Protected Withdrawal Value will be reduced on a dollar-for-dollar basis. If your cumulative withdrawals are in excess of the Annual Withdrawal Amount ("Excess Withdrawal"), your Annual Withdrawal Amount will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Withdrawal to the Account Value immediately prior to such withdrawal (see the examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. When you elect a step-up (or an auto step-up is effected), your Annual Withdrawal Amount increases to equal 7% of your Account Value after the step-up if such amount is greater than your Annual Withdrawal Amount. Your Annual Withdrawal Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 7% of any additional Purchase Payments. A determination of whether you have exceeded your Annual Withdrawal Amount is made at the time of each withdrawal; therefore, a subsequent increase in the Annual Withdrawal Amount will not offset the effect of a withdrawal that exceeded the Annual Withdrawal Amount at the time the withdrawal was made.

The Lifetime Five program does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed the Annual Income Amount and the Annual Withdrawal Amount. You are not required to withdraw all or any portion of the Annual Withdrawal Amount or Annual Income Amount in each Annuity Year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If,
 cumulatively, you withdraw an amount less than the Annual Withdrawal Amount under the Withdrawal Benefit in any Annuity Year, you cannot
 carry-over the unused portion of the Annual Withdrawal Amount to subsequent Annuity Years. However, because the Protected Withdrawal
 Value is only reduced by the actual amount of withdrawals you make under these circumstances, any unused Annual Withdrawal
 Amount may extend the period of time until the remaining Protected Withdrawal Value is reduced to zero.

• If,
 cumulatively, you withdraw an amount less than the Annual Income Amount under the Life Income Benefit in any Annuity Year, you cannot
 carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years. However, because the Protected Withdrawal
 Value is only reduced by the actual amount of withdrawals you make under these circumstances, any unused Annual Income Amount
 may extend the period of time until the remaining Protected Withdrawal Value is reduced to zero.

**Examples of Withdrawals**

The following examples of dollar-for-dollar and proportional reductions and the step-up of the Protected Withdrawal Value, Annual Withdrawal Amount and Annual Income Amount assume: 1.) the Issue Date and the Effective Date of the Lifetime Five program are February 1, 2005; 2.) an initial Purchase Payment of $250,000 (includes any Credits); 3.) the Account Value on February 1, 2006 is equal to $265,000; 4.) the first withdrawal occurs on March 1, 2006 when the Account Value is equal to $263,000; and 5.) the Account Value on March 1, 2011 is equal to $240,000. The values set forth here are purely hypothetical, and do not reflect the charge for Lifetime Five.

The initial Protected Withdrawal Value is calculated as the greatest of

(a), (b) and (c):

(a) Purchase Payment accumulated at 5% per year from February 1, 2005 until March 1, 2006 (393 days) = $250,000 × 1.05(393/365) = $263,484.33

(b) Account Value on March 1, 2006 (the date of the first withdrawal) = $263,000

(c) Account Value on February 1, 2006 (the first Annuity Anniversary) = $265,000

Therefore, the initial Protected Withdrawal Value is equal to $265,000. The Annual Withdrawal Amount is equal to $18,550 under the Withdrawal Benefit (7% of $265,000). The Annual Income Amount is equal to $13,250 under the Life Income Benefit (5% of $265,000).

**Example 1. Dollar-for-dollar reduction**

If $10,000 was withdrawn (less than both the Annual Income Amount and the Annual Withdrawal Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Withdrawal Amount for current Annuity Year = $18,550 – $10,000 = $8,550

Annual Withdrawal Amount for future Annuity Years remains at $18,550

• Remaining
 Annual Income Amount for current Annuity Year = $13,250 – $10,000 = $3,250

Annual Income Amount for future Annuity Years remains at $13,250

• Protected
 Withdrawal Value is reduced by $10,000 from $265,000 to $255,000

**Example 2. Dollar-for-dollar and proportional reductions**

(a) If $15,000 was withdrawn (more than the Annual Income Amount but less than the Annual Withdrawal Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Withdrawal Amount for current Annuity Year = $18,550 - $15,000 = $3,550

Annual Withdrawal Amount for future Annuity Years remains at $18,550

• Remaining
 Annual Income Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Income Amount ($15,000 - $13,250 = $1,750) reduces Annual Income Amount for future Annuity Years.

• Reduction
 to Annual Income Amount = Excess Income/ Account Value before Excess Income ×  Annual Income Amount = $1,750 / ($263,000
 - $13,250) × $13,250 = $93

Annual Income Amount for future Annuity Years = $13,250 - $93 = $13,157

• Protected
 Withdrawal Value is reduced by $15,000 from $265,000 to $250,000

(b) If $25,000 was withdrawn (more than both the Annual Income Amount and the Annual Withdrawal Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Withdrawal Amount for current Annuity Year = $0 Excess of withdrawal over the Annual Withdrawal Amount ($25,000 - $18,550
 = $6,450) reduces Annual Withdrawal Amount for future Annuity Years.

• Reduction
 to Annual Withdrawal Amount = Excess Withdrawal/Account Value before Excess Withdrawal ×  Annual Withdrawal Amount = $6,450
 / ($263,000 - $18,550) × $18,550 = $489

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Annual Withdrawal Amount for future Annuity Years = $18,550 - $489 = $18,061

• Remaining
 Annual Income Amount for current Annuity Year = $0

Excess of withdrawal over the Annual Income Amount ($25,000 - $13,250 = $11,750) reduces Annual Income Amount for future Annuity Years.

• Reduction
 to Annual Income Amount = Excess Income/ Account Value before Excess Income ×  Annual Income Amount = $11,750 / ($263,000
 - $13,250) × $13,250 = $623 Annual Income Amount for future Annuity Years = $13,250 - $623 = $12,627

• Protected
 Withdrawal Value is first reduced by the Annual Withdrawal Amount ($18,550) from $265,000 to $246,450. It is further reduced by
 the greater of a dollar-for-dollar reduction or a proportional reduction.

Dollar-for-dollar reduction = $25,000 - $18,550 = $6,450

• Proportional
 reduction = Excess Withdrawal / Account Value before Excess Withdrawal ×  Protected Withdrawal Value = $6,450 / ($263,000 -
 $18,550) × $246,450 = $6,503

Protected Withdrawal Value = $246,450 - max × {$6,450, $6,503} = $239,947

**Example 3. Step-up of the Protected Withdrawal Value**

If the Annual Income Amount ($13,250) is withdrawn each year starting on March 1, 2006 for a period of 5 years, the Protected Withdrawal Value on March 1, 2011 would be reduced to $198,750 {$265,000 - ($13,250 × 5)}. If a step-up is elected on March 1, 2011, then the following values would result:

• Protected
 Withdrawal Value = Account Value on March 1, 2011 = $240,000

• Annual
 Income Amount is equal to the greater of the current Annual Income Amount or 5% of the stepped  up Protected Withdrawal Value. Current
 Annual Income Amount is $13,250. 5% of the stepped  up Protected Withdrawal Value is 5% of $240,000, which is $12,000. Therefore,
 the Annual Income Amount remains $13,250.

• Annual
 Withdrawal Amount is equal to the greater of the current Annual Withdrawal Amount or 7% of the stepped  up Protected Withdrawal Value. Current Annual
 Withdrawal Amount is $18,550. 7% of the stepped  up Protected Withdrawal Value is 7% of $240,000, which is $16,800.
 Therefore, the Annual Withdrawal Amount remains $18,550.

**BENEFITS UNDER LIFETIME FIVE**

• If
 your Account Value is equal to zero, and the cumulative withdrawals in the current Annuity Year are greater than the Annual Withdrawal Amount, Lifetime
 Five will terminate. To the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are
 equal to or less than the Annual Income Amount and amounts are still payable under both the Life Income Benefit and the Withdrawal Benefit,
 you will be given the choice of receiving the payments under the Life Income Benefit or under the Withdrawal Benefit. Thus, in that
 scenario, the remaining amounts under the Life Income Benefit and the Withdrawal Benefit would be payable even though your Account
 Value was reduced to zero. Once you make this election we will make an additional payment for that Annuity Year equal to either the
 remaining Annual Income Amount or Annual Withdrawal Amount for the Annuity Year, if any, depending on the option you choose. In subsequent
 Annuity Years we make payments that equal either the Annual Income Amount or the Annual Withdrawal Amount as described
 in this Prospectus. You will not be able to change the option after your election and no further Purchase Payments will be accepted
 under your Annuity. If you do not make an election, we will pay you annually under the Life Income Benefit. To the extent that cumulative
 withdrawals in the current Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount but less
 than or equal to the Annual Withdrawal Amount and amounts are still payable under the Withdrawal Benefit, you will receive the payments
 under the Withdrawal Benefit. In the year of a withdrawal that reduced your Account Value to zero, we will make an additional payment
 to equal any remaining Annual Withdrawal Amount and make payments equal to the Annual Withdrawal Amount in each subsequent
 year (until the Protected Withdrawal Value is depleted). Once your Account Value equals zero no further Purchase Payments will
 be accepted under your Annuity.

• If
 annuity payments are to begin under the terms of your Annuity or if you decide to begin receiving annuity payments and there is any Annual
 Income Amount due in subsequent Annuity Years or any remaining Protected Withdrawal Value, you can elect one of the following three
 options:

1. apply
 your Account Value to any annuity option available; or

2. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We make such annuity payments until the Annuitant's death; or

3. request
 that, as of the date annuity payments are to begin, we pay out any remaining Protected Withdrawal Value as annuity payments.
 Each year such annuity payments will equal the Annual Withdrawal Amount or the remaining Protected Withdrawal Value
 if less. We make such annuity payments until the earlier of the Annuitant's death or the date the Protected Withdrawal Value
 is depleted. We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a single life fixed annuity
 with five payments certain using the greater of the annuity rates then currently available or the annuity rates guaranteed in your Annuity.
 The amount that will be applied to provide such annuity payments will be the greater of:

1. the
 present value of future Annual Income Amount payments. Such present value will be calculated using the greater of the single
 life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

2. the
 Account Value.

• If
 no withdrawal was ever taken, we will determine a Protected Withdrawal Value and calculate an Annual Income Amount and an Annual Withdrawal
 Amount as if you made your first withdrawal on the date the annuity payments are to begin.

**Other Important Considerations**

• Withdrawals
 under Lifetime Five are subject to all of the terms and conditions of the Annuity, including any CDSC.

• Withdrawals
 made while Lifetime Five is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity.
 Lifetime Five does not directly affect the Annuity's Account Value or Surrender Value, but any withdrawal will decrease the Account
 Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity, you will receive the current Surrender
 Value, not the Protected Withdrawal Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing Lifetime Five. Lifetime Five provides
 a guarantee that if your Account Value declines due to Variable Option performance, you will be able to receive your Protected Withdrawal
 Value or Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount or Annual Withdrawal Amount through the Systematic Withdrawal program, you must take
 that withdrawal as a gross withdrawal, not a net withdrawal.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the benefit. If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated
 under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted requirements. Subsequent
 to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments may be subject to the
 new investment limitations.

• You
 will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any
 lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Lifetime Five benefit cause your Account Value to reduce to zero. Certain
 optional Death Benefits may terminate if withdrawals taken under the Lifetime Five benefit cause your Account Value to reduce to zero.
 (See " [<u>Basic Death Benefit</u>](#chapter_11-sect1_10_890) "
 and " [<u>Optional Death Benefits</u>](#chapter_11-sect1_11_890) "
 for more information.)

**Election of Lifetime Five**

We no longer permit elections of Lifetime Five. If you wish, you may cancel the Lifetime Five benefit. You may then elect any other currently available living benefit on the Valuation Day after you have cancelled the Lifetime Five benefit provided the request is received in good order (subject to state availability and in accordance with any applicable age requirements). Once the Lifetime Five benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Lifetime Five benefit provided that the benefit you are looking to elect is available on a post- issue basis. If you cancel Lifetime Five, you lose all guarantees under the benefit and we will base any guarantees under the new benefit on your Contract Value as of the date the new benefit becomes active. Any such new benefit may be more expensive.

**Charges under the Benefit**

The maximum charge for Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. The charge is deducted daily.

**Termination of the Program**

The benefit terminates automatically when your Protected Withdrawal Value and Annual Income Amount equals zero. You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective. The benefit terminates upon your surrender of the Annuity, upon the death of the Annuitant, upon a change in ownership of the Annuity that changes the tax identification number of the Owner, upon change in the Annuitant or upon your election to begin receiving annuity payments. While you may terminate your benefit at any time, we may not terminate the benefit other than in the circumstances listed above. The charge for Lifetime Five will no longer be deducted from your Account Value upon termination of the program.

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**Additional Tax Considerations for Qualified Contracts**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, or Tax Sheltered Annuity (or 403(b)), the minimum distribution rules under the Code require that you begin receiving periodic amounts from your Annuity beginning after the applicable age. The amount required under the Code may exceed the Annual Withdrawal Amount and the Annual Income Amount, which will cause us to increase the Annual Income Amount and the Annual Withdrawal Amount in any Annuity Year that required minimum distributions due from your Annuity are greater than such amounts. Any such payments will reduce your Protected Withdrawal Value. In addition, the amount and duration of payments under the annuity payment and death benefit provisions may be adjusted so that the payments do not trigger any additional federal tax or excise taxes due to tax considerations such as minimum distribution requirements. See "[<u>Taxes</u>](#chapter_14-sect1_1_890)" for more information about the applicable age and for further discussions on RMDs.

**SPOUSAL LIFETIME FIVE INCOME BENEFIT (SPOUSAL LIFETIME FIVE)**

**The Spousal Lifetime Five benefit is no longer available for new elections.**

Spousal Lifetime Five must have been elected based on two Designated Lives, as described below. Each Designated Life must have been at least 55 years old when the benefit was elected. The Spousal Lifetime Five benefit was not available if you elected any other optional living benefit or optional death benefit. As long as your Spousal Lifetime Five Income Benefit is in effect, you must allocate your Account Value in accordance with the then permitted and available option(s) with this benefit.

The benefit guarantees until the later death of two natural persons that are each other's spouses at the time of election of Spousal Lifetime Five (the "Designated Lives", each a "Designated Life") the ability to withdraw an annual amount ("Spousal Life Income Benefit") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Account Value, subject to our benefit rules regarding the timing and amount of withdrawals. The Spousal Life Income Benefit may remain in effect even if the Account Value of the Annuity is zero. The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Life Income Benefit after the death of the first. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under the Spousal Life Income Benefit when and if your Account Value is reduced to zero (unless the benefit has terminated).

**Key Feature – Initial Protected Withdrawal Value**

The Protected Withdrawal Value is used to determine the amount of each annual payment under the Spousal Life Income Benefit. The initial Protected Withdrawal Value is determined as of the date you make your first withdrawal under the Annuity following your election of Spousal Lifetime Five. The initial Protected Withdrawal Value is equal to the greatest of (A) the Account Value on the date you elect Spousal Lifetime Five, plus any additional Purchase Payments as applicable, each growing at 5% per year from the date of your election of the benefit, or application of the Purchase Payment to your Annuity, until the date of your first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier (B) the Account Value on the date of the first withdrawal from your Annuity, prior to the withdrawal, and (C) the highest Account Value on each Annuity anniversary, plus subsequent Purchase Payments prior to the first withdrawal or the 10<sup>th</sup> anniversary of the benefit effective date, if earlier. With respect to (A) and (C) above, after the 10<sup>th</sup> anniversary of the benefit effective date, each value is increased by the amount of any subsequent Purchase Payments. Credits are added to Purchase Payments for purposes of calculating the Protected Withdrawal Value and the Annual Income Amount (see below for a description of Annual Income Amount).

**Key Feature – Annual Income Amount under the Spousal Lifetime Five Income Benefit**

The initial Annual Income Amount is equal to 5% of the initial Protected Withdrawal Value at the first withdrawal taken after the benefit becomes active. Under the Spousal Lifetime Five benefit, if your cumulative withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount under the Spousal Life Income Benefit in any Annuity Year, you cannot carry-over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative withdrawals are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the withdrawal, including any CDSC that may apply. The Spousal Lifetime Five benefit does not affect your ability to make withdrawals under your Annuity or limit your ability to request withdrawals that exceed the Annual Income Amount.

**Step-Up of Annual Income Amount**

You may elect to step-up your Annual Income Amount if, due to positive Variable Option performance, 5% of your Account Value is greater than the Annual Income Amount. You are eligible to step-up the Annual Income Amount on or after the 1<sup>st</sup> anniversary of the first withdrawal under the Spousal Lifetime Five benefit. The Annual Income Amount can be stepped up again on or after the 1<sup>st</sup> anniversary of the preceding step-up. If you elect to step-up the Annual Income Amount under the benefit, and on the date you elect to step-up, the charges under the Spousal Lifetime Five benefit have changed

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for new purchasers, your benefit may be subject to the new charge at the time of such step-up. When you elect a step-up, your Annual Income Amount increases to equal 5% of your Account Value after the step-up, adjusted for withdrawals within the current Annuity Year. Your Annual Income Amount also increases if you make additional Purchase Payments. The amount of the increase is equal to 5% of any additional Purchase Payments (plus any Credit). Any increase will be added to your Annual Income Amount beginning on the day that the step-up is effective or the Purchase Payment is made. A determination of whether you have exceeded your Annual Income Amount is made at the time of each withdrawal; therefore a subsequent increase in the Annual Income Amount will not offset the effect of a withdrawal that exceeded the Annual Income Amount at the time the withdrawal was made.

An optional automatic step-up ("Auto Step-Up") feature is available for this benefit. This feature may be elected at the time the benefit is elected or at any time while the benefit is in force. If you elect this feature, the first Auto Step-Up opportunity will occur on the 1<sup>st</sup> Annuity Anniversary that is at least one year after the later of (1) the date of the first withdrawal under the Spousal Lifetime Five benefit or (2) the most recent step-up. At this time, your Annual Income Amount will be stepped-up if 5% of your Account Value is greater than the Annual Income Amount by any amount. If 5% of the Account Value does not exceed the Annual Income Amount, then an Auto Step-Up opportunity will occur on each successive Annuity Anniversary until a step-up occurs. Once a step-up occurs, the next Auto Step-Up opportunity will occur on the 1<sup>st</sup> Annuity Anniversary that is at least 1 year after the most recent step-up. If, on the date that we implement an Auto Step-Up to your Annual Income Amount, the charge for Spousal Lifetime Five has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Subject to our rules and restrictions, you will still be permitted to manually step-up the Annual Income Amount even if you elect the Auto Step-Up feature.

**Examples of withdrawals and step-up**

The following examples of dollar-for-dollar and proportional reductions and the step-up of the Annual Income Amount assume: 1.) the Issue Date and the Effective Date of the Spousal Lifetime Five benefit are February 1, 2005; 2.) an initial Purchase Payment of $250,000; 3.) the Account Value on February 1, 2006 is equal to $265,000; 4.) the first withdrawal occurs on March 1, 2006 when the Account Value is equal to $263,000; and 5.) the Account Value on February 1, 2010 is equal to $280,000. The values set forth here are purely hypothetical, and do not reflect the charge for the Spousal Lifetime Five or any other fees and charges.

The initial Protected Withdrawal Value is calculated as the greatest of (a), (b) and (c):

(a) Purchase
 payment accumulated at 5% per year from February 1, 2005 until March 1, 2006 (393 days) = $250,000 × 1.05 <sup>^(393/365)</sup> = $263,484.33

(b) Account
 Value on March 1, 2006 (the date of the first withdrawal) = $263,000

(c) Account
 Value on February 1, 2006 (the first Annuity Anniversary) = $265,000

Therefore, the initial Protected Withdrawal Value is equal to $265,000. The Annual Income Amount is equal to $13,250 under the Spousal Life Income Benefit (5% of $265,000).

**Example 1. Dollar-for-dollar reduction**

If $10,000 was withdrawn (less than the Annual Income Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Income Amount for current Annuity Year = $13,250 – $10,000 = $3,250.

• Annual
 Income Amount for future Annuity Years remains at $13,250.

**Example 2. Dollar-for-dollar and proportional reductions**

If $15,000 was withdrawn (more than the Annual Income Amount) on March 1, 2006, then the following values would result:

• Remaining
 Annual Income Amount for current Annuity Year = $0

• Excess
 of withdrawal over the Annual Income Amount ($15,000 – $13,250 = $1,750) reduces Annual Income Amount for future Annuity Years.

• Reduction
 to Annual Income Amount = Excess Income/Account Value before Excess Income ×  Annual Income Amount = $1,750/($263,000
 – $13,250) × $13,250 = $93. Annual Income Amount for future Annuity Years = $13,250 – $93 = $13,157

**Example 3. Step-up of the Annual Income Amount**

If a step-up of the Annual Income Amount is requested on February 1, 2010 or the Auto Step-Up feature was elected, the step-up would occur because 5% of the Account Value, which is $14,000 (5% of $280,000), is greater than the Annual Income Amount of $13,250. The new Annual Income Amount will be equal to $14,000.

**BENEFITS UNDER THE SPOUSAL LIFETIME FIVE BENEFIT**

To the extent that your Account Value was reduced to zero as a result of cumulative withdrawals that are equal to or less than the Annual Income Amount and amounts are still payable under the Spousal Life Income Benefit, we will make an additional payment for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year, if any. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this

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Prospectus. No further Purchase Payments will be accepted under your Annuity. We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the second Designated Life. To the extent that cumulative withdrawals in the current Annuity Year that reduced your Account Value to zero are more than the Annual Income Amount, the Spousal Life Income Benefit terminates and no additional payments will be made.

• If
 annuity payments are to begin under the terms of your Annuity or if you decide to begin receiving annuity payments and there is any Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

1. apply
 your Account Value to any annuity option available; or

2. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the Designated Lives to die, and will continue to make payments until the death of the
 second Designated Life.

We must receive your request in a form acceptable to us at our office.

• In
 the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with five payments certain using the same basis that is used to calculate the greater of the annuity rates
 then currently available or the annuity rates guaranteed in your Annuity. The amount that will be applied to provide such annuity
 payments will be the greater of:

1. the
 present value of future Annual Income Amount payments. Such present value will be calculated using the same basis that is used
 to calculate the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity;
 and

2. the
 Account Value.

• If
 no withdrawal was ever taken, we will determine an initial Protected Withdrawal Value and calculate an Annual Income Amount as if you made your first withdrawal
 on the date the annuity payments are to begin.

**Other Important Considerations**

• Withdrawals
 under the Spousal Lifetime Five benefit are subject to all of the terms and conditions of the Annuity, including any CDSC.

• Withdrawals
 made while the Spousal Lifetime Five benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals
 under the Annuity. The Spousal Lifetime Five benefit does not directly affect the Annuity's Account Value or Surrender Value, but
 any withdrawal will decrease the Account Value by the amount of the withdrawal (plus any applicable CDSC). If you surrender your Annuity,
 you will receive the current Surrender Value, not the Protected Withdrawal Value.

• You
 can make withdrawals from your Annuity while your Account Value is greater than zero without purchasing the Spousal Lifetime Five benefit.
 The Spousal Lifetime Five benefit provides a guarantee that if your Account Value declines due to Variable Option performance, you
 will be able to receive your Annual Income Amount in the form of periodic benefit payments.

• You
 should carefully consider when to begin taking withdrawals. If you begin taking withdrawals early, you may maximize the time during which
 you may take withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce
 your Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial
 professional when it may be appropriate for you to begin taking withdrawals.

• If
 you are taking your entire Annual Income Amount through the Systematic Withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

• In
 general, you must allocate your Account Value in accordance with the then available investment option(s) that we may prescribe in order
 to maintain the benefit. If, subsequent to your election of the benefit, we change our requirements for how Account Value must be allocated
 under the benefit, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted requirements. Subsequent
 to any change in requirements, transfers of Account Value and allocation of additional Purchase Payments may be subject to the
 new investment limitations.

• There
 may be circumstances where you will continue to be charged the full amount for the Spousal Lifetime Five benefit even when the benefit
 is only providing a guarantee of income based on one life with no survivorship.

• In
 order for the Surviving Designated Life to continue the Spousal Lifetime Five benefit upon the death of an Owner, the Designated Life must elect to assume
 ownership of the Annuity under the spousal continuation option. When the Annuity is owned by a Custodial Account, in
 order for Spousal Lifetime Five to be continued after the death of the first Designated Life (the Annuitant), the Custodial Account must elect to continue
 the Annuity and the second Designated Life (the Contingent Annuitant) will be named as the new Annuitant. See " [<u>Change of Owner, Annuitant, and Beneficiary Designations - Spousal Owners/Spousal Beneficiaries</u>](#chapter_9-sect1_2_890) "
 and "Spousal Continuation of Annuity"
  in the " [<u>Payment of Death Benefits</u>](#chapter_11-sect1_12_890) "
 section of this prospectus.

• You
 will begin paying the charge for this benefit as of the effective date of the benefit, even if you do not begin taking withdrawals for many years, or ever.
 We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any
 lifetime income payments.

• The
 Basic Death Benefit will terminate if withdrawals taken under the Spousal Lifetime Five benefit cause your Account Value to reduce to zero. Certain optional
 Death Benefits may terminate if withdrawals taken under the Spousal Lifetime Five benefit cause your Account Value
 to reduce to zero. (See " [<u>Basic Death Benefit</u>](#chapter_11-sect1_10_890) "
 and " [<u>Optional Death Benefits</u>](#chapter_11-sect1_11_890) "
 for more information.)

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**Election of and Designations under the Benefit**

We no longer permit elections of Spousal Lifetime Five – whether for those who currently participate in Spousal Lifetime Five or for those who are buying an Annuity for the first time. If you wish, you may cancel the Spousal Lifetime Five benefit. You may then elect any other available living benefit on the Valuation Day after you have cancelled the Spousal Lifetime Five benefit, provided the request is received in Good Order (subject to state availability and any applicable age requirements). Once the Spousal Lifetime Five benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the Spousal Lifetime Five benefit provided that the benefit you are looking to elect is available on a post-issue basis. If you cancel the benefit, you lose all guarantees under the benefit, and your guarantee under any new benefit you elect will be based on your Account Value at that time. Any such new benefit may be more expensive.

Spousal Lifetime Five could only be elected based on two Designated Lives. Designated Lives must be natural persons who are each other's spouses at the time of election of the benefit. Spousal Lifetime Five only could be elected where the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the beneficiary is the Owner's spouse. The Owner/Annuitant
 and the beneficiary each must be at least 55 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must each be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Both the Annuitant and the Contingent Annuitant each must
 be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows:

(a) if
 one Owner dies and the surviving spousal Owner assumes the Annuity or

(b) if
 the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of
 beneficiary designations under this benefit. If the Designated Lives divorce, however, the Spousal Lifetime Five benefit may not
 be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity
 appoint a new Designated Life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity
 as a withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the
 withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

**Charges under the Benefit**

The maximum charge for Spousal Lifetime Five is 1.50% annually of the daily net assets of the Variable Options. The charge is deducted daily.

**Termination of the Benefit**

The benefit terminates automatically when your Annual Income Amount equals zero. The benefit also terminates upon your surrender of the Annuity, upon the first Designated Life to die if the Annuity is not continued, upon the second Designated Life to die or upon your election to begin receiving annuity payments. You may terminate the benefit at any time by notifying us. **Please note that if you terminate a living benefit such as Spousal** **Lifetime Five and elect a new living benefit, you lose the guarantees that you had accumulated under your existing benefit and we will base** **any guarantees under the new benefit on your Account Value as of the date the new benefit becomes active. We reserve the right to waive,** **change and/or further limit the election frequency in the future.**

The charge for the Spousal Lifetime Five benefit will no longer be deducted from your Account Value upon termination of the benefit.

**Additional Tax Considerations**

If you purchase an Annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or an employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts from your Annuity beginning after the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than 5 percent owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. The amount required under the Code may exceed the Annual Income Amount, which will cause us to increase the Annual Income Amount in any Annuity Year that Required Minimum Distributions due from your Annuity are greater than such amounts. Any such payments will reduce your Protected Withdrawal Value.

As indicated, withdrawals made while this Benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_890)" for more detailed information about the tax treatment of withdrawals, the applicable age and for further discussions of RMDs. We do not address each potential tax scenario that could arise with respect to this Benefit here.

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**TRIGGERS FOR THE PAYMENT OF THE DEATH BENEFIT**

The Annuity provides a Death Benefit during its Accumulation Period. If the Annuity is owned by one or more natural persons, the Death Benefit is payable upon the first death of an Owner. If the Annuity is owned by an entity, the Death Benefit is payable upon the Annuitant's death, if there is no Contingent Annuitant. If a Contingent Annuitant was designated before the Annuitant's death and the Annuitant dies, then the Contingent Annuitant becomes the Annuitant and a Death Benefit will not be paid at that time. The person upon whose death the Death Benefit is paid is referred to below as the "decedent."

**BASIC DEATH BENEFIT**

The Annuity provides a basic Death Benefit at no additional charge. The insurance charge we deduct daily from your Account Value allocated to the Variable Options is used, in part, to pay us for the risk we assume in providing the basic Death Benefit guarantee under the Annuity. **Under certain** **circumstances, your Death Benefit may be reduced by the amount of any Credits we applied to your Purchase Payments** (see "[<u>How are Credits</u> <u>Applied to My Account Value</u>](#chapter_12-sect1_5_890)" and "[<u>Examples of Recapturing Credits</u>](#chapter_12-sect1_5_890)").

**Considerations for Contingent Annuitants:**

We may allow the naming of a Contingent Annuitant when a Non-qualified Annuity contract is held by a pension plan or a tax favored retirement plan or held by a Custodial Account (as defined in this prospectus). In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity contract continues after the death of the Annuitant. In some of our Annuities held by these same types of entities we allow for the naming of a Co-Annuitant, which also is used to mean the successor annuitant (and not another life used for measuring the duration of an annuity payment option). Like in the case of a Contingent Annuitant, the Annuity may no longer qualify for tax deferral where the contract continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a Contingent Annuitant when a Non-qualified Annuity contract is held by an entity which is not eligible for tax deferral benefits under Section 72(u) of the Code. This does not supersede any benefit language which may restrict the use of the Contingent Annuitant.

*The Death Benefit is the greater of the following*:

• The
 sum of all Purchase Payments less the sum of all proportional withdrawals; and

• The
 sum of your Account Value in the Variable Options and your Interim Value in the Fixed Allocations, less the amount of any Credits applied
 within 12-months prior to the date of death. Please note that your Account Value includes any applicable Market Value Adjustment.

For purposes of the basic and optional Death Benefits, "proportional withdrawals" are determined by calculating the percentage of the Account Value that each prior withdrawal represented when withdrawn. For example, a withdrawal of 50% of Account Value would be considered as a 50% reduction in Purchase Payments.

**<u>Here is an example of how the basic death benefit is calculated:</u>**

The contract was issued with Purchase Payments totaling $100,000 but, due to negative Variable Option performance, the Account Value had decreased to $80,000. If the Owner died, the death benefit would still be $100,000. This amount, however, is reduced proportionally when you make a withdrawal from the contract. If the contract Owner had withdrawn 50% of the remaining $80,000, the death benefit would also be reduced by 50%. Since the death benefit had been $100,000, it would now be $50,000.

**OPTIONAL DEATH BENEFITS**

Optional Death Benefits are offered for purchase with your Annuity to provide an enhanced level of protection for your beneficiaries.

------

**These benefits are no longer offered and must have been elected at the time that you purchased your Annuity. Certain terms and conditions** **may differ if you purchase your Annuity as part of an exchange, replacement or transfer, in whole or in part, from any other Annuity we issue.**

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**ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT**

The Enhanced Beneficiary Protection Optional Death Benefit can provide additional amounts to your Beneficiary that may be used to offset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. Whether this benefit is appropriate for you may depend on your particular circumstances, including other financial resources that may be available to your Beneficiary to pay taxes on your Annuity should you die during the Accumulation Period. No benefit is payable if death occurs on or after the Annuity Date.

**The Enhanced Beneficiary Protection Optional Death Benefit provides a benefit that is payable in addition to the basic Death Benefit.** If the Annuity has one Owner, the Owner must be age 75 or less at the time the benefit is purchased. If the Annuity has joint Owners, the oldest Owner must be age 75 or less. If the Annuity is owned by an entity, the Annuitant must be age 75 or less.

**Calculation of Enhanced Beneficiary Protection Optional Death Benefit**

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If you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the Death Benefit is calculated as follows:

1. the **basic Death Benefit** described above;

**PLUS**

2. 40% of your **"Growth"** under the Annuity, as defined below.

The amount calculated in Items 1 & 2 above may be reduced by any Credits received within the past 12 months.

**<u>"Growth"</u>** means the sum of your Account Value in the Variable Options and your Interim Value in the Fixed Allocations, minus the total of all Purchase Payments reduced by the sum of all proportional withdrawals.

**<u>"Proportional withdrawals"</u>** are determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn.

------

**The Enhanced Beneficiary Protection Optional Death Benefit is subject to a maximum of 100% of all Purchase Payments applied to the** **Annuity at least 12 months prior to the death of the decedent that triggers the payment of the Death Benefit.**

------

**The Enhanced Beneficiary Protection Optional Death Benefit described above was offered in those jurisdictions where we received regulatory** **approval. Please refer to the section entitled "**[**<u>Taxes</u>**](#chapter_14-sect1_1_890)**" for a discussion of special tax considerations for purchasers of this benefit. The** **Enhanced Beneficiary Protection Death Benefit is not available if you elect the** **<u>"Combination 5% Roll-up and Highest Anniversary Value"</u>** **<u>Death Benefit.</u>**

**Examples of Enhanced Beneficiary Protection Optional Death Benefit Calculation**

The following are examples of how the Enhanced Beneficiary Protection Optional Death Benefit is calculated. Each example assumes that a $50,000 initial Purchase Payment is made. Each example assumes that there is one Owner who is age 50 on the Issue Date and that all Account Value is maintained in the Variable Options. The formula for determining the Enhanced Beneficiary Protection Optional Death Benefit is as follows:

Growth = Account Value of Variable Options plus Interim Value of Fixed Allocations (no Market Value Adjustment applies) minus Purchase Payments – proportional withdrawals

**<u>Example with Variable Option increase</u>**

Assume that the Owner has made no withdrawals and that the Account Value has been increasing due to positive Variable Option performance. On the date we receive due proof of death, the Account Value is $75,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, which ever is greater. Therefore, the basic Death Benefit is equal to $75,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($75,000) PLUS 40% of the "Growth" under the Annuity.

---

| | | |
|:---|:---|:---|
| Growth | = | $75,000 - [$50,000 - $0] |
|  | = | $25000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth |
|  | = | $25,000 × 0.40 |
|  | = | $10000 |
| Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $85000 |

---

**<u>Examples with Variable Option decline</u>**

Assume that the Owner has made no withdrawals and that the Account Value has been decreasing due to declines in Variable Option performance. On the date we receive due proof of death, the Account Value is $45,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, which ever is greater. Therefore, the basic Death Benefit is equal to $50,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($50,000) PLUS the "Growth" under the Annuity.

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| | | |
|:---|:---|:---|
| Growth | = | $45,000 - [$50,000 - $0] |
|  | = | $-5000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | 40% of Growth |
| NO BENEFIT IS PAYABLE | NO BENEFIT IS PAYABLE | NO BENEFIT IS PAYABLE |
| Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection |
| Optional Death Benefit | Optional Death Benefit | Optional Death Benefit |
|  | = | $50000 |

---

In this example you would receive no additional benefit from purchasing the Enhanced Beneficiary Protection Optional Death Benefit.

**Example with Variable Option increase and withdrawals**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 5 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $90,000. The basic Death Benefit is calculated as Purchase Payments minus proportional withdrawals, or Account Value, whichever is greater. Therefore, the basic Death Benefit is equal to $90,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to the amount payable under the basic Death Benefit ($90,000) **PLUS** 40% of the "Growth" under the Annuity.

---

| | | |
|:---|:---|:---|
| Growth | = | $90,000 – [$50,000 – ($50,000 × $15,000/$75,000)] |
|  | = | $90,000 – [$50,000 – $10,000] |
|  | = | $90000 – $40000 |
|  | = | $50000 |
| Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth | Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit = 40% of Growth |
|  | = | $50,000 × 0.40 |
|  | = | $20000 |
| Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit | Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection Optional Death Benefit |
|  | = | $110000 |

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**HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**

If the Annuity has one Owner, the Owner must be age 79 or less at the time Highest Anniversary Value Optional Death Benefit is purchased. If the Annuity has joint Owners, the oldest Owner must be age 79 or less. If the Annuity is owned by an entity, the Annuitant must be age 79 or less.

***We restrict certain Portfolios if you elect the Highest Anniversary Value Death Benefit.***

**Key Terms Used with the Highest Anniversary Value Death Benefit**

• The <u>Death Benefit Target Date</u> is the contract anniversary on or after the 80 <sup>th</sup> birthday of the current Owner, the oldest of either joint Owner
 or the Annuitant, if entity owned.

• The <u>Highest Anniversary Value</u> equals the highest of all previous "Anniversary Value" less proportional withdrawals since such anniversary and
 plus any Purchase Payments since such anniversary.

• The <u>Anniversary Value</u> is the
 Account Value as of each anniversary of the Issue Date of the Annuity. The Anniversary Value on the Issue Date
 is equal to your Purchase Payment.

• <u>Proportional withdrawals</u> result
 in a reduction to the Highest Anniversary Value by reducing such value in the same proportion as the Account
 Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your Highest Anniversary Value is $125,000
 and you subsequently withdraw $10,000 at a time when your Account Value is equal to $100,000 (a 10% reduction), when calculating
 the optional Death Benefit we will reduce your Highest Anniversary Value ($125,000) by 10% or $12,500.

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The Highest Anniversary Value Death Benefit depends on whether death occurs before or after the Death Benefit Target Date.

*If the Owner dies before the Death Benefit Target Date,* the Death Benefit equals the greater of:

A. the
 basic Death Benefit described above; and

B. the
 Highest Anniversary Value as of the Owner's date of death.

*If the Owner dies on or after the Death Benefit Target Date,* the Death Benefit equals the greater of:

A. the
 basic Death Benefit described above; and

B. the
 Highest Anniversary Value on the Death Benefit Target Date plus the sum of all Purchase Payments less the sum of all proportional
 withdrawals since the Death Benefit Target Date.

**The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and decreased** **by any proportional withdrawals since such date. The amount calculated in Items 1 & 2 above (both before, and on or after the Death Benefit** **Target Date) may be reduced by any Credits under certain circumstances.**

**The Highest Anniversary Value Death Benefit described above was offered in those jurisdictions where we received regulatory approval. The** **Highest Anniversary Value Death Benefit is not available if you elect the "Combination 5% Roll-up and Highest Anniversary Value" or the** **"Highest Daily Value" Death Benefit.**

Please refer to the definition of Death Benefit Target Date below. This death benefit may not be an appropriate feature where the Owner's age is near the age specified in the Death Benefit Target Date. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer contract anniversaries before the death benefit target date is reached. The death benefit target date under this death benefit is earlier than the death benefit target date under the Combination 5% Roll-up and Highest Anniversary Value Death Benefit for Owners who are age 76 or older when the Annuity is issued, which may result in a lower value on the death benefit, since there will be fewer contract anniversaries before the death benefit target date is reached.

**Examples of Highest Anniversary Value Death Benefit Calculation**

The following are examples of how the Highest Anniversary Value Death Benefit is calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date and that all Account Value is maintained in the Variable Options.

NOTE: The examples below do not include Credits which may be recaptured by us under certain circumstances.

**<u>Example with Variable Option increase and death before Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the date we receive due proof of death, the Account Value is $75,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Anniversary Value or the basic Death Benefit. The Death Benefit would be the Highest Anniversary Value ($90,000) because it is greater than the amount that would have been payable under the basic Death Benefit ($75,000).

**<u>Example with withdrawals</u>**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $80,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Anniversary Value or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Anniversary Value | = | $90,000 - [$90,000 × $15,000/$75,000] |
|  | = | $90000 - $18000 |
|  | = | $72000 |
| Basic Death Benefit | = | max [$80,000, $50,000 - ($50,000 × $15,000/$75,000)] |
|  | = | max [$80,000, $40,000] |
|  | = | $80000 |
| The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. |

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**<u>Example with death after Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals had been made prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Highest Anniversary Value on the Death Benefit Target Date was $80,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greater of the Highest Anniversary Value plus Purchase Payments minus proportional withdrawals after the Death Benefit Target Date or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Anniversary Value | = | $80,000 + $15,000 - [($80,000 + $15,000) × $5,000/$70,000] |
|  | = | $80,000 + $15,000 - $6,786 |
|  | = | $88214 |
| Basic Death Benefit | = | max [$75,000, ($50,000 + $15,000) - {($50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. |

---

**COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT**

If the Annuity has one Owner, the Owner must be age 79 or less at the time the Combination 5% Roll-up and HAV Optional Death Benefit is purchased. If the Annuity has joint Owners, the oldest Owner must be age 79 or less. If the Annuity is owned by an entity, the Annuitant must be age 79 or less.

Certain of the Portfolios offered as Variable Options under the Annuity are not available if you elect the Combination 5% Roll-up and HAV Death Benefit. If you elect this benefit, you must allocate your Account Value in accordance with the then permitted and available option(s). In addition, we reserve the right to require you to use certain asset allocation model(s) if you elect this death benefit.

Calculation of the Combination 5% Roll-up and Highest Anniversary Value Death Benefit

The Combination 5% Roll-up and HAV Death Benefit equals the greatest of:

1. the
 basic Death Benefit described above; and

2. the
 Highest Anniversary Value death benefit described above, and

3. 5%
 Roll-up described below.

The calculation of the 5% Roll-up depends on whether death occurs before or after the Death Benefit Target Date.

If the Owner dies before the Death Benefit Target Date the 5% Roll up is equal to:

• all
 Purchase Payments increasing at an annual effective interest rate of 5% starting on the date that each Purchase Payment is made and ending
 on the Owner's date of death; MINUS

• the
 sum of all withdrawals, dollar for dollar up to 5% of the death benefit's value as of the prior contract anniversary (or Issue Date
 if the withdrawal
 is in the first contract year). Any withdrawals in excess of the 5% dollar for dollar limit are proportional.

If the Owner dies on or after the Death Benefit Target Date the 5% Roll-up is equal to:

• the
 5% Roll-up value as of the Death Benefit Target Date increased by total Purchase Payments made after the Death Benefit Target Date;

MINUS

• the
 sum of all withdrawals which reduce the 5% Roll-up proportionally.

The amounts calculated above (before, on or after the Death Benefit Target Date) may be reduced by any Credits under certain circumstances.

Please refer to the definitions of Death Benefit Target Date below. This death benefit may not be an appropriate feature where the Owner's age is near the age specified in the Death Benefit Target Date. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer Annuity anniversaries before the Death Benefit Target Date is reached.

The Combination 5% Roll-up and Highest Anniversary Value Death Benefit described above is currently being offered in those jurisdictions where we have received regulatory approval. Certain terms and conditions may differ between jurisdictions once approved. The "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit is not available if you elect any other optional death benefit.

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**Key Terms Used with the Highest Anniversary Value Death Benefit and the Combination 5% Roll-up and Highest Anniversary Value Death** **Benefit:**

• The <u>Death Benefit Target Date</u> for the Highest Anniversary Value Death Benefit is the contract anniversary on or after the 80 <sup>th</sup> birthday of the current
 Owner, the oldest of either joint Owner or the Annuitant, if entity owned.

• The <u>Death Benefit Target Date</u> for the Combination 5% Roll-up and HAV Death Benefit is the later of the contract anniversary on or after the
 80 <sup>th</sup> birthday of the current Owner, the oldest of either joint Owner or the Annuitant, if entity owned, or five years after the Issue Date of the Annuity.

• The <u>Highest Anniversary Value</u> equals the highest of all previous "Anniversary Values" less proportional withdrawals since such anniversary
 and plus any Purchase Payments since such anniversary.

• The <u>Anniversary Value</u> is the
 Account Value in the Variable Options plus the Interim Value in any Market Value Adjustment Fixed Allocations
 as of each anniversary of the Issue Date of the Annuity. The Anniversary Value on the Issue Date is equal to your Purchase Payment.

• <u>Proportional withdrawals</u> are
 determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn.
 Proportional withdrawals result in a reduction to the Highest Anniversary Value or 5% Roll-up value by reducing such value in the
 same proportion as the Account Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your Highest
 Anniversary Value or 5% Roll-up value is $125,000 and you subsequently withdraw $10,000 at a time when your Account Value is equal
 to $100,000 (a 10% reduction), when calculating the optional Death Benefit we will reduce your Highest Anniversary Value ($125,000)
 by 10% or $12,500.

**Examples of Combination 5% Roll-Up and Highest Anniversary Value Death Benefit Calculation**

The following are examples of how the Combination 5% Roll-Up and Highest Anniversary Value Death Benefit are calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date and that all Account Value is maintained in the Variable Options.

**<u>Example with Variable Option increase and death before Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the 7<sup>th</sup> anniversary of the Issue Date we receive due proof of death, at which time the Account Value is $75,000; however, the Anniversary Value on the 5<sup>th</sup> anniversary of the Issue Date was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Roll-Up Value is equal to initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit. The Death Benefit would be the Highest Anniversary Value ($90,000) because it is greater than both the Roll-Up Value ($67,005) and the amount that would have been payable under the basic Death Benefit ($75,000).

**<u>Example with withdrawals</u>**

Assume that the Owner made a withdrawal of $5,000 on the 6<sup>th</sup> anniversary of the Issue Date when the Account Value was $45,000. The Roll-Up Value on the 6<sup>th</sup> anniversary of the Issue Date is equal to initial Purchase Payment accumulated at 5% for 6 years, or $67,005. The 5% Dollar-for-Dollar Withdrawal Limit for the 7<sup>th</sup> Annuity Year is equal to 5% of the Roll-Up Value as of the 6<sup>th</sup> anniversary of the Issue Date, or $3,350. Therefore, the remaining $1,650 of the withdrawal results in a proportional reduction to the Roll-Up Value. On the 7<sup>th</sup> anniversary of the Issue Date we receive due proof of death, at which time the Account Value is $43,000; however, the Anniversary Value on the 2<sup>nd</sup> anniversary of the Issue Date was $70,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Roll-Up Value | = | {($67,005 - $3,350) - [($67,005 - $3,350) × $1,650/($45,000 -$3,350)]} × 1.05 |
|  | = | ($63,655 - $2,522) × 1.05 |
|  | = | $64190 |
| Highest Anniversary Value | = | $70,000 - [$70,000 × $5,000/$45,000] |
|  | = | $70000 - $7778 |
|  | = | $62222 |
| Basic Death Benefit | = | max [$43,000, $50,000 - ($50,000 × $5,000/$45,000)] |
|  | = | max [$43,000, $44,444] |
|  | = | $44444 |
| The Death Benefit therefore is $64,190. | The Death Benefit therefore is $64,190. | The Death Benefit therefore is $64,190. |

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**<u>Example with death after Death Benefit Target Date</u>**

Assume that the Owner has not made any withdrawals prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Roll-Up Value on the Death Benefit Target Date (the contract anniversary on or following the Owner's 80<sup>th</sup> birthday) is equal to initial Purchase Payment accumulated at 5% for 10 years, or $81,445. The Highest Anniversary Value on the Death Benefit Target Date was $85,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death Benefit as of the Death Benefit Target Date; each increased by subsequent Purchase Payments and reduced proportionally for subsequent withdrawals.

---

| | | |
|:---|:---|:---|
| Roll-Up Value | = | $81,445 + $15,000 - [($81,445 + 15,000) × $5,000/$70,000] |
|  | = | $81,445 + $15,000 - $6,889 |
|  | = | $89556 |
| Highest Anniversary Value | = | $85,000 + $15,000 - [($85,000 + 15,000) × $5,000/$70,000] |
|  | = | $85,000 + $15,000 - $7,143 |
|  | = | $92857 |
| Basic Death Benefit | = | max [$75,000, $50,000 + $15,000 - {(50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $92,857. | The Death Benefit therefore is $92,857. | The Death Benefit therefore is $92,857. |

---

**HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**

The Highest Daily Value Death Benefit is no longer available for new elections. If the Annuity has one Owner, the Owner must have been age 79 or less at the time the Highest Daily Value Death Benefit was elected. If the Annuity has joint Owners, the older Owner must have been age 79 or less. If there are Joint Owners, death of the Owner refers to the first to die of the Joint Owners. If the Annuity is owned by an entity, the Annuitant must have been age 79 or less at the time of election and death of the Owner refers to the death of the Annuitant.

**If you elected this benefit, you must allocate your Account Value in accordance with the permitted and available option(s) with this benefit.** For further information on asset allocation programs, please consult with your Investment Professional or call 1-800-879-7012.

The HDV Death Benefit depends on whether death occurs before or after the Death Benefit Target Date.

If the Owner dies before the Death Benefit Target Date, the Death Benefit equals the greater of:

1. the
 basic Death Benefit described above (including any Credits applied to such Purchase Payments more than twelve (12) months prior to the
 date of death); and

2. the
 HDV as of the Owner's date of death.

If the Owner dies on or after the Death Benefit Target Date, the Death Benefit equals the greater of:

1. the
 basic Death Benefit described above (including any Credits applied to such Purchase Payments more than twelve (12) months prior to the
 date of death); and

2. the
 HDV on the Death Benefit Target Date plus the sum of all Purchase Payments less the sum of all proportional withdrawals since the Death
 Benefit Target Date.

The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and decreased by any proportional withdrawals since such date.

The Highest Daily Value Death Benefit described above was offered in those jurisdictions where we received regulatory approval. The Highest Daily Value Death Benefit is not available if you elect the Guaranteed Return Option, Guaranteed Return Option Plus, the "Combination 5% Roll-up and Highest Anniversary Value" Death Benefit, or the Highest Anniversary Value Death Benefit.

**Key Terms Used with the Highest Daily Value Death Benefit:**

• The
 Death Benefit Target Date for the Highest Daily Value Death Benefit is the later of the Annuity anniversary on or after the 80 <sup>th</sup> birthday of the current
 Owner, or the older of either the joint Owner or the Annuitant, if entity owned, or five years after the Issue Date of the Annuity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 Highest Daily Value equals the highest of all previous "Daily Values" less proportional withdrawals since such date and plus
 any Purchase Payments
 since such date.

• The
 Daily Value is the Account Value as of the end of each Valuation Day. The Daily Value on the Issue Date is equal to your Purchase Payment.

• Proportional
 withdrawals are determined by calculating the percentage of your Account Value that each prior withdrawal represented when withdrawn.
 Proportional withdrawals result in a reduction to the Highest Daily Value by reducing such value in the same proportion as the Account
 Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your Highest Daily Value is $125,000
 and you subsequently withdraw $10,000 at a time when your Account Value is equal to $100,000 (a 10% reduction), when calculating
 the optional Death Benefit we will reduce your Highest Daily Value ($125,000) by 10% or $12,500.

**Examples of Highest Daily Value Death Benefit Calculation**

The following are examples of how the HDV Death Benefit is calculated. Each example assumes an initial Purchase Payment of $50,000. Each example assumes that there is one Owner who is age 70 on the Issue Date.

**<u>Example with Variable Option increase and death before Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals have been made. On the date we receive due proof of death, the Account Value is $75,000; however, the Highest Daily Value was $90,000. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Daily Value or the basic Death Benefit. The Death Benefit would be the HDV ($90,000) because it is greater than the amount that would have been payable under the basic Death Benefit ($75,000).

**<u>Example with withdrawals</u>**

Assume that the Account Value has been increasing due to positive Variable Option performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when the Account Value was $75,000. On the date we receive due proof of death, the Account Value is $80,000; however, the Highest Daily Value ($90,000) was attained during the fifth Annuity Year. Assume as well that the Owner has died before the Death Benefit Target Date. The Death Benefit is equal to the greater of the Highest Daily Value (proportionally reduced by the subsequent withdrawal) or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Daily Value | = | $90,000 - [$90,000 × $15,000/$75,000] |
|  | = | $90000 - $18000 |
|  | = | $72000 |
| Basic Death Benefit | = | max [$80,000, $50,000 - ($50,000 × $15,000/$75,000)] |
|  | = | max [$80,000, $40,000] |
|  | = | $80000 |
| The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. | The Death Benefit therefore is $80,000. |

---

**<u>Example with death after Death Benefit Target Date</u>**

Assume that the Owner's Account Value has generally been increasing due to positive Variable Option performance and that no withdrawals had been made prior to the Death Benefit Target Date. Further assume that the Owner dies after the Death Benefit Target Date, when the Account Value is $75,000. The Highest Daily Value on the Death Benefit Target Date was $80,000; however, following the Death Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account Value was $70,000. The Death Benefit is equal to the greater of the Highest Daily Value on the Death Benefit Target Date plus Purchase Payments minus proportional withdrawals after the Death Benefit Target Date or the basic Death Benefit.

---

| | | |
|:---|:---|:---|
| Highest Daily Value | = | $80,000 + $15,000 - [($80,000 + $15,000) × $5,000/$70,000] |
|  | = | $80,000 + $15,000 - $6,786 |
|  | = | $88214 |
| Basic Death Benefit | = | max [$75,000, ($50,000 + $15,000) - {($50,000 + $15,000) × $5,000/$70,000}] |
|  | = | max [$75,000, $60,357] |
|  | = | $75000 |
| The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. | The Death Benefit therefore is $88,214. |

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**Annuities with Joint Owners**

For Annuities with Joint Owners, the Death Benefits are calculated as shown above except that the age of the oldest of the Joint Owners is used to determine the Death Benefit Target Date. NOTE: If you and your spouse own the Annuity jointly, we will pay the Death Benefit to the Beneficiary. If the sole primary Beneficiary is the surviving spouse, then the surviving spouse can elect to assume ownership of the Annuity and continue the Annuity instead of receiving the Death Benefit (unless the Annuity is held as a Beneficiary Annuity).

**Annuities owned by entities**

For Annuities owned by an entity, the Death Benefits are calculated as shown above except that the age of the Annuitant is used to determine the Death Benefit Target Date. Payment of the Death Benefit is based on the death of the Annuitant (or Contingent Annuitant, if applicable).

**Can I terminate the optional Death Benefits? Do the optional Death Benefits terminate under other circumstances?**

You can terminate the Enhanced Beneficiary Protection Death Benefit and Highest Anniversary Value Death Benefit at any time. The "Combination 5% Roll-up and HAV Death Benefit" and the HDV Death Benefit may not be terminated once elected. The optional Death Benefits will terminate automatically on the Annuity Date. Also, if you elected one of either the Highest Anniversary Value or the Combination 5% Roll-up and HAV Death Benefits and, in addition, are taking withdrawals under a guaranteed minimum withdrawal or a lifetime guaranteed minimum withdrawal benefit, these optional Death Benefits will terminate if such withdrawals cause your Account Value to reduce to zero. We may also terminate any optional Death Benefit if necessary to comply with our interpretation of the Code and applicable regulations. For jointly owned Annuities, the optional death benefits are payable upon the first death of either Owner and therefore terminate and do not continue if a surviving spouse continues the Annuity. Where an Annuity is structured so that it is owned by a grantor trust but the annuitant is not the grantor, then the Annuity is required to terminate upon the death of the grantor if the grantor pre-deceases the annuitant under Section 72(s) of the Code. Under this circumstance, the Surrender Value will be paid out to the beneficiary and it is not eligible for the death benefit provided under the Annuity.

**What are the charges for the optional Death Benefits?**

The maximum charge for Highest Anniversary Value Death Benefit, Enhanced Beneficiary Protection Death Benefit, "Combination 5% Roll-up and HAV Death Benefit" and the Highest Daily Value Death Benefit respectively is 0.75%, 0.75%, 0.50% and 0.60%. We deduct the charge for each of these benefits to compensate us for providing increased insurance protection under the optional Death Benefits. The additional annual charge is deducted daily against your Account Value allocated to the Variable Options.

Please refer to the section entitled "[<u>Taxes</u>](#chapter_14-sect1_1_890)" for additional considerations in relation to the optional Death Benefit.

**ANNUITY REWARDS**

**What is the Annuity Rewards Benefit?**

The Annuity Rewards benefit offers Owners the ability to capture any Variable Option gains since the Issue Date of their Annuity as an enhancement to their current Death Benefit so their Beneficiaries will not receive less than the Annuity's value as of the date the Owner elects the benefit. Under the Annuity Rewards benefit, we guarantee that the Death Benefit will not be less than:

• your
 Account Value in the Variable Options plus the Interim Value in any Fixed Allocations as of the effective date of the benefit

• MINUS
 any proportional withdrawals\* following the effective date of the benefit

• PLUS
 any additional Purchase Payments applied to the Annuity following the effective date of the benefit. The Annuity Rewards Death Benefit
 enhancement does not affect the basic Death Benefit calculation or any Optional Death Benefits available under the Annuity. If the Death
 Benefit amount payable under your Annuity's basic Death Benefit or any Optional Death Benefits you purchase is greater than the enhanced Death Benefit
 under the Annuity Rewards benefit on the date the Death Benefit is calculated, your Beneficiary will receive the higher
 amount.

\* "Proportional withdrawals" are determined by calculating the percentage of the Account Value that each withdrawal represented when withdrawn. For example, a withdrawal of 50% of your Account Value would be treated as a 50% reduction in the amount payable under the Death Benefit.

**Who is eligible for the Annuity Rewards Benefit?**

Owners can elect the Annuity Rewards Death Benefit enhancement following the tenth (10<sup>th</sup>) anniversary of the Annuity's Issue Date. However, the Account Value on the date that the Annuity Rewards Benefit is effective must be greater than the amount that would be payable to the Beneficiary under the Death Benefit (including any amounts payable under any Optional Death Benefit then in effect). The effective date must occur before annuity payments begin. There can only be one effective date for the Annuity Rewards Death Benefit enhancement. There is no additional charge for electing the Annuity Rewards Death Benefit enhancement.

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**PAYMENT OF DEATH BENEFITS**

**Payment of Death Benefit to Beneficiary from a Non-qualified Annuity**

Except in the case of a Spousal Continuation, upon your death certain distributions must be made under the Non-qualified Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. In the event of the Decedent's death before the Annuity Date, the Death Benefit must be distributed:

1. within
 five (5) years of the date of death (the "five-year deadline"); or

2. as
 a series of payments not extending beyond the life expectancy of the Beneficiary or over the life of the Beneficiary. Payments under this
 option must begin within one year of the date of death. If the Beneficiary does not begin installments by such time, then no partial withdrawals
 will be permitted thereafter and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline.
 If we do not receive instructions on where to send the payment within five-years of the date of death, the funds will be escheated.

3. If
 the Beneficiary is the surviving spouse of the Owner, the spouse may elect to continue the Annuity.

Unless you have made an election prior to death benefit proceeds becoming due, a Beneficiary can elect to receive the Death Benefit proceeds as a series of fixed annuity payments. See the section entitled "[<u>Annuity Period</u>](#chapter_10-sect1_1_890)."

**SPOUSAL CONTINUATION OF ANNUITY**

You may name your spouse as your Beneficiary. If you and your spouse own the Annuity jointly, we assume that the sole primary Beneficiary will be the surviving spouse unless you elect an alternative Beneficiary designation. Unless you elect an alternative Beneficiary designation, the spouse Beneficiary may elect to assume ownership of the Annuity instead of taking the Death Benefit payment. Any Death Benefit (including any optional Death Benefits) that would have been payable to the Beneficiary will become the new Account Value as of the date we receive due proof of death and any required proof of a spousal relationship. As of the date the assumption is effective, the surviving spouse will have all the rights and benefits that would be available under the Annuity to a new purchaser of the same attained age. For purposes of determining any future Death Benefit for the surviving spouse, the new Account Value will be considered as the initial Purchase Payment. No CDSC will apply to the new Account Value. However, any additional Purchase Payments applied after the date the assumption is effective will be subject to all provisions of the Annuity, including any CDSC that may apply to the additional Purchase Payments.

See the section entitled "[<u>Change of Owner, Annuitant and Beneficiary Designations - Contingent Annuitant</u>](#chapter_9-sect1_2_890dd)" for a discussion of the treatment of a spousal Contingent Annuitant in the case of the death of the Annuitant in an entity owned Annuity.

**Alternative Death Benefit Payment Options – Annuities Held by Tax-Favored Plans**

Upon your death under an IRA or Roth IRA, any remaining interest must be distributed in accordance with federal income tax requirements. The post-death distribution requirements were amended, applicable generally with respect to deaths occurring after 2019, by the Further Consolidated Appropriations Act of 2020 (which includes the "Setting Every Community Up for Retirement Enhancement" Act (SECURE Act)), and further clarified by the associated final and proposed regulations. We reserve our rights to implement any additional regulations addressing these requirements in the future. The post-death distribution requirements under prior law continue to apply in certain circumstances. The following rules generally apply to deaths after 2019:

• 10-year
 rule: If you have a designated Beneficiary, any remaining interest must be distributed within 10 years after your death, unless the designated
 Beneficiary is an "eligible designated Beneficiary" ("EDB") or some other exception applies.

• Eligible
 designated beneficiaries: A designated Beneficiary is any individual designated as a Beneficiary by the IRA owner. An EDB is any designated
 Beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically ill, or (5) an individual not more than
 10 years younger than you. An individual's status as an EDB is generally determined on the date of your death.

• Other
 applicable rules: This 10-year post-death distribution period applies regardless of whether you die before your required beginning date,
 or you die on or after that date (including after distributions have commenced in the form of an annuity). However, if you die on or after
 the required beginning date, then annual distributions will be required from the Annuity during the 10-year period. If the Beneficiary
 is an EDB and the
 EDB dies before the entire interest is distributed under this 10-year rule, the remaining interest must be distributed within 10
 years after the EDB's death (i.e., a new 10-year distribution period begins).

Instead of taking distributions under the 10-year rule, an EDB can stretch distributions over life, or over a period not extending beyond life expectancy, provided that such distributions commence within one year of your death, subject to certain special rules. In addition, if your minor child is an EDB, the child will cease to be an EDB on the date the child reaches the age of 21, and any remaining interest must be distributed within 10 years after that date (regardless of whether the remaining distribution period under the stretch rule was more or less than 10 years).

It is important to note that under prior law, annuity payments that commenced under a method that satisfied the distribution requirements while the IRA Owner was alive could continue to be made under that method after the death of the IRA owner. However, under the current

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law, if you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled to be made beyond the applicable distribution period imposed under the current law might need to be commuted at the end of that period (or otherwise modified after your death if permitted under federal tax law and by Fortitude) in order to comply with the post-death distribution requirements.

The post-death distribution requirements do not apply if annuity payments that comply with prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election before that date as to the method and amount of the annuity.

If your Beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed under prior law in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

In addition, the post-death distribution requirements generally do not apply if the IRA Owner died prior to January 1, 2020. However, if the designated Beneficiary of the deceased IRA Owner dies after January 1, 2020, any remaining interest must be distributed within 10 years of the designated Beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated Beneficiary of an IRA Owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated Beneficiary of an IRA Owner who died prior to 2020.

• Spousal
 continuation. Under the current law, as under prior law, if your Beneficiary is your spouse, such surviving spouse can delay the application
 of the post-death distribution requirements until after their death by transferring the remaining interest tax-free to their own IRA,
 or by treating your IRA as their own IRA subject to specific limits under the regulations. The post-death distribution requirements are complex in numerous
 respects. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances.
 You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For more information, see "[<u>Taxes</u>](#chapter_14-sect1_1_890)." You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

Designated Beneficiaries may be eligible for the IRA Beneficiary Continuation Option; however, distribution periods may be limited by applicable tax law as stated above. Beneficiaries should consult a professional tax advisor about the federal income tax consequences of distribution options.

Upon election of this IRA Beneficiary Continuation option:

• the
 Annuity contract will be continued in the Owner's name, for the benefit of the Beneficiary.

• the
 Account Value will be equal to any Death Benefit (including any optional Death Benefit) that would have been payable to the Beneficiary
 if they had taken a lump sum distribution.

• the
 Beneficiary may request transfers among Variable Options, subject to the same limitations and restrictions that applied to the Owner. NOTE: The Variable
 Options offered under  the IRA Beneficiary Continuation option may be limited.

• no
 additional Purchase Payments can be applied to the Annuity.

• the
 basic Death Benefit and any optional Death Benefits elected by the Owner will no longer apply to the Beneficiary.

• the
 Beneficiary can request a withdrawal of all or a portion of the Account Value at any time without application of a CDSC.

• upon
 the death of the Beneficiary, any remaining Account Value will be paid in a lump sum to the person(s) named by the Beneficiary.

• all
 amounts in the Annuity must be paid out to the Beneficiary according to the Minimum Distribution rules described in the " [<u>Taxes</u>](#chapter_14-sect1_1_890) " section.

Payment under this option may be limited based on federal income tax requirements. See the "[<u>Taxes</u>](#chapter_14-sect1_1_890)" section for more information on the limitations that may apply to this option.

**Are there any exceptions to these rules for paying the Death Benefit?**

There are exceptions that apply no matter how your Death Benefit is calculated. There are exceptions to the Death Benefit if the decedent was not the Owner or Annuitant as of the Issue Date and did not become the Owner or Annuitant due to the prior Owner's or Annuitant's death. Any Death Benefit (including either optional Death Benefit) that applies will be suspended for a two-year period from the date he or she first became Owner or Annuitant. After the two-year suspension period is completed, the Death Benefit is the same as if this person had been an Owner or Annuitant on the Issue Date.

**When do you determine the Death Benefit?**

We determine the amount of the Death Benefit as of the date we receive "due proof of death", any instructions we require to determine the method of payment and any other written representations we require to determine the proper payment of the Death Benefit to all Beneficiaries. "Due proof of death" may include a certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death or other satisfactory proof of death. Upon our receipt of "due proof of death" we automatically transfer the Death Benefit to the AST Money Market Variable Option until we further determine the universe of eligible Beneficiaries.

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Each Beneficiary must make an election as to the method they wish to receive their portion of the Death Benefit. Absent an election of a Death Benefit payment method, no Death Benefit can be paid to the Beneficiary. We may require written acknowledgment of all named Beneficiaries before we can pay the Death Benefit. During the period from the date of death until we receive all required paper work, the amount of the Death Benefit may be subject to Variable Option fluctuations.

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**PURCHASES AND CONTRACT VALUE**

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**The Annuity referenced in this prospectus is no longer available for new sales or re-elections.**

**REQUIREMENTS FOR PURCHASING THE ANNUITY**

**We may apply certain limits, restrictions, and/or underwriting standards as a condition of our issuance of the annuity and/or acceptance of** **Purchase Payments. Certain of the current limitations, restrictions and standards are described below. We may change these limitations,** **restrictions and standards in the future.**

**Initial Purchase Payment:** We no longer allow new purchases of this Annuity. The minimum initial Purchase Payment was $10,000. However, if you decided to make payments under a systematic investment or "bank drafting" program, we accepted a lower initial Purchase Payment provided that, within the first Annuity Year, you made at least $10,000 in total Purchase Payments.

We must approve any initial and additional Purchase Payments where the total amount of Purchase Payments equal $1,000,000 or more with respect to this Annuity and any other annuities you are purchasing from us (or that you already own) and/or our affiliates. To the extent allowed by state law, that required approval also will apply to a proposed change of Owner of the Annuity, if as a result of the ownership change, total Purchase Payments with respect to this Annuity and all other annuities owned by the new Owner would equal or exceed that $1 million threshold. We may have applied certain limitations and/or restrictions on the Annuity as a condition of our acceptance, including limiting the liquidity features or the Death Benefit protection provided under the Annuity, limiting the right to make additional Purchase Payments, changing the number of transfers allowable under the Annuity or restricting the Variable Options that are available. Other limitations and/or restrictions may apply.

**Age Restrictions:** The Owner must have been age 75 or under as of the Issue Date of the Annuity. If the Annuity is owned jointly, the oldest of the Owners must have been age 75 or under on the Issue Date. If the Annuity is owned by an entity, the Annuitant must have been age 75 or under as of the Issue Date. The availability of certain optional benefits may vary based on the age of the Owner on the Issue Date of the Annuity.

**Special Considerations for Purchasers of Bonus or Credit Products**

This Annuity features an annual insurance charge of 0.65% and an annual Distribution Charge of 1.00%. We only deduct the Distribution Charge during the first 10 years following the effective date of your Annuity. During the first 10 years, the total asset-based charges on this Annuity are higher than many of our other annuities.

The CDSC on this Annuity is higher and is deducted for a longer period of time as compared to our other annuities. As with any investment product that features a CDSC, you should consider your need to access your Account Value during the CDSC period and whether the liquidity provision under the Annuity will satisfy that need. The CDSC is only deducted if you make a withdrawal that exceeds the Free Withdrawal amount or choose to surrender your Annuity. If you make a withdrawal or surrender your Annuity and are subject to a CDSC, we do not recapture the XTra Credit amount.

The XTra Credit amount is included in your Account Value. However, we may recapture any Credits applied to your Purchase Payment if you "free-look" your Annuity or within twelve (12) months of having received an XTra Credit amount, you die or elect to withdraw your Account Value under the medically-related surrender provision. In these situations, your Account Value could be substantially reduced. However, any investment gain on the XTra Credit amount will not be recaptured. Additional conditions and restrictions apply. We do not deduct a CDSC in any situation where we recapture the XTra Credit amount.

**DESIGNATION OF OWNER, ANNUITANT, AND BENEFICIARY**

**Owner, Annuitant and Beneficiary Designations:** On your Application, we asked you to name the Owner(s), Annuitant and one or more Beneficiaries for your Annuity.

• <u>Owner:</u> The Owner(s) holds all rights under the Annuity. You may name up to two Owners in which case all ownership rights are held jointly.
 Generally, joint Owners are required to act jointly; however, if each Owner provides us with a written form that we find acceptable, we
 will permit each Owner to act independently on behalf of both Owners. All information and documents that we are required to send you will
 be sent to the first named Owner. This Annuity does not provide a right of survivorship. Refer to the [<u>Glossary of Terms</u>](#chapter_2-sect1_1_890) for a complete description
 of the term "Owner."

• <u>Annuitant:</u> The Annuitant is the person we agree to make annuity payments to and upon whose life we continue to make such payments. You
 must name an Annuitant who is a natural person. We do not accept a designation of joint Annuitants during the Accumulation Period. Where
 allowed by law, you may name one or more Contingent Annuitants. A Contingent Annuitant will become the Annuitant if the Annuitant
 dies before the Annuity Date. Please refer to the discussion of "Considerations for Contingent Annuitants" in the " [<u>Taxes</u>](#chapter_14-sect1_1_890) "
  section of
 the Prospectus.

• <u>Beneficiary:</u> The Beneficiary is the person(s) or entity you name to receive the death benefit. If no beneficiary is named the death benefit will
 be paid to you or your estate. If no beneficiary is named for a trust owned contract, the default beneficiary will be the contract owner.

Your right to make certain designations may be limited if your Annuity is to be used as an IRA or other "qualified" investment that is given beneficial tax treatment under the Code. You should seek tax advice on the income, estate and gift tax implications of your designations.

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**HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?**

(See "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_13_890)" for a description of our procedure for pricing initial and subsequent Purchase Payments.)

**Initial Purchase Payment:** Once we accepted your application, we invested your net Purchase Payment in the Annuity. The net Purchase Payment is your initial Purchase Payment minus any tax charges that may apply. The Annuity is no longer sold.

**Subsequent Purchase Payments:** We will allocate any additional Purchase Payments you make according to your current allocation instructions. If any rebalancing or asset allocation programs are in effect, the allocation should conform with such a program. We assume that your current allocation instructions are valid for subsequent Purchase Payments until you make a change to those allocations or request new allocations when you submit a new Purchase Payment.

Depending on the tax status of your Annuity (e.g., if you own the Annuity through an IRA), there may be annual contribution limits dictated by applicable law. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_890)" for additional information on these contribution limits.

**HOW DO I RECEIVE CREDITS?**

We apply a "Credit" to your Annuity's Account Value each time you make a Purchase Payment during the first six (6) Annuity Years. The amount of the Credit is payable from our general account. The amount of the Credit depends on the Annuity Year in which the Purchase Payment(s) is made and is described in your Contract. No Credits are available for Purchase Payments in Annuity Years seven and later.

**HOW ARE CREDITS APPLIED TO MY ACCOUNT VALUE?**

Each Credit is allocated to your Account Value at the time the Purchase Payment is applied to your Account Value. The amount of the Credit is allocated to the investment options in the same ratio as the applicable Purchase Payment is applied and is thereafter treated as a Purchase Payment.

**Examples of Applying Credits**

*Initial Purchase Payment*

*Assume you make an initial Purchase* Payment of $10,000. We would apply a 6.0% Credit to your Purchase Payment and allocate the amount of the Credit ($600 = $10,000 × .06) to your Account Value in the proportion that your Account Value is allocated.

Additional Purchase Payment in Annuity Year 2 Assume that you make an additional Purchase Payment of $5,000. We would apply a 5.0% Credit to your Purchase Payment and allocate the amount of the Credit ($250 = $5,000 × .05) to your Account Value.

Additional Purchase Payment in Annuity Year 6 Assume that you make an additional Purchase Payment of $15,000. We would apply a 1.0% Credit to your Purchase Payment and allocate the amount of the Credit ($150 = $15,000 × .01) to your Account Value.

The amount of any Credits applied to your Account Value can be recaptured by us under certain circumstances:

• any
 Credits applied to your Account Value on Purchase Payments made within the 12 months before the date of death will be recaptured.

• the
 amount available under the medically-related surrender portion of the Annuity will not include the amount of any Credits payable on Purchase
 Payments made within 12 months of the date the Annuitant first became eligible for the medically-related surrender.

• if
 you elect to "free-look" your Annuity, the amount returned to you will not include the amount of any Credits. The Account
 Value may be substantially
 reduced if we recapture the XTra Credit amount under these circumstances. However, any investment gain on the XTra Credit
 amount will not be taken back. We do not deduct a CDSC in any situation where we recapture the XTra Credit  amount. During the first
 10 Annuity Years, the total asset-based charges on this Annuity (including the insurance charge and the Distribution Charge) are higher
 than many of our other annuities, including other annuities we offer that apply Credits to Purchase Payments.

**Examples of Recapturing Credits**

The following are hypothetical examples of how Credits could be recaptured by us. These examples do not cover every potential situation. These are the only situations in which Credits may be recaptured.

*Recapture from payment of Death Benefits*

1. Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If the Death Benefit becomes payable
 in the 9 <sup>th</sup> month after the Issue Date, the amount of the Death Benefit would be reduced by the entire amount of the prior Credits ($3,600).

2. Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If death occurs in the 16 <sup>th</sup> month after the Issue
 Date, the amount of the Death Benefit would be reduced but only in the amount of those Credits applied within the previous
 12-months. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the

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date of death, the Death Benefit would not be reduced by the amount of the Credits applied to the initial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date of death. Therefore, the amount of the Death Benefit would be reduced by the amount of the Credits payable on the additional Purchase Payment ($600).

3. NOTE:
 If the Death Benefit would otherwise have been equal to the Purchase Payments minus any proportional withdrawals due to poor investment
 performance, we will not reduce the amount of the Death Benefit by the amount of the Credits as shown in Example 2 above.

*Recapture from Medically-Related Surrenders*

1. Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You receive a Credit of $3,000 ($50,000 ×  .06). The Annuitant is diagnosed
 as terminally ill in the 6 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the
 medically-related surrender provision. Assuming the Credits were applied within 12-months of the date of diagnosis of the terminal illness,
 the amount that would be payable under the medically-related surrender provision would be reduced by the entire amount of the Credits
 ($3,000).

2. Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. The Annuitant is diagnosed as terminally
 ill in the 16 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the medically-related surrender
 provision. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the diagnosis,
 the amount that would be payable upon the medically-related surrender provision would not be reduced by the amount of the Credits
 applied to the initial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date
 of diagnosis. Therefore, the amount that would be payable under the medically-related surrender provision would be reduced by the amount
 of the Credits payable on the additional Purchase Payment ($600).

**General Information about Credits**

• We
 do not consider Credits to be "investment in the contract" (also known as "basis") for income tax purposes.

• You
 may not withdraw the amount of any Credits under the Free Withdrawal provision. The Free Withdrawal provision only applies to withdrawals
 of Purchase Payments.

• Credits
 are included in any contract level standardized or non-standardized performance calculations.

• Please
 note that we expect to make a profit from the Annuity, even though there is not an explicit charge for the Credits.

**ADDITIONAL PURCHASE PAYMENTS**

The minimum amount that we accept as an additional Purchase Payment is $100 unless you participate in the Systematic Investment Program or a periodic Purchase Payment program. Unless you participate in an asset allocation program, or unless you have provided us with other specific allocation instructions for one, more than one, or all subsequent Purchase Payments, we will allocate any additional Purchase Payments you make according to your initial Purchase Payment allocation instructions. If you so instruct us, we will allocate subsequent Purchase Payments according to any new allocation instructions. Purchase Payments made while you participate in an asset allocation program will be allocated in accordance with such program. Additional Purchase Payments may be paid at any time before the Annuity Date.

**SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT**

You can make additional Purchase Payments to your Annuity by authorizing us to deduct money directly from your bank account and applying it to your Annuity. This type of program is often called "bank drafting". We call our bank drafting program the "Systematic Investment Program." Purchase Payments made through the Systematic Investment Program may only be allocated to the Variable Options when applied. Bank drafting allows you to invest in your Annuity with a lower initial Purchase Payment, as long as you authorize payments that will equal at least $10,000 during the first 12 months of your Annuity. We may suspend or cancel bank drafting privileges if sufficient funds are not available from the applicable financial institution on any date that a transaction is scheduled to occur.

**SALARY REDUCTION PROGRAM**

These types of programs are only available with certain types of qualified investments. If your employer sponsors such a program, we may agree to accept periodic Purchase Payments through a salary reduction program as long as the allocations are made only to Variable Options and the periodic Purchase Payments received in the first year total at least $10,000.

**HOW IS MY ACCOUNT VALUE DETERMINED?**

During the Accumulation Period, the Annuity has an Account Value. The Account Value is determined separately for each Variable Option allocation and for each Fixed Allocation. The Account Value is the sum of the values of each Variable Option allocation and the value of each Fixed Allocation. The Account Value does not reflect any CDSC that may apply to a withdrawal or surrender. The Account Value includes any Credit we apply to your Purchase Payments that we are entitled to recapture under certain circumstances. When determining the Account Value on any day other than 30 days prior to a Fixed Allocation's Maturity Date, the Account Value may include any Market Value Adjustment that would apply to a Fixed Allocation (if withdrawn or transferred) on that day.

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**SURRENDER VALUE**

The Surrender Value of your Annuity is the value available to you on any day during the Accumulation Period. The Surrender Value is defined under "[<u>Glossary of Terms</u>](#chapter_2-sect1_1_890)".

**VALUING THE VARIABLE OPTIONS**

When you allocate Account Value to a Variable Option, you are purchasing Units of the Variable Option. Each Variable Option invests exclusively in shares of an underlying Portfolio. The value of the Units fluctuates with the market fluctuations of the Portfolios. The value of the Units also reflects the daily accrual for the insurance charge and if you elected one or more optional benefits whose annual charge is deducted daily; the additional charge made for such benefits. There may be several different Unit Prices for each Variable Option to reflect the insurance charge and the charges for any optional benefits. The Unit Price for the Units you purchase will be based on the total charges for the benefits that apply to your Annuity. See the section entitled "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_13_890)" for a detailed discussion of how Units are purchased and redeemed to reflect changes in the daily charges that apply to your Annuity.

Each Valuation Day, we determine the price for a Unit of each Variable Option, called the "Unit Price." The Unit Price is used for determining the value of transactions involving Units of the Variable Options. We determine the number of Units involved in any transaction by dividing the dollar value of the transaction by the Unit Price of the Variable Option as of the Valuation Day. The investment performance of the Portfolios, expenses, and deductions of certain charges affects the Unit Price, the number of Units, or both.

**Example**

Assume you allocate $5,000 to a Variable Option. On the Valuation Day you make the allocation, the Unit Price is $14.83. Your $5,000 buys 337.154 Units of the Variable Option. Assume that later, you wish to transfer $3,000 of your Account Value out of that Variable Option and into another Variable Option. On the Valuation Day you request the transfer, the Unit Price of the original Variable Option has increased to $16.79. To transfer $3,000, we sell 178.677 Units at the current Unit Price, leaving you 158.477 Units. We then buy $3,000 of Units of the new Variable Option at the Unit Price of $17.83. You would then have 168.255 Units of the new Variable Option.

**VALUING THE FIXED ALLOCATIONS**

During the Guarantee Period, we use the concept of an Interim Value. The Interim Value can be calculated on any day and is equal to the initial value allocated to a Fixed Allocation plus all interest credited to a Fixed Allocation as of the date calculated. The Interim Value does not include the impact of any Market Value Adjustment. If you made any transfers or withdrawals from a Fixed Allocation, the Interim Value will reflect the withdrawal of those amounts and any interest credited to those amounts before they were withdrawn. To determine the Account Value of a Fixed Allocation on any day more than 30 days prior to its Maturity Date, we multiply the Account Value of the Fixed Allocation times the Market Value Adjustment factor.

**PROCESSING AND VALUING TRANSACTIONS**

We are generally open to process financial transactions on those days that the New York Stock Exchange (NYSE) is open for trading. There may be circumstances where the NYSE does not open on a regularly scheduled date or time or closes at an earlier time than scheduled (normally 4:00 p.m. Eastern Time). Financial transactions requested before the close of the NYSE which meet our requirements will be processed according to the value next determined following the close of business. Financial transactions requested on a non-Valuation Day or after the close of the NYSE will be processed based on the value next computed on the next Valuation Day. There may be circumstances when the opening or closing time of the NYSE is different than other major stock exchanges, such as NASDAQ. Under such circumstances, the closing time of the NYSE will be used when valuing and processing transactions.

There may be circumstances where the NYSE is open, however, due to inclement weather, natural disaster or other circumstances beyond our control, our offices may be closed or our business processing capabilities may be restricted. Under those circumstances, your Account Value may fluctuate based on changes in the Unit Values, but you may not be able to transfer Account Value or make a purchase or redemption request.

The NYSE is closed on certain announced holidays. On those dates, we will not process any financial transactions involving purchase or redemption orders.

We will also not process financial transactions involving purchase or redemption orders or transfers on any day that:

• trading
 on the NYSE is restricted;

• an
 emergency exists making redemption or valuation of securities held in the Separate Account impractical; or

• the
 SEC, by order, permits the suspension or postponement for the protection of security holders.

**Initial Purchase Payments:** We no longer allow new purchases of this Annuity. We allocated your initial Purchase Payment to the Variable Options within two (2) days after we receive all of our requirements to issue the Annuity. If we did not have all the required information to allow us to issue your Annuity, we may have retained the Purchase Payment while we tried to reach you or your representative to obtain all of our requirements. If we were unable to obtain all of our required information within five (5) days, we were required to return the Purchase Payment to you at that time, unless you

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specifically consented to our retaining the Purchase Payment while we gathered the required information. Once we obtained the required information, we invested the Purchase Payment and issued the Annuity within two (2) days. During any period that we were trying to obtain the required information, your money was not invested.

**Additional Purchase Payments:** We will apply any additional Purchase Payments on the Valuation Day that we receive the Purchase Payment with satisfactory allocation instructions.

**Scheduled Transactions:** "Scheduled" transactions include transfers under a Dollar Cost Averaging, rebalancing, or asset allocation program, Systematic Withdrawals, Minimum Distributions or annuity payments. Scheduled transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Valuation Day. In that case, the transaction will be processed and valued on Valuation Day prior to the scheduled transaction date.

**Unscheduled Transactions:** "Unscheduled" transactions include any other non-scheduled transfers and requests for Partial Withdrawals or Free Withdrawals or Surrenders. Unscheduled transactions are processed and valued as of the Valuation Day we receive the request at our Office and have all of the required information.

**Deferral of Transactions:** We may defer any annuity payment for a period not to exceed the lesser of 6 months or the period permitted by law. If we defer a distribution or transfer from any Fixed Allocation or any fixed annuity payout for more than thirty days, we pay interest of at least 3% per year on the amount deferred. We may defer any distribution from any Variable Option or any transfer from a Variable Option for a period not to exceed 7 calendar days from the date the transaction is effected. Any other deferral period begins on the date such distribution or transfer would otherwise have been transacted.

**Medically-related Surrenders & Death Benefits:** Medically-related surrender requests and Death Benefit claims require our review and evaluation before processing. We price such transactions as of the date we receive at our Office all supporting documentation we require for such transactions and that are satisfactory to us.

**Transactions in ProFunds VP Variable Options:** Generally, purchase or redemption orders or transfer requests must be received by us by no later than the close of the NYSE to be processed on the current Valuation Day. However, any purchase or redemption order or transfer request involving the ProFunds VP Variable Options must be received by us no later than one hour prior to any announced closing of the applicable securities exchange (generally, 3:00 p.m. Eastern Time) to be processed on the current Valuation Day. The "cut-off" time for such financial transactions involving a ProFunds VP Variable Option will be extended to ½ hour prior to any announced closing (generally, 3:30 p.m. Eastern Time) for transactions submitted electronically through our website (<u>www.prudential.com/annuities</u>). You cannot request a transaction involving the purchase, redemption or transfer of Units in one of the ProFunds VP Variable Options between the applicable "cut-off" time and 4:00 p.m. Transactions received after 4:00 p.m. will be treated as received by us on the next Valuation Day.

**Distribution Charge:** At the end of the Period during which the Distribution Charge applies, your Annuity will become subject to a lower daily asset-based charge. We will process a transaction where your Account Value allocated to the Variable Options will be used to purchase new Units of the same Variable Options that reflect the insurance charge (and the charge for any optional benefits you have elected) but not the Distribution Charge. The number of Units attributed to your Annuity will be decreased and the Unit Price of each Unit of the Variable Options in which you invested will be increased. The adjustment in the number of Units and Unit price will not affect your Account Value at the time that the transaction is processed. However, beginning on that date, your Account Value will be determined based on the change in the value of Units that reflect the insurance charge and any other optional benefits that you have elected.

**Termination of Optional Benefits:** Except for Guaranteed Minimum Income Benefit, the Combination 5% Roll-up and Highest Anniversary Value Death Benefit and the Highest Daily Value Death Benefit which cannot be terminated by the Owner once elected, if any optional benefit terminates, we will no longer deduct the charge we apply to purchase the optional benefit. On the date the charge no longer applies, your Annuity will become subject to a different daily asset-based charge. We will process a transaction where your Account Value allocated to the Variable Options will be used to purchase new Units of the Variable Options that reflect the insurance charge and any optional benefit or program still elected, but not the charge for the optional benefit or program that you terminated. The number of Units attributed to your Annuity will be decreased and the Unit Price of each Unit of the Variable Options in which you invested will be increased. **The adjustment in the number of Units and Unit Price will not affect your Account Value.** Beginning on that date, your Account Value will be determined based on the change in the value of Units that reflect the insurance charge and any other optional benefits that you have elected.

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**SURRENDERS AND WITHDRAWALS**

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**TYPES OF DISTRIBUTIONS AVAILABLE TO YOU**

During the Accumulation Period you can access your Account Value through partial withdrawals, Systematic Withdrawals, and where required for tax purposes, Minimum Distributions. You can also surrender your Annuity at any time. We may deduct a portion of the Account Value being withdrawn or surrendered as a CDSC. The CDSC will be assessed on the amount of Purchase Payments, not on the Account Value at the time of the withdrawal or surrender. If you surrender your Annuity, in addition to any CDSC, we may deduct the Annual Maintenance Fee, any Tax Charge that applies and the charge for any optional benefits. We may also apply a Market Value Adjustment to any Fixed Allocations being withdrawn or surrendered. Certain amounts may be available to you each Annuity Year that are not subject to a CDSC. These are called "Free Withdrawals." In addition, under certain circumstances, we may waive the CDSC for surrenders made for qualified medical reasons or for withdrawals made to satisfy Minimum Distribution requirements. Unless you notify us differently, withdrawals are taken on a proportional basis based on the Account Value in the investment options at the time we receive your withdrawal request. Each of these types of distributions is described more fully below.

**TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NON-QUALIFIED ANNUITIES**

(For more information, see "[<u>Taxes</u>](#chapter_14-sect1_1_890)")

**Prior to Annuitization**

For federal income tax purposes, a distribution during the Accumulation Period is deemed to come first from any "gain" in your Annuity and second as a return of your "cost basis", if any. Distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. If you take a distribution prior to the taxpayer's age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain. You may wish to consult a professional tax advisor for advice before requesting a distribution.

**During Annuitization**

During the Annuitization period, a portion of each annuity payment is taxed as ordinary income at the tax rate you are subject to at the time of the payment. The Code and regulations have "exclusionary rules" that we use to determine what portion of each annuity payment should be treated as a return of any cost basis you have in the Annuity. Once the cost basis in the Annuity has been distributed, the remaining annuity payments are taxable as ordinary income. The cost basis in the Annuity may be based on the cost basis from a prior contract in the case of a Section 1035 exchange or other qualifying transfer. There may also be tax implications on distributions from qualified Annuities. See "[<u>Taxes</u>](#chapter_14-sect1_1_890)" for information about qualified Annuities and for additional information about Non-qualified Annuities.

**CAN I WITHDRAW A PORTION OF MY ANNUITY?**

You can make a withdrawal during the Accumulation Period.

• To
 meet liquidity needs, you can withdraw a limited amount from your Annuity during each of Annuity Years 1-8 without a CDSC being applied.
 We call this the "Free Withdrawal" amount. The Free Withdrawal amount is not available if you choose to surrender your Annuity. Amounts withdrawn
 as a Free Withdrawal do not reduce the amount of CDSC that may apply upon a subsequent withdrawal or surrender of
 the Annuity. The minimum Free Withdrawal you may request is $100.

• You
 can also make withdrawals in excess of the Free Withdrawal amount. We call this a "Partial Withdrawal." The amount that you
 may withdraw will
 depend on the Annuity's Surrender Value. The Surrender Value is equal to your Account Value minus any CDSC, the Annual Maintenance
 Fee, the Tax Charge, any charges for optional benefits and any Market Value Adjustment that may apply to any Fixed Allocations.
 After any Partial Withdrawal, your Annuity must have a Surrender Value of at least $1,000, or we may treat the Partial Withdrawal
 request as a request to fully surrender your Annuity. The minimum Partial Withdrawal you may request is $100.

When we determine if a CDSC applies to Partial Withdrawals and Systematic Withdrawals, we will first determine what, if any, amounts qualify as a Free Withdrawal. Those amounts are not subject to the CDSC. Partial Withdrawals or Systematic Withdrawals of amounts greater than the maximum Free Withdrawal amount will be subject to a CDSC.

*Gross Withdrawal or Net Withdrawal.* Generally, you can request either a gross withdrawal or a net withdrawal. If, however, you are taking your withdrawal through a systematic withdrawal program, you may only be permitted to take that withdrawal on a gross basis. In a gross withdrawal, you request a specific withdrawal amount with the understanding that the amount you actually receive is reduced by any applicable CDSC or tax withholding. In a net withdrawal, you request a withdrawal for an exact dollar amount with the understanding that any applicable deduction for CDSC or tax withholding is taken from your Account Value. This means that an amount greater than the amount of your requested withdrawal will be deducted from your Account Value. To make sure that you receive the full amount requested, we calculate the entire amount, including the amount generated due to the CDSC or tax withholding, that will need to be withdrawn. We then apply the CDSC or tax withholding to that entire amount. As a result, you will pay a greater CDSC or have more tax withheld if you elect a net withdrawal.

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To request the forms necessary to make a withdrawal from your Annuity, call 1-800-879-7012 or visit our website at <u>www.prudential.com/annuities</u>.

**FREE WITHDRAWAL AMOUNTS**

***Annuity Years 1-10***

The maximum Free Withdrawal amount during each of Annuity Years 1 through 10 (when a CDSC would otherwise apply to a partial withdrawal or surrender of your initial Purchase Payment) is 10% of all Purchase Payments. We may apply a Market Value Adjustment to any Fixed Allocations. If you do not make a Free Withdrawal during an Annuity Year, you are not allowed to carry over the Free Withdrawal amount to the next Annuity Year. Withdrawals of amounts greater than the maximum Free Withdrawal amount are treated as a withdrawal of Purchase Payments and will be assessed a CDSC during Annuity Years 1 through 10.

**NOTE**: Amounts that you have withdrawn as a Free Withdrawal will not reduce the amount of any CDSC that we deduct if, during the first ten (10) Annuity Years, you make a partial withdrawal or choose to surrender the Annuity. If, during Annuity Years 1 through 10, all Purchase Payments withdrawn are subject to a CDSC, then any subsequent withdrawals will be withdrawn from any gain in the Annuity, which may include Credits.

***Annuity Years 11+***

After Annuity Year 10, you can surrender your Annuity or make a partial withdrawal without a CDSC being deducted from the amount being withdrawn.

**Examples**

1. Assume
 you make an initial Purchase Payment of $10,000 and make no additional Purchase Payments. The maximum Free Withdrawal amount
 during each of the first ten Annuity Years would be 10% of $10,000, or $1,000.

2. Assume
 you make an initial Purchase Payment of $10,000 and make an additional Purchase Payment of $5,000 in Annuity Year 2. The maximum
 Free Withdrawal amount during Annuity Year 3 through 10 would be 10% of $15,000, or $1,500. From Annuity Year 11 and thereafter,
 you can surrender your Annuity or make a partial withdrawal without a CDSC being deducted from the amount being withdrawn.

3. Assume
 you make an initial Purchase Payment of $10,000 and take a Free Withdrawal of $500 in Annuity Year 2 and $1,000 in Annuity Year
 3. If you surrender your Annuity in Annuity Year 5, the CDSC will be assessed against the initial Purchase Payment amount ($10,000),
 not the amount of Purchase Payments reduced by the amounts that were withdrawn under the Free Withdrawal provision.

**IS THERE A CHARGE FOR A PARTIAL WITHDRAWAL?**

A CDSC may be assessed against a partial withdrawal during the first ten (10) Annuity Years. Whether a CDSC applies and the amount to be charged depends on whether the partial withdrawal exceeds any Free Withdrawal amount and, if so, the number of years that have elapsed since the Issue Date of the Annuity.

1. If
 you request a partial withdrawal, we determine if the amount you requested is available as a Free Withdrawal (in which case it would not be subject to a CDSC);

2. If the amount requested exceeds the available Free Withdrawal amount, we determine if a CDSC will apply to the partial withdrawal based on the number
 of years that have elapsed since the Annuity was issued. Any CDSC will only apply to the amount withdrawn that exceeds
 the Free Withdrawal amount. The maximum Free Withdrawal amount during each of Annuity Years 1 through 10 is 10% of all Purchase
 Payments. Withdrawals of amounts greater than the maximum Free Withdrawal amount are treated as a withdrawal of Purchase
 Payments and will be assessed a CDSC. If, during Annuity Years 1 through 10, all Purchase Payments are withdrawn subject to a
 CDSC, then any subsequent withdrawals will be withdrawn from any gain in the Annuity, which may include Credits.

**CAN YOU CLOSE MY ACCOUNT AND INVOLUNTARILY REDEEM MY INVESTMENT?**

As explained above, after any Partial Withdrawal, your Annuity must have a Surrender Value of at least $1,000, or we may treat the Partial Withdrawal request as a request to fully surrender your Annuity.

**SYSTEMATIC WITHDRAWALS**

You can receive Systematic Withdrawals of earnings only, principal plus earnings or a flat dollar amount. Systematic Withdrawals based on the Free Withdrawal amount are only available if the contract is still within the surrender charge period and will be calculated based only on the Purchase Payments that are still subject to CDSC. Systematic Withdrawals may be subject to a CDSC. We will determine whether a CDSC applies and the amount in the same way as we would for a Partial Withdrawal.

Systematic Withdrawals can be made from Account Value allocated to the Variable Options or Fixed Allocations. Generally, Systematic Withdrawals from Fixed Allocations are limited to earnings accrued after the program of Systematic Withdrawals begins, or payments of fixed dollar amounts that do not exceed such earnings. Systematic Withdrawals are available on a monthly, quarterly, semi-annual or annual basis. We may require that the Surrender Value of your Annuity must be at least $20,000 before we will allow you to begin a program of Systematic Withdrawals.

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The minimum amount for each Systematic Withdrawal is $100. If any scheduled Systematic Withdrawal is for less than $100, we may postpone the withdrawal and add the expected amount to the amount that is to be withdrawn on the next scheduled Systematic Withdrawal.

**SYSTEMATIC WITHDRAWALS UNDER SECTION 72(t) OF THE INTERNAL REVENUE CODE**

If your Annuity is used as a funding vehicle for certain retirement plans that receive special tax treatment under Sections 401, 403(b) or 408 of the Code, Section 72(t) of the Code may provide an exception to the 10% additional tax on distributions made prior to age 59½ if you elect to receive distributions as a series of "substantially equal periodic payments". Distributions received under this provision in any Annuity Year that exceed the maximum amount available as a Free Withdrawal will be subject to a CDSC. We may apply a Market Value Adjustment to any Fixed Allocations. To request a program that complies with Section 72(t), you must provide us with certain required information in writing on a form acceptable to us. We may require advance notice to allow us to calculate the amount of 72(t) withdrawals. The Surrender Value of your Annuity must be at least $20,000 before we will allow you to begin a program for withdrawals under Section 72(t). The minimum amount for any such withdrawal is $100.

You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments before age 59½ that are not subject to the 10% additional tax.

**REQUIRED MINIMUM DISTRIBUTIONS**

(See "[<u>Taxes</u>](#chapter_14-sect1_1_890)" for a further discussion of Minimum Distributions.)

Minimum Distributions are a type of Systematic Withdrawal we allow to meet distribution requirements under Sections 401, 403(b) or 408 of the Code. Under the Code, you may be required to begin receiving periodic amounts from your Annuity. In such case, we will allow you to make Systematic Withdrawals in amounts that satisfy the minimum distribution rules under the Code. We do not assess a CDSC on Minimum Distributions from your Annuity if you are required by law to take such Minimum Distributions from your Annuity at the time it is taken. However, a CDSC may be assessed on that portion of a Systematic Withdrawal that is taken to satisfy the minimum distribution requirements in relation to other savings or investment plans under other qualified retirement plans not maintained with us.

The amount of the required Minimum Distribution for your particular situation may depend on other annuities, savings or investments. We will only calculate the amount of your required Minimum Distribution based on the value of your Annuity. We require three (3) days advance written notice to calculate and process the amount of your payments. You may elect to have Minimum Distributions paid out monthly, quarterly, semi-annually or annually. The $100 minimum amount that applies to Systematic Withdrawals applies to monthly minimum distributions but does not apply to minimum distributions taken out on a quarterly, semi-annual or annual basis.

You may also annuitize your contract and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments and satisfying the Minimum Distribution requirements under the Code.

In any year in which the requirement to take Required Minimum Distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a Required Minimum Distribution if not for the suspension as eligible for treatment as described herein.

**SURRENDER VALUE**

During the Accumulation Period you can surrender your Annuity at any time. Upon surrender, you will receive the Surrender Value. Upon surrender of your Annuity, you will no longer have any rights under the Annuity.

For purposes of calculating the CDSC on surrender, the Purchase Payments being withdrawn may be greater than your remaining Account Value or the amount of your withdrawal request. This is most likely to occur if you have made prior withdrawals under the Free Withdrawal provision or if your Account Value has declined in value due to negative Variable Option performance. We may apply a Market Value Adjustment to any Fixed Allocations.

To request the forms necessary to surrender your Annuity, contact our Customer Service Team at 1-800-879-7012 or visit our website at <u>www.prudential.com/annuities</u>.

**MEDICALLY-RELATED SURRENDERS**

Where permitted by law, you may request to surrender your Annuity prior to the Annuity Date without application of any CDSC upon occurrence of a medically-related "Contingency Event". We may apply a Market Value Adjustment to any Fixed Allocations. The amount payable will be your Account Value minus: (a) the amount of any Credits applied within 12 months of the applicable "Contingency Event" as defined below; and (b) the amount of any Credits added in conjunction with any Purchase Payments received after our receipt of your request for a medically-related surrender (i.e. Purchase Payments received at such time pursuant to a salary reduction program).

This waiver of any applicable CDSC is subject to our rules, including but not limited to the following:

• the
 Annuitant must be named, or any change of Annuitant must be accepted by us, prior to the "Contingency Event" described below;

• the
 Annuitant must be alive as of the date we pay the proceeds of such surrender request;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• if
 the Owner is one or more natural persons, all such Owners must also be alive at such time;

• we
 must receive satisfactory proof of the Annuitant's confinement in a Medical Care Facility or Fatal Illness in writing on a form satisfactory to us;

• this
 benefit is not available if the total Purchase Payments received exceed $500,000 for all annuities issued by us with this benefit where the same person is
 named as Annuitant; and

• proceeds
 will only be sent by check or electronic fund transfer directly to the Owner.

A "Contingency Event" occurs if the Annuitant is:

• first
 confined in a "Medical Care Facility" while your Annuity is in force and remains confined for at least 90 days in a row; or

• first
 diagnosed as having a "Fatal Illness" while your Annuity is in force.

The definitions of "Medical Care Facility" and "Fatal Illness," as well as additional terms and conditions, are provided in your Annuity. Specific details and definitions in relation to this benefit may differ in certain jurisdictions.

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**TAXES**

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The tax considerations associated with an Annuity vary depending on whether the Annuity is (i) owned by an individual or non-natural person, and not associated with a tax-favored retirement plan, or (ii) held under a tax-favored retirement plan. We discuss the tax considerations for these categories of Annuities below. The discussion is general in nature and describes only federal income tax law. We generally do not describe state, local, foreign or other federal tax laws. It is based on current law and interpretations which may change. The information provided is not intended as tax advice. The federal income tax treatment of the Annuity is unclear in certain circumstances, and you should always consult a qualified tax advisor regarding the application of law to individual circumstances. Generally, the cost basis in an Annuity is the amount you pay into your Annuity, or into an annuity exchanged for your Annuity, on an after-tax basis less any withdrawals of such payments. Cost basis for a tax-favored retirement plan is provided only in limited circumstances, such as for contributions to a Roth IRA or nondeductible contributions to a traditional IRA. We do not track cost basis for tax-favored retirement plans, which is the responsibility of the Owner.

On advisory products, you may establish an advisory fee deduction program for a qualified or Non-qualified Annuity such that charges for investment advisory fees are not taxable to the Annuity Owner. Please note that there are additional requirements that must be satisfied in order for investment advisory fee charges paid from a Non-qualified Annuity to be treated as not taxable.

The discussion below generally assumes that the Annuity is issued to the Annuity Owner. For Annuities issued under the Beneficiary Continuation Option or as a Beneficiary Annuity, refer to the Taxes Payable by Beneficiaries for a Non-qualified Annuity and Required Distributions Upon Your Death for Qualified Annuities sections below.

**NON-QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Non-qualified Annuity is owned by an individual or non-natural person and is not associated with a** **tax-favored retirement plan.**

**Taxes Payable by You**

We believe the Annuity is an Annuity for tax purposes. Accordingly, as a general rule, you should not pay any tax until you receive money under the Annuity. Generally, all Annuity contracts issued by the same company (and affiliates) to you during the same calendar year must be treated as one Annuity for purposes of determining the amount of any withdrawal that is subject to tax under the rules described below. We treat advisory fee payments as an expense of the Annuity and not a taxable distribution if your Non-qualified Annuity satisfies the requirements of a Private Letter Ruling issued to us by the Internal Revenue Service ("IRS"). In accordance with the PLR, advisory fee payments from your Non-qualified Annuity are treated as an expense as long as your advisor attests to us that the PLR requirements have been met, including that the advisory fees will not exceed 1.5% of the Annuity's cash value and the Annuity only pays the advisor for fees related to investment advice with respect to the Annuity and no other services. The PLR does not generally allow such favorable tax treatment of advisory fee payments where a commission is also paid on the Annuity.

It is possible that the IRS could assert that some or all of the charges for the optional living or death benefits under the Annuity should be treated for federal income tax purposes as a partial withdrawal from the Annuity. If this were the case, the charge for this benefit could be deemed a withdrawal and treated as taxable income to the extent there are earnings in the Annuity. Additionally, for Owners under age 59½, the taxable income attributable to the charge for the benefit could be subject to the 10% additional tax. If the IRS determines that the charges for one or more benefits under the Annuity are taxable withdrawals, then the sole, primary, or surviving Owner will be provided with a notice from us describing available alternatives regarding these benefits.

**Taxes on Withdrawals and Surrender Before Annuity Payments Begin**

If you make a withdrawal from your Annuity or surrender it before annuity payments begin, the amount you receive will be taxed as ordinary income, rather than as a return of cost basis, until all gain has been withdrawn. At any time there is no gain in your Annuity, payments will be treated as a nontaxable return of cost basis until all cost basis has been returned. After all cost basis is returned, all subsequent amounts will be taxed as ordinary income. An exception to this treatment exists for contracts that include Purchase Payments made prior to August 14, 1982 that are issued via 1035 exchange. Withdrawals from a contract with Purchase Payments made before August 14, 1982 are treated as a return of cost basis in the Annuity first until those pre-August 14, 1982 Purchase Payments are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982 is not subject to the 10% additional tax.

You will generally be taxed on any withdrawals from the Annuity while you are alive even if the withdrawal is paid to someone else. Withdrawals under any of the optional living benefits or as a systematic payment are taxed under these rules. If you assign or pledge all or part of your Annuity as collateral for a loan, the part assigned generally will be treated as a withdrawal and subject to income tax to the extent of gain. If the entire Account Value is assigned or pledged, subsequent increases in the Account Value are also treated as withdrawals for as long as the assignment or pledge remains in place. The cost basis is increased by the amount includible in income with respect to such assignment or pledge. If you transfer your Annuity for less than full consideration, such as by gift, you will also trigger tax on any gain in the Annuity. Under most circumstances, this rule does not apply if you transfer the Annuity to your spouse or if you transfer the Annuity incident to divorce.

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If you choose to receive payments under an interest payment option, or a Beneficiary chooses to receive a death benefit under an interest payment option, that election will be treated, for tax purposes, as surrendering your Annuity and will immediately subject any gain in the Annuity to income tax and possibly the 10% additional tax.

**Taxes on Annuity Payments**

If you select an annuity payment option as described in "[<u>Annuity Period</u>](#chapter_10-sect1_1_890)", a portion of each annuity payment you receive will be treated as a partial return of your cost basis and will not be taxed. The remaining portion will be taxed as ordinary income. Generally, the nontaxable portion is determined by multiplying the annuity payment you receive by a fraction, the numerator of which is your cost basis (less any amounts previously received tax-free) and the denominator of which is the total expected payments under the Annuity. After the full amount of your cost basis has been recovered tax-free, the full amount of the annuity payments will be taxable. If annuity payments stop due to the death of the Annuitant before the full amount of your cost basis has been recovered, a tax deduction may be allowed for the unrecovered amount.

If your Account Value is reduced to zero but the Annuity remains in force due to a benefit provision, further distributions from the Annuity will be reported as annuity payments, using an exclusion ratio based upon the undistributed cost basis in the Annuity and the total value of the anticipated future payments until such time as all cost basis has been recovered.

**Maximum Annuity Date**

You must commence annuity payments no later than the first day of the calendar month following the maximum Annuity Date for your Annuity. Upon reaching the maximum Annuity Date you can no longer make Purchase Payments, surrender, exchange, or transfer your contract. The maximum Annuity Date may be the same as the Latest Annuity Date as described elsewhere in this prospectus. For some of our Annuities, you can choose to defer the Annuity Date beyond the default or Latest Annuity Date, as applicable, described in your Annuity. However, the IRS may not then consider your Annuity to be an Annuity under the tax law.

Please refer to your Annuity contract for the maximum Annuity Date.

**Partial Annuitization**

We do not currently permit partial annuitization.

**Medicare Tax on Net Investment Income**

The Code includes a Medicare tax on investment income. This tax assesses a 3.8% surtax on the lesser of (1) net investment income or (2) the excess of "modified adjusted gross income" over a threshold amount. The "threshold amount" is $250,000 for married taxpayers filing jointly or qualifying widow(er) with dependent child, $125,000 for married taxpayers filing separately, $200,000 for all others, and approximately $16,000 for estates and certain trusts. The taxable portion of payments received as a withdrawal, surrender, annuity payment, death benefit payment or any other actual or deemed distribution under the Annuity will be considered investment income for purposes of this surtax.

**10% Additional Tax for Early Withdrawal from a Non-Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from your Non-qualified Annuity. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½;

• the
 amount is paid on or after your death (or the death of the Annuitant when the owner is not an individual);

• the
 amount received is attributable to your becoming disabled (as defined in the Code);

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually (please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years
 and the impermissible
 modification of payments during that time period will result in retroactive application of the 10% additional tax); or

• the
 amount received is paid under an immediate Annuity (within the meaning of the Code) and the annuity start date is no more than one year
 from the date of purchase (the first monthly annuity payment being required to be paid within 13 months).

Other exceptions to this tax may apply. You should consult your tax advisor for further details.

**Special Rules in Relation to Tax-free Exchanges Under Section 1035**

Section 1035 of the Code permits certain tax-free exchanges of a life insurance contract, annuity contract or endowment contract for an Annuity, including tax-free exchanges of annuity death benefits for a Beneficiary Annuity. Partial exchanges may be treated in the same way as tax-free 1035 exchanges of entire contracts, therefore avoiding current taxation of the partially exchanged amount as well as the 10% additional tax on pre-age 59½ withdrawals. In Revenue Procedure 2011-38, the IRS indicated that, for partial exchanges on or after October 24, 2011, where there is a surrender or distribution from either the initial annuity contract or receiving annuity contract within 180 days of the date on which the partial exchange was completed

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(other than an amount received as an annuity for a period of 10 years or more or during one or more lives), the IRS may not treat the transaction as a tax-free Section 1035 exchange. The IRS will apply general tax rules to determine the substance and treatment of the transaction in such cases. We strongly urge you to discuss any partial exchange transaction of this type with your tax advisor before proceeding with the transaction.

If an Annuity is purchased through a tax-free exchange of a life insurance contract, annuity contract or endowment contract that was purchased prior to August 14, 1982, then any Purchase Payments made to the original contract prior to August 14, 1982 will be treated as made to the new Annuity prior to that date. Generally, such pre-August 14, 1982 withdrawals are treated as a return of cost basis first until Purchase Payments made before August 14, 1982 are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982, is not subject to the 10% additional tax.

After you elect an Annuity Payout Option, we do not allow you to exchange your Annuity.

**Taxes Payable by Beneficiaries for a Non-Qualified Annuity**

If an Owner dies before the Annuity Date, the Death Benefit distributions are taxed at ordinary income tax rates. The value of the Death Benefit, as determined under federal law, is also included in the Owner's estate for federal estate tax purposes. Generally, the same income tax rules described above would also apply to amounts received by your Beneficiary. Choosing an option other than a lump sum Death Benefit may defer taxes. Certain minimum distribution requirements apply upon your death, as discussed further below in the Annuity Qualification section. Tax consequences to the Beneficiary vary depending upon the Death Benefit payment option selected. Generally, for payment of the Death Benefit:

• As
 a lump sum payment, the Beneficiary is taxed in the year of payment on gain in the Annuity.

• Within
 5 years of death of Owner, the Beneficiary is taxed on the lump sum payment. The Death Benefit must be taken as one lump sum payment
 within 5 years of the death of the Owner. Partial withdrawals are not permitted to be paid to Beneficiaries under our Annuity contracts.

• Under
 an Annuity or Annuity settlement option where distributions begin within one year of the date of death of the Owner, the Beneficiary is
 taxed on each payment with part as gain and part as return of cost basis. After the full amount of cost basis has been recovered tax-free,
 the full amount of the annuity payments will be taxable.

After the Annuity Date, if a period certain remains under the annuity option and the Annuitant dies before the end of that period, any remaining payments made to the Beneficiary will be fully excluded from income until the remaining cost basis is recovered and all annuity payments thereafter are fully includible in income. If we allow the Beneficiary to commute the remaining payments in a lump sum, the proceeds will be taxable as a surrender.

**Considerations for Contingent Annuitants:** We may allow the naming of a contingent Annuitant when a Non-qualified Annuity is held by a pension plan or a tax favored retirement plan, or held by a Custodial Account (as defined in this prospectus). In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a contingent annuitant when a Non-qualified Annuity is held by an entity owner when such Annuities do not qualify for tax deferral under the current tax law. This does not supersede any benefit language which may restrict the use of the contingent annuitant.

**Reporting and Withholding on Distributions**

Amounts distributed from an Annuity are subject to federal and state income tax reporting and withholding. In general, we will withhold federal income tax from the taxable portion of such distribution based on the type of distribution. In the case of an annuity payment, we apply default withholding under the applicable tax rules unless you designate a different withholding status. In the case of all other distributions, we will withhold at a 10% rate. You may generally elect a different tax withholding rate or elect not to have tax withheld from your payments. An election out of withholding must be made on forms that we provide. If you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the United States or do not provide a U.S. taxpayer identification number, we are required to withhold income tax.

State income tax withholding rules vary and we will withhold based on the rules of your state of residence. Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country. Please refer to the discussion below regarding withholding rules for a Qualified Annuity.

Regardless of the amount withheld by us, you are liable for payment of income taxes (including any estimated taxes that may be due) on the taxable portion of distributions from the Annuity. You should consult with your tax advisor regarding the payment of the correct amount of these income taxes and potential liability if you fail to pay such taxes.

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**Entity Owners**

Where an Annuity is held by a non-natural person (e.g., a corporation, partnership), other than as an agent or nominee for a natural person (or in other limited circumstances), increases in the value of the Annuity over its cost basis will be subject to tax annually.

Where an Annuity is issued to a Charitable Remainder Trust (CRT), increases in the value of the Annuity over its cost basis will be subject to tax reporting annually. As there are charges for the optional living and death benefits described elsewhere in this prospectus, and such charges reduce the contract value of the Annuity, trustees of the CRT should discuss with their legal advisors whether election of such optional living or death benefits violates their fiduciary duty to the remainder beneficiary.

Where an Annuity is issued to a trust, and such trust is characterized as a grantor trust under the Code, such Annuity is generally not considered to be held by a non-natural person and will be subject to the tax reporting and withholding requirements generally applicable to a Non-qualified Annuity held by a natural person, provided that all grantors of the trust are natural persons. At this time, we will not issue an Annuity to grantor trusts with more than two grantors.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within five years after the date of the first grantor's death (or the Annuitant's death in certain instances) under Section 72(s) of the Code. See the "[<u>Payment of Death Benefits</u>](#chapter_11-sect1_12_890)" section for scenarios where a Death Benefit or Surrender Value is payable depending upon the underlying facts.

Trusts are required to complete and submit a Certificate of Entity form, and we will tax report based on the information provided on this form.

**Annuity Qualification**

*Diversification And Investor Control.* In order to qualify for the tax rules applicable to Annuities described above, the investment assets in the Non-qualified Annuity Variable Options must be diversified according to certain rules under the Code. Each Portfolio is required to diversify its investments each quarter so that no more than 55% of the value of its assets is represented by any one investment, no more than 70% is represented by any two investments, no more than 80% is represented by any three investments, and no more than 90% is represented by any four investments. Generally, securities of a single issuer are treated as one investment, and obligations of each U.S. Government agency and instrumentality (such as the Government National Mortgage Association) are treated as issued by separate issuers. In addition, any security issued, guaranteed or insured (to the extent so guaranteed or insured) by the U.S. or an instrumentality of the U.S. will be treated as a security issued by the U.S. Government or its instrumentality, where applicable. We believe the Portfolios underlying the Variable Options of the Annuity meet these diversification requirements.

An additional requirement for qualification for the tax treatment described above is that we, and not you as the Annuity Owner, must have sufficient control over the underlying assets to be treated as the owner of the underlying assets for tax purposes. The tax law limits the amount of control you may have over choosing investments for your Annuity. If this "investor control" rule is violated your Annuity assets will be considered owned directly by you and you lose the favorable tax treatment generally afforded to annuities.

While we also believe these investor control rules will be met, the Treasury Department may promulgate guidelines under which a variable annuity will not be treated as an annuity contract for tax purposes if persons with ownership rights have excessive control over the investments underlying such variable annuity contract. It is unclear whether such guidelines, if in fact promulgated, would have retroactive effect. It is also unclear what effect, if any, such guidelines might have on transfers between the Investment Options offered pursuant to this prospectus. We reserve the right to take any action, including modifications to your Annuity or the Investment Options, required to comply with such guidelines if promulgated. Any such changes will apply uniformly to affected Owners and will be made with such notice to affected Owners as is feasible under the circumstances.

**Required Distributions Upon Your Death for a Non-Qualified Annuity.**

Upon your death, certain distributions must be made under the Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. If you die before the Annuity Date, the entire interest in the Annuity must be distributed within five years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the designated Beneficiary (provided such payments begin within one year of your death). If the Beneficiary does not begin installments within one year of the date of death, no partial withdrawals will be permitted thereafter, and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline. Your designated Beneficiary is the person to whom benefit rights under the Annuity pass by reason of death, and must be a natural person in order to elect a periodic payment option based on life expectancy or a period exceeding five years. Additionally, if the Annuity is payable to (or for the benefit of) your surviving spouse, that portion of the Annuity may be continued with your spouse as the Owner. For Non-qualified Annuities owned by a non-natural person, the required distribution rules generally apply upon the death of the Annuitant. This means, for example, that for an Annuity held by a non-natural person (such as a trust) for which there is named a co-annuitant, then such required distributions will be triggered by the death of the first co-annuitant to die.

*Changes To Your Annuity.* We reserve the right to make any changes we deem necessary to assure that your Annuity qualifies as an Annuity for tax purposes. Any such changes will apply to all Annuity Owners and you will be given notice to the extent feasible under the circumstances.

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**QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Qualified Annuity is an Annuity with applicable endorsements for a tax-favored plan or a** **Non-qualified Annuity held by a tax-favored retirement plan.**

The following is a general discussion of the tax considerations for Qualified Annuities. This Annuity may or may not be available for all types of the tax-favored retirement plans discussed below. This discussion assumes that you have satisfied the eligibility requirements for any tax-favored retirement plan. Please consult your financial professional prior to purchase to confirm if this Annuity is available for a particular type of tax-favored retirement plan or whether we will accept the type of contribution you intend for this Annuity.

A Qualified Annuity may have been purchased for use in connection with:

• Individual
 retirement accounts and annuities (IRAs), including inherited IRAs (which we refer to as a Beneficiary IRA), which are subject to Sections
 408(a) and 408(b) of the Code;

• Roth
 IRAs, including inherited Roth IRAs (which we refer to as a Beneficiary Roth IRA) under Section 408A of the Code;

• A
 corporate Pension or Profit-sharing plan (subject to 401(a) of the Code);

• H.R.
 10 plans (also known as Keogh Plans, subject to 401(a) of the Code);

• Tax
 Sheltered Annuities (subject to 403(b) of the Code, also known as Tax Deferred Annuities or TDAs);

• Section
 457 plans (subject to 457 of the Code).

A Non-qualified Annuity may have been purchased by a 401(a) trust, a custodial IRA or a custodial Roth IRA account, or a Section 457 plan, which can hold other permissible assets. The terms and administration of the trust or custodial account or plan in accordance with the laws and regulations for 401(a) plans, IRAs or Roth IRAs, or a Section 457 plan, as applicable, are the responsibility of the applicable trustee or custodian.

You should be aware that tax favored plans such as IRAs generally provide income tax deferral regardless of whether they invest in Annuities. This means that when a tax favored plan invests in an Annuity, it generally does not result in any additional tax benefits (such as income tax deferral and income tax free transfers).

**Types of Tax-favored Plans**

***IRAs.*** The "IRA Disclosure Statement" and "Roth IRA Disclosure Statement" which accompany the prospectus contain information about eligibility, contribution limits, tax particulars, and other IRA information. In addition to this information (the material terms are summarized in this prospectus and in those Disclosure Statements), the IRS requires that you have a "Free Look" after making an initial contribution to the Annuity. During this time, you can cancel the Annuity by notifying us in writing, and we will refund the greater of all purchase payments under the Annuity or the Account Value, less any applicable federal and state income tax withholding.

*Contribution Limits/Rollovers.* Subject to the minimum purchase payment requirements of an Annuity, you may purchase an Annuity for an IRA in connection with a "rollover" of amounts from a qualified retirement plan, as a transfer from another IRA, by making a contribution consisting of your IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the later applicable due date of your federal income tax return, without extension), or as a current year contribution. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits for the subsequent year in the fourth quarter of the current year. The tax law also provides for a catch-up provision for individuals who are age 50 and above, allowing these individuals an additional $1,000 contribution each year. The $1,000 catch-up contribution for IRA owners age 50 or older is indexed for inflation starting in 2024 in accordance with the Consolidated Appropriations Act, 2023 (which includes SECURE 2.0 of 2022 ("SECURE 2.0"). You may be able to claim a deduction for your contributions depending on your modified adjusted gross income. Go to <u>www.irs.gov</u> for the limits for each year.

The "rollover" rules under the Code are fairly technical; however, an individual (or his or her surviving spouse) may generally "roll over" certain distributions from tax favored retirement plans (either directly or within 60 days from the date of these distributions) if he or she meets the requirements for distribution. Once you buy an Annuity, you can make regular IRA contributions under the Annuity (to the extent permitted by law and the terms of the Annuity). For IRA rollovers, an individual can only make an IRA to IRA rollover if the individual has not made a rollover involving any IRAs owned by the individual in the prior 12 months. An IRA transfer is a tax-free trustee-to-trustee "transfer" from one IRA account to another. IRA transfers are not subject to this 12-month rule. There is no age limitation with regard to contributions to a traditional IRA as long as the earned income requirements are met.

In some circumstances, non-spouse Beneficiaries may roll over to an IRA amounts due from qualified plans, 403(b) plans, and governmental 457(b) plans. However, the rollover rules applicable to non-spouse Beneficiaries under the Code are more restrictive than the rollover rules applicable to Owner/participants and spouse Beneficiaries. Generally, non-spouse Beneficiaries may roll over distributions from tax favored retirement plans only as a direct rollover. An inherited IRA must be directly rolled over from the employer plan or transferred from an IRA and must be titled in the name of the deceased (i.e., John Doe deceased for the benefit of Jane Doe). No additional contributions can be made to an inherited IRA. In this prospectus, an inherited IRA is also referred to as a Beneficiary Annuity.

*Required Provisions.* Annuities that are IRAs (or endorsements that are part of the contract) must contain certain provisions:

• You,
 as Owner of the Annuity, must be the "Annuitant" under the contract (except in certain cases involving the division of property
 under a decree of
 divorce);

• Your
 rights as Owner are non-forfeitable;

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• You
 cannot sell, assign or pledge the Annuity;

• The
 annual contribution you pay cannot be greater than the maximum amount allowed by law, including catch-up contributions if applicable
 (which does not include any rollover amounts or amounts transferred by trustee-to-trustee transfer);

• The
 date on which required minimum distributions must begin cannot be later than April 1 <sup>st</sup> of the calendar year after the calendar year you
 turn the applicable age (see the Required Minimum Distribution rules for more details); and

• Death
 and annuity payments must meet Required Minimum Distribution rules described below.

Usually, the full amount of any distribution from an IRA (including a distribution from this Annuity) which is not a transfer or rollover is taxable. As taxable income, these distributions are subject to the general income tax withholding rules described earlier regarding an Annuity in the Non-qualified Annuity section. In addition to this normal tax liability, you may also be liable for the following, depending on your actions:

• A
 10% early withdrawal additional tax described below;

• Liability
 for "prohibited transactions" if you, for example, borrow against the value of an IRA; or

• Failure
 to take a Required Minimum Distribution, also described below.

If you make any non-deductible contributions to your IRA, a portion of any subsequent distribution may be tax-free as a return of those contributions. You are required to keep track of this and determine the taxable and non-taxable portions. IRS rules require that we report the full amount of any distribution as taxable.

***Simplified Employee Pensions (SEP).*** SEPs are a variation on a standard IRA, and Annuities issued to a SEP must satisfy the same general requirements described under IRAs (above). There are, however, some differences:

• If
 you participate in a SEP, you generally do not include in income any employer contributions made to the SEP on your behalf up to the lesser
 of (a) the annual employer contribution limit as indexed for inflation, or (b) 25% of your taxable compensation paid by the contributing
 employer (not including the employer's SEP contribution as compensation for these purposes). However, for these purposes, compensation
 in excess of certain limits established by the IRS will not be considered. Go to <u>www.irs.gov</u> for the current year contribution and
 catch-up limits and compensation limit.

• SEPs
 must satisfy certain participation and nondiscrimination requirements not generally applicable to IRAs; and

• SEPs
 that contain a salary reduction or "SARSEP" provision prior to 1997 may permit salary deferrals from employee income with
 the employer making
 these contributions to the SEP. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits
 for the subsequent year in the fourth quarter of the current year. However, no new "salary reduction" or "SARSEPs"
 can be established
 after 1996. Individuals participating in a SARSEP who are age 50 or above by the end of the year are permitted to contribute an
 additional catch-up contribution amount. These amounts are indexed for inflation and may depend on the participant's age. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Not all Annuities issued by us are available for SARSEPs.

• You
 will also be provided the same information, and have the same "Free Look" period, as you would have if you purchased the Annuity for a standard IRA.

• Roth
 contributions are permitted for SEP IRAs starting in 2023. The Company does not currently offer Roth contributions for  SEP IRAs, but we reserve the
 right to offer this contribution type in the future.

***ROTH IRAs.*** The "Roth IRA Disclosure Statement" contains information about eligibility, contribution limits, tax particulars and other Roth IRA information. Like standard IRAs, income within a Roth IRA accumulates tax-free, and contributions are subject to specific limits. Roth IRAs have, however, the following differences:

• Contributions
 to a Roth IRA cannot be deducted from your gross income;

• "Qualified
 distributions" from a Roth IRA are excludable from gross income. A "qualified distribution" is a distribution that satisfies
 two requirements:
 (1) the distribution must be made (a) after the Owner of the IRA attains age 59½; (b) after the Owner's death; (c) due to the Owner's disability;
 or (d) for a qualified first time homebuyer distribution within the meaning of Section 72(t)(2)(F) of the Code; and (2) the distribution
 must be made in the year that is at least five tax years after the first year for which a contribution was made to any Roth IRA established
 for the Owner. Distributions from a Roth IRA that are not qualified distributions will be treated as made first from contributions and
 then from earnings and earnings will be taxed generally in the same manner as distributions from a traditional IRA.

• If
 eligible (including meeting income limitations and earnings requirements), you may make contributions to a Roth IRA during your lifetime,
 and distributions are not required during the owner's lifetime.

Subject to the minimum Purchase Payment requirements of an Annuity, you may purchase an Annuity for a Roth IRA in connection with a "rollover" of amounts of another traditional IRA, SEP, SIMPLE-IRA (subject to a timing restriction), employer sponsored retirement plan (under Sections 401(a) or 403(b) of the Code) or Roth IRA. You may also purchase an Annuity for a Roth IRA, if you meet certain income limitations, by making a contribution consisting of your Roth IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the applicable due date of your federal income tax return, without extension), or as a current year contribution. The Code permits persons who receive certain qualifying distributions from such non-Roth IRAs, to directly rollover or make, within 60 days, a "rollover" of all or any part of the amount of such distribution to a Roth IRA which they establish (a "conversion"). The conversion of non-Roth accounts triggers current taxation (but is not subject to a 10% early distribution additional tax unless a distribution that is allocable to the rollover contribution is distributed within 5 years of the conversion).

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In addition, SECURE 2.0 amends the Code to allow for tax and penalty free rollovers from 529 accounts to Roth IRAs, under certain conditions. Starting in 2024, beneficiaries of 529 college savings accounts would be permitted to roll over up to $35,000 over the course of their lifetime from any 529 account in their name to their Roth IRA. These rollovers generally are also subject to Roth IRA annual contribution limits, and the 529 account must have been open for at least 15 years, among other requirements.

The Code also permits the recharacterization of current year contribution amounts from a traditional IRA into a Roth IRA, or from a Roth IRA to a traditional IRA. Recharacterization is accomplished through a trustee-to-trustee transfer of a contribution (or a portion of a contribution) plus earnings, between different types of IRAs. A properly recharacterized contribution is treated as a contribution made to the second IRA instead of the first IRA. Such recharacterization must be completed by the applicable tax return due date (with extensions). However, no recharacterizations of conversions can be made.

Once an Annuity has been purchased, regular Roth IRA contributions will be accepted to the extent permitted by law and the terms of the Annuity. In addition, an individual receiving an eligible rollover distribution from a designated Roth account under an employer plan may roll over the distribution to a Roth IRA even if the individual is not eligible to make regular contributions to a Roth IRA. Non-spouse Beneficiaries receiving a distribution from an employer sponsored retirement plan under Sections 401(a) or 403(b) of the Code can also directly roll over contributions to a Roth IRA. However, it is our understanding of the Code that non-spouse Beneficiaries cannot "rollover" benefits from a traditional IRA to a Roth IRA.

***TDAs.*** In general, you may own a Tax Deferred Annuity (also known as a TDA, Tax Sheltered Annuity (TSA), 403(b) plan or 403(b) Annuity) if you are an employee of a tax-exempt organization (as defined under Code Section 501(c)(3)) or a public educational organization, and you may make contributions to a TDA so long as your employer maintains such a plan and your rights to the Annuity are non-forfeitable. Contributions to a TDA, and any earnings, are not taxable until distribution. You may also make contributions to a TDA under a salary reduction agreement subject to specific limits. Individuals participating in a TDA who are age 50 or above by the end of the year will be permitted to contribute an additional amount. This amount is indexed for inflation. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Further, you may roll over TDA amounts to another TDA or an IRA. You may also roll over TDA amounts to a qualified retirement plan, a SEP and a governmental 457(b) plan. An Annuity may generally only qualify as a TDA if distributions of salary deferrals (other than "grandfathered" amounts held as of December 31, 1988) may be made only on account of:

• Your
 attainment of age 59½;

• Your
 severance of employment;

• Your
 death;

• Your
 total and permanent disability; or

• Hardship

In any event, you must begin receiving distributions from your TDA by April 1<sup>st</sup> of the calendar year after the calendar year you turn the applicable age or retire, whichever is later. These distribution limits do not apply either to transfers or exchanges of investments under the Annuity, or to any "direct transfer" of your interest in the Annuity to another employer's TDA plan or mutual fund "custodial account" described under Code Section 403(b)(7). Employer contributions to TDAs are subject to the same general contribution, nondiscrimination, and minimum participation rules applicable to "qualified" retirement plans.

**Caution:** Under IRS regulations we can accept contributions, transfers and rollovers only if we have entered into an information-sharing agreement, or its functional equivalent, with the applicable employer or its agent. In addition, in order to comply with the regulations, we will only process certain transactions (e.g., transfers, withdrawals, hardship distributions and, if applicable, loans) with employer approval. This means that if you request one of these transactions we will not consider your request to be in Good Order, and will not therefore process the transaction, until we receive the employer's approval in written or electronic form.

**Late Rollover Self-Certification**

You may be able to apply a rollover contribution to your IRA or qualified retirement plan after the 60-day deadline through a self-certification procedure established by the IRS. Please consult your tax or legal advisor regarding your eligibility to use this self-certification procedure. As indicated in this IRS guidance, we, as a financial institution, are not required to accept your self-certification for waiver of the 60-day deadline.

**Required Minimum Distributions and Payment Options**

If you hold the Annuity under an IRA (or other tax-favored plan), Required Minimum Distribution rules must be satisfied. This means that generally payments must start by April 1 of the year after the year you reach the applicable age ("required beginning date") and must be made for each year thereafter. For a TDA or a 401(a) plan for which the participant is not a greater than 5% owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs and designated Roth accounts under employer sponsored plans are not subject to these rules during the Owner's lifetime.

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| | |
|:---|:---|
| **If you were born...** | **Your "applicable age" is …** |
|  Before July 1, 1949 | 70½ |
|  After June 30, 1949 and before 1951 | 72 |
|  After 1950 and before 1960 | 73 |
|  After 1959 | 75 |

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The amount of the payment must at least equal the minimum required under the IRS rules. Several choices are available for calculating the minimum amount. More information on the mechanics of this calculation is available on request. Please contact us at a reasonable time before the Required Minimum Distribution deadline so that a timely distribution is made. Please note that there is a 25% excise tax (a 50% excise tax applied prior to the 2023 taxable year) on the amount of any required minimum distribution not made in a timely manner. The excise tax on failure is further reduced from 25% to 10% if corrected in a timely manner and certain other conditions are met in accordance with SECURE 2.0.

Required Minimum Distributions are calculated based on the sum of the Account Value and the actuarial present value of any additional living and death benefits from optional riders that you have purchased under the Annuity. As a result, the Required Minimum Distributions may be larger than if the calculation were based on the Account Value only, which may in turn result in an earlier (but not before the required beginning date) distribution of amounts under the Annuity and an increased amount of taxable income distributed to the Annuity Owner, and a reduction of payments under the living and death benefit optional riders.

You can use the Minimum Distribution option to satisfy the Required Minimum Distribution rules for an Annuity without either beginning annuity payments or surrendering the Annuity. Under this option we will distribute to you the Required Minimum Distribution amount, less any other partial withdrawals that you made during the year. Such amount will be based on the value of the Annuity as of December 31 of the prior year, but is determined without regard to other tax favored retirement plans you may own. If a trustee-to-trustee transfer or direct rollover of the full contract value is requested when there is an active Required Minimum Distribution program running, the Required Minimum Distribution will be removed and sent to the Owner prior to the remaining funds being sent to the transfer institution.

Although the IRS rules determine the required amount to be distributed from your IRA each year, certain payment alternatives are still available to you. In accordance with SECURE 2.0, a new optional method for calculating your RMDs may be available if you have an IRA in an annuity payout (or partial annuity payout), and an IRA in the deferral stage. Please contact your tax advisor to determine if this calculation method is appropriate for you. In addition, if you own more than one IRA, you can choose to satisfy your minimum distribution requirement for each of your IRAs by withdrawing that amount from any of your non-Roth IRAs. If you inherit more than one IRA or more than one Roth IRA from the same Owner, similar rules apply. These rules may also apply to other types of tax favored retirement plans such as TDAs.

**Charitable IRA Distributions.**

Certain qualified IRA distributions used for charitable purposes are eligible for an exclusion from gross income, up to $100,000 (indexed for inflation beginning after 2023), for otherwise taxable IRA distributions from a traditional or Roth IRA. A qualified charitable distribution is a distribution that is made (1) directly by the IRA trustee to certain qualified charitable organizations and (2) on or after the date the IRA owner attains age 70½. Distributions that are excluded from income under this provision are not taken into account in determining the individual's deductions, if any, for charitable contributions. The amount of your qualified charitable distributions that are excluded from income for a tax year is reduced (but not below zero) by the excess of: (1) the total amount of your IRA deductions allowed for all tax years ending on or after the date you attain age 70½, over (2) the total amount of reductions for all tax years preceding the current tax year. You should consult your tax advisor about whether a one-time distribution up to $50,000 (indexed for inflation beginning after 2023) that is made from your IRA to a "split-interest entity" can be excluded from your gross income.

The IRS has currently indicated that an IRA trustee is not responsible for determining whether a distribution to a charity is one that satisfies the requirements of the charitable giving incentive. Unless otherwise required in the future by the IRS, we will report the distribution as a normal IRA distribution on Form 1099-R. In those instances, individuals are responsible for reflecting the distributions as charitable IRA distributions on their personal tax returns. However, if we receive certification that the distribution satisfies the requirements, we will report the distribution as a charitable IRA distribution on Form 1099-R.

**Required Distributions Upon Your Death for a Qualified Annuity**

Upon your death under an IRA, Roth IRA, 403(b) or other employer sponsored plan, any remaining interest must be distributed in accordance with federal income tax requirements. For Owner and Beneficiary deaths prior to 2020, please consult your tax advisor regarding the applicable post-death distribution requirements.

The information provided below applies to Owner and Beneficiary deaths after 2019. In addition, if you are an employee under a governmental plan, such as a section 403(b) plan of a public school or a governmental 457(b) plan, this law applies if you die after 2021. In addition, if your plan is maintained pursuant to one or more collective bargaining agreements, this law generally applies if you die after 2021 (unless the collective bargaining agreements terminate earlier).

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• *Death before your required beginning date.* If you die before your required beginning date, and you have a designated beneficiary, any remaining
 interest must be distributed within 10 years after your death, unless the designated beneficiary is an "eligible designated beneficiary"
 ("EDB") or some other exception applies. A designated beneficiary is any individual designated as a beneficiary by the employee
 or IRA owner. An EDB is any designated beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically
 ill, or (5) an individual not more than 10 years younger than you. An individual's status as an EDB is generally determined on the
 date of your death. An EDB (other than a minor child) can generally stretch distributions over their life or life expectancy if payments begin by the end
 of the calendar year following the year of your death and continuing over the EDB's remaining life expectancy after the EDB's
 death. However, all amounts must be fully distributed by the end of the year containing the 10 <sup>th</sup> anniversary of the EDB's death. Special
 rules apply to minors and Beneficiaries that are not individuals. Additional special rules apply to surviving spouses, see "Spousal Continuation"
 below.

• *Death on or after your required beginning date.* In general, if you die on or after your required beginning date, and you have a designated beneficiary
 who is not an EDB, any remaining interest in your Qualified Annuity must continue to be distributed over the longer of your remaining
 life expectancy and your designated beneficiary's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of your
 death. If your Beneficiary is an EDB (other than a minor child), distributions must continue over the longer of your remaining
 life expectancy and the EDB's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of the EDB's
 death. Special rules apply to EDBs who are minors  and Beneficiaries that are not individuals.

• *Annuity payments.* If
 you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a
 joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled
 to be made beyond the applicable distribution period imposed under the law might need to be commuted at the end of that period
 (or otherwise modified after your death if permitted under federal tax law and by us) in order to comply with the post-death distribution
 requirements.

• *Other rules.* The post-death
 distribution requirements do not apply if the employee or IRA owner elected annuity payments that comply with
 prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the
 requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election
 before that date as to the method and amount of the annuity.

If your beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your beneficiary designations.

In addition, these post-death distribution requirements generally do not apply if the employee or IRA owner died prior to January 1, 2020. However, if the designated beneficiary of the deceased employee or IRA owner dies after January 1, 2020, and the designated beneficiary had elected the lifetime payout rule or was under the at-least-as rapidly rule, any remaining interest must be distributed within 10 year of the designated beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated beneficiary of an employee or IRA owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated beneficiary of an employee or IRA owner who died prior to 2020.

• *Spousal continuation.* If your beneficiary is your spouse, such surviving spouse can delay the application of the post-death distribution requirements
 until after their death by transferring the remaining interest tax-free to their own IRA, or by electing to treat your IRA as their own
 IRA. However, in certain circumstances the surviving spouse may have to take "hypothetical RMDs" (i.e., catch-up amounts required in accordance with
 the regulations).

The post-death distribution requirements are complex in numerous respects. Treasury has issued final and proposed regulations that may impact these required minimum distribution requirements. We reserve the right to make changes in order to comply with the final and proposed regulations, or any regulations published in the future. Any such changes will apply uniformly to affected Owners or Beneficiaries and will be made with such notice to affected Owners or Beneficiaries as is feasible under the circumstances. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

Unless payments are being made in the form of an annuity, a Beneficiary has the flexibility to take out more each year than mandated under the required minimum distribution rules.

Note that in 2014, the U.S. Supreme Court ruled that Inherited IRAs, other than IRAs inherited by the owner's spouse, do not qualify as retirement assets for purposes of protection under the federal bankruptcy laws.

Until withdrawn, amounts in a Qualified Annuity continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the required minimum distribution rules, are subject to tax. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For a Roth IRA, if death occurs before the entire interest is distributed, the death benefit must be distributed under the same rules applied to IRAs where death occurs before the required beginning date. Similar rules may apply to designated Roth accounts under an employer-sponsored retirement plan. Consult your plan sponsor or tax advisor for more information on designated Roth accounts.

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**10% Additional Tax for Early Withdrawals from a Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from an IRA, SEP, Roth IRA, TDA or qualified retirement plan. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½ or die;

• the
 amount received is attributable to your becoming disabled; or

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually. (Please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years. Certain modification
 of payments or additional contributions to the Annuity during that time period will result in retroactive application of the
 10% additional tax.)

There are a number of other exceptions to this tax that may apply. In addition, distributions that satisfy certain exceptions to this tax may be repaid in certain circumstances. You should consult your tax advisor for further details.

**Withholding**

For 403(b) Tax Deferred annuities, we will withhold federal income tax at the rate of 20% for any eligible rollover distribution paid by us to or for a plan participant, unless such distribution is "directly" rolled over into another qualified plan, IRA (including the IRA variations described above), SEP, governmental 457(b) plan or TDA. An eligible rollover distribution is defined under the tax law as a distribution from an employer plan under 401(a), a TDA or a governmental 457(b) plan, excluding any distribution that is part of a series of substantially equal payments (at least annually) made over the life expectancy of the employee or the joint life expectancies of the employee and his designated Beneficiary, any distribution made for a specified period of 10 years or more, any distribution that is a required minimum distribution and any hardship distribution. Regulations also specify certain other items which are not considered eligible rollover distributions. We will not withhold for payments made from trustee owned Annuities or for payments under a 457 plan. For all other distributions, unless you elect otherwise, we will withhold federal income tax from the taxable portion of such distribution at an appropriate percentage. The rate of withholding on annuity payments where no mandatory withholding is required is determined on the basis of the withholding certificate that you file with us. If you do not file a certificate, we will automatically withhold federal taxes on the following basis:

• For
 any annuity payments not subject to mandatory withholding, you will have taxes withheld under the applicable default withholding rules;
 and

• For
 all other distributions, we will withhold at a 10% rate.

If no U.S. taxpayer identification number is provided, no election out of withholding will be allowed, and we will automatically withhold using the default withholding rules. In addition, if you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the U.S., we are required to withhold income tax

We will provide you with forms and instructions concerning the right to elect that no amount be withheld from payments in the ordinary course. However, you should know that, in any event, you are liable for payment of federal income taxes (including any estimated tax liabilities) on the taxable portion of the distributions, and you should consult with your tax advisor to find out more information on your potential liability if you fail to pay such taxes. There may be additional state income tax withholding requirements.

Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country.

**ERISA Requirements**

ERISA (the "Employee Retirement Income Security Act of 1974") and the Code prevent a fiduciary and other "parties in interest" with respect to a plan (and, for these purposes, an IRA would also constitute a "plan") from receiving any benefit from any party dealing with the plan, as a result of the sale of the Annuity. Administrative exemptions under ERISA generally permit the sale of insurance/annuity products to plans, provided that certain information is disclosed to the person purchasing the Annuity. This information has to do primarily with the fees, charges, discounts and other costs related to the Annuity, as well as any commissions paid to any agent selling the Annuity. Information about any applicable fees, charges, discounts, penalties or adjustments may be found in the applicable sections of this prospectus. Information about sales representatives and commissions may be found in the sections of this prospectus addressing distribution of the Annuities.

Other relevant information required by the exemptions is contained in the contract and accompanying documentation.

Please consult with your tax advisor if you have any questions about ERISA and these disclosure requirements.

**Spousal Consent Rules for Retirement Plans – Qualified Annuities**

If you are married at the time your payments commence, you may be required by federal law to choose an income option that provides survivor annuity income to your spouse, unless your spouse waives that right. Similarly, if you are married at the time of your death, federal law may require all or a portion of the Death Benefit to be paid to your spouse, even if you designated someone else as your Beneficiary. A brief explanation of the applicable rules follows. For more information, consult the terms of your retirement arrangement.

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*Defined Benefit Plans and Money Purchase Pension Plans.* If you are married at the time your payments commence, federal law requires that benefits be paid to you in the form of a "qualified joint and survivor annuity" (QJSA), unless you and your spouse waive that right, in writing. Generally, this means that you will receive a reduced payment during your life and, upon your death, your spouse will receive at least one-half of what you were receiving for life. You may elect to receive another income option if your spouse consents to the election and waives his or her right to receive the QJSA. If your spouse consents to the alternative form of payment, your spouse may not receive any benefits from the plan upon your death. Federal law also requires that the plan pay a Death Benefit to your spouse if you are married and die before you begin receiving your benefit. This benefit must be available in the form of an Annuity for your spouse's lifetime and is called a "qualified pre-retirement survivor annuity" (QPSA). If the plan pays Death Benefits to other Beneficiaries, you may elect to have a Beneficiary other than your spouse receive the Death Benefit, but only if your spouse consents to the election and waives his or her right to receive the QPSA. If your spouse consents to the alternate Beneficiary, your spouse will receive no benefits from the plan upon your death. Any QPSA waiver prior to your attaining age 35 will become null and void on the first day of the calendar year in which you attain age 35, if still employed.

*Defined Contribution Plans (including 401(k) Plans and ERISA 403(b) Annuities).* Spousal consent to a distribution is generally not required. Upon your death, your spouse will receive the entire Death Benefit, even if you designated someone else as your Beneficiary, unless your spouse consents in writing to waive this right. Also, if you are married and elect an Annuity as a periodic income option, federal law requires that you receive a QJSA (as described above), unless you and your spouse consent to waive this right.

*IRAs, non-ERISA 403(b) Annuities, and 457 Plans.* Spousal consent to a distribution usually is not required unless specifically required under the terms of the plan. Upon your death, any Death Benefit will be paid to your designated Beneficiary.

**ADDITIONAL CONSIDERATIONS**

**Reporting and Withholding for Escheated Amounts**

Revenue Rulings 2018-17 and 2020-24 provide that an amount transferred from an IRA or 401(a) qualified retirement plan to a state's unclaimed property fund is subject to federal income tax withholding at the time of transfer. The amount transferred is also subject to federal tax reporting. Consistent with these Rulings, we will withhold federal and state income taxes and report to the applicable Owner or Beneficiary as required by law when amounts are transferred to a state's unclaimed property fund. Non-qualified annuity contracts generally are subject to the same or similar federal income tax reporting and withholding requirements as IRAs and qualified retirement plans. As a result, we may determine in the future that we have an obligation to follow similar guidelines with respect to any amounts escheated from your Non-qualified Annuity.

**Gifts and Generation-skipping Transfers**

If you transfer your Annuity to another person for less than adequate consideration, there may be gift tax consequences in addition to income tax consequences. Also, if you transfer your Annuity to a person two or more generations younger than you (such as a grandchild or grandniece) or to a person that is more than 37½ years younger than you, there may be generation-skipping transfer tax consequences.

**Civil Unions and Domestic Partnerships**

U.S. Treasury Department regulations provide that for federal tax purposes, the term "spouse" does not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship that is not denominated as a marriage under the laws of the state where the relationship was entered into, regardless of domicile. As a result, if a Beneficiary of a deceased Owner and the Owner were parties to such a relationship, the Beneficiary will be required by federal tax law to take distributions from the Contract in the manner applicable to non-spouse Beneficiaries and will not be able to continue the Contract. Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

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**LEGAL PROCEEDINGS**

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As of the date of this prospectus, neither the Company nor the Registered Separate Account is a party to any material legal proceedings outside of the ordinary routine litigation incidental to the business. Although the Company and its affiliates are involved in pending and threatened legal proceedings in the normal course of its business, we do not anticipate that the outcome of any such legal proceedings will have a material adverse effect on the Registered Separate Account, or the Company's ability to meet its obligations under the Annuity.

As of the date of this prospectus, Prudential Annuities Distributors, Inc. is not a party to any material legal proceedings outside of the ordinary routine litigation incidental to the business. Although Prudential Annuities Distributors, Inc. can be involved in pending and threatened legal proceedings in the normal course of its business, we do not anticipate that the outcome of any such legal proceedings will have a material adverse effect on its ability to meet its obligations related to the Annuity.

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**FINANCIAL STATEMENTS**

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The financial statements of Fortitude Life Insurance & Annuity Company and the Registered Separate Account are incorporated by reference in the Statement of Additional Information.

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**ADDITIONAL INFORMATION**

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**HOW WILL I RECEIVE STATEMENTS AND REPORTS?**

We send any statements and reports required by applicable law or regulation to you at your last known address of record. You should therefore give us prompt notice of any address change. We reserve the right, to the extent permitted by law and subject to your prior consent, to provide any prospectus, prospectus supplements, confirmations, statements and reports required by applicable law or regulation to you at <u>www.prudential.com/regdocs/FLIAC-SC-XT6-STAT</u> or any other electronic means. We send a confirmation statement to you each time a transaction is made affecting Account Value, such as making subsequent Purchase Payments, transfers, exchanges or withdrawals. We also send quarterly statements detailing the activity affecting your Annuity during the calendar quarter. We may confirm regularly scheduled transactions, such as systematic withdrawals (including 72(t) payments and required minimum distributions), and bank drafting, in quarterly statements instead of confirming them immediately. You should review the information in these statements carefully. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

Any errors or corrections on transactions for your Annuity must be reported to us at our Service Center as soon as possible to assure proper accounting to your Annuity. For transactions that are confirmed immediately, we assume all transactions are accurate unless you notify us otherwise within 30 days from the date you receive the confirmation. For transactions that are first confirmed on the quarterly statement, we assume all transactions are accurate unless you notify us within 30 days from the date you receive the quarterly statement. All transactions confirmed immediately or by quarterly statement are deemed conclusive after the applicable 30-day period. We may also send an annual report and a semi-annual report containing applicable financial statements for the Registered Separate Account and the Portfolios, as of December 31 and June 30, respectively, to Owners or, with your prior consent, make such documents available electronically through our website or other electronic means.

**HOW TO CONTACT US**

Please communicate with us using the telephone number and addresses below for the purposes described. Failure to send mail to the proper address may result in a delay in our receiving and processing your request.

**Annuities Service Center**

Call our Annuities Service Center at 1-800-879-7012 during normal business hours.

**Internet**

Access information about your Annuity through our website: www.prudential.com/annuities

**Correspondence Sent by Regular Mail**

Annuities Service Center<br>P.O. Box 7960<br>Philadelphia, PA 19176

**Correspondence Sent by Overnight\*, Certified or Registered Mail**

Annuities Service<br>1600 Malone Street<br>Millville, NJ 08332

\*Please note that overnight correspondence sent through the United States Postal Service may be delivered to the P.O. Box listed above, which could delay receipt of your correspondence at our Annuities Service Center. Overnight mail sent through other methods (e.g. Federal Express, United Parcel Service) will be delivered to the address listed below.

Correspondence sent by regular mail to our Annuities Service Center should be sent to the address shown above. Your correspondence will be picked up at this address and then delivered to our Annuities Service Center. Your correspondence is not considered received by us until it is received at our Annuities Service Center. Where this prospectus refers to the day when we receive a Purchase Payment, request, election, notice, transfer or any other transaction request from you, we mean the day on which that item (or the last requirement needed for us to process that item) arrives in complete and proper form at our Annuities Service Center or via the appropriate telephone or fax number if the item is a type we accept by those means. There are two main exceptions: if the item arrives at our Annuities Service Center (1) on a day that is not a business day, or (2) after the close of a business day, then, in each case, we are deemed to have received that item on the next business day.

You can obtain account information by calling our automated response system, and at <u>www.prudential.com/annuities</u>, our website. Our Customer Service representatives are also available during business hours to provide you with information about your account. You can request certain transactions through our telephone voice response system, our website or through a customer service representative. You can provide authorization for a third party, including your attorney-in-fact acting pursuant to a power of attorney or your financial professional, to access your account information and perform certain transactions on your account. You will need to complete a form provided by us which identifies those transactions that you wish to authorize via telephonic and electronic means and whether you wish to authorize a third party to perform any such transactions. Please note that unless you tell us otherwise, we deem that all transactions that are directed by your financial professional with respect to your Annuity have been authorized by you. We

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require that you or your representative provide proper identification before performing transactions over the telephone or through our website. This may include a Personal Identification Number (PIN) that will be provided to you upon issue of your Annuity or you may establish or change your PIN by calling our automated response system, and at <u>www.prudential.com/annuities</u>, our website. Any third party that you authorize to perform financial transactions on your account will be assigned a PIN for your account.

Transactions requested via telephone are recorded. To the extent permitted by law, we will not be responsible for any claims, loss, liability or expense in connection with a transaction requested by telephone or other electronic means if we acted on such transaction instructions after following reasonable procedures to identify those persons authorized to perform transactions on your Annuity using verification methods which may include a request for your Social Security number, PIN or other form of electronic identification. We may be liable for losses due to unauthorized or fraudulent instructions if we did not follow such procedures.

We do not guarantee access to telephonic, facsimile, Internet or any other electronic information or that we will be able to accept transaction instructions via such means at all times. Regular and/or express mail will be the only means by which we will accept transaction instructions when telephonic, facsimile, Internet or any other electronic means are unavailable or delayed. We reserve the right to limit, restrict or terminate telephonic, facsimile, Internet or any other electronic transaction privileges at any time.

**This prospectus is being provided for informational or educational purposes only and does not consider the investment objectives or** **financial situation of any Annuity Owner. The information is not intended as investment advice and is not a recommendation about managing** **or investing your retirement savings. Annuity Owners seeking information regarding their particular investment needs should contact a** **financial professional.**

PRUDENTIAL, THE PRUDENTIAL LOGO AND THE ROCK DESIGN ARE TRADEMARKS OF PRUDENTIAL FINANCIAL, INC. AND ITS RELATED ENTITIES, REGISTERED IN MANY JURISDICTIONS WORLDWIDE. USED UNDER LICENSE.

FORTITUDE RE AND THE FORTITUDE RE LOGO ARE SERVICE MARKS OF FORTITUDE GROUP HOLDINGS, LLC AND ITS AFFILIATES. OTHER PROPRIETARY FORTITUDE RE MARKS MAY BE DESIGNATED AS SUCH THROUGH THE USE OF THE <sup>SM</sup> OR <sup>®</sup> SYMBOLS.

STAGECOACH, STAGECOACH XTRA CREDIT SIX ("STAGECOACH XT6"), XTRA CREDIT, AST, HIGHEST DAILY, GUARANTEED RETURN OPTION PLUS (GRO PLUS), AND GUARANTEED RETURN OPTION (GRO) ARE SERVICE MARKS OR REGISTERED TRADEMARKS OF THE PRUDENTIAL INSURANCE COMPANY OF AMERICA AND ARE USED UNDER LICENSE BY FORTITUDE RE.

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**APPENDIX A –** **INVESTMENT OPTIONS** **AVAILABLE UNDER THE CONTRACT**

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**Certain Investment Options may not be available through certain financial intermediaries. See the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_890) **for additional information**

**Variable Options**

The following is a list of Portfolios available under the Contract. More information about the Portfolios is available in the prospectuses for the Portfolios, which may be amended from time to time and can be found online at <u>www.prudential.com/regdocs/FLIAC-SC-XT6-STAT</u>. You can also request this information at no cost by calling 1-800-346-3778 or by sending an email request to service@prudential.com. Depending on the optional benefits you choose, you may not be able to invest in certain Portfolio Companies, as noted below.

The current expenses and performance information below reflects fees and expenses of the Portfolios, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher, and performance would be lower if these other charges were included. Each Portfolio's past performance is not necessarily an indication of future performance.

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|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity<br> Allspring VT Discovery All Cap Growth Fund - Class 1<sup>1,</sup><sup>♦</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 0.75% | 15.53% | 6.31% | 13.84% |
|  Equity<br> Allspring VT Discovery All Cap Growth Fund - Class 2<sup>1,</sup><sup>♦,</sup><sup>‡</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 1.00% | 15.27% | 6.04% | 13.57% |
|  Allocation<br> Allspring VT Index Asset Allocation Fund - Class 2<sup>1,</sup><sup>♦</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 1.00% | 11.48% | 7.54% | 8.99% |
|  Equity<br> Allspring VT Opportunity Fund - Class 2<sup>♦</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 1.00% | 6.71% | 8.94% | 11.85% |
|  Equity<br> Allspring VT Small Cap Growth Fund - Class 1<sup>1,</sup><sup>♦</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 0.91% | 9.55% | -0.70% | 10.22% |
|  Equity<br> Allspring VT Small Cap Growth Fund - Class 2<sup>1,</sup><sup>♦,</sup><sup>‡</sup><br>*Allspring Funds Management, LLC (adviser)*<br>*Allspring Global Investments, LLC (subadviser)* | 1.16% | 9.25% | -0.96% | 9.94% |
|  Allocation<br> AST Aggressive Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.86% | 16.17% | 8.81% | 9.59% |
|  Allocation<br> AST Balanced Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.87% | 14.35% | 6.96% | 8.05% |
|  Fixed Income<br> AST Core Fixed Income Portfolio<sup>1</sup><br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Limited*<br>*Wellington Management Company LLP* | 0.68% | 7.15% | -1.10% | 2.30% |
|  Fixed Income<br> AST Government Money Market Portfolio<sup>1</sup><br>*PGIM Fixed Income* | 0.58% | 3.78% | 2.86% | 1.78% |

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|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity<br> AST International Equity Portfolio<sup>1</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Massachusetts Financial Services Company*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 1.02% | 32.84% | 5.76% | 10.00% |
|  Allocation<br> AST J.P. Morgan Conservative Multi-Asset Portfolio<sup>1,</sup><sup>♦</sup><br>*J.P. Morgan Investment Management Inc.* | 0.92% | 10.37% | 3.31% | 5.19% |
|  Allocation<br> AST J.P. Morgan Moderate Multi-Asset Portfolio<sup>1,</sup><sup>♦</sup><br>*J.P. Morgan Investment Management Inc.* | 0.97% | 12.53% | 5.61% | 7.30% |
|  Equity<br> AST Large-Cap Equity Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Quantitative Solutions LLC* | 0.84% | 14.88% | 13.25% | 12.47% |
|  Equity<br> AST Large-Cap Growth Portfolio<sup>1</sup><br>*Clearbridge Investments, LLC*<br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*T. Rowe Price Associates, Inc.*<br>*Putnam Investment Management LLC* | 0.87% | 17.06% | 11.35% | 16.27% |
|  Equity<br> AST Large-Cap Value Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Putnam Investment Management LLC* | 0.81% | 16.05% | 12.97% | 11.35% |
|  Allocation<br> AST Multi-Asset Diversified Plus Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate*<br>*Putnam Investment Management LLC* | 1.13% | 13.55% | 5.58% | 5.73% |
|  Allocation<br> AST Multi-Asset Diversified Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate*<br>*Putnam Investment Management LLC* | 0.90% | 15.55% | 6.86% | 8.28% |
|  Allocation<br> AST PGIM Aggressive Multi-Asset Portfolio<sup>1</sup><br>*Jennison Associates LLC*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate* | 0.90% | 16.00% | 8.22% | 8.26% |
|  Allocation<br> AST Preservation Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.89% | 11.33% | 3.76% | 5.45% |

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|:---|:---|:---|:---|:---|:---|
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity | AST Small-Cap Equity Portfolio<sup>1</sup><br>*Boston Partners Global Investors, Inc.*<br>*Dimensional Fund Advisors LP*<br>*Driehaus Capital Management LLC*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*TimesSquare Capital Management, LLC* | 1.01% | 7.41% | 1.81% | 10.39% |
|  Equity | Invesco V.I. Discovery Mid Cap Growth Fund - Series I shares<sup>1,</sup><sup>‡</sup><br>*Invesco Advisers, Inc* | 0.86% | 4.79% | 3.90% | 11.38% |
|  Equity | Invesco V.I. Diversified Dividend Fund - Series I shares<sup>1</sup><br>*Invesco Advisers, Inc* | 0.68% | 15.74% | 10.81% | 9.20% |
|  Equity | Invesco V.I. Health Care Fund - Series I shares<sup>1</sup><br>*Invesco Advisers, Inc* | 0.99% | 15.33% | 3.80% | 6.58% |
|  Equity | Invesco V.I. Technology Fund - Series I shares<sup>‡</sup><br>*Invesco Advisers, Inc* | 0.96% | 20.47% | 10.30% | 15.78% |
|  Equity | NVIT Fidelity Institutional AM<sup>®</sup> Emerging Markets Fund - Class D<sup>1,</sup><sup>♦</sup><br>*Nationwide Fund Advisors*<br>*FIAM LLC* | 1.46% | 35.77% | 0.70% | 5.98% |
|  Fixed Income | ProFund Access VP High Yield<sup>‡</sup><br>*ProFund Advisors LLC* | 1.64% | 6.24% | 2.85% | 3.92% |
|  Equity | ProFund VP Asia 30<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 24.12% | -2.31% | 5.18% |
|  Equity | ProFund VP Banks<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 10.53% | 9.89% | 8.26% |
|  Equity | ProFund VP Bear<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -14.47% | -11.20% | -13.49% |
|  Equity | ProFund VP Biotechnology<br>*ProFund Advisors LLC* | 1.60% | 34.03% | 9.50% | 7.41% |
|  Equity | ProFund VP Bull<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 15.56% | 12.18% | 12.55% |
|  Equity | ProFund VP Communication Services<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 20.91% | 14.55% | 8.97% |
|  Equity | ProFund VP Consumer Discretionary<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.51% | 5.53% | 10.01% |
|  Equity | ProFund VP Consumer Staples<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -0.17% | 0.62% | 5.67% |
|  Equity | ProFund VP Energy<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.86% | 21.01% | 5.88% |
|  Equity | ProFund VP Europe 30<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 29.59% | 12.78% | 8.01% |
|  Equity | ProFund VP Financials<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 12.90% | 12.77% | 11.04% |
|  Equity | ProFund VP Health Care<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 12.56% | 5.50% | 8.02% |
|  Equity | ProFund VP Industrials<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 17.25% | 9.11% | 11.45% |

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|:---|:---|:---|:---|:---|:---|
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity | ProFund VP Internet<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 9.13% | 3.71% | 12.40% |
|  Equity | ProFund VP Japan<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 30.69% | 14.99% | 11.39% |
|  Equity | ProFund VP Large-Cap Growth<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 19.96% | 13.07% | 14.95% |
|  Equity | ProFund VP Large-Cap Value<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 11.37% | 11.09% | 9.89% |
|  Equity | ProFund VP Materials<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 8.05% | 6.41% | 8.42% |
|  Equity | ProFund VP Mid-Cap Growth<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.67% | 5.32% | 8.63% |
|  Equity | ProFund VP Mid-Cap Value<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.84% | 9.19% | 8.92% |
|  Equity | ProFund VP NASDAQ-100<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 18.62% | 12.94% | 17.28% |
|  Equity | ProFund VP Pharmaceuticals<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 29.34% | 5.70% | 5.37% |
|  Equity | ProFund VP Precious Metals<sup>1</sup><br>*ProFund Advisors LLC* | 1.68% | 150.31% | 17.01% | 18.89% |
|  Equity | ProFund VP Real Estate<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 0.63% | 2.85% | 3.95% |
|  Equity | ProFund VP Rising Rates Opportunity<sup>1</sup><br>*ProFund Advisors LLC* | 1.59% | 1.67% | 14.28% | 0.27% |
|  Equity | ProFund VP Semiconductor<br>*ProFund Advisors LLC* | 1.64% | 41.70% | 34.17% | 30.80% |
|  Equity | ProFund VP Short Mid-Cap<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -4.51% | -7.65% | -11.55% |
|  Equity | ProFund VP Short NASDAQ-100<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -15.80% | -13.57% | -18.48% |
|  Equity | ProFund VP Short Small-Cap<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | -10.08% | -6.50% | -11.77% |
|  Equity | ProFund VP Small-Cap Growth<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 3.62% | 3.79% | 7.98% |
|  Equity | ProFund VP Small-Cap Value<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 5.00% | 7.17% | 7.81% |
|  Equity | ProFund VP Technology<br>*ProFund Advisors LLC* | 1.58% | 22.60% | 15.01% | 20.16% |
|  Fixed Income | ProFund VP U.S. Government Plus<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.38% | 1.17% | -13.73% | -3.45% |
|  Equity | ProFund VP UltraBull<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 24.38% | 19.82% | 20.95% |
|  Equity | ProFund VP UltraMid-Cap<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 3.20% | 7.98% | 11.51% |

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|:---|:---|:---|:---|:---|:---|
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity | ProFund VP UltraNASDAQ-100<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 29.25% | 18.60% | 29.22% |
|  Allocation | ProFund VP UltraSmall-Cap<sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 12.93% | 1.23% | 8.81% |
|  Equity | ProFund VP Utilities<sup>1,</sup><sup>♦</sup><br>*ProFund Advisors LLC* | 1.68% | 13.98% | 7.78% | 8.61% |

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**The additional information below may be applicable to the Portfolios listed in the above table.**

PGIM Fixed Income is a business unit of PGIM, Inc.

PGIM Investments LLC manages each of the Portfolios of The Prudential Series Fund (PSF).

PGIM Investments LLC manages each of the Portfolios of the Advanced Series Trust (AST). AST Investment Services, Inc. serves as co-manager, along with PGIM Investments LLC, to many of the Portfolios of AST.

PGIM Real Estate is a business unit of PGIM, Inc.

1. **These Portfolios are also offered in other variable annuity contracts that utilize a predetermined mathematical formula to manage the guarantees offered in connection with** **optional benefits.** 

Those other variable annuity contracts offer certain optional living benefits that utilize a predetermined mathematical formula (the "formula") to manage the guarantees offered in connection with those optional benefits. The formula monitors each contract Owner's Account Value daily and, if necessary, will systematically transfer amounts among investment options. The formula transfers funds between the Variable Options for those variable annuity contracts and an AST Bond Portfolio Variable Option or a fixed account (those AST Bond Portfolios or a fixed account may not be available in connection with the annuity contracts offered through this prospectus). **You should be aware that the operation of the formula in those other variable annuity** **contracts may result in large-scale asset flows into and out of the underlying Portfolios that are available with your contract. These asset flows could adversely impact the** **underlying Portfolios, including their risk profile, expenses and performance**. Because transfers between the Variable Options and the AST Bond Variable Option or a fixed account can be frequent and the amount transferred can vary from day to day, any of the underlying Portfolios could experience the following effects, among others:

(a) a
 Portfolio's investment performance could be adversely affected by requiring a subadvisor to purchase and sell securities at inopportune
 times or by otherwise limiting the subadvisor's
 ability to fully implement the Portfolio's investment strategy;

(b) the
 subadvisor may be required to hold a larger portion of assets in highly liquid securities than it otherwise would hold, which could adversely
 affect performance if the highly
 liquid securities underperform other securities (e.g., equities) that otherwise would have been held; and

(c) a Portfolio may experience higher turnover and greater negative asset flows than it would have experienced without the formula,
 which could result in higher operating expense
 ratios and higher transaction costs for the Portfolio compared to other similar funds.

The efficient operation of the asset flows among Portfolios triggered by the formula depends on active and liquid markets. If market liquidity is strained, the asset flows may not operate as intended. For example, it is possible that illiquid markets or other market stress could cause delays in the transfer of cash from one Portfolio to another Portfolio, which in turn could adversely impact performance.

Before you allocate to the Variable Option with the AST Portfolios listed above, you should consider the potential effects on the Portfolios that are the result of the operation of the formula in the variable annuity contracts that are unrelated to your Variable Annuity. Please work with your financial professional to determine which Portfolios are appropriate for your needs.

♦ **This information includes annual expenses that reflect temporary or other fee reductions or waivers. Please see the Portfolio prospectus for additional information.** 

‡ The
 Portfolio has certain restrictions regarding availability for investment by Contract Owners as listed below.

**<u>Allspring VT Discovery All Cap Growth Fund - Class 2</u>**<br>Effective July 19, 2010 was closed to all new investments. However, electronic funds transfer, dollar cost averaging, asset allocation and rebalancing programs, as applicable, that were elected prior to the effective date will not be affected by the closure unless a contract Owner withdraws or otherwise transfers their entire Account Value from the Portfolio.

**<u>Allspring VT Small Cap Growth Fund - Class 2</u>**<br>Effective July 19, 2010 was closed to all new investments. However, electronic funds transfer, dollar cost averaging, asset allocation and rebalancing programs, as applicable, that were elected prior to the effective date will not be affected by the closure unless a contract Owner withdraws or otherwise transfers their entire Account Value from the Portfolio.

**<u>Invesco V.I. Discovery Mid Cap Growth Fund - Series I shares</u>**<br>Effective May 1, 2020 was closed to all new investments except those made by contract Owners who had account value in the Portfolio on the effective date or at any time prior to the effective date.

**<u>Invesco V.I. Technology Fund - Series I shares</u>**<br>Effective May 1, 2022 was closed to all new investments except those made by contract Owners who had account value in the Portfolio on the effective date or at any time prior to the effective date.

**<u>ProFund Access VP High Yield</u>**<br>Effective April 26, 2021 was closed to all new investments except those made by contract Owners who had account value in the Portfolio on the effective date or at any time prior to the effective date.

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**Fixed Options**

The following is a list of Fixed Options currently available under the Contract. We may change the features of the Fixed Options listed below, offer new Fixed Options, and terminate existing Fixed Options. We will provide you with written notice before doing so. For more information about the Fixed Options, see "[Description of Insurance Company, Registered Separate Account, and Investment Options](#chapter_7_890)" in this prospectus.

**Note: If amounts are withdrawn from MVA Fixed Allocation before the end of its term, we will apply a Contract Adjustment. This may result in a** **significant reduction in your Contract value. For more information about Market Value Adjustments, please refer to the "[Charges and Adjustments](#chapter_8-sect1_1_890)** **" section of this prospectus.**

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| | |
|:---|:---|
| **Name** | **Term** |
| Guaranteed Period GRO<sup>1</sup> | 7 Year<br>0%<sup>2</sup> |
| MVA Fixed Allocation | 1 Year<br>0%<sup>2</sup> |
| MVA Fixed Allocation | 2 Year<br>0%<sup>2</sup> |
| MVA Fixed Allocation | 3 Year<br>0%<sup>2</sup> |
| MVA Fixed Allocation | 5 Year<br>0%<sup>2</sup> |
| MVA Fixed Allocation | 7 Year<br>0%<sup>2</sup> |
| MVA Fixed Allocation | 10 Year<br>0%<sup>2</sup> |

---

\*The rate shown is the last Minimum Guaranteed Interest Rate issued before the product closed to new customers. Your Minimum Guaranteed Interest Rate is the amount shown on your Contract and can vary by state. Please consult with your representative for availability and current rates.

<sup>1</sup> Not available for allocations. <br><sup>2</sup> The Minimum Guaranteed Interest Rate is linked to an index and never less than zero, as shown on your Contract and subject to state minimums.

**Investment Restrictions**

Depending on the optional benefits you choose, you may not be able to invest in certain Portfolio Companies.

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| | |
|:---|:---|
| **Optional Benefit Name** | **All Investment Options Permitted, EXCEPT These:** |
| Guaranteed Return Option<br>Guaranteed Return Option Plus<br>Guaranteed Minimum Withdrawal Benefit<br>Guaranteed Minimum Income Benefit<br>Highest Anniversary Value Death Benefit<br>Combination 5% Roll- Up and HAV Death Benefit | Invesco V.I. Technology Fund - Series I shares<br>ProFund Access VP High Yield<br>ProFund VP Biotechnology<br>ProFund VP Internet<br>ProFund VP Semiconductor<br>ProFund VP Short Mid-Cap<br>ProFund VP Short Small-Cap<br>ProFund VP Technology<br>ProFund VP UltraBull<br>ProFund VP UltraNASDAQ-100<br>ProFund VP UltraSmall-Cap |

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| | |
|:---|:---|
| **Optional Benefit Name:** | **Permitted Investment Options:** |
| Lifetime Five Income Benefit | Allspring VT Discovery All Cap Growth Fund - Class 1<br>Allspring VT Small Cap Growth Fund - Class 1<br>AST Aggressive Asset Allocation Portfolio<br>AST Balanced Asset Allocation Portfolio<br>AST Core Fixed Income Portfolio<br>AST Government Money Market Portfolio<br>AST International Equity Portfolio<br>AST J.P. Morgan Conservative Multi-Asset Portfolio<br>AST J.P. Morgan Moderate Multi-Asset Portfolio<br>AST Large-Cap Equity Portfolio<br>AST Large-Cap Growth Portfolio<br>AST Large-Cap Value Portfolio<br>AST Multi-Asset Diversified Plus Portfolio<br>AST Multi-Asset Diversified Portfolio<br>AST PGIM Aggressive Multi-Asset Portfolio<br>AST Preservation Asset Allocation Portfolio<br>AST Small-Cap Equity Portfolio<br>Invesco V.I. Discovery Mid Cap Growth Fund - Series I shares<br>Invesco V.I. Diversified Dividend Fund - Series I shares<br>Invesco V.I. Health Care Fund - Series I shares<br>NVIT Fidelity Institutional AM® Emerging Markets Fund - Class D<br>ProFund VP Europe 30<br>ProFund VP Mid-Cap Growth<br>ProFund VP Mid-Cap Value<br>ProFund VP Small-Cap Growth<br>ProFund VP Small-Cap Value |
| **Optional Benefit Name:** | **Permitted Investment Options:** |
| Spousal Lifetime Five Income Benefit | AST Academic Strategies Asset Allocation Portfolio<br>AST Advanced Strategies Portfolio<br>AST Balanced Asset Allocation Portfolio<br>AST Capital Growth Asset Allocation Portfolio<br>AST J.P. Morgan Conservative Multi-Asset Portfolio<br>AST J.P. Morgan Moderate Multi-Asset Portfolio<br>AST Preservation Asset Allocation Portfolio<br>AST Prudential Growth Allocation Portfolio |
| **Optional Benefit Name:** | **Permitted Investment Options:** |
| Highest Daily Value Death Benefit | Allspring VT Discovery All Cap Growth Fund - Class 1<br>Allspring VT Small Cap Growth Fund - Class 1<br>AST Aggressive Asset Allocation Portfolio<br>AST Balanced Asset Allocation Portfolio<br>AST Core Fixed Income Portfolio<br>AST Government Money Market Portfolio<br>AST International Equity Portfolio<br>AST Large-Cap Equity Portfolio<br>AST Large-Cap Growth Portfolio<br>AST Large-Cap Value Portfolio<br>AST Small-Cap Equity Portfolio<br>Invesco V.I. Discovery Mid Cap Growth Fund - Series I shares<br>Invesco V.I. Diversified Dividend Fund - Series I shares<br>Invesco V.I. Health Care Fund - Series I shares<br>NVIT Fidelity Institutional AM® Emerging Markets Fund - Class D<br>ProFund VP Europe 30<br>ProFund VP Mid-Cap Growth<br>ProFund VP Mid-Cap Value<br>ProFund VP Small-Cap Growth<br>ProFund VP Small-Cap Value |

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**APPENDIX B – ADDITIONAL INFORMATION ON ASSET ALLOCATION PROGRAMS**

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**<u>Program Rules</u>**

Prior to December 5, 2005, you could elect an asset allocation program where the Variable Options for each asset class in each model Portfolio were designated based on an evaluation of available Variable Options. Effective December 5, 2005, you can no longer enroll in an asset allocation program, but you will be permitted to remain in the program if you enrolled prior to the date. These program Rules reflect how the asset allocation program will be administered as of December 5, 2005 for those Owners who have chosen to remain in their program. Asset allocation is a sophisticated method of diversification that allocates assets among asset classes in order to manage investment risk and potentially enhance returns over the long term. However, asset allocation does not guarantee a profit or protect against a loss.

**How the Asset Allocation Program Works**

• Amounts
 will automatically be allocated in accordance with the percentages and to Variable Options indicated for the model Portfolio that you
 previously chose. If you allocate your Account Value or transfer your Account Value among any Variable Options that are outside of your
 model Portfolio, we will allocate these amounts according to the allocation percentages of the applicable model Portfolio upon the next
 rebalancing. You will not be permitted to change from one model Portfolio to another. Upon each rebalance, 100% of your Account Value
 allocated to the variable Variable Options will be allocated to the asset allocation program. Any Account Value not invested in the Variable
 Options will not be part of the program.

• Additional
 Purchase Payments: Unless otherwise requested, any additional Purchase Payments applied to the variable Variable Options in
 the Annuity will be allocated to the Variable Options according to the allocation percentages for the model Portfolio you choose. Allocation
 of additional Purchase Payments outside of your model Portfolio but into a Variable Option, will be reallocated according to the allocation
 percentages of the applicable model Portfolio upon the next rebalancing.

• Rebalancing
 Your Model Portfolio: Changes in the value of the Variable Option will cause your Account Value allocated to the Variable Options
 to vary from the percentage allocations of the model Portfolio you select. By selecting the asset allocation program, you have directed
 us to periodically (e.g., quarterly) rebalance your Account Value allocated to the Variable Options in accordance with the percentage
 allocations assigned to each Variable Option within your model Portfolio at the time you elected the program or had later modified
 with your consent. Some asset allocation programs will only require that a rebalancing occur when the percent of your Account Value
 allocated to the Variable Options are outside of the acceptable range permitted under such asset allocation program. Note – Any Account Value not
 invested in the Variable Options will not be affected by any rebalance.

• Variable
 Option Changes Within the Model Portfolios: From time to time there may be a change in a Variable Option within your model Portfolio.
 Unless directed by you or your financial professional to reallocate to the new Variable Option, rebalancing will continue in accordance
 with your unchanged model Portfolio, unless the Variable Option is no longer available under your Annuity. If the Variable Option
 is no longer available we will notify you. If you do not consent to the new Variable Option, your lack of consent will be deemed a request
 to terminate the asset allocation program and the provisions under "Termination or Modification of the Asset Allocation Program" will apply.

• Owner
 Changes in Choice of Model Portfolio: You may not change from the model Portfolio that you have elected to any other model Portfolio.

**Termination or Modification of the Asset Allocation Program:**

• You
 may request to terminate your asset allocation program at any time. Once you terminate your asset allocation program, you will not be
 permitted to re-enroll in the program. Any termination will be effective on the date that we receive your termination request in good order. If you are
 enrolled in HDV or LT5, termination of your asset allocation program must coincide with enrollment in a then currently available
 and approved asset allocation program or other approved option. However, if you are enrolled in LT5 you may terminate the LT5 benefit
 in order to then terminate your asset allocation program. We reserve the right to terminate or modify the asset allocation program at
 any time with respect to any programs.

**Restrictions on Electing the Asset Allocation:**

• You
 cannot participate in automatic rebalancing or a DCA program while enrolled in an asset allocation program and Systematic Withdrawals
 can only be made as flat dollar amounts.

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**APPENDIX C – FORMULA UNDER THE GUARANTEED RETURN OPTION PLUS BENEFIT**

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We set out below the current formula under which we may transfer amounts between the Variable Options and the Fixed Allocations. We will not alter the formula.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity (including any Market Value Adjustment on Fixed Allocations)

• V
 is the current Account Value of the elected Variable Options of the Annuity

• F
 is the current Account Value of the Fixed Allocations

For each guarantee provided under the program,

• G <sub>i</sub> is the Principal Value of the guarantee

• t <sub>i</sub> is the number of whole and partial years until the maturity date of the guarantee.

• r <sub>i</sub> is the current fixed rate associated with Fixed Allocations of length t <sub>i</sub> (t <sub>i</sub> is rounded to the next highest integer to determine this rate).

The formula determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each guarantee the value (L<sub>i</sub>) that, if appreciated at the current fixed rate, would equal the Principal Value on the applicable maturity date. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i</sub> = G<sub>i</sub> / (1 + r<sub>i</sub>)<sup>ti</sup>

Next, the formula determines whether or not a transfer to or from the Fixed Allocations is needed:

A transfer into the Fixed Allocations will occur if L > (AV – 0.2 × V), and V > 0.

The transfer amount is calculated by the following formula:

T = MIN(V, (V – (1 / 0.23) × (AV – L)))

A transfer from the Fixed Allocations to the Variable Options will occur if L < (AV – 0.26 × V), and F > 0.

The transfer amount is calculated by the following formula:

T = MIN(F, ((1 / 0.23) × (AV – L) – V))

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**APPENDIX D – FORMULA UNDER THE GUARANTEED RETURN OPTION BENEFIT**

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We set out below the current formula under which we may transfer amounts between the Variable Options and the Fixed Allocations. We will not alter this pre-determined mathematical formula.

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity (including any Market Value Adjustment on Fixed Allocations)

• V
 is the current Account Value of the elected Variable Options of the Annuity

• F
 is the current Account Value of the Fixed Allocations

• G
 is the Principal Value of the guarantee

• t
 is the number of whole and partial years between the current Valuation Day and the maturity date.

• t <sub>i</sub> is the number of whole and partial years between the next Valuation Day (i.e., the Valuation Day immediately following the current Valuation
 Day) and the maturity date.

• r
 is the fixed rate associated with Fixed Allocations of length t (t <sub>1</sub> is rounded to the next highest whole number to determine this rate) as of the
 current Valuation Day.

• r <sub>i</sub> is the fixed rate associated with Fixed Allocations of length t <sub>1</sub> (t <sub>1</sub> is rounded to the next highest whole number to determine this rate) as of
 the next Valuation Day.

• M
 is the total maturity value of all Fixed Allocations, i.e., the total value that the Fixed Allocations will have on the maturity date
 of the guarantee
 if no subsequent transactions occur.

The formula determines, on each Valuation Day, when a transfer is required.

The formula begins by determining a "cushion", D:

D = 1 – [(G – M) / (1 + r)<sup>ti</sup>] / V

Next, the formula determines whether or not a transfer to or from the Fixed Allocations is needed:

A transfer into the Fixed Allocations will occur if D < 0.20, V > 0, and V > 0.02 × AV.

The transfer amount is calculated by the following formula:

T = MIN(V, (V × (0.75 × (1 + r<sub>i</sub>)<sup>ti</sup> – G + M) / (0.75 × (1 + r<sub>i</sub>)<sup>ti</sup> – (1 + r)<sup>t</sup>)))

A transfer from the Fixed Allocations to the Variable Options will occur if D > 0.30 and F > 0.

The transfer amount is calculated by the following formula:

T = MIN(F, (V × (0.75 × (1 + r<sub>i</sub>)<sup>ti</sup> – G + M) / ((1 + r)<sup>t</sup> – 0.75 × (1 + r<sub>i</sub>)<sup>ti</sup>)))

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**Mailing**

------

This prospectus describes the important features of the Annuity and provides information about Fortitude Life Insurance & Annuity Company ("we," "our," "us," "FLIAC," or "the Company") and Fortitude Life Insurance & Annuity Company Variable Account B ("the Registered Separate Account").

We have filed with the Securities and Exchange Commission ("SEC") a Statement of Additional Information (SAI), dated May 1, 2026 that includes additional information about the Annuity and the Registered Separate Account, and the Company. The SAI is incorporated by reference into this prospectus. The SAI is available from us, without charge, upon request. To request a copy of the SAI, to ask about your Annuity, or to make other investor inquiries, please call 1-800-879-7012.

Reports and other information about the Contract, Registered Separate Account, and the Company are available on the SEC's website at <u>www.sec.gov</u>, and copies of reports and other information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.

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![](pr890img001.jpg)<br>Ten Exchange Place<br>Suite 2210<br>Jersey City, New Jersey 07302

Edgar Contract Identifier: C000010680; C000267648 WFXT6PROS

------

**Advanced Series XTra Credit SIX**<br>**Optimum Plus**<br>**Stagecoach XTra Credit SIX**<br>("Contracts" or "Annuities")<br>**Statement of Additional Information:** **MAY 1, 2026**<br>**FORTITUDE LIFE INSURANCE & ANNUITY COMPANY**<br>("we", "our", the "Company", or "us")<br>**FORTITUDE LIFE INSURANCE & ANNUITY COMPANY VARIABLE ACCOUNT B**<br>(the "Registered Separate Account")

THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS. THE PROSPECTUS(ES) DATED MAY 1, 2026 CONTAIN INFORMATION THAT YOU SHOULD CONSIDER BEFORE INVESTING. FOR A COPY OF THE PROSPECTUS(ES) SEND A WRITTEN REQUEST TO ANNUITIES SERVICE CENTER, P.O. BOX 7960, PHILADELPHIA, PA 19176 OR TELEPHONE 1-800-879-7012. YOU MAY ACCESS THE PROSPECTUS(ES) AT THE LINK(S) BELOW.

**Table of Contents**

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| | |
|:---|:---|
|  | **PAGE** |
| [GENERAL INFORMATION ABOUT FORTITUDE LIFE INSURANCE & ANNUITY COMPANY](#chapter_2_900) | [2](#chapter_2_900) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Fortitude Life Insurance & Annuity Company](#chapter_2-sect1_1_900) | [2](#chapter_2-sect1_1_900) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Fortitude Life Insurance & Annuity Company Variable Account B](#chapter_2-sect1_2_900) | [2](#chapter_2-sect1_2_900) |
| [SERVICE PROVIDERS](#chapter_3_900) | [2](#chapter_3_900) |
| [CONTRACT ADJUSTMENTS](#chapter_4_900) | [3](#chapter_4_900) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Market Value Adjustment Formula & Examples](#chapter_4-sect1_1_900) | [3](#chapter_4-sect1_1_900) |
| [PRINCIPAL UNDERWRITER/DISTRIBUTOR - PRUDENTIAL ANNUITIES DISTRIBUTORS, INC.](#chapter_5_900) | [4](#chapter_5_900) |
| [MISSTATEMENT OF AGE OR SEX](#chapter_6_900) | [6](#chapter_6_900) |
| [FINANCIAL STATEMENTS](#chapter_7_900) | [6](#chapter_7_900) |

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| | |
|:---|:---|
| Advanced Series XTra Credit Six: C000003488; C000267649 | www.prudential.com/regdocs/FLIAC-CORE-STAT |
| Optimum Plus: C000010676; C000267650 | www.prudential.com/regdocs/FLIAC-OPTIMUM-STAT |
| Stagecoach XTra Credit Six: C000010680; C000267648 | www.prudential.com/regdocs/FLIAC-SC-XT6-STAT |

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**GENERAL INFORMATION ABOUT FORTITUDE LIFE INSURANCE & ANNUITY COMPANY**

**Fortitude Life Insurance & Annuity Company**

Fortitude Life Insurance & Annuity Company ("FLIAC" or the "Company") is a stock life insurance company incorporated under the laws of Arizona as of August 31, 2013, formerly incorporated in Connecticut. FLIAC was formerly Prudential Annuities Life Assurance Corporation ("PALAC" or "Former Company"). On April 1, 2022, Prudential Financial, Inc., the parent of PALAC, completed its sale of PALAC to Fortitude Group Holdings, LLC (the "Transaction"). As a result of the Transaction, PALAC changed its name to FLIAC. FLIAC is a wholly-owned subsidiary of Fortitude Group Holdings, LLC.

**Fortitude Life Insurance & Annuity Company Variable Account B**

Fortitude Life Insurance & Annuity Company Variable Account B (formerly Prudential Annuities Life Assurance Corporation Variable Account B), also referred to as "Separate Account B," was established by us pursuant to Connecticut law on November 25, 1987.

Effective August 31, 2013, the state of domicile was changed from Connecticut to Arizona. On April 1, 2022, as a result of the Transaction noted above, Prudential Annuities Life Assurance Corporation Variable Account B changed its name to Fortitude Life Insurance & Annuity Company Variable Account B.

Separate Account B is registered with the Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940 (the "Investment Company Act") as a unit investment trust, which is a type of investment company. Separate Account B consists of multiple Sub-accounts, each investing in a single Portfolio. Values and benefits based on allocations to the Sub-accounts within Separate Account B will vary with the investment performance of the Portfolios, as applicable. We do not guarantee the investment results of any Sub-account. You bear the entire investment risk.

We reserve the right to do any or all of the following: (a) offer new Sub-accounts, eliminate Sub-accounts, combine two or more Sub-accounts, or substitute Sub-accounts; (b) combine Separate Account B or a portion of it with other "unitized" separate accounts; (c) deregister Separate Account B under the Investment Company Act; (d) operate Separate Account B as a management investment company under the Investment Company Act or in any other form permitted by law; (e) make changes required by any change in the Securities Act, the Exchange Act or the Investment Company Act; (f) make changes that are necessary to maintain the tax status of your Annuity under the Code; and (g) make changes required by any change in other Federal or state laws relating to retirement annuities or annuity contracts.

We reserve the right to transfer assets of Separate Account B, which we determine to be associated with the class of contracts to which your Annuity belongs, to another "unitized" separate account. We will notify you (and/or any payee during the payout phase) of any modification to your Annuity. We may endorse your Annuity to reflect the change.

**SERVICE PROVIDERS**

The Company conducts the bulk of its annuity operations through The Prudential Insurance Company of America (together with certain of its affiliates, the "Administrator") and other third-party service providers, subject to the Company's oversight. The entities engaged directly or indirectly by the Company to provide services may change over time.

The Administrator services and administers the Annuity on behalf of the Company through one or more third party administrator, administrative services or other similar agreements. The Administrator's principal executive offices are located at One Corporate Drive, Shelton, CT 06484. The Administrator is an affiliate of Prudential Annuities Distributors, Inc., the distributor of the Annuity, but is not otherwise an affiliate of the Company.

As of December 31, 2025, the following non-affiliated entities could be deemed service providers to the Company in connection with the Annuity.

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| | | |
|:---|:---|:---|
| **Name of Service Provider** | **Services Provided** | **Address** |
| Broadridge Investor Communication | Proxy services and regulatory mailings | 51 Mercedes Way, Edgewood, NY, 11717 |
| CFGI (A Portfolio Company of Caryle & CVC) | TPA Cybersecurity Auditing | 1 Lincoln Street, Suite 1301, Boston, MA, 02111 |
| DFIN Donnelley Financial Solutions | N-CEN filings | 35 West Wacker Drive, Chicago, IL, 60601 |
| Docufree Corporation | Records management and administration of annuity contracts Mail receipt / Imaging, check deposits, pricing, ahoc mailings. | 10 Ed Preate Drive, Moosic, PA, 18507 |
| EXL Service Holdings, Inc | Administration of annuity contracts | 350 Park Avenue, 10th Floor, New York, NY, 10022 |

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| | | |
|:---|:---|:---|
| **Name of Service Provider** | **Services Provided** | **Address** |
| FTI Consulting Inc. | TPA Audits | 555 12th Street NW, Suite 700, Washington, DC, 20004 |
| Grant Thornton | TPA Audits | 2001 Market Street, Suite 800, Philadelphia, PA 19103 |
| Guidehouse | Claim related services | 1676 International Drive, Suite 800, McLean, VA, 22102 |
| National Financial Services | Clearing and settlement services for Distributors and Carriers. | 900 Salem St. Smithfield, RI, 02917 |
| Open Text, Inc | Fax Services | 2440 Sand Hill Rd. Suite 302, Menlo Park, CA, 94025 |
| PERSHING LLC | Clearing and settlement services for Distributors and Carriers. | One Pershing Plaza, Jersey City, NJ, 07399 |
| Prudential Insurance Company of America ("PICA") | Third party administration and processing for Annuity contracts | 213 Washington Street, Newark, NJ, 07102- 2992 |
| The Depository Trust Clearinghouse Corporation | Clearing and settlement services for Distributors and Carriers. | 570 Washington Boulevard, Jersey City, NJ, 07310 |
| Thomson Reuters | Tax reporting services | 3 Times Square, New York, NY, 10036 |
| Universal Wilde | Composition, printing, and mailing of contracts and benefit documents | 135 Will Drive, Canton, MA 02021 |

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**CONTRACT ADJUSTMENTS**

**Market Value Adjustment Formula ("MVA Formula") & Examples**

The Market Value Adjustment formula is applied separately to each Market Value Adjustment Fixed Allocation to determine the Account Value of the Fixed Allocation on a particular date. The formula is as follows:

[(1+I)/(1+J+K)]<sup>(N/365)</sup>

where:

**I** is the Strip Yield as of the start date of the Guarantee Period for coupon Strips maturing at the end of the applicable Guarantee Period plus the Option-adjusted Spread;

**J** is the Strip Yield as of the date the MVA formula is being applied for coupon Strips maturing at the end of the applicable Guarantee Period plus the Option-adjusted Spread;

**N** is the number of days remaining in the original Guarantee Period;

**K** is the Liquidity Factor, currently equal to 0.0010; or 0.10%

For factors I and J, if there are no Strips maturing at the end of the applicable Guarantee Period, we will use the Strip Yield for Strip Yields maturing as soon as possible after the Guarantee Period ends.

The denominator of the MVA formula includes a factor (K), currently equal to 0.0010 or 0.10%. The factor is an adjustment that is applied when an MVA is assessed (regardless of whether the MVA is positive or negative) and, relative to when no factor is applied, will reduce the amount being surrendered or transferred from the MVA Fixed Allocation. The 0.10% liquidity factor in the formula will not apply if you surrender your Contract during the Free Look period.

For annuities approved for sale by the New York State Insurance Department, the MVA formula does not apply during the 30-day period immediately before the end of the Guarantee Period. For more information about variations applicable to annuities approved for sale by the New York State Insurance Department, please refer to your annuity contract.

If you surrender your Annuity under the right to cancel provision, the MVA formula is:

[(1 + I)/(1 + J + K)]<sup>(N/365)</sup>

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**Market Value Adjustment Examples**

The following hypothetical examples show the effect of the MVA in determining Account Value. Assume the following:

• You
 allocate $50,000 into an MVA Fixed Allocation (we refer to this as the "Allocation Date" in these examples) with a Guarantee
 Period of 5 years (we
 refer to this as the "Maturity Date" in these examples) at an annual effective rate of 3.00%.

• The
 Strip Yields for coupon Strips beginning on Allocation Date and maturing on Maturity Date plus the Option-adjusted Spread is 3.00% (I= 3.00%).

• You
 make no withdrawals or transfers until you decide to withdraw the entire  MVA Fixed Allocation after exactly three (3) years, at
 which point 730 days
 remain before the Maturity Date (N = 730).

**Example of Positive Market Value Adjustment**

Assume that at the time you request the withdrawal, the Strip Yields for Strips maturing on the Maturity Date plus the Option-adjusted Spread is 2.00% (J = 2.00%). Based on these assumptions, the MVA would be calculated as follows:

---

| | |
|:---|:---|
| Market Value Adjustment Factor | [(1+I)/(1+J+K)]<sup>(N/365)</sup> = [1.03/1.021]<sup>2</sup> = 1.017707  |
| Interim Value | $54636.35 |
| Account Value after Market Value Adjustment | Interim Value X Market Value Adjustment Factor = $55,603.82 |

---

**Example of Negative Market Value Adjustment**

Assume that at the time you request the withdrawal, the Strip Yields for Strips maturing on the Maturity Date plus the Option-adjusted Spread is 4.00% (J = 4.00%). Based on these assumptions, the MVA would be calculated as follows:

---

| | |
|:---|:---|
| Market Value Adjustment Factor | [(1+I)/(1+J+K)]<sup>(N/365)</sup> = [1.03/1.041]<sup>2</sup> = 0.978978  |
| Interim Value | $54636.35 |
| Account Value after Market Value Adjustment | Interim Value X Market Value Adjustment Factor = $53,487.79 |

---

**PRINCIPAL UNDERWRITER/DISTRIBUTOR - PRUDENTIAL ANNUITIES DISTRIBUTORS, INC.**

Prudential Annuities Distributors, Inc. ("PAD"), is the distributor and principal underwriter of the Annuity offered through this prospectus. PAD acts as the distributor of several annuity and life insurance products and the AST Portfolios. Other than in its role as distributor and principal underwriter of the Annuity, PAD is not affiliated with the Company. Prior to the Transaction, the Company and PAD were affiliates by virtue of common control. PAD's principal business address is One Corporate Drive, Shelton, Connecticut 06484. PAD is registered as a broker-dealer under the Securities Exchange Act of 1934 (the "Exchange Act") and is a member of the Financial Industry Regulatory Authority ("FINRA").

The Contract is no longer sold but Owners may make additional Purchase Payments and transfer Account Value in accordance with the Annuity. PAD enters into distribution agreements with unaffiliated broker-dealers who are registered under the Exchange Act ("Firms"). Applications for annuity products are solicited by registered representatives of those firms. PAD utilizes a network of its own registered representatives to wholesale annuity products to Firms. Because a variable annuity contract is an insurance product as well as a security, all registered representatives who sell variable annuity contracts are also appointed as insurance agents of ours.

We sell our annuity products through multiple distribution channels, including (1) independent broker-dealer firms and financial planners; (2) broker-dealers that are members of the New York Stock Exchange, including "wirehouse" and regional broker-dealer firms; and (3) broker-dealers affiliated with banks or that specialize in marketing to customers of banks. Although we are active in each of those distribution channels, the majority of our sales have come from the independent broker-dealer firms and financial planners.

Under the selling agreements, cash compensation in the form of commissions is paid to firms on sales according to one or more schedules. The registered representative will receive a portion of the compensation, depending on the practice of his or her firm. Commissions are generally based on a percentage of Purchase Payments made. Alternative compensation schedules are available that generally provide a lower initial commission plus ongoing quarterly compensation based on all or a portion of the Account Value. We may also provide cash compensation to the distributing firm for providing ongoing service to you in relation to your Annuity. These payments may be made in the form of percentage payments based upon "Assets under Management" or "AUM," (total assets), subject to certain criteria in certain of our products. These payments may also be made in the form of percentage payments based upon the total amount of money received as Purchase Payments under our annuity

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products sold through the firm. Commissions and other cash compensation paid in relation to your Annuity do not result in any additional charge to you or to the Separate Account.

In connection with the sale and servicing of the Annuity, Firms may receive cash compensation and/or non-cash compensation. Cash compensation includes discounts, concessions, fees, service fees, commissions, asset-based sales charges, loans, overrides, or any cash employee benefit received in connection with the sale and distribution of variable contracts. Non-cash compensation includes any form of compensation received in connection with the sale and distribution of variable contracts that is not cash compensation, including but not limited to merchandise, gifts, travel expenses, meals and lodging.

We may also provide cash compensation to the distributing Firm for providing ongoing service to you in relation to the Annuity. These payments may be made in the form of percentage payments based upon "Assets under Management" or "AUM," (total assets), subject to certain criteria in certain of our products. These payments may also be made in the form of percentage payments based upon the total amount of money received as Purchase Payments under our annuity products sold through the Firm.

In addition, in an effort to promote the sale of our products (which may include the placement of the Annuity on a preferred or recommended company or product list and/or access to the Firm's registered representatives), we, or PAD, may enter into non-cash compensation arrangements with certain Firms with respect to certain or all registered representatives of such Firms under which such Firms may receive fixed payments or reimbursement. These types of fixed payments are made directly to or in sponsorship of the Firm and may include, but are not limited to payment for: training of sales personnel; marketing and/or administrative services and/or other services they provide to us or our affiliates; educating customers of the firm on the Annuity's features; conducting due diligence and analysis; providing office access, operations, systems and other support; holding seminars intended to educate registered representatives and make them more knowledgeable about the Annuities; conferences (national, regional and top producer); sponsorships; speaker fees; promotional items; a dedicated marketing coordinator; priority sales desk support; expedited marketing compliance approval and preferred programs to PAD; and reimbursements to Firms for marketing activities or other services provided by third-party vendors to the Firms and/or their registered representatives. To the extent permitted by FINRA rules and other applicable laws and regulations, we or PAD may also pay or allow other promotional incentives or payments in other forms of non-cash compensation (*e.g*., gifts, occasional meals and entertainment, sponsorship of due diligence events). Under certain circumstances, Portfolio advisors/subadvisors or other organizations with which we do business ("Entities") may also receive incidental non-cash compensation, such as occasional meals and nominal gifts. The amount of this non-cash compensation varies widely because some may encompass only a single event, such as a conference, and others have a much broader scope.

Cash and/or non-cash compensation may not be offered to all Firms and Entities and the terms of such compensation may differ between Firms and Entities. In addition, we or our affiliates may provide such compensation, payments and/or incentives to Firms or Entities arising out of the marketing, sale and/or servicing of variable annuities or life insurance offered by us.

A list of the firms to whom we pay an amount under these arrangements is provided below. You should note that firms and individual registered representatives and branch managers within some firms participating in one of these compensation arrangements might receive greater compensation for selling one annuity than for selling a different annuity that is not eligible for these compensation arrangements. While compensation is generally considered as an expense in considering the charges applicable to an annuity product, any such compensation will be paid by us or PAD and will not result in any additional charge to you. Your registered representative can provide you with more information about the compensation arrangements that apply to your Annuity. Further information about the firms that are part of these compensation arrangements appears in the Statement of Additional Information, which is available without charge upon request.

With respect to all individual annuities issued by the Company (or its affiliates as of the time periods indicated), PAD received commissions as follows: 2025: $93,371,339.40; 2024: $104,252,728.14 and 2023: $98,619,373.99. PAD retained none of those commissions.

The list below includes the names of the firms that we are aware as of December 31, 2025 received cash compensation with respect to our annuity business during 2025 (or as to which a payment amount was accrued during 2025). The firms listed below include those receiving payments in connection with marketing of products issued by Fortitude Life Insurance & Annuity Company. During 2025, the least amount paid, and greatest amount paid, were $1.50 and $6,376,139.77, respectively.

**Name of Firm:**

---

| |
|:---|
| Allstate Financial Srvcs, LLC |
| Cadaret, Grant & Co., Inc. |
| Cambridge Investment Research, Inc. |
| Centaurus Financial, Inc. |
| Cetera Advisor Network LLC |
| Commonwealth Financial Network |

---

---

| |
|:---|
| Concourse Financial Group Securities Inc |
| Equitable Advisors, LLC |
| Equity Services, Inc. |
| Geneos Wealth Management, Inc. |
| Grove Point Investments |
| Hantz Financial Services, Inc. |

---

---

| |
|:---|
| Kestra Financial, Inc. |
| Lincoln Investment Planning |
| LPL Financial Corporation |
| M Holdings Securities, Inc |
| MML Investors Services, Inc. |
| Morgan Stanley Smith Barney |

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---

| |
|:---|
| Next Financial Group, Inc. |
| Osaic Financial Advisors |
| Osaic Financial Securities |
| OSAIC Wealth |
| PNC Investments, LLC |
| Raymond James Financial Svcs |

---

---

| |
|:---|
| RBC CAPITAL MARKETS CORPORATION |
| Stifel Nicolaus & Co. |
| TFS Securities, Inc. |
| The Investment Center |
| TransAmerica Financial Advisors, Inc. |
| UBS Financial Services, Inc. |

---

---

| |
|:---|
| United Planners Fin. Serv. |
| Wells Fargo Advisors LLC |
| WELLS FARGO ADVISORS LLC – WEALTH |
| Wells Fargo Investments |

---

**MISSTATEMENT OF AGE OR SEX**

If there has been a misstatement of the age and/or sex of any person upon whose life annuity payments or the minimum death benefit is based, we make adjustments to conform to the facts. As to annuity payments: (a) any underpayments by us will be remedied on the next payment following correction; and (b) any overpayments by us will be charged against future amounts payable by us under your Annuity.

**FINANCIAL STATEMENTS**

The financial statements of Fortitude Life Insurance & Annuity Company Variable Account B are incorporated into this Statement of Additional Information by reference to the latest financial statements on [Form N-VPFS for the Fortitude Life Insurance & Annuity Company Variable Account B as filed with the SEC on April 27, 2026](https://www.sec.gov/Archives/edgar/data/826734/000082673426000054/a2025-96701fortitudelifein.htm). The financial statements of Fortitude Life Insurance & Annuity Company are incorporated by reference to its annual report for the year ending December 31, 2025 on [Form 10-K as filed with the SEC on March 19, 2026](https://www.sec.gov/ix?doc=/Archives/edgar/data/881453/000088145326000014/fliac-20251231.htm). Such financial statements have been audited by PricewaterhouseCoopers LLP ("PwC"), an independent registered public accounting firm. PwC's principal business address is 300 Madison Avenue, New York, NY 10017-6204.

------

PART C<br>333-71834; 333-290619<br>OTHER INFORMATION

ITEM 27. EXHIBITS:

---

| | |
|:---|:---|
| (a) | [Resolution of the board of directors of Depositor authorizing the establishment of Separate Account B filed via EDGAR with Post-Effective Amendment No. 6 to Registration Statement No. 33-87010, filed March 2, 1998.](https://www.sec.gov/Archives/edgar/data/826734/0000881453-98-000009.txt) |
| (b) | Not applicable. Fortitude Life Insurance & Annuity Company maintains custody of all assets. |
| (c)(1) | [Revised Principal Underwriting Agreement between Prudential Annuities Life Assurance Corporation and Prudential Annuities Distributors, Inc, filed via EDGAR with Post-Effective Amendment No. 26 to Registration Statement No. 333-96577, filed April 21, 2006.](https://www.sec.gov/Archives/edgar/data/826734/000119312506085512/dex993a.txt) |
| (2) | [Specimen Revised Dealer Agreement filed via EDGAR with Post-Effective Amendment No. 26 to Registration Statement No. 333-96577, filed April 17, 2008.](https://www.sec.gov/Archives/edgar/data/826734/000119312508083485/dex993b.txt) |
| (3) | [First Amendment to Principal Underwriting Agreement between Prudential Annuities Life Assurance Company ("Company"), and Prudential Annuities Distributors, Inc. ("Distributor"), filed via EDGAR with Post-Effective Amendment No. 49 to Registration Statement No. 333-96577, filed September 23, 2011.](https://www.sec.gov/Archives/edgar/data/826734/000088145311000045/underwriter_agreement.htm) |
| (d)(1) | [Copy of the Annuity via EDGAR with Pre-Effective Amendment No. 1 to this Registration Statement No. 333-71834, filed December 21, 2001.](https://www.sec.gov/Archives/edgar/data/1116371/000088145301500247/asxtsix_contract.htm) |
| (2) | [Copy of Guaranteed Minimum Death Benefit Endorsement filed via EDGAR with Post-Effective Amendment No. 8 to Registration Statement No. 33-87010, filed April 26, 1999.](https://www.sec.gov/Archives/edgar/data/826734/0000881453-99-000027.txt) |
| (3) | [Copy of percent Death Benefit Endorsement filed via EDGAR with Pre-Effective Amendment No. 1 to Registration Statement No. 333-49478, filed February 14, 2001.](https://www.sec.gov/Archives/edgar/data/826734/000088145301000061/0000881453-01-000061-0005.htm) |
| (4) | [Copy of Continuous Guaranteed Return Option incorporated by reference to Post-Effective Amendment No. 2 to Registration Statement No. 333-96577, filed on August 7, 2003.](https://www.sec.gov/Archives/edgar/data/826734/000088145303000198/mavr4e_aug-03.htm) |
| (5) | [Copy of Guaranteed Minimum Income Benefit filed via EDGAR with Post-Effective Amendment No. 2 to Registration Statement No. 333-96577, filed August 7, 2003.](https://www.sec.gov/Archives/edgar/data/826734/000088145303000198/gmib4f_aug-03.htm) |
| (6) | [Copy of Guaranteed Minimum Withdrawal Benefit filed via EDGAR with Post-Effective Amendment No. 2 to Registration Statement No. 333-96577, filed August 7, 2003.](https://www.sec.gov/Archives/edgar/data/826734/000088145303000198/gmwb4g_aug-03.htm) |
| (7) | [Copy of Rider for Combination 5% Roll-up and Highest Anniversary Value Death Benefit filed via EDGAR with Post-Effective Amendment No. 5 to Registration Statement No. 333-96577, filed April 20, 2004.](https://www.sec.gov/Archives/edgar/data/826734/000088145304000058/combo_db-rider.htm) |
| (8) | [Copy of Rider for Lifetime Five Income Benefit, incorporated by reference to Post-Effective Amendment No. 7 to Registration Statement No. 333-96577, filed November 16, 2004.](https://www.sec.gov/Archives/edgar/data/826734/000088145304000130/ex4i.htm) |
| (9) | [Copy of Rider for Highest Daily Value Benefit, incorporated by reference to Post-Effective Amendment No. 7 to Registration Statement No. 333-96577, filed November 16, 2004.](https://www.sec.gov/Archives/edgar/data/826734/000088145304000130/ex4j.htm) |
| (10) | [Copy of Rider for Spousal Lifetime Five Income Benefit, incorporated by reference to Post-Effective Amendment No. 10 to Registration Statement No. 333-96577, filed on November 16, 2005.](https://www.sec.gov/Archives/edgar/data/826734/000120677405001844/d18076-ex994k.txt) |
| (11) | [Copy of Rider for Highest Daily Lifetime Five Income Benefit filed via EDGAR with Post-Effective Amendment No. 16 to Registration Statement No. 333-71654, filed October 6, 2006.](https://www.sec.gov/Archives/edgar/data/826734/000119312506204556/dex994l.txt) |
| (12) | [Copy of rider for Guaranteed Return Option Plus 2008 filed via EDGAR with Post-Effective Amendment No. 25 to Registration Statement No. 333-96577, filed December 18, 2007.](https://www.sec.gov/Archives/edgar/data/826734/000082673407000222/exhibit4o.htm) |
| (13) | [Copy of rider for Highest Daily Guaranteed Return Option filed via EDGAR with Post-Effective Amendment No. 25 to Registration Statement No. 333-96577, filed December 18, 2007.](https://www.sec.gov/Archives/edgar/data/826734/000082673407000222/exhibit4n.htm) |
| (14) | [Copy of rider for Highest Daily Lifetime Seven filed via EDGAR with Post-Effective Amendment No. 25 to Registration Statement No. 333-96577, filed December 18, 2007.](https://www.sec.gov/Archives/edgar/data/826734/000082673407000222/exhibit4p.htm) |
| (15) | [Form of rider for Highest Daily Lifetime Seven with Lifetime Income Accelerator filed via EDGAR with Post-Effective Amendment No. 27 to Registration Statement No. 333-96577, filed May 1, 2008.](https://www.sec.gov/Archives/edgar/data/826734/000088145308000047/income_rider.htm) |
| (16) | [Form of rider for Highest Daily Lifetime Seven with Beneficiary Income Option filed via EDGAR with Post-Effective Amendment No. 27 to Registration Statement No. 333-96577, filed May 1, 2008.](https://www.sec.gov/Archives/edgar/data/826734/000088145308000047/bio_rider.htm) |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(17) [Highest Daily Lifetime 7 Plus Benefit Rider (RID-HD7 (2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994q.txt)

(18) [Highest Daily Lifetime 7 Plus Schedule Supplement (SCH-HD7(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994r.txt)

(19) [Highest Daily Lifetime Seven Benefit Schedule Supplement (SCH-HD7(1/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994s.txt)

(20) [Highest Daily Lifetime 7 Plus with Beneficiary Income Option Benefit Rider (RID-HD7-DB(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994t.txt)

(21) [Highest Daily Lifetime 7 Plus with Beneficiary Income Option Schedule Supplement (SCH-HD7-DB(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994u.txt)

(22) [Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator Benefit Rider (RID-HD7-LIA(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994v.txt)

(23) [Highest Daily Lifetime 7 Plus with Lifetime Income Accelerator Schedule Supplement (SCH-HD7-LIA(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994w.txt)

(24) [Highest Daily Lifetime Seven with Beneficiary Income Option Schedule supplement (SCH-HD7-DB(1/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994x.txt)

(25) [Highest Daily Lifetime Seven with Lifetime Income Accelerator Schedule supplement (SCH-HD7-LIA(1/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994y.txt)

(26) [Schedule supplement Highest Daily Lifetime Five Benefit (SCH-HDLT5(1/09)) filed via EDGAR with post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994z.txt)

(27) [Beneficiary Annuity Endorsement (END-BENE(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994aa.txt)

(28) [Beneficiary IRA Endorsement (END-IRABEN(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994bb.txt)

(29) [Beneficiary Roth IRA Endorsement (END-ROTHBEN(2/09)) filed via EDGAR with Post-Effective Amendment No. 37 to Registration Statement No. 333-96577, filed January 28, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509013041/dex994cc.txt)

(30) [Highest Daily Lifetime 6 Plus Benefit Rider (RID-HD6-8/09) filed via EDGAR with Post-Effective Amendment No. 41 to Registration Statement No. 333-96577, filed June 1, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509122219/dex994ae.txt)

(31) [Highest Daily Lifetime 6 Plus Benefit Schedule (SCH-HD6-8/09) filed via EDGAR with Post-Effective Amendment No. 41 to Registration Statement No. 333-96577, filed June 1, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509122219/dex994af.txt)

(32) [Highest Daily Lifetime 6 Plus w/LIA Benefit Rider (RID-HD6-LIA-8/09) filed via EDGAR with Post-Effective Amendment No. 41 to Registration Statement No. 333-96577, filed June 1, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509122219/dex994ag.txt)

(33) [Highest Daily Lifetime 6 Plus w/LIA Benefit Schedule (SCH-HD6-LIA-8/09) filed via EDGAR with Post-Effective Amendment No. 41 to Registration Statement No. 333-96577, filed June 1, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509122219/dex994ah.txt)

(34) [GRO II Benefit rider (RID-GRO-11/09) filed via EDGAR with Post-Effective Amendment No. 43 to Registration Statement No. 333-96577, filed August 27, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509182837/dex994ai.txt)

(35) [GRO II Benefit schedule (SCH-GRO-11/09) filed via EDGAR with Post-Effective Amendment No. 43 to Registration Statement No. 333-96577, filed August 27, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509182837/dex994aj.txt)

(36) [Highest Daily GRO II Benefit rider (RID-HD GRO-11/09) filed via EDGAR with Post-Effective Amendment No. 43 to Registration Statement No. 333-96577, filed August 27, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509182837/dex994ak.txt)

(37) [Highest Daily GRO II Benefit SCHEDULE (SCH-HD GRO-11/09) filed via EDGAR with Post-Effective Amendment No. 43 to Registration Statement No. 333-96577, filed August 27, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509182837/dex994al.txt)

(38) [Highest Daily GRO CAP Benefit SCHEDULE (SCH-HDGROCAP-11/09) filed via EDGAR with Post-Effective Amendment No. 43 to Registration Statement No. 333-96577, filed August 27, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509182837/dex994am.txt)

(39) [GRO Plus 2008 Benefit SCHEDULE (SCH-GROCAP-11/09) filed via EDGAR with Post-Effective Amendment No. 43 to Registration Statement No. 333-96577, filed August 27, 2009.](https://www.sec.gov/Archives/edgar/data/826734/000119312509182837/dex994an.txt)

(40) [HDGRO (SCH-HDGRO-11-09/8-10) filed via EDGAR with Post-Effective Amendment No. 46 to Registration Statement No. 333-96577, filed July 1, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000082673410000071/sch_hdgro.htm)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| (41) | [HD GRO 90% Cap (SCH-HDGROCAP-11-09/8-10) filed via EDGAR with Post-Effective Amendment No. 46 to Registration Statement No. 333-96577, filed July 1, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000082673410000071/hdgro_90cap.htm) |
| (42) | [Amendatory Tax Endorsement, filed via EDGAR with Post-Effective Amendment No. 53 to Registration Statement No. 333-71834, filed April 15, 2013.](https://www.sec.gov/Archives/edgar/data/826734/000119312513155106/d501776dex99b4ap.txt) |
| (43) | [END-REDOM-ANN (09/13) filed via EDGAR with Post-Effective Amendment No. 54 to Registration Statement No. 333-71834, filed August 30, 2013.](https://www.sec.gov/Archives/edgar/data/826734/000119312513353396/d581153dex99b4aq.txt) |
| (e) | [A copy of the application form used with the Annuity filed via EDGAR with Post-Effective Amendment No. 6 to Registration Statement No. 33-87010, filed March 2, 1998.](https://www.sec.gov/Archives/edgar/data/826734/0000881453-98-000009.txt) |
| (f)(1) | [Amended and Restated Articles of Incorporation of Fortitude Life Insurance & Annuity Company, effective May 24, 2022 filed via EDGAR with Post-Effective Amendment No. 73 to Registration Statement No. 333-71834 filed April 26, 2023.](https://www.sec.gov/Archives/edgar/data/826734/000082673423000074/vail-palacarticlesconfor.htm) |
| (2) | [Second Amended and Restated Bylaws of Fortitude Life Insurance & Annuity Company, effective April 1, 2022 filed via EDGAR with Post-Effective Amendment No. 73 to Registration Statement No. 333-71834 filed April 26, 2023.](https://www.sec.gov/Archives/edgar/data/826734/000082673423000074/vail-amendedandrestatedb.htm) |
| (g)(1) | [Pruco Reinsurance Ltd. for GRO benefit filed via EDGAR with Post-Effective Amendment No. 9 to Registration Statement No. 333-96577 filed April 18, 2005.](https://www.sec.gov/Archives/edgar/data/826734/000120677405000630/ex99_7a.txt) |
| (2) | [The Prudential Insurance Company of America for GMWB filed via EDGAR with Post-Effective Amendment No. 9 to Registration Statement No. 333-96577 filed April 18, 2005.](https://www.sec.gov/Archives/edgar/data/826734/000120677405000630/ex99_7b.txt) |
| (3) | [The Prudential Insurance Company of America for Lifetime Five Withdrawal Benefit filed via EDGAR with post-Effective Amendment No. 14 to Registration Statement No. 333-96577 filed April 21, 2006.](https://www.sec.gov/Archives/edgar/data/826734/000119312506085512/dex997c.txt) |
| (4) | [Pruco Reinsurance Ltd for Lifetime Five Withdrawal Benefit filed via EDGAR with post-Effective Amendment No. 14 to Registration Statement No. 333-96577 filed April 21, 2006.](https://www.sec.gov/Archives/edgar/data/826734/000119312506085512/dex997d.txt) |
| (5) | [Pruco Reinsurance Ltd. for Spousal Lifetime Five Optional Living Benefit filed via EDGAR with Post-Effective Amendment No. 14 to Registration Statement No. 333-96577 filed April 21, 2006.](https://www.sec.gov/Archives/edgar/data/826734/000119312506085512/dex997e.txt) |
| (6) | [Pruco Reinsurance Ltd. for Highest Daily Lifetime Five Optional Living Benefit filed via EDGAR with Post-Effective Amendment No. 20 to Registration Statement No. 333-96577, filed April 20, 2007.](https://www.sec.gov/Archives/edgar/data/826734/000119312507086454/dex997f.txt) |
| (7) | [Pruco Reinsurance Ltd for GRO Amendment No. 1 filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7g.txt) |
| (8) | [Pruco Reinsurance Ltd for GRO Amendment No. 2 filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7h.txt) |
| (9) | [Pruco Reinsurance Ltd for Lifetime Five Amendment No. 1 filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7i.txt) |
| (10) | [Pruco Reinsurance Ltd for Highest Daily Lifetime Five Amendment No. 1 filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7j.txt) |
| (11) | [Pruco Reinsurance Ltd for Highest Daily Lifetime Five Amendment No. 2 filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7k.txt) |
| (12) | [Pruco Reinsurance Ltd for GRO Plus filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7l.txt) |
| (13) | [Pruco Reinsurance Ltd for Highest Daily Lifetime Seven filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7m.txt) |
| (14) | [Pruco Reinsurance Ltd for Highest Daily GRO filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7n.txt) |
| (15) | [Pruco Reinsurance Ltd for Highest Daily Lifetime 7 Plus filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7o.txt) |
| (16) | [Pruco Reinsurance Ltd for Highest Daily Lifetime 6 Plus filed via EDGAR with Post-Effective Amendment No. 45 to this Registration Statement No. 333-96577 filed April 19, 2010.](https://www.sec.gov/Archives/edgar/data/826734/000119312510086696/dex7p.txt) |
| (17) | [Service Agreement and Indemnity Combination Coinsurance and Modified Coinsurance Agreement of Certain Annuity Contracts Between Prudential Annuities Life Assurance Corporation and The Prudential Insurance Company of America. Filed Herewith.](xt6-efp23890_ex99g17.htm) |
| (h)(1) | [Advanced Series Trust Participation Agreement dated January 19, 2022 filed via EDGAR with Post-Effective Amendment No. 71 to this Registration Statement No. 333-71834 filed April 19, 2022.](https://www.sec.gov/Archives/edgar/data/826734/000082673422000070/ast-palacparticipationag.htm) |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| (2) | [First Defined Portfolio Fund LLC filed via EDGAR with Post-Effective Amendment No. 7 to Registration Statement No. 33-86866, filed April 26, 2000.](https://www.sec.gov/Archives/edgar/data/933426/000088145300000110/0000881453-00-000110.txt) |
| (3) | [Evergreen Variable Annuity Trust filed via EDGAR with Post-Effective Amendment No. 9 to Registration Statement No. 33-87010, filed April 26, 2000.](https://www.sec.gov/Archives/edgar/data/826734/000088145300000108/0000881453-00-000108.txt) |
| (4) | [INVESCO Variable Investment Funds, Inc. filed via EDGAR with Post-Effective Amendment No. 9 to Registration Statement No. 33-87010, filed April 26, 2000.](https://www.sec.gov/Archives/edgar/data/826734/000088145300000108/0000881453-00-000108.txt) |
| (5) | [ProFunds VP filed via EDGAR with Post-Effective Amendment No. 9 to Registration Statement No. 33-87010, filed April 26, 2000.](https://www.sec.gov/Archives/edgar/data/826734/000088145300000108/0000881453-00-000108.txt) |
| (6) | [Wells Fargo Variable Trust, incorporated by reference to Initial Registration Statement on Form N-4 to Registration Statement No. 333-49478, filed November 7, 2000.](https://www.sec.gov/Archives/edgar/data/826734/000088145300000322/0000881453-00-000322-0002.htm) |
| (7) | [The Prudential Series Fund Participation Agreement dated January 18, 2022 filed via EDGAR with Post-Effective Amendment No. 71 to this Registration Statement No. 333-71834 filed April 19, 2022.](https://www.sec.gov/Archives/edgar/data/826734/000082673422000070/psf-palacparticipationag.htm) |
| (8) | [Revised Nationwide Variable Investment Trust filed via EDGAR with Post-Effective Amendment No. 20 to Registration Statement No. 333-96577 filed April 20, 2007.](https://www.sec.gov/Archives/edgar/data/826734/000119312507086454/dex998g.txt) |
| (9) | [A I M Variable Insurance Funds filed via EDGAR with Post-Effective Amendment No. 9 to Registration Statement No. 333-96577 filed April 18, 2005.](https://www.sec.gov/Archives/edgar/data/826734/000120677405000630/ex99_8i.txt) |
| (10) | [ProFunds VP Amendment No. 2 filed via EDGAR with Post-Effective Amendment No. 20 to Registration Statement No. 333-96577, filed April 20, 2007.](https://www.sec.gov/Archives/edgar/data/826734/000119312507086454/dex998j.txt) |
| (11) | [Rule 22c-2 Agreement via EDGAR with Post-Effective Amendment No. 20 to Registration Statement No. 333-96577, filed April 20, 2007.](https://www.sec.gov/Archives/edgar/data/826734/000119312507086454/dex998k.txt) |
| (12) | [Notice re change of Depositor name to Prudential Annuities Life Assurance Corporation filed via EDGAR to Post-Effective Amendment No. 26 to Registration Statement No. 333-96577, filed April 17, 2008.](https://www.sec.gov/Archives/edgar/data/826734/000119312508083485/dex998l.txt) |
| (13) | [Franklin Templeton Variable Insurance Products Trust filed via EDGAR to Post-Effective Amendment No. 26 to Registration Statement No. 333-96577, filed April 17, 2008.](https://www.sec.gov/Archives/edgar/data/826734/000119312508083485/dex998m.txt) |
| (i)(1) | [Third Party Administration Agreement by and between Prudential Annuities Life Assurance Corporation and The Prudential Insurance Company of America effective as of April 1, 2022 filed via EDGAR with Post-Effective Amendment No. 71 to this Registration Statement No. 333-71834 filed April 19, 2022.](https://www.sec.gov/Archives/edgar/data/826734/000082673422000070/projectvail-thirdpartyad.htm) |
| (2) | [109 Plan Third Party Administration Agreement by and between Prudential Annuities Life Assurance Corporation and The Prudential Insurance Company of America effective as of April 1, 2022 filed via EDGAR with Post-Effective Amendment No. 71 to this Registration Statement No. 333-71834 filed April 19, 2022.](https://www.sec.gov/Archives/edgar/data/826734/000082673422000070/projectvail-109tpa.htm) |
| (j) | Not Applicable |
| (k) | [Opinion and Consent of Counsel. Filed Herewith.](xt6-efp23890_ex99k.htm) |
| (l) | [Written Consent of Independent Registered Public Accounting Firm. Filed Herewith](xt6-efp23890_ex99l.htm) |
| (m) | Not Applicable |
| (n) | Not Applicable |
| (o) | Not Applicable |
| (p) | [Powers of Attorney: Ciara A. Burnham. Jeffrey T. Condit, Douglas A. French, Dan Guilbert, Greta Hager, Alon Neches, Brian T. Schreiber, and Samuel J. Weinhoff. Filed Herewith.](xt6-efp23890_ex99p.htm) |
| (q) | Not Applicable |
| (r) | Not Applicable |

---

------

ITEM 28. DIRECTORS AND OFFICERS OF THE INSURANCE COMPANY:

---

| | |
|:---|:---|
| **NAME AND PRINCIPAL BUSINESS ADDRESS** **\*** | **POSITION AND OFFICES WITH INSURANCE COMPANY** |
| Jeffrey S. Burman | Executive Vice President, General Counsel, and Secretary |
| Ciara A. Burnham | Director |
| Jeffrey Condit | Principal Accounting Officer |
| Sean F. Coyle | Executive Vice President and Chief Operating Officer |
| Dan Guilbert | Director |
| Douglas A. French | Director |
| Greta Hager | Executive Vice President, and Chief Financial Officer, Director |
| Alon Neches | President and Chief Executive Officer, Director |
| Richard Patching | Director |
| Brian T. Schreiber | Chairman, and Director |
| Samuel J. Weinhoff | Director |

---

\* The address of each Director and Officer named is Ten Exchange Place, Suite 2210, Jersey City, New Jersey 07302.

ITEM 29. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE INSURANCE COMPANY OR THE REGISTERED SEPARATE ACCOUNT:

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FGH Parent, L.P. (Bermuda)<sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fortitude Group Holdings, LLC (Delaware) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fortitude U.S. Reinsurance Company (Arizona)<br>Fortitude Reinsurance Company Ltd. (Bermuda) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fortitude Re Investments, LLC (Delaware) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fortitude Group Services, Inc. (Delaware)<br>Fortitude Life & Annuity Solutions, Inc. (Delaware)<br>Fortitude P&C Solutions, Inc. (Delaware)<br>Fortitude Casualty Insurance Company (Arizona)<br>Fortitude Life Insurance & Annuity Company (Arizona) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fortitude Life Insurance & Annuity Company Variable Account B (Arizona)<br>Fortitude Life Insurance & Annuity Company Variable Account E (Arizona)<br>Fortitude Life Insurance & Annuity Company Variable Account F (Arizona)<br>Fortitude Life Insurance & Annuity Company Index Strategies Separate Account (Arizona)<br>Fortitude Life Insurance & Annuity Company Variable Account D (Arizona)<br>Fortitude Life Insurance & Annuity Company Variable Account Q (Arizona) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fortitude International Ltd. (Bermuda) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fortitude International Reinsurance Ltd. (Bermuda)<br>Fortitude Group Services Ltd. (Bermuda) |

---

1. This
 organizational chart is presented on the basis of FGH Parent, L.P. being the ultimate controlling party of the Fortitude Re group of companies.
 This organizational chart does not include
 limited partners of limited partnerships and non-managing members of limited liability companies and wholly owned investment subsidiary
 subcompanies. The general partner of
 FGH Parent, L.P. does not have control over FGH Parent, L.P. and is therefore excluded from this organizational chart. This organizational
 chart does not include other Carlyle portfolio
 company investments or other entities through which such investments are made.

ITEM 30. INDEMNIFICATION:

Fortitude Life Insurance & Annuity Company (the Company), in conjunction with certain of its affiliates, maintains insurance on behalf of any person who is or was a trustee, director, officer, employee, or agent of the Company, or who is or was serving at the request of the Company as a trustee, director, officer, employee or agent of such other affiliated trust or corporation, against any liability asserted against and incurred by him or her arising out of his or her position with such trust or corporation.

Arizona, the state of organization of the Company, permits entities organized under its jurisdiction to indemnify directors and officers with certain limitations. The relevant provisions of Arizona law permitting indemnification can be found in Section 10-850 et. seq. of the Arizona Statutes Annotated. The text of the Company's By-law, Article VI relates to indemnification of officers and directors.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the "Securities Act") may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or

------

paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

ITEM 31. PRINCIPAL UNDERWRITERS:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Prudential Annuities Distributors, Inc. (PAD)

PAD serves as principal underwriter for variable annuities issued by the Company, among other insurers. The separate account, through which the variable annuities are issued, is the Fortitude Life Insurance & Annuity Company Variable Account B. In addition, PAD serves as principal underwriter for variable annuities issued by Pruco Life Insurance Company, Pruco Life Insurance Company of New Jersey, and The Prudential Insurance Company of America. The separate accounts of those insurance companies are the Pruco Life Flexible Premium Variable Annuity Account, the Pruco Life of New Jersey Flexible Premium Variable Annuity Account, The Prudential Qualified Individual Variable Contract Account, The Prudential Individual Variable Contract Account, Prudential's Annuity Plan Account, Prudential's Investment Plan Account, and Prudential's Annuity Plan Account-2.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Information concerning the directors and officers of PAD is set forth below:

---

| | |
|:---|:---|
| **NAME** | **POSITIONS AND OFFICES WITH UNDERWRITER** |
| Suzanne Amari<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Director |
| Kevin M. Brayton<br>280 Trumbull Street<br>Hartford, Connecticut 06103 | Senior Vice President and Director |
| Tracey Carroll<br>One Corporate Drive<br>Shelton, CT 06484 | President and Director |
| Jessica Conley<br>600 Office Center Drive Apex Office Park<br> Fort Washington, Pennsylvania 19034 | Vice President |
| Markus Coombs<br>655 Broad Street<br>Newark, New Jersey 07102 | Director |
| Scott P. Haggerty<br>One Corporate Drive<br>Shelton, CT 06484 | Chairman, Chief Executive Officer and Director |
| Tiffany Khan<br>751 Broad Street<br>Newark, New Jersey 07102 | Anti-Money Laundering Officer |
| Donald Mallavia<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Director |
| Shane T. McGrath<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Chief Compliance Officer and Vice President |
| Frank Papasavas<br>655 Broad Street<br>Newark, New Jersey 07102 | Treasurer |
| Robert P. Smit<br>751 Broad Street<br>Newark, New Jersey 07102 | Chief Financial Officer and Controller |
| Jordan Thomsen<br>751 Broad Street<br>Newark, New Jersey 07102 | Chief Legal Officer and Secretary |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(c) Commissions received by PAD during 2025 with respect to all individual annuities issued by the Company.

---

| | | | | |
|:---|:---|:---|:---|:---|
| NAME OF PRINCIPAL UNDERWRITER | NET UNDERWRITING<br>DISCOUNTS AND<br>COMMISSIONS | COMPENSATION ON<br>REDEMPTION | BROKERAGE COMMISSIONS | OTHER<br>COMPENSATION |
| Prudential Annuities Distributors, Inc.\* | $93371339.40 | $-0- | $-0- | $-0- |

---

\* PAD did not retain any of these commissions.

ITEM 31A. INFORMATION ABOUT CONTRACTS WITH INDEX-LINKED OPTIONS AND FIXED OPTIONS SUBJECT TO A CONTRACT ADJUSTMENT:

(a) As of December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name of the Contract** | **Number of** **Contracts** **Outstanding** | **Total Value** **Attributable to** **the** **Index-Linked** **Option and/or** **Fixed Option** **subject to an** **Adjustment** | **Number of** **Contracts Sold** **During the Prior** **Calendar Year** | **Gross** **Premiums** **Received** **During the Prior** **Calendar Year** | **Amount of** **Contract Value** **Redeemed** **During the Prior** **Calendar Year** | **Combination** **Contract** |
|  Advanced Series Xtra Credit Six | 53280 | $1093472.12 | 0 | $2604010.00 | $-872633774.00 | Yes |
|  Optimum Plus | 772 | $0.00 | 0 | $2700.00 | $-15369805.00 | Yes |
|  Stagecoach Xtra Credit Six | 11 | $0.00 | 0 | $0.00 | $-14400.00 | Yes |

---

(b) Not Applicable

ITEM 32. LOCATION OF ACCOUNTS AND RECORDS:

Provided in the Registered Separate Account's most recent report on Form N-CEN.

ITEM 33. MANAGEMENT SERVICES:

None.

ITEM 34. FEE REPRESENTATION AND UNDERTAKINGS:

(a) With regard to the offering of the Variable Options, the Company hereby represents that the fees and charges deducted under the contracts described in 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.

(b) With regard to the offering of the MVA Fixed Allocation under this registration statement, the Company undertakes:

○ To
 file, during any period in which offers or sales are being made, a post-effective amendment to the registration statement to include any
 prospectus required by section 10(a)(3) of the Securities Act; and

○ That,
 for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new
 registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to
 be the initial bona
 fide offering thereof.

------

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Jersey City and State of New Jersey on this 27th day of April 2026.

---

| | |
|:---|:---|
| FORTITUDE LIFE INSURANCE & ANNUITY COMPANY VARIABLE ACCOUNT B<br>(REGISTERED SEPARATE ACCOUNT) | FORTITUDE LIFE INSURANCE & ANNUITY COMPANY VARIABLE ACCOUNT B<br>(REGISTERED SEPARATE ACCOUNT) |
| By: | Alon Neches\* |
|  | Alon Neches |
|  | President and Chief Executive Officer, Director |
| FORTITUDE LIFE INSURANCE & ANNUITY COMPANY<br>(INSURANCE COMPANY) | FORTITUDE LIFE INSURANCE & ANNUITY COMPANY<br>(INSURANCE COMPANY) |
| By: | Alon Neches\* |
|  | Alon Neches |
|  | President and Chief Executive Officer, Director |

---

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.

---

| | | |
|:---|:---|:---|
|  SIGNATURE | TITLE |  |
|  Ciara A. Burnham\*<br> Ciara A. Burnham | Director | April 27, 2026 |
|  Jeffrey T. Condit\*<br> Jeffrey T. Condit | Principal Accounting Officer | April 27, 2026 |
|  Douglas A. French\*<br> Douglas A. French | Director | April 27, 2026 |
|  Dan Guilbert\*<br> Dan Guilbert | Director | April 27, 2026 |
|  Greta Hager\*<br> Greta Hager | Executive Vice President and Chief Financial Officer, Director<br>(Principal Financial Officer) | April 27, 2026 |
|  Alon Neches\*<br> Alon Neches | President and Chief Executive Officer, Director<br>(Principal Executive Officer) | April 27, 2026 |
|  Richard Patching | Director |  |
|  Brian T. Schreiber\*<br> Brian T. Schreiber | Chairman, Director | April 27, 2026 |
|  Samuel J. Weinhoff\*<br> Samuel J. Weinhoff | Director | April 27, 2026 |

---

---

| | |
|:---|:---|
| By: | /s/ Richard E. Buckley |
|  | Richard E. Buckley |

---

\* Executed by Richard E. Buckley on behalf of those indicated pursuant to Power of Attorney.

## Ex-99.(G)(17)

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## Ex-99.(K)

April 27, 2026

VIA EDGAR

Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

---

| | |
|:---|:---|
| **RE:** | **Fortitude Life Insurance & Annuity Company** |
|  | **Fortitude Life Insurance & Annuity Company Variable Account B** |
|  | **Registration Statements on Form N-4** |
|  | **File Nos. 333-290619; 333-71834 and 811-05438** |

---

Members of the Commission:

I have acted as counsel to Fortitude Life Insurance & Annuity Company (the "Company") in connection with the above-referenced Registration Statements on Form N-4. Such Registration Statements relate to the contracts, riders, and endorsements (collectively, the "Contracts") for the variable annuity contracts and related Market Value Adjusted Fixed Allocation Investment Option described therein.

I have examined or caused to be examined such corporate records and other documents, and reviewed or caused to be reviewed such questions of law, as I considered necessary and appropriate for the purpose of rendering this opinion. In connection therewith, I have reviewed the establishment and continued existence of the Fortitude Life Insurance & Annuity Company Account (the "MVA Account"), an unregistered non-unitized separate account for assets applicable to the Market Value Adjusted Fixed Allocation Investment Option under the Contracts, and the establishment and continued existence of the Fortitude Life Insurance & Annuity Company Variable Account B (the "Variable Separate Account"), a registered unitized separate account for assets applicable to the variable investment options under the Contracts.

On the basis of such examination and review, it is my opinion that:

(1) the Company is a corporation duly organized and validly existing as a stock life insurance company under the laws of the State of Arizona and is duly authorized by the Insurance Department of that state to issue the Contracts;

(2) the MVA Account has been duly created and is a validly existing non-unitized separate account of the Company pursuant to the provisions of the State of Arizona law;

(3) the Variable Separate Account has been duly created and is a validly existing unitized separate account of the Company pursuant to the provisions of the State of Arizona law;

(4) to the extent so provided under the Contracts, that portion of the assets of the Variable Separate Account equal to the reserves and other contract liabilities with respect to the Variable Separate Account, will not be chargeable with liabilities arising out of any other business that the Company may conduct; and

(5) the Contracts and interests therein when issued in accordance with the Registration Statements will, when sold, constitute legally-issued and binding obligations of the Company.

I hereby consent to the filing of this opinion as an exhibit to the Registration Statements. In giving this opinion and consent, I am not admitting that I am in the category of persons whose consent is required under Section 7 of the Securities Act of 1933.

Sincerely,

---

| |
|:---|
| /s/ Richard E. Buckley |
| Richard E. Buckley |

---

**Richard E. Buckley**

Senior Vice President and Assistant General Counsel

Fortitude Life Insurance & Annuity Company

Ten Exchange Place, Suite 2210

Jersey City, New Jersey 07302

T +1 (615) 981 8801

richard.buckley@fortitude-re.com

## Ex-99.(L)

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in this Post-Effective Amendment No. 80 to the Registration Statement on Form N-4 (No. 333-71834) (the "Registration Statement") of our report dated March 19, 2026 relating to the financial statements of Fortitude Life Insurance & Annuity Company and consent to the incorporation by reference in the Registration Statement of our report dated April 27, 2026 relating to the financial statements of each of the subaccounts of Fortitude Life Insurance & Annuity Company Variable Account B indicated in our report. We also consent to the reference to us under the heading "Financial Statements" in such Registration Statement.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 27, 2026

## Ex-99.(P)

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 29, 2026.

---

| |
|:---|
| /s/ Ciara A. Burnham |
| Ciara A. Burnham |
| Director |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 16, 2026.

---

| |
|:---|
| /s/ Jeffrey T. Condit |
| Jeffrey T. Condit |
| Principal Accounting Officer |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 16, 2026.

---

| |
|:---|
| /s/ Douglas A. French |
| Douglas A. French |
| Director |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 16, 2026.

---

| |
|:---|
| /s/ Daniel Guilbert |
| Daniel Guilbert |
| Director |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 16, 2026.

---

| |
|:---|
| /s/ Greta Hager |
| Greta Hager |
| Director, Executive Vice President and |
| Chief Financial Officer |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 17, 2026.

---

| |
|:---|
| /s/ Alon Neches |
| Alon Neches |
| Director, President and |
| Chief Executive Officer |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 23, 2026.

---

| |
|:---|
| /s/ Brian T. Schreiber |
| Brian T. Schreiber |
| Director and Chairman |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Fortitude Life Insurance & Annuity Company ("FLIAC"), constitutes and appoints Richard Buckley and Jeffrey Burman, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of FLIAC filed with the Securities and Exchange Commission for the Registrations listed below:

**Fortitude Life Insurance & Annuity Company** Registration Nos.:

---

| | |
|:---|:---|
| 333-274022 | 333-290618 |
| 333-274023 | 333-290619 |
| 333-274024 | 333-290620 |
| 333-274025 | 333-290621 |
| 333-274026 | 333-290622 |
| 333-274027 | 333-290623 |
| 333-290617 | 333-290624 |

---

**Fortitude Life Insurance & Annuity Company Variable Account B** Registration No.: 811-05438

and its **Flexible Premium Deferred Annuity Contracts** Registration Nos.:

---

| | | |
|:---|:---|:---|
| 033-62793 | 033-87010 | 333-08853 |
| 333-71654 | 333-71672 | 333-71834 |
| 333-96577 | 333-150220 | 333-152411 |
| 333-236099 | 333-252773 |  |

---

IN WITNESS WHEREOF, I have hereunto set my hand as of March 16, 2026.

---

| |
|:---|
| /s/ Samuel J. Weinhoff |
| Samuel J. Weinhoff |
| Director |

---