Correspondence 0000931788-24-000029 from JACKSON NATIONAL LIFE INSURANCE CO (CIK 0000931788)
JACKSON NATIONAL LIFE INSURANCE CO (CIK 0000931788)
Date: April 2, 2024 · CIK: 0000931788 · Accession: 0000931788-24-000029
AI Filing Summary & Sentiment
File numbers found in text: 333-268101
Letter
jmlpaiiresponsememocombined
MEMORANDUM
TO: Sonny Oh
Senior Counsel
Disclosure Review and Accounting Office
Division of Investment Management
U. S. Securities and Exchange Commission
FROM: Alison Samborn, Esq.
Assistant Vice President, Insurance Legal & Product Development
DATE: April 2, 2024
SUBJECT: Response to Comments for Post-Effective Amendment No. 2 to the Registration Statement on Form S-1 for File No. 333-268101 (Jackson Market Link Pro Advisory II)
This memorandum is in response to the comments you provided via telephone on April 1, 2024 for the above referenced filing. In the interest of convenience for the staff of the Securities and Exchange Commission, this memorandum provides our understanding of each of the specific comments, followed respectively by narrative responses (in bold).
The following comments and responses apply to the post-effective amendment filing referenced above. Excerpted pages of the prospectus, marked to show the changes discussed below are attached, and will be provided electronically. Page references in the responses are to the PDF page of the attached marked copy of the document. A post-effective amendment to the above-referenced registration statement will subsequently be filed in response to the comments.
Summary (p. 1)
1.In the Market Value Adjustment row of the Contract Overview table, please note that the reference to MVAs applying to income options commenced within the first year is inconsistent with language found in the sections titled “Risk Factors” and “Market Value Adjustment”. Please revise accordingly.
Response: We have made this revision.
Glossary (pp. 2-3)
2.In the definition for Interim Value, please note that you are missing references to GAWA withdrawals and “the Contract Value element of” death benefit payments in the third sentence.
Response: We have revised accordingly.
3.In the definition for MVA Free Withdrawal, please incorporate the reference to GAWA and RMDs from the definition for Market Value Adjustment.
Response: We have made this revision.
Risk Factors (pp. 4-6)
4.In the second sentence of the subsection titled “Effects of Withdrawals, Annuitization, or Death”, please include a cross-reference to the section of the prospectus with more information on Market Value Adjustments.
Response: We have made this revision.
5.In the second to last sentence of the subsection titled “Deduction of Advisory Fees from Contract Value”, please mention the impact to the death benefit when withdrawals are taken to pay advisory fees that do not conform to the administrative rules, or after the election of the GMWB.
Response: We have made this revision.
6.In the last paragraph of the subsection titled “+Income GMWB and +Income GMWB with Joint Option Add-On Benefits”, please mention the impact on taxes and to the death benefit when withdrawals are taken to pay advisory
fees that do not conform to the administrative rules, or after the election of the GMWB. Please add this disclosure throughout the prospectus where you make note of the election of the GMWB disqualifying owners from taking direct deductions of advisory fees under the administrative rules.
Response: We have made this revision.
Contract Options (pp. 7-8)
7.In the subsection titled “Fixed Account Value”, where you provided the numbered list definition for Fixed Account Value, please revise “charges for add-on benefits” to “GMWB Charge.”
Response: We have made this revision.
8.In the last paragraph of the subsection titled “Index Adjustment”, should these references include mention of GMWB Charge deductions in addition to Intra-Term Performance Lock and withdrawals?
Response: Yes. We have made this revision.
Access To Your Money (pp. 9-10)
9.In the third full paragraph following the bullet points at the beginning of this section, it appears you are missing a reference to GAWA withdrawals. Please revise.
Response: We have made this revision.
10.In the first paragraph of the RMD Notes table in the subsection titled “Required Minimum Distributions Under Certain Tax Qualified Plans (“RMDs”)”, please note the reference to waiver of applicable charges. This should be revised consistent with the treatment in the Advisory product, which does not contain a waiver of withdrawal charges provision.
Response: We have made this revision.
Death Benefit (p. 11)
11.Because taking withdrawals to pay advisory fees impacts the basic death benefit, please include disclosures in this section providing notice of those impacts.
Response: We have made this revision.
Appendix A (p. 12)
12.Please ensure the accuracy of the page numbers for the examples included in the table of contents.
Response: We confirm the accuracy of these page numbers.
13.The first bullet under Example 16 makes reference to the example being a continuation of Example 17. Should this say it is a continuation of Example 15?
Response: Yes. We have made this revision.
Additional Non-Material Changes
Please note that additional non-material revisions have been made in response to internal routing review. You will see those tracked changes in the courtesy copy of the full marked copy of the prospectus.
Please contact me at (517) 367-3754 if you have any questions or require additional information.
Market Value Adjustment A positive or negative adjustment applied to withdrawals from your Contract in excess of the MVA Free Withdrawal amount or in excess of the GAWA (or RMD if applicable), including partial and total withdrawals, and income payments under certain income options when commenced within the first Contract Year. Market Value Adjustments may apply during the first six years of the Contract when any portion of Contract Value is withdrawn or annuitized. Certain withdrawals and income options are exempt from Market Value Adjustments. For more information about Market Value Adjustments, including details about certain withdrawals that are exempt from Market Value Adjustments, please see the section titled “Market Value Adjustment" on page 52.51. In some states we do not apply an MVA. For more information, see "Appendix B: State Variations". Death Benefit For Owners 80 or younger at the Issue Date of the Contract, the standard death benefit (known as the Return of Premium death benefit) is the greater of the Contract Value or the Premium you paid into the Contract (reduced proportionately by the percentage reduction in the Index Account Option Value and the Fixed Account Value for each partial withdrawal (including any applicable Market Value Adjustment)). For Owners age 81 or older at the Issue Date of the Contract, the standard death benefit is the Contract Value. Income Options You can choose to begin taking income from your Contract at any time, but all of the Contract Value must be annuitized. Market Value Adjustments will apply if you begin taking income in the first six years, and we will use your Interim Value (if you begin taking income on any day other than the Index Account Option Term Anniversary) to calculate your income payments. You may choose from the following annuitization options: - Life Income - Joint Life and Survivor Income - Life Income with Guaranteed Payments for 10 Years or 20 Years - Life Income for a Specified Period Once an income option has been selected, and payments begin, the income option may not be changed. No withdrawals will be permitted once the contract is in the income phase. For more information about income options, please see the section titled "Income Options" on page 53.53. Additional income options may be available if you elect to add the +Income GMWB or +Income GMWB with Joint Option to your Contract. For more information, please see "GMWB Income Options" on page 46.46. Charges and Expenses You will bear the following charges and expenses: - Market Value Adjustments (for the first six years of the Contract); - GMWB Charge if you elect the add-on GMWB; and - Premium and Other Taxes. Additionally, if you take a withdrawal before the end of your Term (including automatic withdrawals, GAWA withdrawals, Required Minimum Distributions, income payments, death benefit payments, Free Looks and Intra-Term Performance Locks), we will calculate an Interim Value adjustment (in addition to any applicable Market Value Adjustment), which may serve to limit amounts credited to less than the amount of the Index Return on the date of the withdrawal. Also, in the case of a withdrawal before the end of the Term where the Index Return is negative, less protection is provided the earlier in the Term the withdrawal occurs. Please note that the Contract also imposes Caps that can limit amounts credited to less than the amount of the Index Return on the date of the withdrawal. Free Look Provision You may cancel the Contract within a certain time period after receiving it by returning the Contract to us or to the financial professional who sold it to you. This is known as a “Free Look.” We will return either your Premium Payment or Contract Value, depending on your state, and we will not deduct any fees or charges. Free Looks are subject to Interim Value adjustments. 7
Income Date - the date on which income payments are scheduled to begin as described in the Income Payments section of the prospectus. Index - a benchmark used to determine the positive or negative Index Adjustment credited, if any, for a particular Index Account Option. Index Account - a Contract Option in which amounts are credited positive or negative index-linked interest for a specified period. Index Account Option - an option within the Index Account for allocation of Premium, defined by its term, Index, Crediting Method, and Protection Option. Index Account Option Term - the selected duration of an Index Account Option. Index Account Option Term Anniversary - the Business Day concurrent with or immediately following the end of an Index Account Option Term. Index Account Option Value - the value of the portion of Premium allocated to an Index Account Option. Index Account Value - the sum of the Index Account Option Values. Index Adjustment - an adjustment to Index Account Option Value at the end of each Index Account Option Term, or at the time of withdrawal of Index Account Option Value. Index Adjustments can be zero, positive or negative, depending on the performance of the selected Index, Crediting Method, and Protection Option. The Index Adjustment is equal to the Adjusted Index Return. Index Adjustment Factor(s) - the parameters used to determine the amount of an Index Adjustment. These parameters are specific to the applicable Crediting Method and Protection Option. Cap Rates, Performance Trigger Rates, Performance Boost Rates, Performance Boost Cap Rates (applicable only with the Performance Boost Rate Crediting Method), Index Participation Rates (applicable only with the Cap Crediting Method), Buffers, and Floors are all Index Adjustment Factors. Index Participation Rate ("IPR") - the percentage applied to any positive Index Return in the calculation of the Index Adjustment for the Cap Crediting Method. The IPR is an Index Adjustment Factor, and is declared at the beginning of the Index Account Option term. The IPR is guaranteed to be at least 100%, and will never serve to reduce an Index Adjustment. The IPR is not a stand-alone Crediting Method. It is applicable only with the Cap Crediting Method. Index Return - the percentage change in an Index value measured from the start of an Index Account Option Term to the end of the Index Account Option Term. Interim Value - the Index Account Option Value during the Index Account Option Term. The Interim Value will never be less than zero. On each day of the Index Account Option Term prior to the end of the Index Account Option Term, the Interim Value is the greater of the Index Account Option Value on the first day of the term (which equals any Premium or Contract Value allocated to the Index Account Option on that day) reduced for any withdrawals (including GAWA withdrawals, Required Minimum Distributions, income payments, the Contract Value element of death benefit payments, and Free Looks) or Intra-Term Performance Locks transferred from the Index Account Option during the term, including any Market Value Adjustments, in the same proportion as the Interim Value was reduced on the date of the withdrawal or Intra-Term Performance Lock, plus the prorated Index Adjustment subject to prorated Index Adjustment Factors, where applicable, or zero. Neither the Floor nor the Index Participation Rate Index Adjustment Factors are prorated. The Interim Value uses applicable prorated Index Adjustment Factors (based on the elapsed portion of the Index Account Option Term), but neither the Floor nor the Index Participation Rate Index Adjustment Factors are prorated for the purposes of calculating Interim Value prior to the end of the Index Account Option Term. The Interim Value is calculated on each day of the Index Account Option Term, other than the first and last days, and is the amount of Index Account Option Value available for withdrawal or Intra-Term Performance Lock prior to the end of the Index Account Option Term. Intra-Term Performance Lock- a Contract feature that permits the one-time reallocation of Interim Value from an Index Account Option to the Short Duration Fixed Account Option prior to the end of the Index Account Option Term. Intra-Term Performance Lock Date - the date Interim Value is reallocated to the Short duration Fixed Account Option in connection with an Intra-Term Performance Lock. Issue Date - the date your Contract is issued. Jackson, JNL, we, our, or us – Jackson National Life Insurance Company. (We do not capitalize “we,” “our,” or “us” in the prospectus.) Latest Income Date ("LID") - the date on which you will begin receiving income payments. The Latest Income Date is the Contract Anniversary on which the Owner will be 95 years old, or such date allowed by the Company on a non- discriminatory basis or required by a qualified plan, law or regulation. 10
Market Value Adjustment ("MVA") - a positive or negative adjustment we may apply to amounts you withdraw or annuitize during the first six years of the Contract that are in excess of the MVA Free Withdrawal amount or in excess of the GAWA (or RMD if applicable), including partial and total withdrawals, or income payments commenced within the first Contract Year. MVA Free Withdrawal - the maximum amount that may be withdrawn each year free of any otherwise applicable Market Value Adjustment. The MVA Free Withdrawal amount is equal to 10% of Remaining Premium during each Contract Year that would otherwise incur an MVA, less earnings. Any amount withdrawn to satisfy a required minimum distribution reducesIf an RMD or GAWA is applicable and exceeds 10% of Remaining Premium, the MVA Free Withdrawal amount is equal to the greater of available MVA Free Withdrawal. the RMD or GAWA, less earnings. Owner, you or your – the natural person or legal entity entitled to exercise all rights and privileges under the Contract. Usually, but not always, the Owner is the Annuitant. The Contract allows for the naming of joint Owners. (We do not capitalize “you” or “your” in the prospectus.) Any reference to the Owner includes any joint Owner. Performance Boost Cap Rate ("PBCR") - an Index Adjustment Factor associated with the Performance Boost Crediting Method. The PBCR is the maximum positive Index Adjustment, expressed as a percentage, that could be credited to an Index Account Option under the Performance Boost Crediting Method at the end of each Index Account Option Term. The Performance Boost Cap Rate is not a stand-alone Crediting Method. It is applicable only when you select
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filename1.htm
jmlpaiiresponsememocombined
MEMORANDUM
TO: Sonny Oh
Senior Counsel
Disclosure Review and Accounting Office
Division of Investment Management
U. S. Securities and Exchange Commission
FROM: Alison Samborn, Esq.
Assistant Vice President, Insurance Legal & Product Development
DATE: April 2, 2024
SUBJECT: Response to Comments for Post-Effective Amendment No. 2 to the Registration Statement on Form S-1 for File No. 333-268101 (Jackson Market Link Pro Advisory II)
This memorandum is in response to the comments you provided via telephone on April 1, 2024 for the above referenced filing. In the interest of convenience for the staff of the Securities and Exchange Commission, this memorandum provides our understanding of each of the specific comments, followed respectively by narrative responses (in bold).
The following comments and responses apply to the post-effective amendment filing referenced above. Excerpted pages of the prospectus, marked to show the changes discussed below are attached, and will be provided electronically. Page references in the responses are to the PDF page of the attached marked copy of the document. A post-effective amendment to the above-referenced registration statement will subsequently be filed in response to the comments.
Summary (p. 1)
1.In the Market Value Adjustment row of the Contract Overview table, please note that the reference to MVAs applying to income options commenced within the first year is inconsistent with language found in the sections titled “Risk Factors” and “Market Value Adjustment”. Please revise accordingly.
Response: We have made this revision.
Glossary (pp. 2-3)
2.In the definition for Interim Value, please note that you are missing references to GAWA withdrawals and “the Contract Value element of” death benefit payments in the third sentence.
Response: We have revised accordingly.
3.In the definition for MVA Free Withdrawal, please incorporate the reference to GAWA and RMDs from the definition for Market Value Adjustment.
Response: We have made this revision.
Risk Factors (pp. 4-6)
4.In the second sentence of the subsection titled “Effects of Withdrawals, Annuitization, or Death”, please include a cross-reference to the section of the prospectus with more information on Market Value Adjustments.
Response: We have made this revision.
5.In the second to last sentence of the subsection titled “Deduction of Advisory Fees from Contract Value”, please mention the impact to the death benefit when withdrawals are taken to pay advisory fees that do not conform to the administrative rules, or after the election of the GMWB.
Response: We have made this revision.
6.In the last paragraph of the subsection titled “+Income GMWB and +Income GMWB with Joint Option Add-On Benefits”, please mention the impact on taxes and to the death benefit when withdrawals are taken to pay advisory
fees that do not conform to the administrative rules, or after the election of the GMWB. Please add this disclosure throughout the prospectus where you make note of the election of the GMWB disqualifying owners from taking direct deductions of advisory fees under the administrative rules.
Response: We have made this revision.
Contract Options (pp. 7-8)
7.In the subsection titled “Fixed Account Value”, where you provided the numbered list definition for Fixed Account Value, please revise “charges for add-on benefits” to “GMWB Charge.”
Response: We have made this revision.
8.In the last paragraph of the subsection titled “Index Adjustment”, should these references include mention of GMWB Charge deductions in addition to Intra-Term Performance Lock and withdrawals?
Response: Yes. We have made this revision.
Access To Your Money (pp. 9-10)
9.In the third full paragraph following the bullet points at the beginning of this section, it appears you are missing a reference to GAWA withdrawals. Please revise.
Response: We have made this revision.
10.In the first paragraph of the RMD Notes table in the subsection titled “Required Minimum Distributions Under Certain Tax Qualified Plans (“RMDs”)”, please note the reference to waiver of applicable charges. This should be revised consistent with the treatment in the Advisory product, which does not contain a waiver of withdrawal charges provision.
Response: We have made this revision.
Death Benefit (p. 11)
11.Because taking withdrawals to pay advisory fees impacts the basic death benefit, please include disclosures in this section providing notice of those impacts.
Response: We have made this revision.
Appendix A (p. 12)
12.Please ensure the accuracy of the page numbers for the examples included in the table of contents.
Response: We confirm the accuracy of these page numbers.
13.The first bullet under Example 16 makes reference to the example being a continuation of Example 17. Should this say it is a continuation of Example 15?
Response: Yes. We have made this revision.
Additional Non-Material Changes
Please note that additional non-material revisions have been made in response to internal routing review. You will see those tracked changes in the courtesy copy of the full marked copy of the prospectus.
Please contact me at (517) 367-3754 if you have any questions or require additional information.
Market Value Adjustment A positive or negative adjustment applied to withdrawals from your Contract in excess of the MVA Free Withdrawal amount or in excess of the GAWA (or RMD if applicable), including partial and total withdrawals, and income payments under certain income options when commenced within the first Contract Year. Market Value Adjustments may apply during the first six years of the Contract when any portion of Contract Value is withdrawn or annuitized. Certain withdrawals and income options are exempt from Market Value Adjustments. For more information about Market Value Adjustments, including details about certain withdrawals that are exempt from Market Value Adjustments, please see the section titled “Market Value Adjustment" on page 52.51. In some states we do not apply an MVA. For more information, see "Appendix B: State Variations". Death Benefit For Owners 80 or younger at the Issue Date of the Contract, the standard death benefit (known as the Return of Premium death benefit) is the greater of the Contract Value or the Premium you paid into the Contract (reduced proportionately by the percentage reduction in the Index Account Option Value and the Fixed Account Value for each partial withdrawal (including any applicable Market Value Adjustment)). For Owners age 81 or older at the Issue Date of the Contract, the standard death benefit is the Contract Value. Income Options You can choose to begin taking income from your Contract at any time, but all of the Contract Value must be annuitized. Market Value Adjustments will apply if you begin taking income in the first six years, and we will use your Interim Value (if you begin taking income on any day other than the Index Account Option Term Anniversary) to calculate your income payments. You may choose from the following annuitization options: - Life Income - Joint Life and Survivor Income - Life Income with Guaranteed Payments for 10 Years or 20 Years - Life Income for a Specified Period Once an income option has been selected, and payments begin, the income option may not be changed. No withdrawals will be permitted once the contract is in the income phase. For more information about income options, please see the section titled "Income Options" on page 53.53. Additional income options may be available if you elect to add the +Income GMWB or +Income GMWB with Joint Option to your Contract. For more information, please see "GMWB Income Options" on page 46.46. Charges and Expenses You will bear the following charges and expenses: - Market Value Adjustments (for the first six years of the Contract); - GMWB Charge if you elect the add-on GMWB; and - Premium and Other Taxes. Additionally, if you take a withdrawal before the end of your Term (including automatic withdrawals, GAWA withdrawals, Required Minimum Distributions, income payments, death benefit payments, Free Looks and Intra-Term Performance Locks), we will calculate an Interim Value adjustment (in addition to any applicable Market Value Adjustment), which may serve to limit amounts credited to less than the amount of the Index Return on the date of the withdrawal. Also, in the case of a withdrawal before the end of the Term where the Index Return is negative, less protection is provided the earlier in the Term the withdrawal occurs. Please note that the Contract also imposes Caps that can limit amounts credited to less than the amount of the Index Return on the date of the withdrawal. Free Look Provision You may cancel the Contract within a certain time period after receiving it by returning the Contract to us or to the financial professional who sold it to you. This is known as a “Free Look.” We will return either your Premium Payment or Contract Value, depending on your state, and we will not deduct any fees or charges. Free Looks are subject to Interim Value adjustments. 7
Income Date - the date on which income payments are scheduled to begin as described in the Income Payments section of the prospectus. Index - a benchmark used to determine the positive or negative Index Adjustment credited, if any, for a particular Index Account Option. Index Account - a Contract Option in which amounts are credited positive or negative index-linked interest for a specified period. Index Account Option - an option within the Index Account for allocation of Premium, defined by its term, Index, Crediting Method, and Protection Option. Index Account Option Term - the selected duration of an Index Account Option. Index Account Option Term Anniversary - the Business Day concurrent with or immediately following the end of an Index Account Option Term. Index Account Option Value - the value of the portion of Premium allocated to an Index Account Option. Index Account Value - the sum of the Index Account Option Values. Index Adjustment - an adjustment to Index Account Option Value at the end of each Index Account Option Term, or at the time of withdrawal of Index Account Option Value. Index Adjustments can be zero, positive or negative, depending on the performance of the selected Index, Crediting Method, and Protection Option. The Index Adjustment is equal to the Adjusted Index Return. Index Adjustment Factor(s) - the parameters used to determine the amount of an Index Adjustment. These parameters are specific to the applicable Crediting Method and Protection Option. Cap Rates, Performance Trigger Rates, Performance Boost Rates, Performance Boost Cap Rates (applicable only with the Performance Boost Rate Crediting Method), Index Participation Rates (applicable only with the Cap Crediting Method), Buffers, and Floors are all Index Adjustment Factors. Index Participation Rate ("IPR") - the percentage applied to any positive Index Return in the calculation of the Index Adjustment for the Cap Crediting Method. The IPR is an Index Adjustment Factor, and is declared at the beginning of the Index Account Option term. The IPR is guaranteed to be at least 100%, and will never serve to reduce an Index Adjustment. The IPR is not a stand-alone Crediting Method. It is applicable only with the Cap Crediting Method. Index Return - the percentage change in an Index value measured from the start of an Index Account Option Term to the end of the Index Account Option Term. Interim Value - the Index Account Option Value during the Index Account Option Term. The Interim Value will never be less than zero. On each day of the Index Account Option Term prior to the end of the Index Account Option Term, the Interim Value is the greater of the Index Account Option Value on the first day of the term (which equals any Premium or Contract Value allocated to the Index Account Option on that day) reduced for any withdrawals (including GAWA withdrawals, Required Minimum Distributions, income payments, the Contract Value element of death benefit payments, and Free Looks) or Intra-Term Performance Locks transferred from the Index Account Option during the term, including any Market Value Adjustments, in the same proportion as the Interim Value was reduced on the date of the withdrawal or Intra-Term Performance Lock, plus the prorated Index Adjustment subject to prorated Index Adjustment Factors, where applicable, or zero. Neither the Floor nor the Index Participation Rate Index Adjustment Factors are prorated. The Interim Value uses applicable prorated Index Adjustment Factors (based on the elapsed portion of the Index Account Option Term), but neither the Floor nor the Index Participation Rate Index Adjustment Factors are prorated for the purposes of calculating Interim Value prior to the end of the Index Account Option Term. The Interim Value is calculated on each day of the Index Account Option Term, other than the first and last days, and is the amount of Index Account Option Value available for withdrawal or Intra-Term Performance Lock prior to the end of the Index Account Option Term. Intra-Term Performance Lock- a Contract feature that permits the one-time reallocation of Interim Value from an Index Account Option to the Short Duration Fixed Account Option prior to the end of the Index Account Option Term. Intra-Term Performance Lock Date - the date Interim Value is reallocated to the Short duration Fixed Account Option in connection with an Intra-Term Performance Lock. Issue Date - the date your Contract is issued. Jackson, JNL, we, our, or us – Jackson National Life Insurance Company. (We do not capitalize “we,” “our,” or “us” in the prospectus.) Latest Income Date ("LID") - the date on which you will begin receiving income payments. The Latest Income Date is the Contract Anniversary on which the Owner will be 95 years old, or such date allowed by the Company on a non- discriminatory basis or required by a qualified plan, law or regulation. 10
Market Value Adjustment ("MVA") - a positive or negative adjustment we may apply to amounts you withdraw or annuitize during the first six years of the Contract that are in excess of the MVA Free Withdrawal amount or in excess of the GAWA (or RMD if applicable), including partial and total withdrawals, or income payments commenced within the first Contract Year. MVA Free Withdrawal - the maximum amount that may be withdrawn each year free of any otherwise applicable Market Value Adjustment. The MVA Free Withdrawal amount is equal to 10% of Remaining Premium during each Contract Year that would otherwise incur an MVA, less earnings. Any amount withdrawn to satisfy a required minimum distribution reducesIf an RMD or GAWA is applicable and exceeds 10% of Remaining Premium, the MVA Free Withdrawal amount is equal to the greater of available MVA Free Withdrawal. the RMD or GAWA, less earnings. Owner, you or your – the natural person or legal entity entitled to exercise all rights and privileges under the Contract. Usually, but not always, the Owner is the Annuitant. The Contract allows for the naming of joint Owners. (We do not capitalize “you” or “your” in the prospectus.) Any reference to the Owner includes any joint Owner. Performance Boost Cap Rate ("PBCR") - an Index Adjustment Factor associated with the Performance Boost Crediting Method. The PBCR is the maximum positive Index Adjustment, expressed as a percentage, that could be credited to an Index Account Option under the Performance Boost Crediting Method at the end of each Index Account Option Term. The Performance Boost Cap Rate is not a stand-alone Crediting Method. It is applicable only when you select